TORONTO, ONTARIO--(Marketwired - Oct. 5, 2017) - Galane Gold Ltd. ("Galane Gold" or the "Company") (TSX VENTURE:GG) is pleased to announce that it produced a total of 9,535 ounces of gold for the third quarter ending September 30, 2017. Furthermore, new data has resulted in the Company revising its current Tau underground mine plan to add a further 44,300 ounces of gold, as described below.
The Company's Mupane property faced various challenges in the first two quarters of 2017 caused by higher than average rainfall and damage to its mill motor (as reported in its Management's Discussion & Analysis for the three and six month periods ended June 30, 2017, a copy of which is available under the Company's profile on www.sedar.com). The third quarter production of 9,535 ounces of gold is representative of the expected quarterly production from Mupane under the current mine plan.
The current mine plan for Tau prepared by the Company was based on the results of historic exploration and envisaged the mining of 85,000 ounces of gold over three and a half years as reported in the Company's press release of May 12, 2014.(1)(2) The new mine plan prepared by the Company has added a further 44,300 ounces of gold and an expected 20 months of additional production. The additional ounces and life can be attributed to the conversion of inferred mineral resources to measured and indicated mineral resources, as well as the discovery of the potential extension of the Tau mineralized body at depth as announced in the Company's press release of October 24, 2016.(3) These additional resources and the potential extension of Tau have not been incorporated into the existing resource model found in the Technical Report.(2) There has yet to be sufficient exploration on the potential expansion to extrapolate that it extends beyond the current mined area. Exploration drilling has commenced on the extent of this potential extension and the Company expects to provide an update on the results of this exploration early in 2018.
Galane Gold CEO, Nick Brodie commented: "I am pleased that our strong management team reacted quickly and effectively to the issues presented to them in the first half of 2017 and have returned Mupane back to full production.
With regards to Tau, our decision to move to underground operations has been supported again with the mineralized body proving to be more rich than originally envisaged. We are optimistic that our exploration program will confirm the extension of the Tau mineralized body at depth. We therefore expect that Tau will form the backbone of the operations for a time greater than that contemplated in the current mine plan."
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 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.
Notes
| (1) | Underground commercial production at the Company's Tau property commenced in the third quarter of 2015. The decision to commence underground production at the Tau property and the mine plan prepared by the Company are based on internal reporting by the Company following open pit mining, and not based on an independent feasibility study or pre-feasibility study of mineral reserves demonstrating economic and technical viability. While there is some increased uncertainty and economic and technical risks associated with the Company's production decision to proceed without an independent feasibility study, the Company has been mining underground at the Tau property for the past two years, it carried out its own internal feasibility study based on its historic mining to support the new mine plan and, as a result, it believes it has sufficient knowledge to manage the risks associated with that decision. | |
| (2) | The deposits on the Tau property are supported by a technical report in respect of the Mupane property entitled "Independent Technical Report on the Mupane Gold Mine" dated May 10, 2011, a copy of which is available under the Company's profile on www.sedar.com (the "Technical Report"). | |
| (3) | Mineral resources are not mineral reserves and do not have demonstrated economic viability. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration. |
