TORONTO, Oct. 24, 2016 /CNW/ - Galane Gold Ltd. ("Galane
Gold" or the "Company") (TSX-V: GG) is pleased to announce that
prospective drives in its Tau underground mine have led to the
discovery of the potential extension of the Tau ore body at
depth.
As part of our recent review of historical exploration data
anomalous mineral intersections were observed as they were
structurally displaced from the main Tau ore body and
sub-outcropping beyond the interpreted Western dyke limit of the
Tau ore body. These intersections have not been incorporated into
the existing resource model found in the Company's technical report
filed on SEDAR on August 25, 2011. A
prospect drive was mined at the 820RL level (170 metres below
surface) to investigate the anomalous mineral intersection, and a
mineralised zone ("C Reef") was intersected.
Since the first intersection of the C Reef a total 265 metres of
on reef development has been completed on three consecutive levels
to determine the strike extent of the C Reef. At 820RL the strike
extent was found to be 60 metres; at 800RL the strike extent
increased significantly to 135 metres; at 780RL we are currently
mining along strike and a total of 70 metres of strike has been
exposed. On the 820 and 800 levels the C Reef widths varied along
strike from a minimum of approximately 2 metres up to a maximum of
7 metres; from the development channel sampling the intersected
grade on the 820 level was 4.78 grams per tonne ("g/t") and on the
800RL level was 2.51g/t. At 780RL the intersected grade is 3.66g/t
for the 70 metres of exposed strike length. Further to this, at
780RL the C Reef has also widened significantly to a width of
approximately 15 metres.
To date a total of 19,380 tonnes of ore has been extracted from
the C Reef horizon at an average mined grade of 3.44g/t. The ore
mineralization characteristics of the C Reef are similar to those
of the main Tau ore body; being a "disseminated style‟ of
mineralization in well bedded, silicified quartz rich parts of the
graphitic iron formation. Further to this the metallurgical test
work conduced at the Mupane metallurgical laboratory has indicated
similar recoveries to the main Tau ore body.
An exploration program is being planned to start in 2017 to
investigate if there is a down dip and the possible extent of the C
Reef strike beyond the current mined area within the active
underground working areas. There has yet to be sufficient
exploration on the C Reef to extrapolate that the C Reef extends
beyond the current mined area.
Galane Gold CEO, Nick Brodie
commented: "This could prove to be a significant discovery and of
potential importance for the long term future of Mupane once more
studies and economic analysis can occur and be reported on. We had
planned to start looking for the potential extension of Tau at
depth in 2017 and so this was a positive surprise to intersect the
potential extension so early and therefore be in a position to
incorporate it into our current mining plan. If through further
exploration and analysis we confirm that this is the extension of
the Tau ore body at depth it will be a further vindication of
management's decision over two years ago to commence the
underground operation."
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 and the Botswana Stock
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.
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.
SOURCE Galane Gold Ltd.