A recent run of excellent drilling results is paying off for ASX listed base metals developer Galena Mining, who this week announced an updated mineral resource, ore reserve and mine model for its high grade Abra lead/silver project in the Gascoyne region of WA.
The new mineral resource is 37.5 million tonnes grading 7.5% lead and 18g/t silver, whilst the ore reserve estimate now sits at 10.3 million tonnes at an impressive 8.8% lead and 24g/t silver.
The revised mine model material of 16.4 million tonnes grading 8.2% lead and 22g/t silver compares very favourably with the company’s PFS reported in late September.
The increase in the mine model material adds approximately 1 year of extra life to the project, whilst increasing the average lead grade by nearly 6% and the average silver grade by 10%.
Importantly, the recent development drilling program has allowed a revision of the overall geometry of the resource model and hence the new mine model, which has resulted in a staggering 13km less of lateral underground mining development needed than that assumed in the PFS.
In combination with the higher resource grades, these lower development costs have the potential to materially improve the economic outcomes of the PFS, which the company will now re-optimise and update early next year.
Galena Managing Director Alex Molyneux said: “It’s really pleasing to continue Abra’s development with updated resources, reserves and a new mine model. We’re very excited about the extra grade and metal over the reduced lateral development and their combined potential for material enhancement to the economics of Abra.”
The new work for the PFS will take place as an interim update before the release of the definitive/bankable feasibility study for the project, but will not in itself delay the DFS in any way, which is still scheduled for completion by the middle of 2019.
