Galena Mining identifies new gold and base metals targets at Abra project

Galena Mining Ltd (ASX:G1A) has identified new gold and base metals drilling targets at the Abra Base Metals Project as well as within a recently expanded nearby Jillawarra project area. Recent work has identified gold mineralisation trends and associated key structures potentially controlling ingress of base and precious metals rich fluids into the deposit from depth. The company has subsequently developed priority drilling targets specifically for gold and copper at Abra, which is in Western Australia's Mid-West. Focus on 'game-changers' Managing director Alex Molyneux said: “Galena released an excellent feasibility study for Abra late-2019. “Whilst financing is underway we tasked our geological team to focus on ‘game-changers’ for Galena, including the identification of high-priority target zones for gold and copper mineralisation at Abra, and finding the ‘next Abra’ on our now 76 kilometre-strike of 100%-owned tenements to the west of Abra. “I’m pleased to announce the results of the work to date, which involved new geophysical surveys and a ‘first principles’ review of other available data. “We also acquired a new strategic tenement to consolidate our position over prospective precious and base metals ground in the Edmund Basin, linking the Abra area to our Jillawarra project.” Significant gold and copper Since the acquisition of Abra Mining Pty Limited (AMPL) in 2016, Galena has completed 39,228 metres of diamond drilling bringing the total amount of drilling at Abra to 78,380 metres. Although previous drilling programs were not designed to systematically test gold-copper zones, several holes intersected significant gold and copper mineralisation, including: 12 metres at 6.72 g/t gold from 706 metres, including 8 metres at 9.5 g/t from 706 metres; 10.33 metres at 1.32 g/t gold and 1.63% copper from 631.09 metres, including 7.99 metres at 1.5 g/t and 1.91% from 633.43 metres; and   10.88 metres at 1.02 g/t gold from 600.8 metres, including 5.85 metres at 1.18 g/t from 605.83 metres. These intersections in combination with historical intersections and a recently conducted electromagnetic (EM) survey, indicate the presence of significant gold and copper zones at Abra. Isometric view of the Abra deposit looking east, showing the stope design and lateral development for the lead-silver mineralisation (green), and the distribution of known gold and copper mineralisation (red and gold) Priority drilling targets The company’s geological team has developed high confidence in the identification of two north-northeast to south-southwest structures which appear related to gold distribution at Abra. The coincidence of these structures is also related to the possible source of lead-silver-copper-gold mineralisation at Abra. A high-grade silver channel within the lead-silver mineralised zones appears to rise to the northwest from the interpreted fluid ingress location. However, almost all observed gold and copper intersections appear to the east and southeast of the fluid ingress point, giving rise to the potential for more contiguous high-grade gold-copper channels in the deeper southeast area of Abra. Galena considers the interpreted fluid ingress point and the gold channel zones as high priority drilling targets. Copper Chert acquisition Galena has recently lodged an Exploration Licence Application (E52/3823) over tenure proximal to Abra, containing the Copper Chert prospect. The tenement is a strategic addition, as it is around 50 square kilometres in size and hosts significant historical copper intercepts up to 14 metres at 1.2% copper. The Copper Chert prospect also covers the area between the company’s existing wholly-owned 461 square kilometre Jillawarra exploration licence package to its west and the licence package of Galena’s 86.16% owned subsidiary AMPL to its east. Galena tenement package, including Jillawarra Project and the newly acquired Copper Chert Tenement, as well as the AMPL licence package Gravity survey at Jillawarra Galena has just completed a large geophysical survey program for its Jillawarra project with preliminary data indicating several gravity anomalies coincident with magnetic anomalies near important regional structures. Drill targets will be defined after the data processing is complete and depth to gravity targets are estimated. Next steps Further drill testing of the gold-copper mineralisation at Abra is considered the priority, particularly given the potential value a successful program would add to Abra’s existing development plans. Being able to combine gold-copper drilling with a drilling program aimed at optimising the lead-silver zone and / or further infill drilling at the same time presents a real value opportunity for the company. On the Jillawarra projects, the company will complete the geophysical interpretation program based on the newly acquired data whilst consideration is given to the scale and nature of the next drilling campaign, including coverage of the expanded tenement package. Project financing To date, A$19.7 million has been spent on project development at Abra to complete 11% of project works. Abra is ready to move to the main procurement, construction and underground mine development phase upon the finalisation of further project financing in addition to the $60 million final investment tranche to be received from the company’s project partner, Toho Zinc Co Ltd (TYO:5707) as part of their overall $90 million project equity investment.