Galane Gold Ltd. 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
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.
For further information please contact:
CEO, Galane Gold Ltd.
+ 44 7905 089878