VANCOUVER, BC, Feb. 22,
2023 /CNW/ - Galiano Gold Inc. ("Galiano" or the
"Company") (TSX: GAU) (NYSE American: GAU), as operator
of the Asanko Gold Mine ("AGM") under the joint venture ("JV") with
Gold Fields Ltd. ("Gold Fields") (JSE: GFI) (NYSE: GFI), is pleased
to report the results of an independent Feasibility Study report
("Independent FS"), which includes the reinstatement of Mineral
Reserves, along with Galiano's operating outlook at the AGM. The
adoption and implementation of the revised life-of-mine ("LOM")
plan and the operating outlook remain subject to approval pursuant
to the JV agreement. The AGM located in Ghana, West
Africa is a 50:50 JV with Gold Fields, which is managed and
operated by Galiano. All figures are stated in US dollars unless
otherwise stated.
The reinstated Mineral Reserve and updated Mineral Resource
estimates, underpinning the Independent FS, was led by SRK
Consulting (Canada) Inc. ("SRK")
and was reported in accordance with National Instrument 43-101 ("NI
43-101"). The Mineral Reserve estimate forms the basis of a revised
LOM plan at the AGM, encompassing 4 main open-pit mining areas:
Abore, Miradani North, Esaase and Nkran, and 2 satellite deposits:
Dynamite Hill and Adubiaso. The Independent FS demonstrates an
operating plan with a total LOM production of 1.85 million ounces
("Moz") of gold, at an all-in-sustaining cost ("AISC") of
$1,1431 per oz. Production
during the LOM averages 217,000 oz of gold per year. Using the base
case of $1,700 per oz gold price, the
AGM has an after-tax net present value discounted at 5% ("NPV5%")
of $343 million.
AGM Updated Independent FS Highlights - 100% basis, using a
base case of $1,700/oz gold
- Robust mine economics: $478
million pre-tax NPV5% and $343
million after-tax NPV5%.
- Highly leveraged to the gold price: after-tax NPV5% of
$535 million, at $1,900 per oz gold.
- Low cash costs: $905/oz
average total cash costs1 and $1,143/oz average AISC1.
- Increased production profile: annual average gold
production of 254,000 oz from 2025 to 2030, inclusive.
- Mining to recommence in 2023: mining contractors
expected to be in operation at Abore during the fourth
quarter.
- Reinstated Proven and Probable Mineral Reserves (assuming a
gold price of $1,500/oz): 2.068
Moz Au (48.9 Mt at 1.31 g/t
Au).
- Increased Measured and Indicated Mineral Resources (assuming
a gold price of $1,800/oz): 3.504
Moz Au (82.3 Mt at 1.32 g/t Au),
inclusive of Mineral Reserves, representing an increase of +21% in
total ounces, compared to the previous Mineral Resource estimate
dated February 28, 2022.
- Increased Inferred Mineral Resources (assuming a gold price
of $1,800/oz): 1.084 Moz Au (25.1 Mt at 1.34 g/t Au), representing an
increase of +251% in total ounces, compared to the previous Mineral
Resource estimate dated February 28,
2022.
________________________________
|
1 See
"Non-IFRS performance measures"
|
|
"On the back of significant exploration success, the new life of
mine plan now includes four cornerstone deposits at the Asanko Gold
Mine. The plan demonstrates a solid production profile averaging
217,000 ounces per year with an extended mine life through 2031,"
stated Matt Badylak, Galiano's
President and Chief Executive Officer. "Restructuring our operating
cost base in 2022 has in part enabled the life of mine plan to
achieve all-in-sustaining costs of $1,143 per ounce4, which is expected
to generate approximately $500
million in cumulative cash flow over the mine life.
Significant opportunities also remain to further enhance the asset
through both the continued optimization of operations, and
exploration success on the highly prospective Asankrangwa gold
belt.
It is also important to note that the Joint Venture held
$91 million of cash at December 31, 20222 placing the AGM in
a strong position to execute the life of mine plan, commencing with
the restart of mining later this year."
AGM INDEPENDENT FEASIBILITY STUDY OVERVIEW
The Independent FS was prepared in accordance with NI 43-101 and
led by SRK with an effective date of December 31, 2022. The Company will file a
Technical Report on SEDAR at www.sedar.com in accordance with NI
43-101, and on its website within 45 days.
Table 1: LOM Highlights
General
|
Units
|
Value
|
Gold price assumption
(base case)
|
$/oz
|
1,700
|
Average gold
production
|
oz/year
|
217,000
|
Peak average gold
production (2025 to 2030, inclusive)
|
oz/year
|
254,000
|
Total gold
production
|
Moz
|
1.8
|
Mine life
|
years
|
8.5
|
Total ore
mined
|
million
tonnes
|
41.7
|
Average mill head
grade
|
g/t
Au
|
1.31
|
Average mill recovery
rate
|
%
|
89 %
|
Proven and Probable
Mineral Reserves
|
Moz
Au
|
2.1
|
Economics
|
Net present value (NPV
5%) (pre-tax)
|
$ M
|
477.8
|
LOM cumulative cash
flow (pre-tax)
|
$ M
|
673.7
|
Net present value (NPV
5%) (after-tax)
|
$ M
|
343.3
|
LOM cumulative cash
flow (after-tax)
|
$ M
|
490.8
|
Operating
Costs
|
Mining
cost3
|
$/t
mined
|
3.66
|
Processing
cost
|
$/t
milled
|
10.80
|
G&A
cost4
|
$/t
milled
|
6.00
|
Total cash
costs1
|
$/oz
sold
|
905
|
AISC1
|
$/oz
sold
|
1,143
|
Capital
Costs
|
Development capital
(excluding deferred stripping)
|
$ M
|
58.4
|
Sustaining capital
(excluding deferred stripping)
|
$ M
|
95.2
|
Closure
costs
|
$ M
|
80.9
|
1 See "Non-IFRS
Performance Measures" below.
|
2 Unaudited as at
December 31, 2022.
|
3 Mining costs
include deferred stripping of $428.4M LOM and ore transportation of
$101.3M LOM.
|
4 G&A costs
include management fee payable to Galiano of approximately $7M per
year.
|
ECONOMIC SENSITIVITIES
Using the base case gold price of $1,700/oz and incorporating only Proven and
Probable Mineral Reserves, the project has an after-tax
NPV5% of $343 million. A
sensitivity analysis was conducted on the base case after-tax
NPV5% of the Independent FS, using the following variables:
gold price, capital expenditure and operating costs, as illustrated
in Table 2 and Figure 1.
Table 2: Sensitivity to Gold Price
Gold
Price
($/oz)
|
$1,500
|
$1,600
|
$1,700
(Base
Case)
|
$1,800
|
$1,900
|
Pre-tax Free Cashflow
($M)
|
$324
|
$499
|
$674
|
$849
|
$1,024
|
Pre-tax
NPV5%
($M)
|
$202
|
$340
|
$478
|
$615
|
$753
|
After-tax Free
Cashflow ($M)
|
$256
|
$371
|
$491
|
$612
|
$733
|
After-tax
NPV5%
($M)
|
$155
|
$248
|
$343
|
$439
|
$535
|
Note: Sensitivity for "Mining
OPEX" is inclusive of deferred stripping costs
|
|
AGM MINE PLAN
The revised mine plan is based on the following sequencing and
timeline:
- Fourth quarter 2023: the Abore pit;
- First half of 2024: limited mining activities at the Esaase pit
with a return to full production in late 2026;
- Mid-2024: the Miradani North pit;
- Mid-2025: the Nkran pit;
- Mid-2026: the Adubiaso pit;
- Mid-2027: the Dynamite Hill pit.
Figures 2 and 3 show the annual total tonnes mined and annual
ore tonnes mined by deposit.
AGM PROCESSING
The processing facility will continue to operate at the rate of
approximately 5.8M tonnes per annum
("Mtpa") throughout the remaining life of mine to mid-2031.
The life of mine is expected to produce a total of 1.846
Moz Au from a reserve of 2.068 Moz
with a weighted average recovery of 89% (see below, Tables 3 &
4, and Figure 4).
As of December 31, 2022, current
stockpiled ore inventory totaled 7.2 Mt at 0.67 g/t gold. The
stockpiles are of sufficient tonnage and grade to continue
operations, both independently and as supplemental feed, until the
Abore pit has exposed sufficient ore to produce the majority of
mill feed, expected by the second quarter 2024.
Table 3: Annual Mill Feed Grade, Gold Production &
AISC1 Profiles
Year
|
2023
|
2024
|
2025
|
2026
|
2027
|
2028
|
2029
|
2030
|
2031
|
Total
|
Mill Feed Grade (g/t
Au)
|
0.68
|
0.99
|
1.45
|
1.39
|
1.58
|
1.60
|
1.57
|
1.51
|
0.76
|
1.31
|
Au Recovered
(koz)
|
107
|
167
|
254
|
243
|
246
|
262
|
275
|
244
|
49
|
1,846
|
Recovery
%
|
85 %
|
91 %
|
94 %
|
94 %
|
84 %
|
88 %
|
94 %
|
87 %
|
77 %
|
89 %
|
Note
|
1 See "Non-IFRS
Performance Measures" below.
|
Table 4: Summary of Mining & Processing Inputs
Mining &
Processing Inputs
|
Units
|
Value
|
Mining
|
|
|
Mining
duration
|
years
|
5.8
|
Total ore
mined
|
million
tonnes
|
41.7
|
Average mined ore gold
grade
|
g/t
|
1.43
|
Total waste
mined
|
million
tonnes
|
300.9
|
Total material
mined
|
million
tonnes
|
342.6
|
Strip ratio
|
Waste (t) : Ore
(t)
|
7.21
|
Existing stockpiles
tonnage
|
million
tonnes
|
7.2
|
Existing stockpiles
gold grade
|
g/t
|
0.67
|
Processing
|
|
|
Life of
mine
|
years
|
8.5
|
Annual feed
rate
|
Mtpa
|
5.8
|
Total tonnes
processed
|
million
tonnes
|
48.9
|
Average mill head gold
grade
|
g/t
|
1.31
|
Average gold
recovery
|
%
|
89 %
|
TAILINGS MANAGEMENT
The AGM has a single existing paddock/valley tailings storage
facility ("TSF"), which is fully lined and has incorporated a total
of 6 stages. Stage 7 is currently under construction and involves
the amalgamation of Stage 5 and Stage 6. The life of mine facility
design includes a total of 8 stages, providing storage capacity for
an additional 51 million dry tonnes placement of tailings, which
exceeds LOM tailings requirements.
ADDITIONAL INFRASTRUCTURE
The AGM site is an established operation, with most of the
infrastructure already in place to support the life of mine:
- A carbon-in-leach process plant with various structures,
including offices, stores, workshops and reagent storage / mixing
facilities;
- An administration block, exploration offices, core storage
area, medical clinic and laboratory;
- Accommodation facilities;
- Multiple boreholes for water supply and a water treatment
plant;
- A 161 kV incoming power line from the Asawinso substation;
and
- Multiple site accesses via sealed public roads, and an airstrip
located adjacent to the mill.
An existing 28 km haul road between Obotan and Esaase supports
the haulage of Esaase ore to the mill. A new 11 km haul road to the
Miradani North deposit is planned to be constructed throughout 2023
and 2024.
CAPITAL, AISC AND OPERATING COSTS
Operating costs have been compiled based on the following
sources and assumptions:
- Mining unit costs have been estimated based on recent
competitive tenders;
- Processing unit costs have been estimated from first principles
and compared with historical actual process costs;
- General and Administration ("G&A") costs are based on
ongoing and anticipated costs; and
- Capital expenditure has been estimated from first
principals.
Table 5: AGM LOM Capital Expenditures
Total Capital
Costs
|
($M)
|
Development
Capital
|
|
Deferred Stripping (Nkran)
|
258.5
|
Site Establishment
|
58.4
|
Subtotal Development Capital
|
316.9
|
Sustaining
Capital
|
|
Deferred Stripping (other pits)
|
169.8
|
Site Establishment
|
23.0
|
Tailings Storage Facility and Water Treatment
|
44.7
|
Plant and Infrastructure
|
27.5
|
Subtotal Sustaining
|
265.1
|
Closure and
Reclamation
|
|
Mine Closure and Reclamation
|
80.9
|
Total Capital
Costs
|
662.8
|
Note:
Numbers may not sum due to rounding
|
|
Table 6: Life of Mine All-in
Sustaining Cost1 Components
Component
|
Amount
($M)
|
Unit
Value
($/oz
sold)
|
Mining Costs
|
723
|
392
|
Ore
Transportation
|
101
|
55
|
Processing
Costs
|
528
|
286
|
Stockpile
movement
|
17
|
9
|
G&A
|
294
|
159
|
Royalties
|
162
|
88
|
Refining
costs
|
8
|
4
|
Reclamation
Accretion
|
12
|
7
|
Sustaining
Capital
|
95
|
52
|
Sustaining Stripping
Costs
|
170
|
92
|
All-in Sustaining
Costs1
|
2,110
|
1,143
|
Note
|
1 See "Non-IFRS
Performance Measures" below.
|
|
OPPORTUNITIES
Mining methodologies can be further optimized for all deposits.
Opportunity remains to upsize the planned mining equipment, which
can reduce operating costs and increase mining advance rates,
effectively reducing the duration of pre-stripping. The AGM will
incorporate operating technology improvements as part of its
Standard Operating Procedures prior to commencement of mining,
aimed at improving productivity and safety performance.
The AGM also holds the largest land package on the highly
prospective and underexplored Asankrangwa Gold Belt, totaling
approximately 476 square kilometres of land tenements. Going
forward, the AGM will evaluate the viability of expanding reserves
and extending mine life further by testing for extensions of
mineralization at depth and along strike at all the current
orebodies.
Table 7: Summary of Life of Mine Operating Data & Cash
Flows @ $1,700/oz Au (in
US$000's)
Description
|
|
Units
|
LOM
|
2023
|
2024
|
2025
|
2026
|
2027
|
2028
|
2029
|
2030
|
2031
|
2032-2035
|
Ore mined
|
kt
|
41,718
|
20
|
5,138
|
7,185
|
6,495
|
8,349
|
7,855
|
6,678
|
-
|
-
|
-
|
Waste mined
|
kt
|
300,908
|
3,809
|
37,926
|
50,003
|
68,245
|
75,335
|
54,838
|
10,752
|
-
|
-
|
-
|
Strip ratio
|
#
|
7.2
|
194.0
|
7.4
|
7.0
|
10.5
|
9.0
|
7.0
|
1.6
|
-
|
-
|
-
|
Mined Grade
|
g/t
|
1.43
|
0.67
|
1.10
|
1.37
|
1.33
|
1.32
|
1.51
|
1.88
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore
processed
|
kt
|
48,920
|
5,787
|
5,792
|
5,794
|
5,794
|
5,794
|
5,794
|
5,794
|
5,794
|
2,579
|
-
|
Grade
Milled
|
g/t
|
1.31
|
0.68
|
0.99
|
1.45
|
1.39
|
1.58
|
1.60
|
1.57
|
1.51
|
0.76
|
-
|
Processing
recovery
|
%
|
89.3 %
|
84.6 %
|
90.5 %
|
93.9 %
|
93.9 %
|
83.6 %
|
88.2 %
|
94.0 %
|
86.6 %
|
77.2 %
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold
produced
|
kt
|
1,846
|
107
|
167
|
254
|
243
|
246
|
262
|
275
|
244
|
49
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
3,138,047
|
181,366
|
283,951
|
431,347
|
412,583
|
418,210
|
445,475
|
467,313
|
415,323
|
82,479
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining Costs
|
|
723,172
|
13,065
|
95,182
|
108,652
|
131,083
|
134,643
|
157,284
|
74,396
|
5,809
|
3,059
|
-
|
Ore
Transportation
|
|
101,327
|
21,022
|
14,950
|
227
|
211
|
18,762
|
12,094
|
14
|
21,438
|
12,610
|
-
|
Processing
Costs
|
|
528,273
|
60,683
|
59,663
|
62,809
|
63,544
|
63,282
|
63,668
|
64,285
|
62,735
|
27,606
|
-
|
Stockpile movement
(non-cash)
|
|
16,634
|
14,602
|
(11,861)
|
(20,023)
|
(18,679)
|
(34,994)
|
(28,228)
|
(1,644)
|
77,898
|
39,562
|
-
|
G&A
|
|
293,534
|
38,070
|
38,367
|
38,070
|
38,189
|
38,784
|
37,832
|
28,761
|
23,642
|
11,821
|
-
|
Royalties
|
|
161,960
|
10,062
|
15,089
|
21,620
|
20,644
|
22,052
|
23,132
|
23,366
|
21,515
|
4,481
|
-
|
Refining
costs
|
|
8,251
|
477
|
747
|
1,134
|
1,085
|
1,100
|
1,171
|
1,229
|
1,092
|
217
|
-
|
Reclamation Accretion
(non-cash)
|
|
12,007
|
2,119
|
2,119
|
2,119
|
2,119
|
2,119
|
1,413
|
-
|
-
|
-
|
-
|
Sustaining
Capital
|
|
95,249
|
38,488
|
3,500
|
19,680
|
22,207
|
4,447
|
2,625
|
2,115
|
1,750
|
438
|
-
|
Sustaining Stripping
Costs 1
|
|
169,846
|
10,322
|
46,392
|
38,339
|
27,389
|
29,361
|
18,042
|
-
|
-
|
-
|
-
|
All-in sustaining
costs
|
|
2,110,253
|
208,908
|
264,149
|
272,626
|
287,792
|
279,556
|
289,033
|
192,521
|
215,878
|
99,792
|
-
|
All-in sustaining
costs
|
US$/oz
|
1,143
|
1,958
|
1,581
|
1,074
|
1,186
|
1,136
|
1,103
|
700
|
884
|
2,057
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nkram
prestrip
|
|
258,532
|
-
|
-
|
40,754
|
92,696
|
96,035
|
29,048
|
-
|
-
|
-
|
-
|
Development
capex
|
|
58,361
|
23,663
|
30,940
|
3,758
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Rehabilitation cash
outflow
|
|
80,857
|
-
|
-
|
-
|
-
|
-
|
11,792
|
20,214
|
20,214
|
19,449
|
9,187
|
Working Capital
inflows
|
|
(15,000)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(15,000)
|
-
|
Other non-cash items in
AISC
|
|
(28,640)
|
(16,721)
|
9,742
|
17,904
|
16,560
|
32,875
|
26,816
|
1,644
|
(77,898)
|
(39,562)
|
-
|
Cash Taxes
|
|
182,923
|
-
|
-
|
1,372
|
27,705
|
40,214
|
14,415
|
31,119
|
68,099
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow after
tax
|
|
490,760
|
(34,483)
|
(20,880)
|
94,933
|
(12,169)
|
(30,470)
|
74,371
|
221,815
|
189,031
|
17,800
|
(9,187)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPV
|
|
343,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
after tax2
|
|
1,072,748
|
37,989
|
59,953
|
197,463
|
130,122
|
99,373
|
124,087
|
223,930
|
190,781
|
18,237
|
(9,187)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Excludes the pre-strip at
Nkran
|
|
|
|
|
|
|
|
|
|
|
|
|
2
Cash flow after tax before capital
expenditures and stripping costs
|
|
|
|
|
|
|
|
|
|
|
2023 OUTLOOK
The Company is providing preliminary guidance for 2023 based on
the Independent FS, which may be adjusted in the near term as the
short-term stockpile processing plan and profile of capital spend
is refined and the required joint venture approvals are obtained.
The AGM is expected to produce between 100,000 - 120,000 oz at
AISC1 between $1,900 and
$1,975 per ounce. The
AISC1 is anticipated to be elevated in 2023 primarily
due to waste stripping necessary to restart mining at Abore, which
will benefit future years production, as well as higher
expenditures on the TSF.
It is expected that $38 million of
sustaining capital expenditures will be spent on the TSF Stage 7
expansion, plant infrastructure and water management in 2023.
Additionally, development capital of $24
million is expected to be spent on Abore and the Miradani
North site establishment.
Despite the capital-intensive year, the AGM is estimated to
break even in terms of cash flow, assuming production achieves the
top end of guidance at prevailing metal prices. The investment in
2023 will provide a solid foundation for the next phase of the
operation.
For 2023, the exploration budget at the AGM is estimated at
$15 million, which includes
approximately 40,000 metres of drilling, as well as ground
geophysics, trenching, soil sampling and regional mapping. The 2023
exploration program is focused on targeting discoveries on
underexplored greenfield areas of the AGM tenements, as well as
increasing the Mineral Reserve and Mineral Resources at the known
deposits.
Note
|
1 See
"Non-IFRS Performance Measures" below.
|
|
AGM MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
Table 8: Mineral Resource Estimate as of December 31, 2022
|
Measured
|
Indicated
|
Measured +
Indicated
|
Inferred
|
|
Tonnes
|
Grade
|
Au
Cont.
|
Tonnes
|
Grade
|
Au
Cont.
|
Tonnes
|
Grade
|
Au
Cont.
|
Tonnes
|
Grade
|
Au
Cont.
|
Deposit
|
(Mt)
|
(g/t)
|
(koz)
|
(Mt)
|
(g/t)
|
(koz)
|
(Mt)
|
(g/t)
|
(koz)
|
(Mt)
|
(g/t)
|
(koz)
|
Nkran
|
-
|
-
|
-
|
15.3
|
1.89
|
931
|
15.3
|
1.89
|
931
|
3.6
|
1.83
|
209
|
Esaase
|
-
|
-
|
-
|
30.6
|
1.25
|
1,227
|
30.6
|
1.25
|
1,227
|
8.2
|
1.26
|
334
|
Abore
|
-
|
-
|
-
|
12.8
|
1.16
|
477
|
12.8
|
1.16
|
477
|
3.6
|
1.14
|
131
|
Adubiaso
|
-
|
-
|
-
|
3.1
|
1.47
|
148
|
3.1
|
1.47
|
148
|
0.1
|
1.05
|
3
|
Akwasiso
|
-
|
-
|
-
|
1.4
|
1.16
|
52
|
1.4
|
1.16
|
52
|
0.2
|
1.28
|
9
|
Asuadai
|
-
|
-
|
-
|
1.6
|
1.23
|
64
|
1.6
|
1.23
|
64
|
0.1
|
1.29
|
4
|
Dynamite
Hill
|
-
|
-
|
-
|
2.2
|
1.34
|
95
|
2.2
|
1.34
|
95
|
1.0
|
1.24
|
40
|
Midras South
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
5.4
|
1.32
|
232
|
Miradani
North
|
-
|
-
|
-
|
7.9
|
1.39
|
352
|
7.9
|
1.39
|
352
|
2.9
|
1.30
|
122
|
Stockpiles
|
7.4
|
0.67
|
158
|
-
|
-
|
-
|
7.4
|
0.67
|
158
|
-
|
-
|
-
|
Total
|
7.4
|
0.67
|
158
|
75.0
|
1.39
|
3,346
|
82.3
|
1.32
|
3,504
|
25.1
|
1.34
|
1,084
|
Notes on Mineral Resource Estimates:
- Mr. Malcolm Titley of CSA
Global UK is the Qualified Person responsible for the Nkran Mineral
Resource statement. Dr. Oy
Leuangthong, PEng and Mr. Glen
Cole, PGeo of SRK Consulting (Canada) Inc. are Qualified Persons responsible
Mineral Resource statements for Esaase, Abore, Miradani North,
Adubiaso, Midras South, Akwasiso, Asuadai and Dynamite
Hill.
- Mineral Resources are not Mineral Reserves and have not
demonstrated economic viability. All figures have been rounded to
reflect the relative accuracy of the estimates. Due to rounding,
some columns or rows may not compute exactly as shown.
- Reported within an optimized pit shell assuming a price of
USD1,800/oz gold and using various
cut-off grades: 0.40 g/t gold for Nkran; 0.50 g/t in Oxides and
0.60 g/t gold in Transition and Fresh for Esaase; and 0.45 g/t gold
for all other deposits. Metallurgical recovery of 94% for all
deposits, except in Esaase, where gold recoveries vary based on
lithology.
- All tonnages are reported as in situ dry tonnes.
- Mineral Resources are inclusive of Mineral
Reserves.
- Galiano's share of the project on an equity basis is 45%.
All quantities are reported on a 100% basis.
Table 9: Mineral Reserve Estimate as of December 31, 2022
|
Proven
|
Probable
|
Proven +
Probable
|
|
Tonnes
|
Grade
|
Au
Contained
|
Tonnes
|
Grade
|
Au
Contained
|
Tonnes
|
Grade
|
Au
Contained
|
Deposit
|
(Mt)
|
(g/t)
|
(koz)
|
(Mt)
|
(g/t)
|
(koz)
|
(Mt)
|
(g/t)
|
(koz)
|
Nkran
|
-
|
-
|
-
|
9.9
|
1.82
|
582
|
9.9
|
1.82
|
582
|
Esaase
|
-
|
-
|
-
|
13.6
|
1.22
|
533
|
13.6
|
1.22
|
533
|
Miradani
North
|
-
|
-
|
-
|
6.8
|
1.41
|
310
|
6.8
|
1.41
|
310
|
Abore
|
-
|
-
|
-
|
8.2
|
1.27
|
334
|
8.2
|
1.27
|
334
|
Dynamite
Hill
|
-
|
-
|
-
|
1.1
|
1.31
|
45
|
1.1
|
1.31
|
45
|
Adubiaso
|
-
|
-
|
-
|
2.2
|
1.58
|
110
|
2.2
|
1.58
|
110
|
Stockpiles
|
7.2
|
0.67
|
155
|
-
|
-
|
-
|
7.2
|
0.67
|
155
|
Total
|
7.2
|
0.67
|
155
|
41.7
|
1.43
|
1,913
|
48.9
|
1.31
|
2,068
|
Notes on Mineral Reserve Estimates:
- Mineral Reserves are reported assuming a gold price of
US$1,500/oz Au.
- Mineral Reserves are defined within six different pit
designs guided by pit shells derived from the optimization
software, GEOVIA Whittleâ„¢ and Datamine Studio NPVSâ„¢.
- Cut-off grades vary based on the deposit. Nkran is close to
the mill and contains only fresh ore. The Mineral Reserves are
reported at 0.40 g/t Au cut-off for the fresh ore in Nkran. For
Esaase, Mineral Reserves are reported at cut-offs of 0.55 g/t Au
for the oxide ore and 0.70 g/t Au for the remaining ore types. For
all other open pits, the Mineral Reserves are reported at 0.5 g/t
Au cut-off for all ore types.
- Mining costs vary based on the pit, the rock type, and the
depth of the pit. The base mining costs for Nkran, Esaase, Miradani
North, Abore, Dynamite Hill and Adubiaso are $2.44/t, $1.98/t,
$1.94/t, $2.00/t, $2.29/t,
and $2.06/t, respectively. There are
additional expenditures for fixed contractor monthly fees, grade
control, community fees, Owner's Mining G&A, and other small
costs that vary with each deposit and are in addition to the $/t
stated.
- Processing cost is $8.81/t for
oxide ore, $10.39/t for transition
ore and $10.66/t for fresh
ore.
- General and administration cost is $6.69/t for Esaase and $6.19/t for all other pits.
- Ore transportation cost varies for each pit based on the
haul distance. It ranges between $0.61/t for Nkran and $6.15/t for Esaase.
- Processing recovery is 94.0% for all ore types in all pits
except for Esaase. Processing recovery varies based on the ore type
and head grade in Esaase, where the average recovery for oxide,
Upper Sandstone, Cobra and Central Sandstone ore types are 90.1%,
73.8%, 71.3% and 76.4%, respectively.
- Mining dilution varies between pits. The average mining
dilution is calculated to be 11.9%, 14.4%, 6.0%, 10.8%, 11.6% and
15.3%, for Nkran, Esaase, Miradani North, Abore, Dynamite Hill and
Adubiaso, respectively.
- A 2% ore loss has been applied to the total reserve in each
pit and for the stockpiles.
- Figures are rounded to the appropriate level of precision
for the reporting of Mineral Reserves. Due to rounding, some
columns or rows may not compute as shown.
- The overall strip ratio (the amount of waste mined for each
tonne of ore) for AGM is 7.21 (W:O). The strip ratio for Nkran,
Esaase, Miradani North, Abore, Dynamite Hill and Adubiaso is 13.5,
4.5, 5.6, 4.8, 9.8, and 8.2, respectively.
- The Mineral Reserve is stated as diluted dry metric
tonnes.
- The Qualified Person, Dr. Anoush
Ebrahimi, does not know of any legal, political,
environmental, or other risks that could materially affect the
potential development of the Mineral Reserves. Dr. Ebrahimi
believes the risks regarding permitting and socio-economic factors
to be low.
NON-IFRS PERFORMANCE MEASURES
The Company has included certain non-IFRS performance
measures in this press release. These non-IFRS performance measures
do not have any standardized meaning and therefore may not
be comparable to similar measures presented by other issuers.
Accordingly, these performance measures are intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. Refer to the Non-IFRS Measures section of Galiano's most
recently filed Management's Discussion and Analysis for an
explanation of these measures.
- Total Cash Costs per ounce
Management of
the Company uses total cash costs per gold ounce sold to monitor
the operating performance of the JV. Total cash costs include the
cost of production, adjusted for share-based compensation expense,
by-product revenue and production royalties of approximately 5% per
ounce of gold sold.
- All-in Sustaining Costs Per Gold Ounce
The
Company has adopted the reporting of "all-in sustaining costs per
gold ounce" ("AISC") as per the World Gold Council's guidance. AISC
include total cash costs, corporate overhead expenses, sustaining
capital expenditure, capitalized sustaining stripping costs where
not defined as non-sustaining, reclamation cost accretion and lease
payments and interest expense on the AGM's mining and service lease
agreements per ounce of gold sold.
QUALIFIED PERSON
The Updated Feasibility Study report was prepared for
Galiano Gold by the following
Qualified Persons (QP's) under National Instrument 43-101:
- Mr. Bob McCarthy, P.Eng. (SRK
Consulting) – Mine Infrastructure and Economics
- Dr. Anoush Ebrahimi, P.Eng. (SRK
Consulting) – Mining and Mineral Reserves
- Dr. Oy Leuangthong, P.Eng. (SRK
Consulting) – Mineral Resources (except Nkran)
- Dr. John Willis, MAusIMM(CP)
(SRK Consulting) – Metallurgy and Mineral Processing
- Mr. Glen Cole, P.Geo. (SRK
Consulting) – Geology and Mineral Resources (except Nkran)
- Mr. Desmond Mossop, Pr.Sci.Nat.
(SRK Consulting) – Mine Geotechnical
- Mr. Ismail Mahomed, Pr.Sci.Nat.
(SRK Consulting) – Hydrogeology
- Mr. Malcolm Titley, MAIG (CSA
Global) – Geology and Mineral Resources (Nkran)
- Mr. Mitch Hanger, MAIG (Resource
Engineering Consultants) – Tailings Storage Facility and Water
- Mr. Faan Coetzee, Pr.Sci.Nat.
(ABS Africa) – Environmental
Richard Miller, P.Eng., Vice
President Technical Services with Galiano Gold Inc., is a Qualified
Person as defined by Canadian National Instrument 43-101, Standards
of Disclosure for Mineral Projects, and has approved the scientific
and technical information contained in this news release.
WEBCAST DETAILS
Management will host a webcast and conference call to discuss
the results of the Updated Feasibility Study on February 22, 2023, at 11:00 am ET. Please refer to the details below to
join the conference call or the webcast.
Conference Call
Participant Details
|
Confirmation
#:
|
90830577
|
Local:
|
Toronto:
416-764-8688
|
North American Toll
Free:
|
888-390-0546
|
Webcast URL:
|
https://app.webinar.net/RXKgBNzB9a8
|
A replay of the conference call will be available at 1:30 pm on the Company's website and by calling
(888) 390-0541 or (416) 764-8677. Please enter confirmation:
830577 #
About Galiano Gold Inc.
Galiano is focused on creating a sustainable business capable of
value creation for all stakeholders through production, exploration
and disciplined deployment of its financial resources. The Company
operates and manages the Asanko Gold Mine, located in Ghana, West
Africa, jointly owned with Gold Fields Ltd. Galiano is
committed to the highest standards for environmental management,
social responsibility, and the health and safety of 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 the timing of
release of full financial and operational results; the preparation
and filing of a new technical report and release of updated mineral
resources and mineral reserves at the AGM and the timing thereof;
anticipated timing of release of the highlights of an improved
operating plan along with 2023 guidance; information regarding the
plans and expectations of the Company; including with respect to
timing of mining recommencement, ore sufficiency, operation of the
processing facility, construction of a haul road, testing for
extensions of mineralization and incorporation or operating
technology improvements; any additional work programs to be
undertaken by the Company and potential exploration opportunities;
expectation regarding AISC, capital expenditure, cash flow and the
Company's exploration budget; expectations regarding the life of
mine plan, including with respect to generation of free cash flow;
and the usage and comparability of non-IFRS performance
measures. Such forward-looking statements are based on
a number of material factors and assumptions, including, but not
limited to: the Company's new technical report and release of
updated mineral resources and mineral reserves at the AGM
proceeding as currently anticipated; mining proceeding as currently
anticipated; the Company proceeding with further exploration
programs as currently anticipated; that future exploration programs
will provide the basis for future mineral resources and reserves;
that the JV approves
the Company's exploration budget; 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 and prior exploration results, 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; 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; title to mineral properties; costs; the retention of
the Company's key personnel; and changes in
laws, rules and regulations applicable to Galiano.
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 preparation of a new technical
report and definition of mineral reserves may not proceed or be
completed as expected or at all; that the results of the Company's
exploration programs will not conform with the Company's
expectations, and will not be sufficient to support mineral
resources or mineral reserves at the AGM or be sufficient to
include in the Company's updated life of mine plan; that the
Company may not undertake planned future mining or exploration, or
that such future mining or exploration will not be sufficient to
support mineral resources or mineral reserves at the AGM; that the
JV will not approve the Company's proposed exploration and mining
programs; the Company's and/or
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; 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 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; and
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.
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.
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SOURCE Galiano Gold Inc.