Galena Mining: Activities Report for Quarter Ended 31 December 2020

HIGHLIGHTS:

• Finalised US$100M in project financing debt facilities for the development of the Abra Base Metals Project, made up of:
  • US$100M Project Finance Facility; and
  • US$10M Cost Overrun Facility
• Received an A$20M investment tranche from Toho into AMPL
• Recommenced preparatory construction and site enabling works, with Project development works 12% complete at the end of the Quarter
• Successfully concluded the 2020 Abra Drilling Program with a total of 57 completed diamond drill-holes (~25km of drilling), taking total cumulative drilling on Abra to over 100km
• At the date of this report, assays have been published for 34 drill-holes, including the following highlights:

Five holes had cumulative significant lead-silver intersections >50m

• Best high-grade lead-silver drill hole ever at Abra (hole AB147), with
  >86m of cumulative significant intersections, including:
  • 17.5m at 9.6% lead and 34g/t silver from 266.2m
  • 20.9m at 7.3% lead and 20g/t silver from 288.1m
  • 35.5m at 15.1% lead and 22g/t silver from 321.8m
• 8.9m at 17.1% lead and 26g/t silver from 366.2m

One of the last drill-holes drilled in the Program (AB195) was drilled to target the interpreted copper and gold zone – Assays remain pending for that hole but it passed through an approximately 45m zone of visual intermittent massive and disseminated copper-bearing chalcopyrite mineralisation from a down-hole depth of 752m

A number of holes targeting lead-silver coincidentally extended into copper and gold mineralisation, with notable significant intersections including:

• 3.0m at 2.0% copper, 2.3g/t gold and 29g/t silver from 401.6m in AB174
• 6.0m at 1.8% copper and 1.3g/t gold from 391.8m in AB179
• 4.9m at 1.0 g/t gold and 24g/t silver from 424.2m in AB166

GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) reports on its activities for the quarter ending 31 December 2020 (the “Quarter”), largely focused on advancing its 77.28%-owned Abra Base Metals Project (“Abra” or the “Project”) located in the Gascoyne region of Western Australia.

ABRA BASE METALS PROJECT (77.28%)

Abra comprises a granted Mining Lease, M52/0776 and is surrounded by the Exploration Licence E52/1455, together with several co-located General Purpose and Miscellaneous Leases. The Project is 100% owned by Abra Mining Pty Limited (“AMPL”), which in turn is currently 77.28% owned by Galena, with the remainder owned by Toho Zinc Co., Ltd. (“Toho”) (pursuant to an
Investment Agreement and Shareholders Agreement with Toho).

Abra is fully permitted and commenced initial construction works in September 2019.

Click here for the full press release.