Galane Gold Ltd. Is Pleased to Announce That It Has Reached the Galaxy Ore Body
TORONTO, Feb. 26, 2021 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to announce that it has completed a new 2.2 kilometer adit and has accessed the Galaxy ore body at its Galaxy property (the “Mine”, or “Galaxy”) in South Africa.
This represents the final material step required in the Company’s plan to unlock the potential of Galaxy. The three key components of the Galaxy plan were the recommencement of mining at the Princeton ore body (achieved April 2019), the upgrade of the existing processing plant to 50,000 tonnes per month (achieved December 2020) and completing the adit to the Galaxy ore body.(2) The completion of the adit eliminates the historic constraint to underground production at the Mine, that being the capacity of the Woodbine shaft which was limited to 15,000 tonnes per month. The path is now clear to ramp up to the planned production of 43,000 ounces per annum at an operating cash cost of $749 per ounce. (1)(2)(3)
Galane Gold CEO, Nick Brodie commented: “I congratulate the team on what has been a gargantuan effort to help unlock the immense potential of Galaxy. Progressing at a maximum of three meters a blast for 2.2 kilometers can be challenging work, but every member of the team knew what it meant for the overall success of the project and are as committed on the last day as they were on the first day.
It is difficult to underestimate what this means for the Galaxy project as we have now successfully removed all the material constraints to ramping up production. Galane has now completed important steps to more than double its production, and at the same time, reduce its operating costs.”(3)
Highlights of the Galaxy Ore Body and the work done to access it
- A measured and indicated resource of 3,000,204 tonnes at 2.64g/t for a total of 254,241 ounces(2)
- An inferred resource of 2,383,040 tonnes at 2.83g/t for a total of 216,623 ounces
- A 2.2 kilometer long adit from the surface measuring 5 meters high and 3.2 to 5 meters wide
- The movement of 122,641 tonnes of waste rock
- The discovery of a new mineralised zone, the Golden Comet, while mining the adit
The main Galaxy access drive has intersected the underside of the 55 degree easterly dipping Galaxy mineral zone. Initial grades on the 8 meter wide exposure (face and sidewall) are up to 3 g/t, and reflect the highly altered nature of the ore body at this point. The drive is turning into the mineralisation and will intersect more silicified and higher levels of sulphides (with wider zones of mineralisation and higher grades). The primary infrastructure will continue to establish the production ramp and access to the first level of stoping. Diamond cover drilling has also started to provide geological and grade control information.
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.
| Notes: | |
| (1) | Operating cash cost is a non-generally accepted accounting principles ("GAAP") measure. Refer to “Non-GAAP Measures” below and “Supplemental Information to Management’s Discussion and Analysis – Cash Costs” in the Company’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2020 (the “MD&A”), for reconciliation to measures reported in the Company’s financial statements. |
| (2) | The deposits at the Galaxy mine are supported by a technical report entitled “NI 43-101 Technical Report on the Galaxy Gold Mine, South Africa” which was issued on July 3, 2020 (the “Technical Report”), with an effective date of June 29, 2020, a copy of which is available under the Company’s profile on www.sedar.com. The Technical Report was prepared by Minxcon (Pty) Ltd and approved by Mr. Uwe Engelmann, BSc (Zoo. & Bot.), BSc Hons (Geol.) Pr.Sci.Nat., MGSSA, and Mr. Daniel (Daan) van Heerden, B Eng (Min.), MCom (Bus. Admin.), MMC, Pr.Eng., FSAIMM, AMMSA, both “qualified persons” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), and independent of the Company for the purposes of NI 43-101. The preliminary economic assessment (“PEA”) supported by the Technical Report is preliminary in nature as the resources included in the PEA are comprised 54% of inferred mineral resources. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized. |
| (3) | This is forward-looking information and is based on a number of assumptions. See “Cautionary Notes”. |
Non-GAAP Measures
This press release makes reference to certain non-GAAP measures including operating cash cost. These measures are not recognized measures under Canadian GAAP and do not have a standardized meaning prescribed by GAAP. Therefore these measures may not be comparable to similar measures presented by other issuers. However, the Company believes that these measures are useful to assist readers in evaluating the total costs of producing gold from current operations. For more information regarding the non-GAAP measures used by the Company, see the information under the heading “Supplemental Information to Management’s Discussion and Analysis” in the MD&A. The financial statements for the three and nine months ended September 30, 2020, and the MD&A are available on SEDAR at www.sedar.com.
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 expansion at the Mine, mining strategies at the Mine, technical, financial and business prospects of the Company, 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. 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
