Galena emerges from production delays

Base metals producer Galena Mining has resumed production at its flagship Abra mine in the Gascoyne region after it was impacted by weather induced delays.

The West Perth-based company’s lead and silver mine was impacted by a significant rainfall event during the last week of March.

The mine, located between Newman and Meekatharra in the Gascoyne River catchment area, was isolated from the road and mining activities were reduced during April.

Galena said the delays had affected the company’s ramp-up of the mine, which reached first concentrate production in the first quarter of the 2023 calendar year.

The Abra mine is a joint-venture project, of which 60 per cent is owned by Galena and 40 per cent is owned by its subsidiary Abra Mining.

Managing director Tony James said the company was now focused on achieving its production targets.

“Unfortunately, activities during April were limited due to the loss of the roads to site following the rain in March,” he said.

“This interrupted the continued ramp-up of Abra mining and processing operations.

“The mine has now resumed its activities and is working to a plan that pushes towards our steady state target as quickly as possible.”

In late April, Galena announced it had raised $20 million from investors to bolster the ramp-up period of the Abra mine until expected completion in the second half of 2023.

Galena said its largest shareholder Warburton Group had supported the placement and subscribed for 23.8 million shares valued at $3.6 million.

But in a release on the ASX at the time, Mr James said the requirement for additional working capital during ramp-up was disappointing.

On the ASX, Galena shares were trading up 4 per cent to 13 cents at 12.39PM AEST.