GALANE GOLD LTD.
IS PLEASED TO
ANNOUNCE
THAT IT HAS REACHED THE GALAXY ORE BODY
TORONTO, ONTARIO –
February
26, 2021: 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