TORONTO, April 29, 2022 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to announce the release of its financial results for the year ended December 31, 2021. All amounts are in United States dollars unless otherwise indicated.
A copy of the audited consolidated financial statements for the year ended December 31, 2021 prepared in accordance with International Financial Reporting Standards and the corresponding Management’s Discussion and Analysis will be available under the Company’s profile on www.sedar.com.
2021 Highlights
- Galaxy announced the commencement of commercial production as of October 1, 2021 as a result of the ramp up of production.
- For 2021, Galaxy:
- mined 62,086 tonnes of ore, from its Galaxy and Princeton ore bodies, with an average grade of 4.75 grammes per tonne (g/t);
- milled 130,634 tonnes, including tailings retreatment, at an average grade of 2.94 g/t;
- produced 8,349 tonnes of concentrate at an average grade of 33.23 g/t and contained ounces of 8,319; and
- generated revenue of $9.4 million from the sale of 5,455 ounces.
- In the period post commercial production (Q4 2021) Galaxy:
- mined 18,314 tonnes of ore, from its Galaxy and Princeton ore bodies, with an average grade of 3.95 g/t;
- milled 27,933 tonnes, including tailings retreatment, at an average grade of 3.66 g/t;
- produced 2,662 tonnes of concentrate at an average grade of 32.76 g/t and contained ounces of 2,440; and
- generated revenue of $2.9 million from the sale of 1,620 ounces, at a cash cost (before royalties) of $1,677 per ounce(1).
- Completed the acquisition of the Summit Mine and Banner Mill in New Mexico.
- Entered into an agreement for the disposition of the Mupane Mine which has been treated as an asset held for sale and discontinued operation in 2021.
2022 Update
- Galane has previously announced production guidance for Galaxy(2):
- 2022 – Payable gold ounces of between 15,500 to 18,500 at an all-in sustaining cost of between $900 to $1,000(2)(3).
- 2023 – Payable gold ounces of between 24,000 to 27,000 at an all-in sustaining cost of between $750 to $850(2)(3).
- The ramp up of production continues and is dependent upon the expansion of the current mining fleet. Orders have been placed but it is expected with the unprecedented demand for mining equipment there may be some delay in receiving the new equipment. The Company is working on plans to ensure it can meet the guidance provided for 2022.
- The Company expects to issue an update on the restart plan and internal preliminary economic assessment for the Summit Mine before the end of May 2022. The Company is re-evaluating the model on the basis of Galane Gold running the Summit Mine as an owner operator of underground mining due to the lack of availability of mining contractors.
Galane Gold CEO, Nick Brodie commented: “This time last year I told the market that the next two years will be a transformative period for Galane Gold. Since then, we have established a clear goal to become a long-life, low-cost producer. The commencement of commercial production at Galaxy, the acquisition of the Summit Mine and entering into an agreement for the disposition of Mupane are all significant milestones we completed during 2021 towards achieving this goal(2).
As a management team we know that this year will be even busier than last year, with the continued ramp up at Galaxy and the completion of the plans for the restart of operations at the Summit Mine(2). We continue to enjoy the challenges presented and proving ourselves to our stakeholders.”
About Galane Gold
Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in Botswana and South Africa, and mining assets in New Mexico, USA. 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) | Cash cost is a non-GAAP measure. Refer to “Supplemental Information to Management’s Discussion and Analysis” in the Company’s Management’s Discussion and Analysis for the year ended December 31, 2021, for reconciliation to measures reported in the Company’s financial statements. |
| (2) | This is forward-looking information and is based on a number of assumptions. See “Cautionary Notes”. |
| (3) | The all-in sustaining cost and 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. |
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 production targets at Galaxy, the expansions of the Company’s mining fleet at Galaxy, the Company’s plan to become a long-life, low-cost producer, the Company’s ability to complete the disposition of the Mupane property, the Company’s ability to restart operations at the Summit Mine, and 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 may specifically include, without limitation, statements relating to the Company’s ability to conduct operations amid COVID-19 related restrictions; the Company’s ability to put proper controls in place to retain funds and minimize the financial effect of COVID-19; the estimated impact of COVID-19 on the Company’s business and operations; and the ability of the Company to complete its Preliminary Economic Assessment to support the Phase 2 expansion at Galaxy. 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 current dependence on two operating mineral projects; gold price volatility; risks associated with the conduct of the Company’s mining activities in Botswana, South Africa and the United States; regulatory, consent or permitting delays; risks relating to the Company’s exploration, development and mining activities being situated in Botswana, South Africa and the United States; 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, including the Summit Mine; risks related to the disposition of the Mupane property; 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
