Galiano GOLD Reports Preliminary Q2 2021 Operating Results FOR the Asanko GOLD MINE
(All dollar amounts are United States dollars unless otherwise stated)
GALIANO GOLD REPORTS PRELIMINARY Q2 2021 OPERATING
RESULTS FOR THE ASANKO GOLD MINE
Vancouver, British Columbia, July 15, 2021 – Galiano Gold Inc. (“Galiano” or the “Company”) (TSX, NYSE
American: GAU) reports preliminary second quarter (“Q2”) operating results from 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. The Company expects to release its full financial
and operational results before the market opens on August 12, 2021. All financial information contained
in this release is unaudited and reported in US$.
AGM Q2 2021 Highlights (100% basis):
• Consistent sales: Gold revenue of $95.1 million generated from 53,348 ounces sold at an average
realized price of $1,782 per ounce
• Advancing development of Akwasiso Cut 3: Stripping at Akwasiso is on schedule for ore delivery in Q3
2021
• Production on target: Gold production of 50,421 ounces, in line with 2021 production guidance
• Excellence in safety: Zero total recordable injuries (“TRI”) recorded in the quarter, resulting in a 12-
month rolling TRI frequency rate of 0.54 per million employee hours worked
• Debt free: Repaid remaining $15 million outstanding on the revolving credit facility (“RCF”)
“Stripping of Cut 3 at Akwasiso advanced during Q2 2021 with ore delivery expected to resume on schedule
in Q3 2021. In line with expectations, production in Q2 was lower than the previous quarter as mill feed
was sourced primarily from Esaase and augmented with lower grade run of mine stockpiles. This in turn
resulted in operating costs increasing relative to the previous quarter . Operating costs are forecast to
decrease from Q3 2021 once Akwasiso is brought back into production,” said Matt Badylak, President and
Chief Executive Officer. “Moving forward we continue to focus on achieving consistent ore supply from
Akwasiso and advancing the exploration program at the AGM.”
Health and Safety
During the quarter, there were no lost time (“LTI”) nor recordable injuries reported resulting in 12-month
rolling LTI and TRI frequency rates of 0.09 and 0.54 per million employee hours worked, respectively.
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Production
In Q2, the AGM sourced ore primarily from the Esaase Main pit (while stripping of Cut 3 at Akwasiso was
ongoing) as well as run of mine stockpiles. During the quarter , 1.3Mt of ore at an average gold grade of
1.2 g/t and 6.4Mt of waste were mined from the Esaase Main pit. At the Akwasiso pit , 2.6Mt of waste
was mined associated with Cut 3 stripping activities.
The processing plant milled 1.5Mt at a feed grade of 1.1 g/t during the quarter with metallurgical recovery
averaging 94%.
AGM Key Production Statistics
(100% basis)
Units Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020
Total Tonnes Mined 000 t 10,406 11,393 13,737 12,279 9,489
Waste Tonnes Mined 000 t 9,073 9,552 11,773 11,321 8,128
Ore Tonnes Mined 000 t 1,333 1,841 1,964 958 1,361
Strip Ratio W:O 6.8:1 5.2:1 6.0:1 11.8:1 6.0:1
Average Gold Grade Mined g/t 1.2 1.3 1.4 1.4 1.4
Ore Processed 000 t 1,475 1,444 1,438 1,467 1,638
Gold Feed Grade g/t 1.1 1.4 1.5 1.1 1.4
Gold Recovery % 94 95 95 93 94
Gold Produced oz 50,421 59,999 65,571 48,974 69,026
Sales and Liquidity
Gold production for the quarter totalled 50,421 ounces with gold sales of 53,348 ounces at an average
realized price of $1,782 per ounce, generating gold revenue of $95.1 million for the quarter.
At the end of the quarter, the JV held approximately $41.3 million in unaudited cash, $13.4 million in gold
sales receivables and $3.1 million in gold on hand. The AGM repaid the remaining $15 million outstanding
on its RCF during the quarter and is now debt-free.
Enquiries:
Peter Lekich
VP Investor Relations
Toll-Free (N. America): 1-855-246-7341
Telephone: 1-778-729-0608
Email: [email protected]
About Galiano Gold Inc.
Galiano is focused on creating a sustainable business capable of long -term value creation for its
stakeholders through exploration and disciplined deploym ent 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
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environmental manage ment, 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 t he 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 “s eek”, “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: projected gold production and cost
estimates for calendar 2021, the target date for the Company releasing its full financial an d operational results and
the target date for ore delivery at Akwasiso Cut 3. Such forward -looking statements are based on a number of
material factors and assumptions, including, but not limited to: that projected gold production and cost estimates
for calendar 2021 will be representative of actual production and cost results for calendar 2021, that the Company’s
stripping at Akwasiso Cut 3 will continue to proceed on schedule to allow for ore delivery in second half of 2021, the
ability of the AGM to cont inue 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 doré 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 Company’s and the AGM’s responses to the COVID -19 pandemic will be
effective in continuing its operations in the ordinary course; the accu racy of the estimates and assumptions
underlying Mineral Resource and Mineral Reserve estimates, including future gold prices, cut -off grades and
production and processing estimates; the successful completion of development and exploration projects, plann ed
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, taxation 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;
that the Company will maintain its title its mineral properties; that cost estimates with respect to the Company’s
activities are reflective of the actual costs of such activities; that the Company wil l retain its key personnel; and that
changes in laws, rules and regulations applicable to Galiano will not disrupt the Company’s operations.
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 thes e 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 projected gold production and cost estimates for calendar 2021
referred to in this news release may not be representative of actual production and cost results for calendar 2021;
the Company may not begin ore delivery at Akwasiso Cut 3 by the target date for such delivery, or at all; 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 re sult 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 i n the ordinary course; mineral reserve
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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 an d 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, devel opment 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 whe n 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 profitabili ty 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 Comp any’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 liab le 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.
Neither Toronto Stock Exchange nor the Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this release.
Source: Galiano Gold Inc.