(All dollar amounts are United States dollars unless otherwise
stated)
VANCOUVER, BC, Jan. 25, 2022 /PRNewswire/ - Galiano Gold Inc.
("Galiano" or the "Company") (TSX: GAU) (NYSE:
GAU) reports preliminary fourth quarter ("Q4") and 2021
operating results from the Asanko Gold Mine ("AGM"), located in
Ghana, West Africa. The AGM is a 50:50 joint venture
("JV") with Gold Fields Ltd (JSE: GFI) (NYSE: GFI) which is managed
and operated by Galiano. The Company expects to release its full
financial and operational results after the market closes on
February 16, 2022. All financial
information contained in this release is unaudited and reported in
US$.
Q4 and Full Year 2021 AGM Highlights (100% Basis)
- Revenue: Annual gold sales gold sales of $381.7 million generated from 216,076 ounces sold
at an average realized price of $1,767 per ounce, with $91.0 million generated from 51,368 ounces sold
at an average realized price of $1,771 per ounce in Q4
- Production: Annual gold production of 210,241 ounces,
below revised 2021 production guidance of 215,000-220,000 ounces,
gold production of 50,278 ounces in Q4
- Safety: Strong safety performance with one total
recordable injury ("TRI") and no lost time injuries ("LTI")
reported in the quarter resulting in 12-month rolling TRI and LTI
frequency rates of 0.21 and 0.10 per million employee hours worked,
respectively.
- Exploration: Extensive drill program completed with
positive results at Miradani, Kaniago, Midras South and Dynamite
Hill (see press release dated January 18,
2022).
"Production for Q4 remained consistent with Q2 and Q3." said
Matt Badylak, President and Chief
Executive Officer. "Ore delivery continues to be slower than
expected from Akwasiso and grades at both Esaase and Akwasiso
remained below expectations. We remain on track to publish an
updated Mineral Reserve and Resource statement in Q1, along with an
updated life of mine plan. Building on our exploration success over
the past two years we will continue to invest in exploration
activities at the AGM. The focus in the first quarter will be deep
drilling at Miradani and Nkran to explore the underground potential
at both of those deposits."
Production
In Q4, the AGM sourced ore from the Esaase Main pit in addition
to incremental ore production from Cut 3 at Akwasiso. During the
quarter, 1.5Mt of ore at an average gold grade of 1.3 g/t and 6.4Mt
of waste were mined from the Esaase Main pit and 0.1Mt of ore at an
average gold grade of 1.2 g/t and 2.4Mt of waste from the Akwasiso
pit.
The processing plant milled 1.5Mt at a feed grade of 1.2 g/t
during the quarter with metallurgical recovery averaging
91%.
AGM Key Production
Statistics
(100% basis)
|
Units
|
Q4
2021
|
Q3
2021
|
Q2
2021
|
Q1
2021
|
Q4
2020
|
Total Tonnes
Mined
|
000 t
|
10,375
|
11,481
|
10,406
|
11,393
|
13,737
|
Waste Tonnes
Mined
|
000 t
|
8,752
|
10,017
|
9,073
|
9,552
|
11,773
|
Ore Tonnes
Mined
|
000 t
|
1,623
|
1,464
|
1,333
|
1,841
|
1,964
|
Strip Ratio
|
W:O
|
5.4
|
6.8:1
|
6.8:1
|
5.2:1
|
6.0:1
|
Average Gold Grade
Mined
|
g/t
|
1.2
|
1.3
|
1.2
|
1.3
|
1.4
|
Ore
Processed
|
000 t
|
1,472
|
1,542
|
1,475
|
1,444
|
1,438
|
Gold Feed
Grade
|
g/t
|
1.2
|
1.1
|
1.1
|
1.4
|
1.5
|
Gold
Recovery
|
%
|
91
|
90
|
94
|
95
|
95
|
Gold
Produced
|
oz
|
50,278
|
49,543
|
50,421
|
59,999
|
65,571
|
Sales and Liquidity
Gold production for the quarter totalled 50,278 ounces with gold
sales of 51,368 ounces at an average realized price of $1,771 per ounce, generating gold revenue of
$91.0 million for the quarter.
At the end of the quarter, the JV held approximately
$49.2 million in unaudited cash,
$13.6 million in gold sales
receivables and $3.2 million in gold
on hand. The AGM remains debt free with $30.0 million available on its revolving credit
facility.
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, statements regarding: planned exploration work
and any results of that work, including deep drilling at Miradani
and Nkran, the target date for the Company releasing its full
financial and operational results, and the ability of the Company
to publish its updated Mineral Reserve and Resource statement and
updated life of mine plan in Q1 of this year. Such forward-looking
statements are based on a number of material factors and
assumptions, including, but not limited to: that the Company will
publish its full financial and operational results and updated
Mineral Reserve and Resource statement and life of mine plan on the
timeline currently anticipated; the ability of the AGM to continue
to operate during the COVID-19 pandemic; that gold production and
other activities will not be curtailed as a result of the COVID-19
pandemic; that the AGM will be able to continue to ship doré
from the AGM site to be refined; that the doré
produced by the AGM will continue to be able to be refined at
similar rates and costs to the AGM, or at all; that the Company's
and the AGM's responses to the COVID-19 pandemic will be effective
in continuing its operations in the ordinary
course; the accuracy of the estimates and assumptions
underlying Mineral Resource and Mineral Reserve estimates,
including future gold prices, cut-off grades and production
and processing estimates; the successful completion of development
and exploration projects, planned expansions or other projects
within the timelines anticipated and at anticipated production
levels; that mineral resources can be developed as planned; that
the Company's relationship with joint venture partners will
continue to be positive and beneficial to the Company; interest,
taxation and exchange rates; that required financing and permits
will be obtained; general economic conditions; that labour disputes
or disruptions, flooding, ground instability, geotechnical failure,
fire, failure of plant, equipment or processes to operate are as
anticipated and other risks of the mining industry will not be
encountered; that contracted parties provide goods or services in a
timely manner; that there is no material adverse change in the
price of gold or other metals; competitive conditions in the mining
industry; that the Company will maintain its title its mineral
properties; that cost estimates with respect to the Company's
activities are reflective of the actual costs of such activities;
that the Company will retain its key personnel; and that changes in
laws, rules and regulations applicable to Galiano will not disrupt
the Company's operations.
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: that the Company may not publish its full
operational and financial information and updated Mineral Reserve
and Resource statement and life of mine plan on the timeline
currently anticipated the Company's; that the AGM's operations may
be curtailed or halted entirely as a result of the COVID-19
pandemic, whether as a result of governmental or regulatory law or
pronouncement, or otherwise; that the
doré produced at the AGM may not be able to be
refined at expected levels, on expected terms or at all; that the
Company and/or the AGM will experience increased operating costs as
a result of the COVID-19 pandemic; that the AGM may not be able to
source necessary inputs on commercially reasonable terms, or at
all; the Company's and the AGM's responses to the COVID-19 pandemic
may not be successful in continuing its operations in the ordinary
course; mineral reserve and resource estimates may change and may
prove to be inaccurate; life of mine estimates are based on a
number of factors and assumptions and may prove to be incorrect;
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; 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; 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; 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
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; 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
expand its current mineral reserves or replace them with new
reserves; the Company's common shares may experience price and
trading volume volatility; 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
changes in interest rates and foreign currency exchange rates;
changes to taxation laws applicable to the Company may affect the
Company's profitability and ability to repatriate funds; 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; risks
related to the Company's internal controls over financial reporting
and compliance with applicable accounting regulations and
securities laws; the carrying value of the Company's assets may
change and these assets may be subject to impairment charges; the
Company may be liable for uninsured or partially insured losses;
the Company may be subject to litigation; 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; and risks related to information systems security
threats.
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.
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SOURCE Galiano Gold Inc.