Galiano Gold Provides Abore Exploration Update
Galiano Gold Provides Abore Exploration Update
VANCOUVER, BC
,
July 6, 2020
/CNW/ -
Galiano Gold Inc. ("Galiano" or the "Company")
(TSX: GAU)
(NYSE American: GAU)
(formerly Asanko Gold Inc.)
is pleased to announce an update from its 2020
exploration program underway at the Asanko Gold Mine ("AGM"), located in
Ghana
,
West Africa
. The
AGM is a 50:50 joint venture ("JV") with Gold Fields Ltd (JSE: GFI) (NYSE: GFI), which is managed and
operated by Galiano. The previously announced 2020 exploration program at the AGM (see news release
dated
May 5, 2020
) consisting of approximately
36,000m
of Diamond (DD) and Reverse Circulation (RC)
drilling, has been underway with four drill rigs and is now approximately 40% completed. This news
release provides an update on the drilling and results for the Abore open pit.
Highlights
Drilling highlights (see Table 1 for details):
Hole 029:
28 meters @ 4.9 g/t gold
(from
75m
to
103m
)
Hole 024:
6 meters @ 24.3 g/t gold
(from
70m
to
76m
)
Hole 018:
3 meters @ 11.3 g/t gold
(from
48m
to
51m
)
Hole 005:
9 meters @ 3.6 g/t gold
(from
106m
to
115m
)
Hole 013:
16 meters @ 1.9 g/t gold
(from
84m
to
100m
)
Mineralization extended at the north end of the main pit and in the north pit
,
open along strike with a
follow-up drill program planned this quarter
Inferred Mineral Resources infill drilled and confidence in Indicated Mineral Resources in main pit
improved
Initial drilling program at Abore complete with 5,662 meters consisting of 3,331 meters of RC and
2,331 meters of DD
Core logging complete with 80% of samples submitted and 77% of sample results received
"Our second set of drill results from our 2020 exploration program were promising. They extend the
known mineralization at Abore to the north and justify planned further drilling that will continue to test for
mineralization along strike," said
Greg McCunn
,
Chief Executive Officer
. "Abore plays an important role
in our objective of replacing depletion in 2020 and 2021 and the recent drill results at Abore add to the
drill results from the Akwasiso pit. We expect Abore and Akwasiso to be the main sources of ore
supplementing our Esaase pit in H2 2020 and through 2021 and we believe that we have shown the
potential for resource expansion at both pits with our drill program."
The Abore pit is located about 13km north of the processing plant, on the Esaase ore haul road and was
mined by a previous operator in the early 2000's. Mining operations are scheduled to resume at Abore in
late 2021 and the purpose of the current drill program was to upgrade Inferred Mineral Resources to
Indicated Mineral Resources and test extensions of the orebody to the north. Mineral Reserves and
Resources
1
at the Abore deposit as at
December 31, 2019
were as follows:
4.7 Mt of Indicated Resources at 1.46 g/t gold (221 koz contained gold), and
0.9 Mt of Inferred Resources at 1.69 g/t gold (48 koz contained gold), including
2.8 Mt of Probable Reserves at 1.42 g/t gold (127 koz continued gold).
The current drilling program (3,315 meters of RC drilling and 2,347 meters of DD over 32 holes) appears to
have successfully provided infill drilling in the main pit area, targeting an upgrade to Inferred Mineral
Resources and improved confidence in Indicated Mineral Resources. In addition, hole 024 delineated an
extension of the mineralization to the north end of the main pit with 6 meters at 24.3 g/t gold intercepted
and hole 029 also defined an extension of the mineralization in the north pit with 28 meters at 4.9 g/t gold
intercepted. Mineralization is open along strike to the north-east of the north pit and a follow up drill
program is planned during this quarter.
With approximately 77% of the results returned so far, key intercepts are shown in Table 1. Estimates of
the contribution of this material to the Mineral Resources and Reserves at the AGM, if any, will become
part of the end-of-year updated Resource Estimate expected to be dated
December 31, 2020
and
published in Q1 2021.
Table 1. Key intercepts in Current Abore Drill Holes
Hole ID
From
(m)
To
(m)
Interval (m)
Grade (g/t Au)
Intercept Description
ABPC20-001
1
3
2
0.7
2m @ 0.7 g/t
ABPC20-001
118.32
123.16
4.84
0.6
4.84m @ 0.6 g/t
ABPC20-001
127.5
129.5
2
2
2m @ 2.0 g/t
ABPC20-001
144.85
150.9
6.05
0.9
6.05m @ 0.9 g/t
ABPC20-002
106
108.63
2.63
1
2.63m @ 1.0 g/t
ABPC20-002
112
117
5
1
5m @ 1.0 g/t
ABPC20-004
86
90
4
0.8
4m @ 0.8 g/t
ABPC20-004
101
106
5
0.5
5m @ 0.5 g/t
ABPC20-004
118
122
4
0.7
4m @ 0.7 g/t
ABPC20-005
67
76
9
0.6
9m @ 0.6 g/t
ABPC20-005
80
82
2
0.9
2m @ 0.9 g/t
ABPC20-005
86
101
15
1.5
15m @ 1.5 g/t
ABPC20-005
106
115
9
3.6
9m @ 3.6 g/t
ABPC20-006
93
98
5
0.6
5m @ 0.6 g/t
ABPC20-006
114
121
7
0.8
7m @ 0.8 g/t
ABPC20-006
135
137
2
0.6
2m @ 0.6 g/t
ABPC20-006
147
156
9
1.1
9m @ 1.1 g/t
ABPC20-007
75
79
4
0.7
4m @ 0.7 g/t
ABPC20-007
89
100
11
1.4
11m @ 1.4 g/t
ABPC20-009
1
2
1
1.3
1m @ 1.3 g/t
ABPC20-013
65
80
15
0.8
15m @ 0.8 g/t
ABPC20-013
84
100
16
1.9
16m @ 1.9 g/t
ABPC20-022
34
38
4
0.6
4m @ 0.6 g/t
ABPC20-024
53
55
2
1.1
2m @ 1.1 g/t
ABPC20-024
70
76
6
24.3
6m @ 24.3 g/t
ABPC20-024
82
83
1
1.3
1m @ 1.3 g/t
ABPC20-024
91
96
5
1.2
5m @ 1.2 g/t
ABPC20-025
69
81
12
0.8
12m @ 0.8 g/t
ABPC20-025
88
99
11
0.6
11m @ 0.6 g/t
ABPC20-031
7
13
6
0.8
6m @ 0.8 g/t
ABPC20-031
69
71
2
1.3
2m @ 1.3 g/t
ABPC20-031
76
78
2
1.9
2m @ 1.9 g/t
ABPC20-032
46
51
5
2
5m @ 2.0 g/t
ABPC20-032
59
73
14
1.8
14m @ 1.8 g/t
ABPC20-032
78
94
16
0.6
16m @ 0.6 g/t
ABRC20-012
45
54
9
0.8
9m @ 0.8 g/t
ABRC20-012
58
61
3
1.9
3m @ 1.9 g/t
ABRC20-012
66
68
2
0.6
2m @ 0.6 g/t
ABRC20-012
75
77
2
5.6
2m @ 5.6 g/t
ABRC20-012
83
91
8
1.3
8m @ 1.3 g/t
ABRC20-012
101
117
16
1.6
16m @ 1.6 g/t
ABRC20-012
122
124
2
3.4
2m @ 3.4 g/t
ABRC20-017
84
106
22
0.8
22m @ 0.8 g/t
ABRC20-017
111
116
5
5.7
5m @ 5.7 g/t
ABRC20-017
127
133
6
1.1
6m @ 1.1 g/t
ABRC20-018
13
17
4
0.7
4m @ 0.7 g/t
ABRC20-018
48
51
3
11.3
3m @ 11.3 g/t
ABRC20-018
89
94
5
1.2
5m @ 1.2 g/t
ABRC20-021
67
69
2
1.2
2m @ 1.2 g/t
ABRC20-021
81
87
6
1.4
6m @ 1.4 g/t
ABRC20-021
99
114
15
0.9
15m @ 0.9 g/t
ABRC20-021
120
122
2
1.2
2m @ 1.2 g/t
ABPC20-022
34
38
4
0.6
4m @ 0.6 g/t
ABPC20-024
53
55
2
1.1
2m @ 1.1 g/t
ABPC20-024
70
76
6
24.3
6m @ 24.3 g/t
ABPC20-024
82
83
1
1.3
1m @ 1.3 g/t
ABPC20-024
91
96
5
1.2
5m @ 1.2 g/t
ABRC20-029
75
103
28
4.9
28m @ 4.9 g/t
ABPC20-031
7
13
6
0.8
6m @ 0.8 g/t
ABPC20-031
69
71
2
1.3
2m @ 1.3 g/t
ABPC20-031
76
78
2
1.9
2m @ 1.9 g/t
ABPC20-032
46
51
5
2
5m @ 2.0 g/t
ABPC20-032
59
73
14
1.8
14m @ 1.8 g/t
ABPC20-032
78
94
16
0.6
16m @ 0.6 g/t
Note: Intervals indicated are not true widths as there is insufficient geologic information to calculate true
widths. However, drill holes have been drilled to cross interpreted mineralized zones as close to
perpendicular as possible.
The Abore geological setting is typical of the Asankagrawa belt with sedimentary sequence of shale and
siltstone intruded by a tabular granitic body. Mineralization occurs in steeply west-dipping quartz vein
arrays along the eastern margin of the granite contact with the metasediments and within the granite.
VTEM electromagnetic surveys and anomalous soil samples support extrapolation of the mineralization to
the north-east.
Figure 1.
Perspective view of the of the Abore Pit looking north. Blue dots and traces are holes drilled in the
current campaign. Key intercepts are shown. (CNW Group/Galiano Gold Inc.)
Figure 2. Plan view of the northern portion of the Abore pit showing drill holes from the current campaign
(green dots and drill traces). Drill holes were drilled to test depth extensions of mineralization and fill gaps
in data for resource estimation purposes. Significant grades over >25m intervals (not true widths) at the
northeastern end of the pit (Figure 3) are encouraging for the prospect of continued mineralization to the
northeast where anomalous soil samples along strike with current mineralization are also coincident with the
host shear zone as inferred from VTEM geophysical data. (CNW Group/Galiano Gold Inc.)
Figure 3. Cross sections for drill hole ABRC20-29 showing the location of a 28m @ 4.9 g/t Au intercept
beneath a 32m @ 2.5 g/t Au intercept. (CNW Group/Galiano Gold Inc.)
Footnotes:
1
Refer to the 43-101 Technical Report (amended and restated) for the Asanko Gold Mine dated
June 9,
2020
for further information on Mineral Reserves and Resources, including the effective date of the Mineral
Reserve and Resource estimates, the key assumptions, parameters and methods used to estimate the
Mineral Resources and Reserves and risks associated with the Mineral Resource and Reserve estimate.
Qualified Person and QA/QC
Dr.
Paul Klipfel
, CPG, Senior Vice President Exploration of Galiano Gold Inc., is a Qualified Person as
defined by Canadian NI 43-101 and has supervised the preparation of the scientific and technical
information that forms the basis for this news release. Dr. Klipfel is responsible for all aspects of the work
including the Quality Control/Quality Assurance programs and has verified the data disclosed. Dr. Klipfel is
not independent of Galiano Gold Inc.
Certified Reference Materials and Blanks are inserted by
Galiano Gold
into the sample stream at the rate
of 1:14 samples. Field duplicates are collected at the rate of 1:30 samples. All samples have been
analysed by Intertek Minerals Ltd. in Tarkwa,
Ghana
with standard preparation methods and 50g fire assay
with atomic absorption finish. Intertek Minerals Ltd. does their own introduction of QA/QC samples into the
sample stream and reports them to Galiano for double checking. Higher grade samples are re-analysed
from pulp or reject material or both. Intertek is an international company operating in 100 countries and is
independent of Galiano. It provides testing for a wide range of industries including the mining, metals, and
oil sectors.
About Galiano Gold Inc.
Galiano is focused on creating
a sustainable business capable of long-term value creation for its
stakeholders through organic production growth, exploration and disciplined deployment of its financial
resources. The company currently operates and manages the Asanko Gold Mine, located in
Ghana
,
West
Africa
which is jointly owned with Gold Fields Ltd. The Company is strongly committed to the highest
standards for environmental management, social responsibility, and health and safety for its employees and
neighbouring communities. For more information, please visit
www.galianogold.com
.
Cautionary Note Regarding Forward-Looking Statements
Certain statements and information contained in this news release constitute "forward-looking statements"
within the meaning of applicable U.S. securities laws and "forward-looking information" within the
meaning of applicable Canadian securities laws, which we refer to collectively as "forward-looking
statements". Forward-looking statements are statements and information regarding possible events,
conditions or results of operations that are based upon assumptions about future conditions and courses
of action. All statements and information other than statements of historical fact may be forward looking
statements. In some cases, forward-looking statements can be identified by the use of words such as
"seek", "expect", "anticipate", "budget", "plan", "estimate", "continue", "forecast", "intend", "believe",
"predict", "potential", "target", "may", "could", "would", "might", "will" and similar words or phrases
(including negative variations) suggesting future outcomes or statements regarding an outlook.
Forward-looking statements in this news release include, but are not limited to: statements with respect to
the Company's exploration program, including the size and scope of the program, the nature of the
exploration to be undertaken by the Company as part of the exploration program, the aim and expected
results of the exploration program (including its ability to delineate mineralization to replace mining
depletion, to upgrade inferred mineral resources to indicated mineral resources and to extend the ore
body) and the nature and timing of future exploration programs; information regarding planned future
drilling and mining; statements regarding future mining at the Abore and Akwasiso pit, including with
respect to the extraction of ore in H2 2020 and through 2021; the expected timelines associated therewith;
and the anticipated inclusion of drill results, and the mineralization defined thereby, if any, in the
AGM's
planned annual Mineral Reserve update as at
December 31, 2020
. Such forward-looking statements are
based on a number of material factors and assumptions, including, but not limited to: the exploration
program proceeding as anticipated; the exploration program achieving the targets and milestones
included therein in the manner and on the timelines anticipated therein; the nature of drilling and
exploration targets conforming to current expectations; the ability of the AGM to continue to operate
during the COVID-19 pandemic; that gold production and other activities will not be curtailed as a result of
the COVID-19 pandemic; that the AGM will be able to continue to ship dor
é from the AGM site to be
refined; that the
dor
é produced by the AGM will continue to be able to be refined at similar rates and
costs to the AGM, or at all; that the other current or potential future effects of the COVID-19 pandemic on
the Company's business, operations and financial position, including restrictions on the movement of
persons (and in particular, the AGM's workforce), restrictions on business activities, including access to
the AGM, restrictions on the transport of goods, trade restrictions, increases in the cost of necessary
inputs, reductions in the availability of necessary inputs and productivity and operational constraints, will
not impact its 2020 production and cost guidance; that the Company's and the AGM's responses to the
COVID-19 pandemic will be effective in continuing its operations in the ordinary course;
the accuracy of
the estimates and assumptions underlying Mineral Resource and Mineral Reserve estimates and prior
exploration results, including future gold prices, cut-off grades and production and processing estimates;
the successful completion of development and exploration projects, planned expansions or other projects
within the timelines anticipated and at anticipated production levels; that mineral resources can be
developed as planned; that the Company's relationship with joint venture partners will continue to be
positive and beneficial to the Company; interest and exchange rates; that required financing and permits
will be obtained; general economic conditions; that labour disputes or disruptions, flooding, ground
instability, geotechnical failure, fire, failure of plant, equipment or processes to operate are as anticipated
and other risks of the mining industry will not be encountered; that contracted parties provide goods or
services in a timely manner; that there is no material adverse change in the price of gold or other metals;
competitive conditions in the mining industry; title to mineral properties; costs; taxes; the retention of the
Company's key personnel; and changes in laws, rules and regulations applicable to Galiano.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may
cause actual results, performance or achievements to differ materially from those anticipated in such
forward-looking statements. The Company believes the expectations reflected in such forward-looking
statements are reasonable, but no assurance can be given that these expectations will prove to be correct
and you are cautioned not to place undue reliance on forward-looking statements contained herein. Some
of the risks and other factors which could cause actual results to differ materially from those expressed in
the forward-looking statements contained in this news release, include, but are not limited to: the
Company's and/or the AGM's operations may be curtailed or halted entirely as a result of the COVID-19
pandemic, whether as a result of governmental or regulatory law or pronouncement, or otherwise; that the
dor
é
produced at the AGM may not be able to be refined at expected levels, on expected terms or at all;
that the Company and/or the AGM will experience increased operating costs as a result of the COVID-19
pandemic; that the AGM may not be able to source necessary inputs on commercially reasonable terms,
or at all; the Company's and the AGM's responses to the COVID-19 pandemic may not be successful in
continuing its operations in the ordinary course; mineral reserve and resource estimates may change and
may prove to be inaccurate; life of mine estimates are based on a number of factors and assumptions
and may prove to be incorrect; AGM has a limited operating history and is subject to risks associated with
establishing new mining operations; sustained increases in costs, or decreases in the availability, of
commodities consumed or otherwise used by the Company may adversely affect the Company; actual
production, costs, returns and other economic and financial performance may vary from the Company's
estimates in response to a variety of factors, many of which are not within the Company's control;
adverse geotechnical and geological conditions (including geotechnical failures) may result in operating
delays and lower throughput or recovery, closures or damage to mine infrastructure; the ability of the
Company to treat the number of tonnes planned, recover valuable materials, remove deleterious
materials and process ore, concentrate and tailings as planned is dependent on a number of factors and
assumptions which may not be present or occur as expected; the Company's operations may encounter
delays in or losses of production due to equipment delays or the availability of equipment; the Company's
operations are subject to continuously evolving legislation, compliance with which may be difficult,
uneconomic or require significant expenditures; the Company may be unsuccessful in attracting and
retaining key personnel; labour disruptions could adversely affect the Company's operations; the
Company's business is subject to risks associated with operating in a foreign country; risks related to the
Company's use of contractors; the hazards and risks normally encountered in the exploration,
development and production of gold; the Company's operations are subject to environmental hazards and
compliance with applicable environmental laws and regulations; the Company's operations and workforce
are exposed to health and safety risks; unexpected costs and delays related to, or the failure of the
Company to obtain, necessary permits could impede the Company's operations; the Company's title to
exploration, development and mining interests can be uncertain and may be contested; the Company's
properties may be subject to claims by various community stakeholders; risks related to limited access to
infrastructure and water; the Company's exploration programs may not successfully expand its current
mineral reserves or replace them with new reserves; the Company's common shares may experience
price and trading volume volatility; the Company's revenues are dependent on the market prices for gold,
which have experienced significant recent fluctuations; the Company may not be able to secure additional
financing when needed or on acceptable terms; Company shareholders may be subject to future dilution;
risks related to changes in interest rates and foreign currency exchange rates; changes to taxation laws
applicable to the Company may affect the Company's profitability and ability to repatriate funds; the
Company's primary asset is held through a joint venture, which exposes the Company to risks inherent to
joint ventures, including disagreements with joint venture partners and similar risks; risks related to the
Company's internal controls over financial reporting and compliance with applicable accounting
regulations and securities laws; the carrying value of the Company's assets may change and these assets
may be subject to impairment charges; the Company may be liable for uninsured or partially insured
losses; the Company may be subject to litigation; the Company may be unsuccessful in identifying targets
for acquisition or completing suitable corporate transactions, and any such transactions may not be
beneficial to the Company or its shareholders; the Company must compete with other mining companies
and individuals for mining interests; and risks related to information systems security threats.
Although the Company has attempted to identify important factors that could cause actual results or
events to differ materially from those described in the forward-looking statements, you are cautioned that
this list is not exhaustive and there may be other factors that the Company has not identified.
Furthermore, the Company undertakes no obligation to update or revise any forward-looking statements
included in, or incorporated by reference in, this news release if these beliefs, estimates and opinions or
other circumstances should change, except as otherwise required by applicable law.
Cautionary Note to US Investors Regarding Mineral Reporting Standards:
As a
British Columbia
corporation and a "reporting issuer" under Canadian securities laws, the Company
is required to provide disclosure regarding its mineral properties, including the AGM, in accordance with
Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). NI 43-
101 is a rule developed by the Canadian Securities Administrators that establishes standards for all
public disclosure an issuer makes of scientific and technical information concerning mineral projects. In
accordance with NI 43-101, the Company uses the terms mineral reserves and resources as they are
defined in accordance with the CIM Definition Standards on mineral reserves and resources (the "CIM
Definition Standards") adopted by the Canadian Institute of Mining, Metallurgy and Petroleum. In
particular, the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral
resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource"
used in this press release are Canadian mining terms defined in accordance with CIM Definition
Standards. These definitions differ from the definitions in the disclosure requirements promulgated by the
SEC. Accordingly, information contained in this press release may not be comparable to similar
information made public by U.S. companies reporting pursuant to SEC disclosure requirements.
United States
investors are also cautioned that while the SEC will now recognize "measured mineral
resources", "indicated mineral resources" and "inferred mineral resources", investors should not to
assume that any part or all of the mineralization in these categories will ever be converted into a higher
category of mineral resources or into mineral reserves. Mineralization described using these terms has a
greater amount of uncertainty as to their existence and feasibility than mineralization that has been
characterized as reserves. Accordingly, investors are cautioned not to assume that any "measured
mineral resources", "indicated mineral resources", or "inferred mineral resources" that the Company
reports are or will be economically or legally mineable.
Further, "inferred resources" have a greater amount of uncertainty as to their existence and as to whether
they can be mined legally or economically. Therefore,
United States
investors are also cautioned not to
assume that all or any part of the inferred resources exist. In accordance with Canadian rules, estimates
of "inferred mineral resources" cannot form the basis of feasibility or other economic studies, except in
limited circumstances where permitted under NI 43-101.
Neither Toronto Stock Exchange nor the Investment Industry Regulatory Organization of
Canada
accepts
responsibility for the adequacy or accuracy of this release
.
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Galiano Gold Inc.
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For further information:
Lynette Gould, SVP Investor Relations, Toll-Free (N. America): 1-855-246-7341,
Telephone: 1-778-729-0608, Email: [email protected]
CO: Galiano Gold Inc.
CNW 07:00e 06-JUL-20