- Galena Mining (G1A) has acquired the Higginsville Gold Operations Pastefill Plant (HPP) from Westgold Resources for roughly $2.25 million
- Galena bought this plant as a cost-saving method to be applied to its Abra Base Metals Project in the Gascoyne region of WA
- The company and its joint venture partner, Abra Mining, will refurbish and reinstall the HPP plant at the Abra Project
- This will provide the paste backfill cement needed to supply Abra’s underground mining operation
- Galena Mining is up 8.11 per cent and shares are trading for 20 cents each
Galena Mining (G1A) has acquired the Higginsville Gold Operations Pastefill Plant (HPP) from Westgold Resources for roughly $2.25 million.
Galena acquired HPP for its Abra Base Metals Project which is part of its joint venture with Abra Mining. Galena owns an 86.16 per cent interest in the project.
The plant will then be refurbished and reinstalled at the Abra Project to provide the paste backfill cement needed to supply Abra’s underground mining operation.
“The refurbished and reinstalled HPP is much cheaper than alternatives but it’s also a technically robust solution to Abra’s paste fill requirements. I’m pleased the opportunity presented itself to complete its acquisition,” Managing Director Alex Molyneux said.
The HPP was designed and built by GR Engineering Services in 2008 as part of its contract to supply the one million tonne per annum Higginsville Treatment Plant.
The HPP is currently on care and maintenance but has reportedly been well maintained after a reliable operating history.
The Abra Base Metals Project is a significant lead and silver project located in the Gascoyne region of Western Australia.
Galena completed a definitive and bankable feasibility study for the development of a mine and processing facility. The study highlighted a 16-year life project producing a high-value, high-grade lead-silver concentrate containing approximately 95,000 tonnes of lead and 805,000 ounces of silver per year after ramp-up.
Based on a pre-development capital expenditure estimate of $170 million, the study modelled a $553 million pre-tax net present value for Abra.
Galena Mining is up 8.11 per cent and shares are trading for 20 cents each at 2:35 pm AEST.