The new resource stands at 41.1 million tonnes grading 7.3% lead and 18 g/t silver.
The new resource estimate represents an 8% increase in contained lead and a 10% increase in contained silver over the previous December 2018 JORC estimate.
Also of note, a larger portion of the resource has been upgraded into the higher certainty JORC category of Indicated from the Inferred category.
Galena’s managing director Alex Molyneux said: “This resource upgrade provides a strong boost to both lead and silver metal tonnes but equally important in a practical sense, it has achieved our aim of significantly increasing geological confidence in the first three years of the proposed mine plan.”
Study already sees half-billion-dollar mine
The resource upgrade builds on the July 2019 feasibility study which valued a proposed 16-year lead-silver mine pre-tax at $553 million.
The study estimated Abra would produce 95,000 tonnes of lead and 805,000 ounces of silver per year for 1.24 million tonnes of lead and 10.6 million ounces of silver over the life-of-mine.
Early site construction work underway
Earlier this month, Galena revealed that infrastructure works had commenced at the Abra Base Metals Project.
Work included site clearing and roadworks, water supply and waste water treatment facility work, and construction of the work camp.
The company has started this work program prior to finalisation of key engineering procurement and construction (EPC) and mining services contracts for the construction of the plant and development of the boxcut/underground mine.
Proactive caught up with the company recently for an update.
Resource upgrade confirms successes of drilling
The Abra deposit can be divided into two main parts, the upper Apron Zone and the underlying Core Zone.
The 2019 development drilling program has succeeded in its main aim of increasing confidence in the north western Apron Zone sector, which is the first three years of the Abra mine plan.
Furthermore, additional high-grade lead-silver mineralisation has been defined in the north western sector of the Apron Zone that has potential to enhance early project cash flows.