Galane Gold Ltd. Announces the Discovery of a 22nd Mineralised Zone at Its Galaxy Property

TORONTO, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to announce the discovery of a 22^nd mineralised zone at its Galaxy property (the “Golden Comet”).

Galaxy is currently developing the 22 level access to the main Galaxy ore body. During development, the Company intersected the Golden Comet, a new mineralised zone which is located within the Galaxy – Giles – Woodbine structural corridor. The Company made the decision to undertake an exploration drive along the mineralised zone and develop westward for 45 metres “on reef”, until it terminated against a north-south trending dyke. The Golden Comet was intersected further to the east in the main 22 level Galaxy access development, and therefore the total indicated strike length of mineralised zone is approximately 100 metres. A review by Galane geologists of the extensive historical records at Galaxy has indicated that the Golden Comet can be structurally correlated to a historical development on 24 level, which was referred to as the South Lead. The historical development on 24 level is approximately 110 vertical meters below the current 22 level of development. Further work will be undertaken to confirm the details of the Golden Comet extension.

Nick Brodie, CEO, commented “We are all aware of the potential of the Galaxy mine camp and this discovery is proof of the continued development potential with the existing 21 known mineral zones.

We do not believe that the Golden Comet will be the last new mineralised zone we will find and we are designing a thorough exploration program to be initiated once we have reached the Galaxy ore body.”

Channel Samples

On the 45 metre exploration drive, the average width of the mineralised zone was 2.73 meters with an average grade of 1.92 g/t, based on the range of sample grades for the channel samples outlined below:

To ensure the Company could accurately map the new mineralised zone, the average mining width of the exploration drive was 4.65 metres. The 45 metres of development yielded approximately 2,500 tonnes of mineralised material, which based on the quality-assured and quality-controlled (“QA/QC”) channel sampling, averaged a diluted exploration development grade of approximately 1.30 g/t, based on a range of 0.23 – 2.99 g/t. The quantity and grade of this mineralised material is currently conceptual in nature, there has been insufficient exploration to define a mineral resource in the Golden Comet, and it is uncertain if future exploration in the Golden Comet will result in the mineralised material being delineated as a mineral resource.

The Golden Comets geological characteristics are similar to that of the Woodbine and Giles reefs, which consist of narrow quartz-carbonate-pyrite veins and are developed within chloritised and silicified zones of shearing within siltstone host rocks. The mineralised development material was processed through the Galaxy plant and the metallurgical recoveries achieved were similar to those associated with the Galaxy orebody.

Channel sampling and QA/QC procedure

The objective of the channel sampling at the Golden Comet was to cut a linear channel 90˚ across the vein or orebody in order to obtain the most representative sample possible for a designated interval. The sampler recorded sampling information relating to the Golden Comet including the mine name, workplace and peg to face measurement, and face width, and also prepared a sketch of the face showing basic geology, sample section and sample intervals. The sampler also offset the sidewalls, every 2 meters, 10 meters behind the face, and the sample section was marked 0.5m below grade line. Standardized sampling directions and ideal sample lengths of ±1 meters for waste development sidewalls and ±0.5m for ore drive faces were adhered to, in order to maintain consistency in the channel sampling.

The sampling interval was also taken after every blast in an ore drive, at an interval of between 3 meters and 6 meters in an ore. Sidewalls of cross cuts accessing the reef were also sampled. A standard channel sample cut consisted of two parallel lines 30mm apart and 15 mm deep. Sample intervals were then marked across the channel cut and overlapped the hangingwall and footwall reef contact by 2 cm into the waste. At least 50% of the material between the two cuts must be chiseled out. Material was collected on a sample tray and any contamination from outside of the cut lines was discarded. Each sample was individually bagged and tagged with the sample number. A random sample number was reserved for a standard and a blank for each sample section/face was inserted for QA/QC.

Laboratory QA/QC

The laboratory employed standard controls and checks. All samples carried duplicate ticket numbers. On average, every fifteenth sample was repeated as an inline duplicate, which also checked for errors and gaps in the sample sequence. The layout of pots and cupels in the furnace was marked with a copper pattern key to avoid errors in orientation. Should an error arise in this procedure, the entire batch was re-assayed.

About Galane Gold

Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in Botswana and South Africa. Galane Gold is a public company and its shares are quoted on the TSX Venture Exchange under the symbol “GG” and the OTCQB under the symbol “GGGOF”. Galane Gold’s management team is comprised of senior mining professionals with extensive experience in managing mining and processing operations and large-scale exploration programmes. Galane Gold is committed to operating at world-class standards and is focused on the safety of its employees, respecting the environment, and contributing to the communities in which it operates.

Cautionary Notes

Certain statements contained in this press release constitute “forward-looking statements”. All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company’s future financial position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions or the negative thereof, are forward-looking statements. Forward-looking statements in this press release includes statements made herein with respect to, among other things, the Company’s objectives, goals or future plans, exploration results, potential mineralization, and exploration and mine development plans. These statements are not historical facts but instead represent only the Company’s expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements.

Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to: the Company’s dependence on two mineral projects; gold price volatility; risks associated with the conduct of the Company’s mining activities in Botswana and South Africa; regulatory, consent or permitting delays; risks relating to the Company’s exploration, development and mining activities being situated in Botswana and South Africa; risks relating to reliance on the Company’s management team and outside contractors; risks regarding mineral resources and reserves; the Company’s inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks arising from the Company’s fair value estimates with respect to the carrying amount of mineral interests; mining tax regimes; risks arising from holding derivative instruments; the Company’s need to replace reserves depleted by production; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of COVID-19; the economic and financial implications of COVID-19 to the Company; operating or technical difficulties in connection with mining or development activities; lack of infrastructure; employee relations, labour unrest or unavailability; health risks in Africa; the Company’s interactions with surrounding communities and artisanal miners; the Company’s ability to successfully integrate acquired assets; risks related to restarting production; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; development of the Company’s exploration properties into commercially viable mines; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; risks related to the market perception of junior gold companies; and litigation risk. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.

Information of a technical and scientific nature that forms the basis of the disclosure in the press release has been prepared and approved by Kevin Crossling Pr. Sci. Nat., MAusIMM. and Business Development Manager for Galane Gold, and a “qualified person” as defined by NI 43-101. Mr. Crossling has verified the technical and scientific data disclosed herein and has conducted appropriate verification on the underlying data.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information please contact:
Nick Brodie
CEO, Galane Gold Ltd.
+ 44 7905 089878
Nick.Brodie@GalaneGold.com
www.GalaneGold.com