TORONTO, Aug. 09, 2021 - Galane Gold Ltd. ("Galane Gold" or the "Company") (TSX-V: GG; OTCQB: GGGOF) is pleased to announce that it has commenced stoping at the Galaxy ore body, and to provide an update on its operations and progress at the Summit Mine.
As of the end of July, Galane Gold has commenced stoping in the Galaxy ore body and expects to see a marked increase in tonnes delivered to the processing plant going forward. This represents the final milestone to be met as the Company ramps up production to over 26,000 ounces per annum.(1)(2) In addition, Galaxy has exceeded its production budget for the second quarter, producing 2,496 ounces of gold (1,872 payable ounces). The Company also notes that Galaxy experienced no material effects from the recent unrest in South Africa.
The Company's Mupane property has continued to suffer from lower production than expected in the second quarter with problems experienced at its main jaw crusher, employee absence due to COVID-19, issues with its main incoming transformer and production complications at Tau due to poor performance by its mining contractor. Production at Mupane for the second quarter was however slightly better than the first quarter at 5,858 ounces. The Company is working closely with its mining contractor to improve its performance and with the Botswana Power Corporation to improve the power supply to the mine. The Company is forecasting an improvement in production in the next two quarters.(1)
Senior management has revised its plan to advance the recently-acquired Summit Mine and Banner Mill and now believes that there is scope to accelerate its plan to bring the asset back into production given the favourable condition of the plant and the development that already exists at the underground operations. Planning has commenced and the Company hopes to provide the market with a comprehensive update on its plans at Summit before the end of 2021.
Galane Gold CEO, Nick Brodie commented: "It is disappointing that we continue to face challenges at Mupane but we will continue to work diligently to address them and expect production improvements moving forward.
"The results at Galaxy exceeded our expectations which was due to the additional hard rock feed and the mined grades being higher than the block models predicted. In addition, the commencement of stoping in Galaxy is the last milestone in the ramp up to the completion of Phase 1.
"Finally, on the site visit to Summit, I was impressed by the condition of both the mill and the underground. There is already almost two years of potential production available from stopes in the underground due to historic development that was not exploited before the mine went into care and maintenance in 2013. This represents a great platform for us to restart the operation with minimal capital investment."(1)
About Galane Gold
Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in Botswana, South Africa and New Mexico. 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.
|(1) ||This is forward-looking information and is based on a number of assumptions. See "Cautionary Notes". |
|(2) ||The deposits at Galaxy 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. |
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 Company's ability to make up for lost production at Mupane, the projected increase in production as the Company starts to mine at Galaxy, the recommencement of production at the Summit mine, 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. 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 three mineral projects; gold price volatility; risks associated with the conduct of the Company's mining activities in Botswana, South Africa and New Mexico; regulatory, consent or permitting delays; risks relating to the Company's exploration, development and mining activities being situated in Botswana, South Africa and New Mexico; 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:
CEO, Galane Gold Ltd.
+ 44 7905 089878