TORONTO, Nov. 17, 2020 (GLOBE NEWSWIRE) -- 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 three and nine months ended September 30, 2020.
A copy of the unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2020 (the “Interim Financial Statements”) prepared in accordance with International Financial Reporting Standards and the corresponding Management’s Discussion and Analysis (the “MD&A”) are available under the Company’s profile on www.sedar.com. All references to “$” in this press release refer to United States dollars.
Third Quarter 2020 Highlights
- 7,974 ounces produced at Mupane with an average sale price of $1,872 per ounce.
- 1,284 ounces produced at Galaxy with the final pricing to be confirmed at the end of the quotational period in December.
- Earnings from mining operations for the period of $3,536,779.
- Positive cash flows from operating activities of $5,063,401.
- Debt repayments in the period of $1,755,218.
- Closing cash balance of $5,332,651.
Galane Gold CEO, Nick Brodie commented: “All in all a very pleasing quarter with the increased gold price continuing to positively impact our operating results, cash flow and debt reduction plan. We expect this impact to grow as we increase production at Galaxy and ramp up to the completion of Phase 1.
We expect to provide a comprehensive update to the market in December on our progress on Phase 1 at Galaxy and our plans for the Phase 2 expansion, with forecasted annual production of 43,000 ounces per year at an all in sustaining cost of $747 per ounce(1) during Phase 2, an increase from the previous forecasted annual production of 26,700 ounces at an all in sustaining cost of $897 an ounce(2) for Phase 1."
The Company continues to face challenges related to COVID-19 and operations at both the Mupane and Galaxy sites are currently operating at less than a hundred per cent to ensure the Company complies with best operating practices relating to COVID-19 prevention.
Since September 21, 2020, South Africa has been on Alert Level 1 which is the lowest level and means that most normal activities are allowed as long as health guidelines are followed. As a result, production at Galaxy is restricted to ensure social distancing across the mine and the Company has had to on several occasions cease operations for a limited time in specific areas to manage positive cases in the work force.
On September 28, 2020, the Government of Botswana voted to extend the Covid-19 state of emergency to March 31, 2021. At the Mupane site, the Company continues to follow the health guidelines issued by the Government of Botswana and travel permits are required to travel outside of the Francistown area. This means production has also been restricted to comply with these requirements but the Company has had no positive cases in its workforce at Mupane. As of November 9, 2020 Botswana, opened up its borders to international travel and this has allowed the Company to bring additional skills into the country to assist local management.
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” 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.
1 The all in sustaining cost per ounce at Galaxy Gold Mine is supported by a technical report entitled “NI 43-101 Technical Report of Galaxy Gold Mine, South Africa” which was issued July 3, 2020, with an effective date of June 29, 2020, a copy of which is available under the Company’s profile on www.sedar.com.
2 The all in sustaining cost per ounce at Galaxy Gold Mine is supported by a technical report entitled “A Technical Report on the Galaxy Gold Mine, Mpumalanga Province, South Africa” which was issued January 4, 2016, with an effective date of September 1, 2015, a copy of which is available under the Company’s profile on www.sedar.com.
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; 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; 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:
CEO, Galane Gold Ltd.
+ 44 7905 089878