Galiano GOLD Reports 2024 Guidance, Preliminary Q1 Operating Results and a 38% Increase IN Abore M&i Mineral Resources (All Dollars IN U.s. Dollars)
GALIANO GOLD REPORTS 2024 GUIDANCE,
PRELIMINARY Q1 OPERATING RESULTS AND A 38% INCREASE
IN ABORE M&I MINERAL RESOURCES
(all dollars in U.S. dollars)
Vancouver, British Columbia, April 16, 2024 – Galiano Gold Inc. (“ Galiano” or the “Company”) (TSX,
NYSE American: GAU) is pleased to provide 2024 operating and cost guidance, preliminary first quarter
operational results and an update on the improved Abore Mineral Resource at the Company’s Asanko
Gold Mine (the “AGM”), located in Ghana, West Africa.
2024 Full Year Guidance
The AGM is expected to produce between 140,000 to 160,000 ounces at forecast All-In Sustaining Cost
(“AISC”)1 of between $1,600/oz to $1,750/oz. With the AGM now owned 90% by Galiano, production is
expected to significantly exceed that of 2023, more than doubling the Company’s attributable gold
production. AISC1 is anticipated to be slightly elevated in 2024 primarily due to the waste stripping to
access consistent ore feed at Abore, which will benefit future years production.
Sustaining capital, exclusive of capitalized waste stripping, is expected to be approximately $10 million in
2024.
Growth capital in 2024 is expected to be approximately $20 million and primarily includes plant upgrades
(additional C arbon-In-Leach tanks, a secondary crusher and associated circuit upgrades) and site
establishment costs.
The exploration program in 2024 is expected to be in line with previous years at $15 million. The spend is
planned to be equally split between generative and near-mine exploration activities.
Preliminary Q1 2024 Operating Results
For the three months ended March 31, 2024, the AGM produc ed 30,386 gold ounces , in-line with the
Company’s expectations, as the mill feed was sourced from existing stockpiles, while Abore pre-stripping
continued. The Company expects to be processing higher grade ore from the Abore pit by the end of the
second quarter of 2024.
As of March 31, 2024, the Company had $ 130.8 million in unaudited cash and cash equivalents and no
debt. These balances include the financial results of the AGM, which were consolidated by the Company
effective March 4, 2024, upon closing of the transaction with Gold Fields Limited.
1 Refer to Non-IFRS Performance Measures
2
Preliminary Q1 2024 Operational Results2
Q1 2024
Gold produced (oz) 30,386
Gold sold (oz) 31,840
Average realized gold price ($/oz) 2,056
2024 First Quarter Financial Results Announcement
The Company will release its condensed consolidated interim financial statements and Management's
Discussion and Analysis for the three months ended March 31, 2024 and 2023 after market close on May
2, 2024.
38% Increase to Abore Measured and Indicated (“M&I”) Mineral Resource Estimate
Following successful 2023 and early 2024 infill drilling programs at Abore, a notable increase to the Abore
Mineral Resource Estimate (“MRE”) was completed effective March 31, 2024. This new estimate includes
assay results from an additional 119 exploration drill holes, totaling 27,039 metres, completed since the
December 31, 2022 MRE , as described in the 2023 Technical Report 3. The net impact of the additional
drilling exceeded conversion of the Inferred Mineral Resources to Indicated Mineral Resources. The Abore
M&I Mineral Resources increased by 181,000 ounces (38%) , as a result of improved grade (13%) and
tonnage (22%) from 1.16 grams per tonne (“g/t”) to 1.31 g/t, and from 12.8 million tonnes to 15.6 million
tonnes, respectively. Both estimates were based on an $1,800 per ounce gold price and an equivalent cut-
off grade of 0.45 g/t Au.
These results, in addition to other infill and step out drilling results, will be used to update a consolidated
AGM Mineral Reserve Estimate and an optimized Life of Mine plan in the fourth quarter of 2024.
"With the consolidation of the AGM completed during the first quarter, I am pleased to report on the
work the team has been focused on since completing this transformational milestone,” stated Matt
Badylak, Galiano’s President & Chief Executive Officer. “The significant increase in M&I Resources at Abore
highlights the deposit’s importance to the AGM life of mine and work is underway to update the Mineral
Reserve Estimate. This estimate is expected to grow on the back of the expanded MRE and provide
additional mill feed optionality going forward.
Across the AGM, we strongly believe in the long- term potential for growth through successful infill and
step out drilling at all of our existing deposits. This focus, combined with ongoing greenfield exploration
success and a rising gold price environment, bodes well for further extension of the AGM life of mine and
additional value creation for our shareholders.”
2 Results from the Asanko Gold Mine are on a 100% basis for the three months ended March 31, 2024.
3 Refer to "NI 43-101 Technical Report and Feasibility Study for the Asanko Gold Mine, Ashanti Region,
Ghana" with an effective date of December 31, 2022, which is available on the Company's website and
filed on SEDAR+.
3
Long section through Abore deposit showing drill holes and constraining resource shells
Mineral Resource Statement for the AGM
Mineral Resource Estimate as of December 31, 2022, except Abore and Stockpiles, which are as of March
31, 2024.
Deposit Measured Indicated Measured & Indicated Total Inferred
Tonnes Au
Grade
Au
Contained Tonnes Au
Grade
Au
Contained Tonnes Au
Grade
Au
Contained Tonnes Au
Grade
Au
Contained
(Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz) (Mt) (g/t) (koz)
Nkran -- -- -- 15.3 1.89 931 15.3 1.89 931 3.6 1.83 209
Esaase -- -- -- 30.6 1.25 1,227 30.6 1.25 1,227 8.2 1.26 334
Abore -- -- -- 15.6 1.31 658 15.6 1.31 658 1.4 1.14 50
Adubiaso -- -- -- 3.1 1.47 148 3.1 1.47 148 0.1 1.05 3
Akwasiso -- -- -- 1.4 1.16 52 1.4 1.16 52 0.2 1.28 9
Asuadai -- -- -- 1.6 1.23 64 1.6 1.23 64 0.1 1.29 4
Dynamite Hill -- -- -- 2.2 1.34 95 2.2 1.34 95 1.0 1.24 40
Midras South -- -- -- -- -- -- -- -- -- 5.4 1.32 232
Miradani North -- -- -- 7.9 1.39 352 7.9 1.39 352 2.9 1.3 122
Stockpiles 2.1 0.69 47 -- -- -- 2.1 0.69 47 -- -- --
Total 2.1 0.69 47 77.7 1.41 3,527 79.8 1.39 3,574 22.9 1.36 1,003
Notes:
• Mr. Malcolm Titley of CSA Global UK is the Qualified Person responsible for the Nkran Mineral Resource stat ement. Mr. Eric Chen, P.Geo.,
Vice President Mineral Resources for Galiano Gold Inc., is the Qualified Person responsible for the Stockpiles and Abore Mineral Resource
statement. Dr. Oy Leuangthong, PEng and Mr. Glen Cole, PGeo of SRK Consulting (Canada) I nc. are Qualified Persons responsible Mineral
Resource statements for Esaase, Miradani North, Adubiaso, Midras South, Akwasiso, Asuadai and Dynamite Hill.
• Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures have been rounded to reflect the
relative accuracy of the estimates. Due to rounding, some columns or rows may not compute exactly as shown.
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• Reported within an optimized pit shell assuming a price of USD1,800/oz gold and using various cut -off grades: 0.40 g/t gold for Nkran; 0.50
g/t in Oxides and 0.60 g/t gold in Transition and Fresh for Esaase; and 0.45 g/t gold for all other deposits. Metallurgical r ecovery of 94% for
all deposits, except in Esaase, where gold recoveries vary based on lithology.
• All tonnages are reported as in situ dry tonnes.
• Mineral Resources are inclusive of Mineral Reserves.
• All quantities are reported on a 100% basis.
• The Stockpiles and Abore Mineral Resources are stated as of March 31, 2024 and all other deposits are stated with an effective da te of
December 31, 2022 and remain current.
Non-IFRS Performance Measures
The Company has included certain non-IFRS performance measures in this news release. These non-IFRS
performance measures do not have any standardized meaning and therefore may not be comparable to
similar measures presented by other issuers. Accordingly, these performance measures are intended to
provide additional information and should not be considered in isolation or as a substitute for measures
of performance prepared in accordance with IFRS. Refer to the Non -IFRS Measures section of Galiano’s
Management’s Discussion and Analysis for an explanation of these measures and reconciliations to the
Company’s and the JV’s reported financial results in accordance with IFRS.
• All-in Sustaining Costs per Gold Ounce Sold
The Company has adopted the reporting of “all-in sustaining costs per gold ounce” (“AISC”) as per the
World Gold Council’s guidance. AISC include total cash costs, corporate overhead expenses, sustaining
capital expenditure, sustaining capitalized stripping costs, reclamation cost accretion and lease
payments made to and interest expense on the AGM’s mining and service lease agreements per ounce
of gold sold. Excluded from AISC are one -time severance charges in line with World Gold Council
guidance.
Qualified Persons
Mr. Eric Chen, P.Geo., Vice President Mineral Resources of Galiano, is a Qualified Person as defined by
43-101, and is the Qualified Person responsible for the Stockpiles and Abore Mineral Resource
statement.
Mr. Richard Miller, P.Eng., Vice President Technical Services of Galiano, is a Qualified Person as defined
by NI 43-101, and has approved all other scientific and technical information contained in this news
release.
Contact Information
Krista Muhr
Toll-Free (N. America): 1-855-246-7341
Telephone: 1-778-239-0446
Email: [email protected]
About Galiano Gold Inc.
Galiano is focused on creating a sustainable business capable of value creation for all stakeholders through
production, exploration and disciplined deployment of its financial resources. The Company owns the Asanko Gold
Mine, which is located in Ghana, We st Africa. Galiano is committed to the highest standards for environmental
management, social responsibility, and the health and safety of its employees and neighbouring communities. For
more information, please visit www.galianogold.com.
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Cautionary Note to United States Investors Concerning Estimates of Reserves and Measured, Indicated
and Inferred Resources
Disclosure regarding the Company’s mineral properties, including with respect to mineral reserve and mineral
resource estimates included in this news release, was prepared 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. NI 43 -101 differs significantly from the disclosure requirements
of the U.S. Securi ties and Exchange Commission (SEC) generally applicable to U.S. companies. Accordingly,
information contained in this news release may not be comparable to similar information made public by U.S.
companies subject to the reporting and disclosure requirements under the United States federal securities laws and
the rules and regulations thereunder.
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 inf ormation 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 regarding the Company’s
expectations and timing with respect to current and planned drilling programs at Abore, and the results thereof; the
Company’s belief in the potential of the AGM, including the additional value creation for the Company’s shareholders;
the Company’s plans t o update a consolidated AGM mineral reserves estimate and life of mine plan and timing
thereof; the Company’s expections regarding production, AISC, sustaining capital, growth capital and the exploration
program in 2024; the expected processing of higher grade ore from the Abore pit and timing thereof; and the timing
for release of the Company’s Q1 financials. Such forward- looking statements are based on a number of material
factors and assumptions, including, but not limited to: development plans and capital expenditures; the price of gold
will not decline significantly or for a protracted period of time; the accuracy of the estimates and assumptions
underlying mineral reserve and mineral resource estimates; the Company’s ability to raise sufficient funds from future
equity financings to support its operations, and general business and economic conditions; the global financial
markets and general economic conditions will be stable and prosperous in the future; the ability of the Company to
comply with applicable governmental regulations and standards; the mining laws, tax laws and other laws in Ghana
applicable to the AGM will not change, and there will be no imposition of additional exchange controls in Ghana; the
success of the Company in implementing its development strategies and achieving its business objectives; the
Company will have sufficient working capital necessary to sustain its operations on an ongoing basis and the
Company will continue to have sufficient working capital to fund its operations; and the key personnel of the Company
will continue their employment.
The foregoing list of assumptions cannot be considered exhaustive.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause
actual result s, 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 expec tations 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
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news release, include, but are not limited to: mineral reserve and mineral resource estimates may change and may
prove to be inaccurate; metallurgical recoveries may not be economically viable; life of mine estimates are based on
a number of factors and assumptions and may prove to be incorrect; 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 w ithin the Company's control; inflationary pressures and the effects thereof; the 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; 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 whi ch
may not be present or occur as expected; the Company’s mineral properties may experience a loss of ore due to illegal
mining activities; the Company's operations may encounter delays in or losses of production due to equipment delays
or the availability of equipment; outbreaks of COVID -19 and other infectious diseases may have a negative impact
on global financial conditions, demand for commodities and supply chains and could adversely affect the Company’s
business, financial condition and results of operations and the market price of the common shares of the Company;
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 unsucces sful in attracting and retaining key
personnel; labour disruptions could adversely affect the Company's operations; recoveries may be lower in the future
and have a negative impact on the Company’s financial results; the lower recoveries may persist and be detrimental
to the AGM and the Company; 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 effects of climate change or extreme
weather events may cause prolonged disruption to the deliver y of essential commodities which could negatively
affect production efficiency; 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; geotechnical risks associated with the design and operation of a mine and related civil structures;
the Company's properties may be subject to claims by various community stakeholders; risks related to limited access
to infrastructure and water; risks associated with establishing new mining operations; the Company's revenues are
dependent on the market prices f or gold, which have experienced significant recent fluctuations; the Company may
not be able to secure additional financing when needed or on acceptable terms; the Company’s shareholders may be
subject to future dilution; risks related to changes in interest rates and foreign currency exchange rates; risks relating
to credit rating downgrades; changes to taxation laws applicable to the Company may affect the Company's
profitability and ability to repatriate funds; risks related to the Company's internal controls over financial reporting
and compliance with applicable accounting regulations and securities laws; risks related to information systems
security threats; non- compliance with public disclosure obligations could have an adverse effect on the Company’s
stock price; the carrying value of the Company's assets may change and these assets may be subject to impairment
charges; risks associated with changes in reporting standards; the Company may be liable for uninsured or partially
insured losses; the Company may be subject to litigation; damage to the Company’s reputation could result in
decreased investor confidence and increased challenges in developing and maintaining community relations which
may have adverse effects on the business, results of operations and financial conditions of the Company and the
Company’s share price; 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; the Company’s growth,
future profitability and ability to obtain financing may be impacted by global financial conditions; the Company’s
common shares may experience price and trading volume volatility; the Company has never paid dividends and does
not expect to do so in the foreseeable future; the Company’s shareholders may be unable to sell significant quantities
of the Company’s common shares int o the public trading markets without a significant reduction in the price of its
common shares, or at all; and the risk factors described under the heading “Risk Factors” in the Company’s Annual
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Information Form.
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.
Neither the Toronto Stock Exchange nor the Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this news release.
The increase in M&I Mineral Resources has not demonstrated economic viability or changed production forecasts,
and therefore is not considered a material change for Galiano.
The updated Abore MRE remains supportive of the current Abore Mineral Reserves as described in the 2023 Technical
Report.