TORONTO, Jan. 26, 2016 /CNW/ - Galane Gold Ltd.
("Galane Gold" or the "Company") (TSX-V: GG) is pleased to announce
that the Company has filed a National Instrument 43-101 ("NI
43-101") technical report (the "Technical Report") for its Galaxy
Gold Mine located in the Mpumalanga Province of South Africa. The mine is owned by
Galaxy Gold Reefs (Pty) Ltd., a wholly-owned subsidiary of Galaxy
Gold Mining Limited ("Galaxy"). The Company acquired a 74%
ownership interest in Galaxy pursuant to a share purchase
transaction in November 2015 and will
be making an offer to the remaining shareholders of Galaxy to
acquire their shares of Galaxy on economically equivalent
terms.
The Technical Report titled "A Technical Report on the Galaxy
Gold Mine, Mpumalanga Province, South
Africa" issued on January 4,
2016 with an effective date of September 1, 2015 was prepared by Minxcon (Pty)
Ltd and approved by Daniel van
Heerden, B Eng (Min.), MCom (Bus. Admin.), Pr. Eng., FSAIMM,
AMMSA, a Qualified Person as defined by NI 43-101. The Technical
Report satisfies the requirements to be a pre-feasibility study and
was reviewed by the Directors of Minxcon (Pty) Ltd, specifically,
Daniel van Heerden; Uwe Engelmann, BSc (Zoo. & Bot.), BSc Hons
(Geol.), Pr.Sci.Nat., MGSSA; Dario
Clemente, NHD (Ext. Met.), GCC, BLDP (WBS), MMMA, FSAIMM;
and Johan Odendaal, BSc (Geol.), BSc
(Min. Econ.), MSc (Min. Eng.), Pr.Sci.Nat., FSAIMM, MGSSA, all of
whom are Qualified Persons as defined by NI 43-101 and independent
of the Company for the purposes of NI 43-101. The Technical Report
is available for review under the Company's profile on SEDAR
(www.sedar.com) and on the Company's website
(www.galanegold.com).
Galaxy Description
The Galaxy Gold Mine is located approximately 8 km west of the
town of Barberton and 45 km west of the provincial capital of
Nelspruit (Mbombela), in the Mpumalanga Province of South Africa and covers an area of 5,863 ha.
The mine comprises 21 east-west trending gold ore bodies and four
prospects at 600 – 2,000 m depth. The Technical Report covers the
following ore bodies:
- Woodbine, Giles, Galaxy, Golden
Hill, Agnes Top, Pioneer
& Tiger Trap and Princeton ore
bodies;
- Ivy and Ceska Shaft Pillars; and
- Woodbine (East, North and South), Alpine Pioneer, Hostel (East
and West) and Biox North historical dumps.
Gold has been prospected at the Galaxy Gold Mine since the 1880s
and Agnes has been exploited as an established mine since 1908.
Currently, over 75 historical adits exist within the mining area,
as well as tailings storage facilities comprised of previously
mined and processed material. To date, the mining assets have
produced over one million ounces of gold1. Galaxy's
existing processing plants are in need of refurbishment and consist
of a crushing, milling, flotation, biological oxidation of
flotation concentrate, Carbon in
Leach ("CIL") leaching, elution, smelting and tailings disposal
designed to treat 16,000 tonnes of ore per month. This facility can
be expanded through refurbishment and the introduction of larger
mills and flotation equipment.
1The information regarding the
quantity of gold produced historically is based on available public
sources, has not been independently verified by the Company and
should not be relied upon as a predictor of future
results.
|
Mineral Resource and Mineral Reserve Estimates
The mineral resources for Galaxy Gold Mine are summarized below
and have been classified in accordance with the requirements of The
Canadian Institute of Mining, Metallurgy and Petroleum, as the CIM
Definition Standards on Mineral Resources and Mineral Reserves
adopted by CIM Counsel, as amended ("CIM") and NI 43-101:
Summarised Galaxy Gold Mine Mineral Resources as at
31 August 2015
Mineral Resource
Category
|
Tonnes
t
|
Grade
Au
g/t
|
Content
Au
Oz
|
Measured mineral
resource
|
1,876,126
|
3.37
|
203,435
|
Indicated mineral
resource
|
4,350,781
|
2.85
|
399,261
|
Measured and
Indicated
|
6,226,907
|
3.01
|
602,696
|
Inferred mineral
resource
|
8,095,521
|
3.40
|
886,199
|
Notes:
|
1.
|
2015 Mineral
Resource estimation were carried out by Mr P Obermeyer of Minxcon
(BSc Hons (Geol.), Pr.Sci.Nat.) under supervision of and verified
by Mr U Engelmann, as qualified person of the Technical
Report.
|
2.
|
The inferred
mineral resources have a large degree of uncertainty as to their
existence and whether they can be mined economically or
legally.
|
3.
|
Only mineral
resources lying within the legal boundaries are
reported.
|
4.
|
Mineral resources
are inclusive of mineral reserves.
|
5.
|
Mineral resources
are declared at cut-offs: Galaxy, Woodbine, Giles, Golden Hill,
Princeton, Pioneer & Tiger Trap, Ivy shaft Pillar, Ivy to Agnes
3-11 Level = 1.8 g/t; Agnes Top = 1.00 g/t; surface dumps = 0.30
g/t.
|
6.
|
All figures are in
metric tonnes.
|
7.
|
1 kg = 32.15076
oz.
|
The mineral reserves for Galaxy Gold Mine are illustrated in the
table below and have been classified in accordance with the
requirements of CIM and NI 43-101:
Summarised Galaxy Gold Mine Mineral Reserve Statement as at
31 August 2015
Mineral Reserve
Category
|
Tonnes
t
|
Grade
Au
g/t
|
Content
Au
Oz
|
Probable Mineral
Reserves
|
1,457,322
|
3.37
|
169,586
|
Total Mineral
Reserves
|
1,457,322
|
3.37
|
169,586
|
Notes:
|
1.
|
Tonnages refer to
tonnes delivered to the metallurgical plant.
|
2.
|
All figures
are in metric tonnes.
|
3.
|
1 kg = 32.15076
oz
|
4.
|
Different
dilution, recovery and mine call factor applied to each ore body
and tailings storage facility.
|
5.
|
Pay limits
calculated: USD/oz. = 1,130 and Exchange rate of
ZAR11.70/US$1.00.
|
Chief Executive Officer Nick
Brodie stated, "We are pleased to have completed the
Technical Report of Galaxy. It confirms our belief that we have
added a significant asset to our portfolio. The Technical Report
shows an all-in sustainable cost of $688 per ounce at an exchange rate of
ZAR11.70/US$1.00 (currently approximately ZAR16.5/US$1.00)
and a net cash positive position at the end of the first year.
Our next step is the refurbishment of the plant, mining
facilities and construction of a 25,000 tonnes per month tailings
retreatment plant. After this, we will commence a new
pre-feasibility study for the expansion of the underground mine and
the processing plant to take production to over 50,000 ounces of
gold per year and materially increase the life of mine".
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 are set out under the heading
"Risks and Uncertainties" in Galane
Gold's annual management's discussion and analysis for the
year ended December 31, 2014, a copy
of which is available on the Company's SEDAR profile at
www.sedar.com. 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 or referenced
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.