Galiano GOLD Provides Nkran Exploration Update
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GALIANO GOLD PROVIDES NKRAN EXPLORATION UPDATE
Vancouver, British Columbia, September 8, 2020 – Galiano Gold Inc. (“Galiano” or the “Company”) (TSX,
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, NYSE: GFI) , which is managed and operated
by Galiano. In addition to 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, the Company has completed a 33 hole drilling program at the AGM’s Nkran pit. The program
was designed to both confirm and improve confidence in the Mineral Reserve Estimate for the third phase
of mining at Nkran as well as test the extent of mineralization below the proposed Cut 3 pit shell. Mining
of Cut 3 is contemplated to start in late 2022.
Highlights
• Drilling highlights (see Table 1 for details):
o Hole 012: 79 meters @ 4.7 g/t gold (from 1m to 80m) and
80 meters @ 3.9 g/t gold (from 84m to 164m)
o Hole 021: 43 meters @ 3.3 g/t gold (from 1m to 44m)
o Hole 022: 44 meters @ 3.2 g/t gold (from 14m to 58m)
o Hole 023: 62 meters @ 6.1 g/t gold (from 65m to 127m)
o Hole 025: 30 meters @ 21.5 g/t gold (from 128m to 158m)
o Hole 026: 27 meters @ 4.9 g/t gold (from 137m to 164m)
o Hole 028: 27 meters @ 3.7 g/t gold (from 93m to 120m)
• Improved confidence in estimated Indicated Mineral Resources for Cut 3 mine planning
• Identification of mineralization continuing below the currently planned Cut 3
• Further work required to evaluate a potential transition of Nkran to an underground mine
• All core logging and sampling has been completed and all results have been received
“Our in-pit drilling program has indicated that the Nkran mineralized system is continuing to depth,” said
Greg McCunn, Chief Executive Officer. “While the drilling has improved our confidence in the third cut of
the open pit that was envisioned in our life of mine plan, the results indicate that further drilling and
engineering is required to determine if Nkran Cut 3 can be expanded or should be transitioned from an
open pit to an underground mine.”
Nkran Cut 3 Ongoing Work
The Nkran pit is located immediately adjacent to the 5.4 million tonne per annum processing plant and
has been the main source of ore at the AGM since commercial production commenced in 2016. Cut 2 of
the open pit operations was depleted at the end of Q2 2020 and in -pit drilling commenced in early July.
Cut 3 is envisioned to commence waste stripping operations in late 2022 as part of the life of mine plan.
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Mineral Resources and Reserves1 estimated at Nkran as at December 31, 2019 were as follows:
• 8.5 Mt of Indicated Mineral Resources at 2.14 g/t gold (586 koz contained gold), including
• 10.9 Mt of Probable Mineral Reserves at 1.64 g/t gold (577koz contained gold)
The July 2020 drill program was designed to improve confidence in the Cut 3 Resource Estimate for
continued open pit operation . In total, 4,591 meters of RC and DD drilling were completed with key
intercepts shown in Table 1. Estimates of the contribution of this material to the Mineral Resources and
Reserves at the AGM is expected to be included in the end-of-year updated Mineral Resource and Reserve
Estimate expected to be dated December 31, 2020 and published in Q1 2021.
A second phase of drilling was initiated in August 2020 and is currently underway with one drill rig
operating. The second phase drill program consists of 26 RC holes which will be drilled from surface
around the existing pit rim , testing for mineralization in push-back zones for the proposed Cut 3 waste
material.
In addition, a geotechnical drilling and engineering campaign has been initiated targeting the proposed
new west wall location for Cut 3. Previous instability in the west wall of the Nkran pit ha s largely been
attributed to the presence of a small waste dump created in the early 2000’s by prior oxide mining
operations. Cut 3 development envisions removing all of this waste dump, potentially improving the
geotechnical conditions in the new west wall.
Upon completion of the current drilling and geotechnical work, it is expected that the design of Cut 3 will
be finalized and a definitive mine plan and capital cost estimate completed in early 2021.
Table 1. Key intercepts in Current Nkran Drill Holes
Hole_ID From
(m)
To
(m)
Grade
(g/t Au)
Intercept Description
NKRC20-012 1 80 4.7 79m @ 4.7 g/t
NKRC20-012 84 164 3.9 80m @ 3.9 g/t
NKRC20-013 0 2 0.6 2m @ 0.6 g/t
NKRC20-013 35 49 0.6 14m @ 0.6 g/t
NKRC20-014 12 49 1.3 37m @ 1.3 g/t
NKRC20-015 25 28 1.8 3m @ 1.8 g/t
1 Refer to the Company’s NI 43 -101 Technical Report (amended and restated) for the Asanko Gold Mine
dated June 9, 2020 for further information on Mineral Reserves and Resources stated as at December 31,
2020, including the key assumptions, parameters and methods used to estimate the Mineral Resources
and Reserves and risks associated with the Mineral Resource and Reserve estimate. The estimated
Mineral Resources are re ported inclusive of estimated Mineral Reserves. Generally for the Asanko Gold
Mine, Mineral Resources were estimated using a $1 ,500/oz gold pit shell, while Mineral Reserves were
estimated using $1,300/oz gold. However, for the Nkran pit specifically, no practical mining design could
be completed using the $1 ,300/oz shell due to mining width restrictions within the existing pit, and
therefore the Mineral Reserve pit was also then designed using the same $1,500/oz shell.
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Hole_ID From
(m)
To
(m)
Grade
(g/t Au)
Intercept Description
NKRC20-015 34 41 1.8 7m @ 1.8 g/t
NKRC20-015 46 60 1 14m @ 1.0 g/t
NKRC20-016 1 10 0.7 9m @ 0.7 g/t
NKRC20-016 50 62 2.1 12m @ 2.1 g/t
NKRC20-016 66 70 1.3 4m @ 1.3 g/t
NKRC20-016 88 90 0.9 2m @ 0.9 g/t
NKRC20-017 19 23 4.9 4m @ 4.9 g/t
NKRC20-017 32 44 1.4 12m @ 1.4 g/t
NKPC20-018 0 5.86 2.2 5.86m @ 2.2 g/t
NKPC20-018 9 20 0.6 11m @ 0.6 g/t
NKPC20-018 40 44.75 6.7 4.75m @ 6.7 g/t
NKPC20-018 50.1 57 1.3 6.9m @ 1.3 g/t
NKPC20-018 81 86 0.8 5m @ 0.8 g/t
NKPC20-018 91.14 97 0.5 5.86m @ 0.5 g/t
NKPC20-018 101 133.15 3.9 32.15m @ 3.9 g/t
NKRC20-019 27 41 1 14m @ 1.0 g/t
NKRC20-019 49 54 0.8 5m @ 0.8 g/t
NKRC20-019 59 63 0.7 4m @ 0.7 g/t
NKRC20-020 3 5 1.5 2m @ 1.5 g/t
NKRC20-021 1 44 3.3 43m @ 3.3 g/t
NKRC20-021 48 51 1.1 3m @ 1.1 g/t
NKRC20-021 62 69 1.2 7m @ 1.2 g/t
NKRC20-022 8 10 2.6 2m @ 2.6 g/t
NKRC20-022 14 58 3.2 44m @ 3.2 g/t
NKRC20-023 1 23 1.5 22m @ 1.5 g/t
NKRC20-023 37 48 1.3 11m @ 1.3 g/t
NKRC20-023 57 61 0.6 4m @ 0.6 g/t
NKRC20-023 65 127 6.1 62m @ 6.1 g/t
NKRC20-023 143 145 1.2 2m @ 1.2 g/t
NKPC20-024 2 18 1.5 16m @ 1.5 g/t
NKPC20-024 60 63 0.5 3m @ 0.5 g/t
NKPC20-024 87.1 97 2 9.9m @ 2.0 g/t
NKPC20-024 103.9 109 1.2 5.1m @ 1.2 g/t
NKPC20-024 117 136 4.2 19m @ 4.2 g/t
NKPC20-024 149 151 3.8 2m @ 3.8 g/t
NKPC20-024 216 219.14 0.9 3.14m @ 0.9 g/t
NKRC20-025 15 22 1.5 7m @ 1.5 g/t
NKRC20-025 71 73 2.4 2m @ 2.4 g/t
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Hole_ID From
(m)
To
(m)
Grade
(g/t Au)
Intercept Description
NKRC20-025 79 86 2.6 7m @ 2.6 g/t
NKRC20-025 98 102 1.8 4m @ 1.8 g/t
NKRC20-025 128 158 21.5 30m @ 21.5 g/t
NKRC20-026 1 2 0.7 1m @ 0.7 g/t
NKRC20-026 15 36 2.5 21m @ 2.5 g/t
NKRC20-026 40 42 2.4 2m @ 2.4 g/t
NKRC20-026 68 85 1.7 17m @ 1.7 g/t
NKRC20-026 89 99 2.1 10m @ 2.1 g/t
NKRC20-026 114 117 3.1 3m @ 3.1 g/t
NKRC20-026 124 133 2.1 9m @ 2.1 g/t
NKRC20-026 137 164 4.9 27m @ 4.9 g/t
NKRC20-026 179 184 0.6 5m @ 0.6 g/t
NKRC20-026 199 209 3.3 10m @ 3.3 g/t
NKRC20-027 46 49 1.7 3m @ 1.7 g/t
NKRC20-028 48 51 0.8 3m @ 0.8 g/t
NKRC20-028 72 77 0.9 5m @ 0.9 g/t
NKRC20-028 93 120 3.7 27m @ 3.7 g/t
NKRC20-029 14 30 5.2 16m @ 5.2 g/t
NKRC20-029 35 69 1.3 34m @ 1.3 g/t
NKRC20-029 74 81 0.5 7m @ 0.5 g/t
NKRC20-029 120 125 1.1 5m @ 1.1 g/t
NKRC20-029 162 166 2.4 4m @ 2.4 g/t
NKRC20-030 46 53 1.6 7m @ 1.6 g/t
NKRC20-030 60 66 1 6m @ 1.0 g/t
NKRC20-030 89 94 1.7 5m @ 1.7 g/t
NKRC20-030 153 155 0.7 2m @ 0.7 g/t
NKPC20-031 59 62.6 3 3.6m @ 3.0 g/t
NKPC20-031 75.2 87.25 1.1 12.05m @ 1.1 g/t
NKPC20-031 93 97.27 0.6 4.27m @ 0.6 g/t
NKPC20-031 106 111 1.6 5m @ 1.6 g/t
NKPC20-031 127 129 1.6 2m @ 1.6 g/t
NKPC20-031 133 136.98 1.3 3.98m @ 1.3 g/t
NKPC20-031 151.1 155 25.3 3.9m @ 25.3 g/t
NKRC20-032 1 7 1.9 6m @ 1.9 g/t
NKRC20-032 12 52 2.9 40m @ 2.9 g/t
NKRC20-033 22 24 0.6 2m @ 0.6 g/t
NKRC20-033 54 58 2.4 4m @ 2.4 g/t
NKRC20-033 71 73 0.9 2m @ 0.9 g/t
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Hole_ID From
(m)
To
(m)
Grade
(g/t Au)
Intercept Description
NKRC20-033 78 90 2.7 12m @ 2.7 g/t
NKRC20-033 102 105 0.8 3m @ 0.8 g/t
NKRC20-033 112 158 2.5 46m @ 2.5 g/t
NKRC20-033 164 170 1.3 6m @ 1.3 g/t
NKRC20-034 46 49 2.7 3m @ 2.7 g/t
NKRC20-034 85 89 7.9 4m @ 7.9 g/t
NKPC20-035 2 5 0.7 3m @ 0.7 g/t
NKPC20-035 38.7 42 9.7 3.3m @ 9.7 g/t
NKPC20-035 120 125 0.7 5m @ 0.7 g/t
NKPC20-035 130 144 2 14m @ 2.0 g/t
NKPC20-035 147.66 157.9 4.2 10.24m @ 4.2 g/t
NKPC20-035 164 167.94 1 3.94m @ 1.0 g/t
NKRC20-036 63 68 1.2 5m @ 1.2 g/t
NKRC20-036 78 88 2.3 10m @ 2.3 g/t
NKRC20-037 64 68 0.9 4m @ 0.9 g/t
NKRC20-037 79 83 1.2 4m @ 1.2 g/t
NKRC20-038 41 44 1.8 3m @ 1.8 g/t
NKPC20-039 80 82.04 0.8 2.04m @ 0.8 g/t
NKPC20-039 93.13 120 3.4 26.87m @ 3.4 g/t
NKPC20-039 124 136.2 4 12.2m @ 4.0 g/t
NKPC20-039 150.85 153 12.2 2.15m @ 12.2 g/t
NKRC20-040 64 71 0.8 7m @ 0.8 g/t
NKRC20-041 45 48 1.7 3m @ 1.7 g/t
NKRC20-043 46 59 0.8 13m @ 0.8 g/t
NKRC20-043 64 104 5.5 40m @ 5.5 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 mineraliz ed zones as close to
perpendicular as possible. Intercepts in bold are those listed in the Highlights.
Nkran Underground Potential
In parallel to the Cut 3 drilling and engineering work underway for Nkran, the Company is evaluating the
potential to transition Nkran to an underground mine, either prior to or following the completion of Cut
3. Planned work over the coming months will include planning for an underground exploration decline ,
development of a drilling program to follow-up on testing the extent of the mineralized system at depth
and completing a conceptual study to investigate the potential of transitioning Nkran to an underground
mine.
Nkran Geology and Cross Sections
The Nkran geological setting is typical of th e Asankrangwa belt with a sedimentary sequence of
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interlayered shale, siltstone, and sandstone. Two granitic bodies intrude along shear zones that control
mineralization which dips steeply to the northwest along with the sheared host stratigraphy. The
mineralization indicated by the Company’s drilling program and reported in this press release lies within
and below the currently planned Cut 3 pushback of the Nkran pit . The g rade and continuity of the
mineralization indicated by the Company’s drilling program are sufficient to warrant evaluation of this
mineralization for potential underground mining.
Figure 1 shows the location of drill holes and intercepts. Cross sections (Figures 2, 3, and 4) demonstrate
the location of intercepts with current block model and Cut 3 plans. Review and reassessment of the
current block model is planned in light of these new results.
Figure 1. Plan view of geology and drill holes with intercepts at the bottom of Nkran Pit. Sandstone is
intruded by two granitic bodies along shear zones.
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Figure 2. Cross section near the southwest end of the Nkran pit showing drill hole NKRC20 -022 with
current pit outline (black line) and proposed Cut 3 (blue line). Current block model displays mineralization
in Magenta >2.0 g/t and red 1.5 - 2.0 g/t. See Figure 1 for location of this section.
Figure 3 . Cross section near the northeast end of the Nkran pit shows indicated continuity of
mineralization over a vertical interval of approximately 130 m.
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Figure 4. Cross section near the northeast end of the Nkran Pit shows indicated continuation of higher-
grade mineralization.
Enquiries:
Lynette Gould
SVP Investor Relations
Toll-Free (N. America): 1-855-246-7341
Telephone: 1-778-729-0608
Email: [email protected]
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 intern ational company operating in 100