(All dollar amounts are United
States dollars unless otherwise stated)
VANCOUVER, BC, March 29,
2022 /PRNewswire/ - Galiano Gold Inc. ("Galiano"
or the "Company") (TSX: GAU) (NYSE American: GAU) provides
an updated Mineral Resource Estimate ("MRE") for the Asanko Gold
Mine ("AGM"), located in Ghana,
West Africa. The AGM is a 50:50
joint venture ("JV") with Gold Fields Ltd (JSE, NYSE: GFI) which is
managed and operated by Galiano. A National Instrument 43-101
compliant technical report titled "NI 43-101 Technical Report for
the Asanko Gold Mine, Ashanti Region, Ghana" with an effective date of February 28, 2022 (the "Technical Report"),
detailing the updates to the AGM MRE was filed on SEDAR on
March 29, 2022.
This news release
should be read in conjunction with the updated NI 43-101 compliant
technical titled "NI 43-101 Technical Report for the Asanko Gold
Mine, Ashanti Region, Ghana," with an effective date of February
28, 2022, which is available on the Company's website and filed on
SEDAR.
|
Updated MRE for the Asanko Gold Mine (100% basis)
The AGM is reporting updated Measured and Indicated Mineral
Resource Estimates of 66.4 million tonnes ("Mt") at 1.36 g/t for
2.9 million ounces ("Moz") gold contained (please see the table
below for further information on the MRE, including a breakdown
between Measured and Indicated Mineral Resources). At this time the
Company is not in a position to declare Mineral Reserves on the AGM
property as a result of current metallurgical uncertainty of the
material mined from Esaase (please see the Company's press release
dated February 25, 2022 for further
information). The Company expects to provide an update to its
estimated Mineral Reserves following the conclusion of the
metallurgical testwork currently underway at the AGM. Highlights to
the updated Mineral Resource Estimate include:
- Measured Mineral Resources of 23.6 Mt at 1.06 g/t for 0.8 Moz
gold contained and Indicated Mineral Resources of 42.7 Mt at 1.53
g/t for 2.1 Moz gold contained.
- A maiden Indicated Mineral Resource of 7.1 Mt at 1.28 g/t for
293 thousand ounces ("koz") of contained gold at Miradani North,
contributing to 10% of the overall resource base.
- A 68% (329 koz) increase in Indicated Mineral Resource
contained gold at Nkran, after accounting for the mined depletion
of 101 koz.
- A 60% (132 koz) increase in Indicated Mineral Resource
contained gold at Abore.
The AGM continues to display a significant property-wide MRE of
2.9 million ounces of contained gold in Measured and Indicated
Mineral Resources (please see the table below for further
information on the MRE, including a breakdown between Measured and
Indicated Mineral Resources), which now comprises six satellite
deposits augmenting the cornerstone Nkran and Esaase deposits.
Additions to the total MRE exceeded mined depletion but did not
fully offset a decrease in overall gold grade in Measured and
Indicated Mineral Resources (1.70 g/t to 1.36 g/t) and resultant
contained metal in the Esaase Mineral Resource.
The changes at Esaase resulted primarily from updates to the
geological models used in the Mineral Resource Estimate (see
below). The remodeling work for Esaase yielded Measured and
Indicated Mineral Resources totaling 22.6 Mt at a grade of 1.26
g/t, representing decreases of 25% in grade and 25% in tonnes, post
depletion, from the previous estimate (please see the technical
report titled "NI 43-101 Technical Report for the Asanko Gold Mine,
Ghana (Amended and Restated)"
published in June 2020 and filed on
SEDAR for further information regarding the Company's prior MRE).
The Esaase deposit remains the largest contributor to the total AGM
Mineral Resources, accounting for approximately a third of its
total tonnes and contained gold ounces.
"We are pleased to deliver a maiden Mineral Resource at
Miradani North and an expansion of Mineral Resources at Nkran,
Abore and Dynamite Hill. These results help reinforce the
prospective nature of the AGM land package. The impact on the
operations at the AGM resulting from the observed reductions in
contained metal and lower grades at Esaase will be described in an
updated technical report, which we anticipate publishing following
the completion of the metallurgical testwork underway at Esaase,"
said Matt Badylak, President and
CEO. "While this work continues, we will preserve the in-situ
Mineral Resources at the AGM by temporarily deferring mining
operations and transitioning to processing existing
stockpiles. During this time our efforts will focus on
expanding our Mineral Resources through targeted exploration and
working diligently to update Mineral Reserves and recommence mining
operations as soon as practicable."
Asanko Gold Operations Update (100% basis)
While technical work to support a Mineral Reserve at the AGM is
ongoing, mining will continue at Akwasiso Cut 3 and Esaase Cut 3
until their depletion (expected in Q2 2022). Following this, the
process plant is expected to continue to operate at full capacity
(5.8 Mtpa) processing a portion of the existing 9.5 Mt of
stockpiles. The Company believes that temporarily transitioning to
processing stockpiles will provide the opportunity to:
- Preserve the higher grade Mineral Resources at the AGM until
the metallurgical recovery at Esaase is better understood.
- Advance further exploration activities at near-mine targets
with the aim of enhancing the short-term operating plan.
- Develop additional initiatives with the aim of maximizing the
value from all deposits on the land package, including: additional
testwork to further the understanding of metallurgy and
geometallurgy at Esaase, evaluating process optimization, and
optimizing mine sequencing.
The AGM has a solid liquidity position ($66.0 million in cash, gold sales receivables and
dore with zero debt at December 31,
2021) and at prevailing gold prices, it expects to continue
to generate positive operating cash flows from the processing of
stockpiles. The Company is concurrently exploring opportunities to
minimize ongoing and future operating and capital costs in light of
the deferral of mining and transitioning to stockpile
processing.
Estimated Mineral Resources at the Asanko Gold Mine Details
(100% basis)
Updated MRE's are reported for the eight deposits that make up
the AGM, replacing the previous MRE dated December 31, 2019. The Technical Report replaces
the previous technical report titled "NI 43-101 Technical Report
for the Asanko Gold Mine, Ghana
(Amended and Restated)" published in June
2020 and all other previous technical reports. The effective
date of the MRE is February 28, 2022,
presented in the form of a combined global Mineral Resource table
below.
Table 1: Mineral Resource Estimates at a 0.5 g/t Au
cut-off and at $1,600/oz Au as of
February 28, 2022
|
Measured
|
Indicated
|
Measured &
Indicated Total
|
Inferred
|
Deposit
|
Tonnes (Mt)
|
Au grade
(g/t)
|
Au Contained
(koz)
|
Tonnes (Mt)
|
Au grade
(g/t)
|
Au Contained
(koz)
|
Tonnes (Mt)
|
Au grade
(g/t)
|
Au Contained
(koz)
|
Tonnes (Mt)
|
Au grade
(g/t)
|
Au Contained
(koz)
|
Nkran
|
--
|
--
|
--
|
12.1
|
2.09
|
814
|
12.1
|
2.09
|
814
|
1.3
|
2.23
|
96
|
Esaase
|
10.9
|
1.25
|
437
|
11.7
|
1.27
|
475
|
22.6
|
1.26
|
912
|
0.6
|
1.22
|
25
|
Akwasiso
|
--
|
--
|
--
|
1.7
|
1.31
|
69
|
1.7
|
1.31
|
69
|
0.2
|
1.46
|
7
|
Abore
|
3.2
|
1.46
|
150
|
5.1
|
1.23
|
203
|
8.3
|
1.32
|
353
|
1.1
|
1.55
|
55
|
Adubiaso
|
--
|
--
|
--
|
1.6
|
1.80
|
90
|
1.6
|
1.80
|
90
|
0.2
|
1.38
|
9
|
Asuadai
|
--
|
--
|
--
|
1.6
|
1.29
|
67
|
1.6
|
1.29
|
67
|
0.0
|
1.17
|
1
|
Miradani
North
|
--
|
--
|
--
|
7.1
|
1.28
|
293
|
7.1
|
1.28
|
293
|
2.6
|
1.21
|
102
|
Dynamite
Hill
|
--
|
--
|
--
|
1.9
|
1.39
|
85
|
1.9
|
1.39
|
85
|
0.3
|
1.26
|
14
|
Stockpiles
|
9.5
|
0.72
|
221
|
--
|
--
|
--
|
9.5
|
0.72
|
221
|
--
|
--
|
--
|
Total
|
23.6
|
1.06
|
808
|
42.7
|
1.53
|
2,096
|
66.4
|
1.36
|
2,904
|
6.4
|
1.49
|
309
|
Notes:
|
|
•
|
The Mineral Resource
estimates are reported in accordance with the CIM Definition
Standards for Mineral Resources & Mineral Reserves, adopted by
CIM Council May 10, 2014.
|
•
|
Mineral Resource
estimates account for mining depletion up to and including February
28, 2022
|
•
|
Reasonable prospects
for eventual economic extraction assume open pit mining with
conventional gold processing and was tested using NPV Scheduler™
pit optimization software at gold price of $1,600/oz. Mining,
G&A, processing costs, and process recovery are dependent on
deposit and detailed in the respective deposit sections of the
Technical Report.
|
•
|
Applicable rounding has
been applied to the stated tonnages, grades, and metal content to
reflect the level of accuracy and precision of the
estimate
|
The new Mineral Resource model for Esaase differs from the 2019
model primarily due to an update to the underlying geology and
mineralization models. This modeling is the culmination of new
information gained over the past 18 months through infill and grade
control drilling, logging and relogging of drill core, mining and
processing data and bench by bench geological mapping.
Galiano believes that the new 2022 Esaase resource model better
reflects the Company's current geological understanding of the
deposit, both at the macro and micro scales, and is better aligned
with ore control data and recent operating results.
The MRE for the Esaase and Abore deposits have been prepared by
Mario E. Rossi, FAusIMM, SME, IAMG,
and Principal Geostatistician of Geosystems International Inc. Mr.
Rossi is a qualified person pursuant to NI 43-101 and is
independent of Galiano Gold in
accordance with the application of Section 1.5 of National
Instrument 43-101.
The MRE for Nkran has been prepared by Malcolm Titley, MAIG, MAusIMM who is a Principal
Consultant of CSA Global. Mr. Titley is a qualified person pursuant
to NI 43-101 and is independent of Galiano
Gold in accordance with the application of Section 1.5 of
National Instrument 43-101.
The MRE for Akwasiso, Miradani North, and Dynamite Hill,
have been prepared by Eric Chen,
P.Geo. who is Galiano Gold's former
Vice President of Technical Services. The Mineral Resource
Estimates for Adubiaso, Asuadai and Stockpiles have been prepared
by others and reviewed and accepted by Mr. Chen. Mr. Chen is a
qualified person pursuant to NI 43-101 and is not independent of
Galiano Gold in accordance with the
application of Section 1.5 of National Instrument 43-101.
Richard Miller P.Eng., Vice
President Technical Services of Galiano Gold Inc., is a qualified
person pursuant to NI 43-101 and has approved the scientific and
technical information contained in this news release.
About Galiano Gold Inc.
Galiano is focused on creating a sustainable business
capable of long-term value creation for its stakeholders through
exploration and disciplined deployment of its financial resources.
The Company currently operates and manages the Asanko Gold Mine,
located in Ghana, West Africa which is jointly owned with Gold
Fields Ltd. The Company is strongly committed to the highest
standards for environmental management, social responsibility, and
health and safety for its employees and neighbouring communities.
For more information, please visit www.galianogold.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information contained in this news
release constitute "forward-looking statements" within the meaning
of applicable U.S. securities laws and "forward-looking
information" within the meaning of applicable Canadian securities
laws, which we refer to collectively as "forward-looking
statements". Forward-looking statements are statements and
information regarding possible events, conditions or results of
operations that are based upon assumptions about future conditions
and courses of action. All statements and information other than
statements of historical fact may be forward looking statements. In
some cases, forward-looking statements can be identified by the use
of words such as "seek", "expect", "anticipate", "budget", "plan",
"estimate", "continue", "forecast", "intend", "believe", "predict",
"potential", "target", "may", "could", "would", "might", "will" and
similar words or phrases (including negative variations) suggesting
future outcomes or statements regarding an outlook.
Forward-looking statements in this news release include, but
are not limited to: the operating plans for the AGM under the JV
between the Company and Gold Fields; the estimation of Mineral
Resources; the publication of Mineral Reserve
estimates in the future; plans to transition from mining to
processing stockpiles (and the benefits that may arise therefrom),
and with respect to the re-start of mining operations thereafter;
the Company's intention to prepare a revised optimized mine plan
and a further updated technical report supporting the new life of
mine plan; any additional work programs to be undertaken by the
Company; and activities to be completed while mining activities are
temporarily paused. Such forward-looking statements are based on a
number of material factors and assumptions, including, but not
limited to: the Company and Gold Fields will agree on the manner in
which the JV will operate the AGM, including agreement on
development plans and capital expenditures; the price of gold will
not decline significantly or for a protracted period of time; the
accuracy of the estimates and assumptions underlying Mineral
Resources estimates; the ability of the AGM to continue to operate,
produce and ship doré from the AGM site to be refined during the
COVID-19 pandemic or any other infectious disease outbreak; the
Company's ability to raise sufficient funds from future equity
financings to support its operations, and general business and
economic conditions; the global financial markets and general
economic conditions will be stable and prosperous in the future;
the ability of the JV and the Company to comply with applicable
governmental regulations and standards; the mining laws, tax laws
and other laws in Ghana applicable
to the AGM and the JV will not change, and there will be no
imposition of additional exchange controls in Ghana; the success of the JV and the Company
in implementing its development strategies and achieving its
business objectives; the JV will have sufficient working capital
necessary to sustain its operations on an ongoing basis and the
Company will continue to have sufficient working capital to fund
its operations and contributions to the JV; and the key personnel
of the Company and the JV will continue their employment.
The foregoing list of assumptions cannot be considered
exhaustive.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause actual results,
performance or achievements to differ materially from those
anticipated in such forward-looking statements. The Company
believes the expectations reflected in such forward-looking
statements are reasonable, but no assurance can be given that these
expectations will prove to be correct and you are cautioned not to
place undue reliance on forward-looking statements contained
herein. Some of the risks and other factors which could cause
actual results to differ materially from those expressed in the
forward-looking statements contained in this news release, include,
but are not limited to: the mineral resource estimates may change
and may prove to be inaccurate; mineral reserves may not be
reinstated; metallurgical recoveries may not be economically
viable; risks associated with the Company ceasing its mining
operations during 2022; the Company does not currently have a LOM
estimate for the AGM due to the withdrawal of the mineral reserve;
actual production, costs, returns and other economic and financial
performance may vary from the Company's estimates in response to a
variety of factors, many of which are not within the Company's
control; AGM has a limited operating history and is subject to
risks associated with establishing new mining operations; sustained
increases in costs, or decreases in the availability, of
commodities consumed or otherwise used by the Company may adversely
affect the Company; adverse geotechnical and geological conditions
(including geotechnical failures) may result in operating delays
and lower throughput or recovery, closures or damage to mine
infrastructure; the ability of the Company to treat the number of
tonnes planned, recover valuable materials, remove deleterious
materials and process ore, concentrate and tailings as planned is
dependent on a number of factors and assumptions which may not be
present or occur as expected; the Company's operations may
encounter delays in or losses of production due to equipment delays
or the availability of equipment; outbreaks of COVID-19 and other
infectious diseases may have a negative impact on global financial
conditions, demand for commodities and supply chains and could
adversely affect the Company's business, financial condition and
results of operations and the market price of the common shares of
the Company; the Company's operations are subject to continuously
evolving legislation, compliance with which may be difficult,
uneconomic or require significant expenditures; the Company may be
unsuccessful in attracting and retaining key personnel; labour
disruptions could adversely affect the Company's operations; the
Company's business is subject to risks associated with operating in
a foreign country; risks related to the Company's use of
contractors; the hazards and risks normally encountered in the
exploration, development and production of gold; the Company's
operations are subject to environmental hazards and compliance with
applicable environmental laws and regulations; the effects of
climate change or extreme weather events may cause prolonged
disruption to the delivery of essential commodities which could
negatively affect production efficiency; the Company's operations
and workforce are exposed to health and safety risks; unexpected
costs and delays related to, or the failure of the Company to
obtain, necessary permits could impede the Company's operations;
the Company's title to exploration, development and mining
interests can be uncertain and may be contested; geotechnical risks
associated with the design and operation of a mine and related
civil structures; the Company's properties may be subject to claims
by various community stakeholders; risks related to limited access
to infrastructure and water; the Company's exploration programs may
not successfully reinstate mineral reserves; risks associated with
establishing new mining operations; the Company's common shares may
experience price and trading volume volatility; the Company has
never paid dividends; the Company's revenues are dependent on the
market prices for gold, which have experienced significant recent
fluctuations; the Company may not be able to secure additional
financing when needed or on acceptable terms; Company shareholders
may be subject to future dilution; risks related to the control of
AGM cashflows and operation through a joint venture; risks related
to changes in interest rates and foreign currency exchange rates;
risks relating to credit rating downgrades; changes to taxation
laws applicable to the Company may affect the Company's
profitability and ability to repatriate funds; ability to
repatriate funds; risks related to the Company's internal controls
over financial reporting and compliance with applicable accounting
regulations and securities laws; non-compliance with public
disclosure obligations could have an adverse effect on the
Company's stock price; the carrying value of the Company's assets
may change and these assets may be subject to impairment charges;
risks associated with changes in reporting standards; the Company's
primary asset is held through a joint venture, which exposes the
Company to risks inherent to joint ventures, including
disagreements with joint venture partners and similar risks; the
Company may be liable for uninsured or partially insured losses;
the Company may be subject to litigation; damage to the Company's
reputation could result in decreased investor confidence and
increased challenges in developing and maintaining community
relations which may have adverse effects on the business, results
of operations and financial conditions of the joint venture and the
Company and the Company's share price; the Company may be
unsuccessful in identifying targets for acquisition or completing
suitable corporate transactions, and any such transactions may not
be beneficial to the Company or its shareholders; the Company must
compete with other mining companies and individuals for mining
interests; risks related to information systems security threats;
the Company's growth, future profitability and ability to obtain
financing may be impacted by global financial conditions; and the
risk factors described under the heading "Risk Factors" in the
Company's Annual Information Form.
Although the Company has attempted to identify important
factors that could cause actual results or events to differ
materially from those described in the forward-looking statements,
you are cautioned that this list is not exhaustive and there may be
other factors that the Company has not identified. Furthermore, the
Company undertakes no obligation to update or revise any
forward-looking statements included in, or incorporated by
reference in, this news release if these beliefs, estimates and
opinions or other circumstances should change, except as otherwise
required by applicable law.
Neither Toronto Stock Exchange nor the Investment Industry
Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this
release.
Cautionary Note to United States Investors Concerning
Estimates of Measured, Indicated and Inferred Resources
Disclosure regarding the Company's mineral properties,
including with respect to mineral resource estimates included in
this release, was prepared in accordance with Canadian National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101"). NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning
mineral projects. NI 43-101 differs significantly from the
disclosure requirements of the SEC generally applicable to U.S.
companies. Accordingly, information contained in this annual report
is not comparable to similar information made public by U.S.
companies reporting pursuant to SEC disclosure
requirements.
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SOURCE Galiano Gold Inc.