Galane Gold Ltd. announces production results for Q3 2017 and an updated mine plan for Tau
TORONTO, ONTARIO--(Marketwired - Oct 5, 2017) - Galane Gold Ltd. ("Galane Gold" or the "Company") (TSX VENTURE:GG) is pleased to announce that it produced a total of 9,535 ounces of gold for the third quarter ending September 30, 2017. Furthermore, new data has resulted in the Company revising its current Tau underground mine plan to add a further 44,300 ounces of gold, as described below.
The Company's Mupane property faced various challenges in the first two quarters of 2017 caused by higher than average rainfall and damage to its mill motor (as reported in its Management's Discussion & Analysis for the three and six month periods ended June 30, 2017, a copy of which is available under the Company's profile on www.sedar.com). The third quarter production of 9,535 ounces of gold is representative of the expected quarterly production from Mupane under the current mine plan.
The current mine plan for Tau prepared by the Company was based on the results of historic exploration and envisaged the mining of 85,000 ounces of gold over three and a half years as reported in the Company's press release of May 12, 2014.(1)(2) The new mine plan prepared by the Company has added a further 44,300 ounces of gold and an expected 20 months of additional production. The additional ounces and life can be attributed to the conversion of inferred mineral resources to measured and indicated mineral resources, as well as the discovery of the potential extension of the Tau mineralized body at depth as announced in the Company's press release of October 24, 2016.(3) These additional resources and the potential extension of Tau have not been incorporated into the existing resource model found in the Technical Report.(2) There has yet to be sufficient exploration on the potential expansion to extrapolate that it extends beyond the current mined area. Exploration drilling has commenced on the extent of this potential extension and the Company expects to provide an update on the results of this exploration early in 2018.
Galane Gold CEO, Nick Brodie commented: "I am pleased that our strong management team reacted quickly and effectively to the issues presented to them in the first half of 2017 and have returned Mupane back to full production.
With regards to Tau, our decision to move to underground operations has been supported again with the mineralized body proving to be more rich than originally envisaged. We are optimistic that our exploration program will confirm the extension of the Tau mineralized body at depth. We therefore expect that Tau will form the backbone of the operations for a time greater than that contemplated in the current mine plan."
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". 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) | Underground commercial production at the Company's Tau property commenced in the third quarter of 2015. The decision to commence underground production at the Tau property and the mine plan prepared by the Company are based on internal reporting by the Company following open pit mining, and not based on an independent feasibility study or pre-feasibility study of mineral reserves demonstrating economic and technical viability. While there is some increased uncertainty and economic and technical risks associated with the Company's production decision to proceed without an independent feasibility study, the Company has been mining underground at the Tau property for the past two years, it carried out its own internal feasibility study based on its historic mining to support the new mine plan and, as a result, it believes it has sufficient knowledge to manage the risks associated with that decision. | |
| (2) | The deposits on the Tau property are supported by a technical report in respect of the Mupane property entitled "Independent Technical Report on the Mupane Gold Mine" dated May 10, 2011, a copy of which is available under the Company's profile on www.sedar.com (the "Technical Report"). | |
| (3) | Mineral resources are not mineral reserves and do not have demonstrated economic viability. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration. |
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. 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; 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 approved by Charles Byron Pr. Sci. Nat., MAusIMM., MGSSA and Chief Geologist for Galane Gold, and a "qualified person" as defined by National Instrument 43-101.
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.
Contact
Galane Gold Ltd.
Nick Brodie
CEO
+ 44 7905089878
Nick.Brodie@GalaneGold.com
www.GalaneGold.com
