This work by a third-party mining contractor means that the construction by Abra Mining Pty Limited (AMPL), the joint venture company for the project, is 9% complete.
Having completed the box-cut work, the surface mining contractor has demobilised from the site.
“Site is de-risked”
Galenas managing director Alex Molyneux said: “Abra construction is now 9% complete and site is de-risked for full construction.
“Progress on debt financing has been slowed down by COVID-19 but were in robust financial shape and have been careful not to commit beyond our means.”
Abras box-cut is about 190 metres long (north-south) to a depth of 25 metres and an average width of about 45 metres (east-west).
The southern wall that is the base of the box-cut is the location of the future main portal for the underground mine decline.
The permanent camp at the Abra project.
Other preparation work
Other work carried out to prepare for full construction includes:
- Site clearing and site roadworks (including topsoil storage);
- Construction of the first stage of the permanent camp, including accommodation units for 80 persons along with a full-sized kitchen and messing facilities; and
- Installation of production water supply facilities and wastewater treatment facility.
Completing this work has reduced the risk of timing, access and synchronisation issues during mobilisation and works undertaken by the engineering construction and procurement (EPC) and underground mining contractors during the full construction phase.
The lead-silver project is around 110 kilometres from Sandfire Resources Limiteds (ASX:SFR) DeGrussa Project.
After the surface mining contractor has demobilised no further immediate action is required and the site will be maintained in suspension with an appropriate supervisory staffing level.
Full construction, inclusive of plant procurement and construction works and underground mine development, will remain on hold until completion of the project financing debt arrangement.
AMPL continues to engage in discussions with a short-listed group of banks regarding a project financing debt facility.
However, COVID-19 related market volatility and practical issues associated with travel/logistics restrictions have delayed the ability to complete credit approvals on a mutually agreed set of terms.
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