Galena Mining Ltd Reports Strong Recovery and Ramp-up Progress at Abra Base Metals Mine Galena Mining Limited

Galena Mining Ltd Reports Strong Recovery and Ramp-up Progress at Abra Base Metals Mine

Galena Mining Ltd. ("Galena" or the "Company") (ASX: G1A) announces its activities for the quarter ended 30 June 2023, highlighting the ongoing production ramp-up at the Abra Base Metals Mine. The Company has made significant progress in both the underground mine and the processing plant, aiming to achieve steady-state production in the second half of 2023.

Highlights

Strong recovery achieved with May and June physicals following limited activities in April due to rainfall events.

Ore mined of 194,644t at 5. 4% Pb grade and 16. 9g/t Ag grade, with 190,258t of ore processed at 5.

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1% Pb grade and 19. 0g/t Ag grade for the Quarter.

Second and third in-specification lead concentrate shipments of approximately 5kt each completed during the Quarter, doubling revenue from the previous quarter to around A$20. 4 million.

July month-to-date performance on track to achieve first positive monthly operating cash flow. Over 90% of the next ~9-10kt concentrate shipment produced, and a committed shipment is set for loading between 28 July and 4 August.

Significant progress made in underground development, achieving a 1,583m advance during the Quarter. The decline reached 1,234mRL (312m vertically below the surface). Underground stope production achieved 81,592t at 6. 3% Pb grade.

Cash balance at Quarter-end of A$19. 3 million.

Galena completed an oversubscribed placement to provide additional working capital funding for the Abra ramp-up.

September quarter mining plans set to achieve over 2,000m development and over 250,000t stope production, with over 300,000t of ore expected to be processed.
Targeting ~25-30kt of lead concentrate shipments to generate positive operating cash flows.

Strong Recovery and Production Progress

Galena Mining Ltd. has successfully recovered from limited production activities in April, setting new project highs in both May and June. The Company's focus remains on increasing mine production levels, with the plant demonstrating its capacity to process everything in front of it so far.

Mine Development and Production Milestones

Significant progress has been made in underground development, achieving a 1,583m advance during the Quarter. With the decline reaching 1,234mRL (312m vertically below the surface), the Company has also achieved an underground stope production of 81,592t at 6. 3% Pb grade. As new work areas are established and the ratio of stoping ore to development ore increases, the lead grade is expected to improve even further in the coming months.

Financial Strength and Future Plans

At the Quarter-end, Galena Mining Ltd. maintained a cash balance of A$19. 3 million, highlighting its financial strength. The Company completed an oversubscribed placement to secure additional working capital funding for the Abra ramp-up.

Looking ahead, Galena Mining Ltd. has set ambitious mining plans for the September quarter. The Company aims to achieve over 2,000m of development and over 250,000t of stope production, with an expected processing volume of over 300,000t of ore. Additionally, Galena targets ~25-30kt of lead concentrate shipments, which are expected to generate positive operating cash flows.

Managing Director, Tony James, expressed confidence in the Company's progress, 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. Some very strong technical work has been completed to increase our confidence in hitting our targets. "

Galena Mining Ltd. continues to make significant strides in the ramp-up of the Abra Base Metals Mine, positioning itself as a key player in the mining industry. With strong recovery and progress in both production and development milestones, the Company is well on track to achieve its targets and deliver substantial value to its stakeholders.

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