Galena Mining Ltd’s (ASX:G1A) high-grade lead results of up to 16% over 5.5 metres are likely to provide additional resource tonnes in the first years of production at Abra Base Metals Project in WA.
Results have been received from a further six holes which are part of a resource development drilling program at the lead-silver-copper-gold-zinc project in the Gascoyne region.
The program is primarily targeting the Apron Zone and is designed to increase confidence in parts of the resource for a pre-feasibility study.
This is expected to be completed in September and will be followed up with a feasibility study for completion in mid-2019.
Galena CEO Ed Turner said, “We are very pleased with these results as they continue to support our geological and resource model for the Abra deposit.
“This drives our optimisations as well as adds additional tonnes in areas closest to surface which can be exploited in the first year of production.”
One hole returned 5.5 metres at 16.0 % lead and 22 g/t silver from 291.9 metres, and 6.1 metres at 8.1% lead and 11 g/t silver from 327.9 metres.
Resource extensions have been identified up-dip in the northwest sector, which are expected to provide additional high-grade resource tonnes in the first production years.
3D model of the Core and Apron zones showing drilling results and resource outlines.
Another hole returned 13.3 metres at 9.0% lead and 20 g/t silver from 416.5 metres; 6 metres at 8.1% lead and 15 g/t silver from 495 metres; and 6.7 metres at 8.9% lead, 28 g/t silver and 0.3% copper from 640.8 metres.
Other results include 4.3 metres at 8.1% lead and 10 g/t silver from 562.9 metres, and 6.1 metres at 13.4% lead and 16 g/t silver from 622.9 metres with mineralisation open down-dip to the southeast.
The program was based on underground optimisation work published in a recent scoping study.
Drilling aimed at converting inferred resources to the indicated status is ongoing with one rig.
In addition, drilling is testing for extensions to lead-silver mineralisation in several key areas where there is potential to add to the resource.
Turner said: “Intersecting more economic mineralisation in the northwest sector outside the existing resource has meant additional drill holes have been added to the current program in this area.
“Results are pending for most of these holes.
“We look forward to releasing further results from this drilling program in the coming weeks and the results of the pre-feasibility study in September.”
Economically and technically robust
The scoping study has confirmed Abra as an economically and technically robust opportunity, with the potential to become a significant, long-life, high-margin lead-silver producer.
Abra is about 110 kilometres from Sandfire Resources NL’s (ASX:SFR) high-grade Degrussa copper mine, is well serviced by infrastructure and is about halfway between Mt Newman and Meekatharra.
At a 5.0% lead cut-off, it hosts a 36.6 million tonne resource at 7.3% lead and 18 g/t silver.
Within this is an indicated resource of 13.2 million tonnes at 7.9% lead and 19 g/t silver, and an inferred resource of 23.5 million tonnes at 6.9% lead and 17 g/t silver.