Galane Gold Discovers Potential Extension of Tau Ore Body at Depth
TSX VENTURE: GG
TORONTO, Oct. 24, 2016 - 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.