Galane Gold Ltd. Releases Financial and Operating Results for 2021
April 29 2022 - 7:45AM
Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG;
OTCQB: GGGOF) is pleased to announce the release of its financial
results for the year ended December 31, 2021. All amounts are in
United States dollars unless otherwise indicated.
A copy of the audited consolidated financial
statements for the year ended December 31, 2021 prepared in
accordance with International Financial Reporting Standards and the
corresponding Management’s Discussion and Analysis will be
available under the Company’s profile on www.sedar.com.
2021 Highlights
- Galaxy announced
the commencement of commercial production as of October 1, 2021 as
a result of the ramp up of production.
- For 2021,
Galaxy:
- mined 62,086
tonnes of ore, from its Galaxy and Princeton ore bodies, with an
average grade of 4.75 grammes per tonne (g/t);
- milled 130,634
tonnes, including tailings retreatment, at an average grade of 2.94
g/t;
- produced 8,349
tonnes of concentrate at an average grade of 33.23 g/t and
contained ounces of 8,319; and
- generated
revenue of $9.4 million from the sale of 5,455 ounces.
- In the period
post commercial production (Q4 2021) Galaxy:
- mined 18,314
tonnes of ore, from its Galaxy and Princeton ore bodies, with an
average grade of 3.95 g/t;
- milled 27,933
tonnes, including tailings retreatment, at an average grade of 3.66
g/t;
- produced 2,662
tonnes of concentrate at an average grade of 32.76 g/t and
contained ounces of 2,440; and
- generated
revenue of $2.9 million from the sale of 1,620 ounces, at a cash
cost (before royalties) of $1,677 per ounce(1).
- Completed the
acquisition of the Summit Mine and Banner Mill in New Mexico.
- Entered into an
agreement for the disposition of the Mupane Mine which has been
treated as an asset held for sale and discontinued operation in
2021.
2022 Update
- Galane has
previously announced production guidance for Galaxy(2):
-
2022 – Payable gold ounces of between 15,500 to 18,500 at an all-in
sustaining cost of between $900 to $1,000(2)(3).
-
2023 – Payable gold ounces of between 24,000 to 27,000 at an all-in
sustaining cost of between $750 to $850(2)(3).
-
The ramp up of production continues and is dependent upon the
expansion of the current mining fleet. Orders have been placed but
it is expected with the unprecedented demand for mining equipment
there may be some delay in receiving the new equipment. The Company
is working on plans to ensure it can meet the guidance provided for
2022.
- The Company
expects to issue an update on the restart plan and internal
preliminary economic assessment for the Summit Mine before the end
of May 2022. The Company is re-evaluating the model on the basis of
Galane Gold running the Summit Mine as an owner operator of
underground mining due to the lack of availability of mining
contractors.
Galane Gold CEO, Nick Brodie commented: “This
time last year I told the market that the next two years will be a
transformative period for Galane Gold. Since then, we have
established a clear goal to become a long-life, low-cost producer.
The commencement of commercial production at Galaxy, the
acquisition of the Summit Mine and entering into an agreement for
the disposition of Mupane are all significant milestones we
completed during 2021 towards achieving this goal(2).
As a management team we know that this year will
be even busier than last year, with the continued ramp up at Galaxy
and the completion of the plans for the restart of operations at
the Summit Mine(2). We continue to enjoy the challenges presented
and proving ourselves to our stakeholders.”
About Galane Gold
Galane Gold is an un-hedged gold producer and
explorer with mining operations and exploration tenements in
Botswana and South Africa, and mining assets in New Mexico, USA.
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) |
Cash cost is a non-GAAP measure. Refer to “Supplemental Information
to Management’s Discussion and Analysis” in the Company’s
Management’s Discussion and Analysis for the year ended December
31, 2021, for reconciliation to measures reported in the Company’s
financial statements. |
(2) |
This is forward-looking information and is based on a number of
assumptions. See “Cautionary Notes”. |
(3) |
The all-in sustaining cost and deposits at Galaxy 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. |
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 production targets at Galaxy, the expansions of the
Company’s mining fleet at Galaxy, the Company’s plan to become a
long-life, low-cost producer, the Company’s ability to complete the
disposition of the Mupane property, the Company’s ability to
restart operations at the Summit Mine, and 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. Forward-looking statements
may specifically include, without limitation, statements relating
to the Company’s ability to conduct operations amid COVID-19
related restrictions; the Company’s ability to put proper controls
in place to retain funds and minimize the financial effect of
COVID-19; the estimated impact of COVID-19 on the Company’s
business and operations; and the ability of the Company to complete
its Preliminary Economic Assessment to support the Phase 2
expansion at Galaxy. 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 current dependence on two
operating mineral projects; gold price volatility; risks associated
with the conduct of the Company’s mining activities in Botswana,
South Africa and the United States; regulatory, consent or
permitting delays; risks relating to the Company’s exploration,
development and mining activities being situated in Botswana, South
Africa and the United States; 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, including the Summit Mine; risks related to the
disposition of the Mupane property; 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 BrodieCEO, Galane Gold Ltd.+ 44 7905
089878Nick.Brodie@GalaneGold.comwww.GalaneGold.com
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