Galena Mining Ltd Reports Strong Recovery and Ongoing Production Ramp-Up at the Abra Base Metals Mine Galena Mining Limited

L Lykshares 2y Staff

Galena Mining Ltd Reports Strong Recovery and Ongoing Production Ramp-Up at the Abra Base Metals Mine

Sydney – July 24, 2023 – Galena Mining Ltd (ASX: G1A) releases its Activities Report for the quarter ending June 30, 2023, showcasing significant progress in the production ramp-up of the Abra Base Metals Mine in Western Australia.

Ongoing Production Ramp-Up and Steady-State Production in Sight

Galena Mining's primary focus during the quarter was on achieving steady-state production at its 60%-owned Abra Base Metals Mine. The company made substantial progress in the ongoing production ramp-up of both the underground mine and the processing plant. The target is to achieve steady-state production in the second half of 2023.

Quarter Highlights
Galena Mining experienced a strong recovery in May and June following limited activities in April due to rainfall events. The company mined 194,644 tons of ore at a grade of 5. 4% Pb and 16.

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9g/t Ag, and processed 190,258 tons of ore at a grade of 5. 1% Pb and 19. 0g/t Ag. The completion of second and third in-specification lead concentrate shipments of around 5,000 tons each doubled the revenue from the previous quarter to approximately A$20. 4 million.

Positive Operating Cash Flows on the Horizon

Galena Mining is on track to achieve its first positive monthly operating cash flows in July. Over 90% of the next concentrate shipment has been produced, and a committed shipment is set for loading between 28 July and 4 August. These developments indicate the growing financial stability of the company.

Success in Underground Development

The underground development at the Abra Base Metals Mine achieved a significant milestone with a 1,583m advance during the quarter. The decline reached a depth of 1,234mRL, representing 312m below the surface. Underground stope production reached 81,592 tons at a grade of 6. 3% Pb. The Pb grade is steadily improving and is expected to continue doing so as new work areas are established and the ratio of stoping ore to development ore increases to meet required production levels.

Strong Financial Position

Galena Mining ended the quarter with a cash balance of A$19. 3 million. To support the ongoing ramp-up of the Abra project, the company completed an oversubscribed placement, securing additional working capital funding.

Future Plans and Outlook

Looking ahead to the September quarter, Galena Mining has set ambitious mining plans, aiming to achieve over 2,000m of development and over 250,000 tons of stope production. The company also expects to process over 300,000 tons of ore and target ~25-30kt of lead concentrate shipments. These milestones are crucial for generating positive operating cash flows and further propelling the project towards its production targets.

CEO Statement

Tony James, Managing Director of Galena Mining, expressed confidence in the progress made during the quarter, stating, "We made a strong recovery from no production in April to set new project highs in both May and June, and we expect to achieve first positive operating cash flows in July. The plant is showing its capacity to process everything put in front of it so far, and the focus remains on increasing mine production levels. The key to the mine reaching the levels required is good planning and execution. With the mine plans at 90% grade control status through to January 2024, we see the pathway well laid out to achieve our targets. "

About Galena Mining Ltd (ASX: G1A)

Galena Mining Ltd is focused on the development and production of base metals, primarily lead and silver. The company owns a 60% stake in the Abra Base Metals Mine located in the Gascoyne region of Western Australia. With ongoing production ramp-up and steady-state production in the near future, Galena Mining aims to become a significant player in the base metals industry, generating positive operating cash flows and delivering long-term value to its shareholders.

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