Galiano GOLD Reports Preliminary Q3 2021 Operating Results FOR the Asanko GOLD MINE
(All dollar amounts are United States dollars unless otherwise stated)
GALIANO GOLD REPORTS PRELIMINARY Q3 2021 OPERATING
RESULTS FOR THE ASANKO GOLD MINE
Vancouver, British Columbia, October 14, 2021 – Galiano Gold Inc. (“Galiano” or the “Company”) (TSX,
NYSE American: GAU) reports preliminary third quarter (“Q3”) 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 after the market closes on November 10, 2021. All financial information
contained in this release is unaudited and reported in US$.
AGM Q3 2021 Highlights (100% basis):
• Sales on plan: Gold revenue of $85.2 million generated from 48,435 ounces sold at an average realized
price of $1,758 per ounce
• Development of Akwasiso Cut 3: Stripping at Akwasiso advanced throughout the quarter and will be
completed in Q4
• Production on target: Gold production of 49,543 ounces, in line with 2021 production guidance
“Production for Q3 remained at similar levels to Q2 as we continued to develop Akwasiso for its third
phase of mining ,” said Matt Badylak, President and Chief Executive Officer. “With Akwasiso pivoting to
sustainable ore delivery in Q4 we expect gold production to revert to historical levels with per unit costs
trending downwards positioning the AGM well for the achievement of restated full year guidance. We
continue to remain on schedule to publish our updated Reserve and Resource statement in Q4 of this
year.”
Health and Safety
During the quarter, there w as one recordable injury and lost time injury reported resulting in 12-month
rolling TRI and LTI frequency rates of 0.20 and 0.41 per million employee hours worked, respectively.
Production
In Q3, the AGM sourced ore from the Esaase Main pit in addition to incremental ore production from Cut
3 at Akwasiso. During the quarter, 1.3Mt of ore at an average gold grade of 1.4 g/t and 7.4Mt of waste
were mined from the Esaase Main pit and 0.1Mt of ore at an average gold grade of 1.2 g/t and 2.6Mt of
waste from the Akwasiso pit.
The processing plant milled 1.5Mt at a feed grade of 1.1 g/t during the quarter with metallurgical recovery
averaging 90%.
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AGM Key Production Statistics
(100% basis)
Units Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020
Total Tonnes Mined 000 t 11,481 10,406 11,393 13,737 12,279
Waste Tonnes Mined 000 t 10,017 9,073 9,552 11,773 11,321
Ore Tonnes Mined 000 t 1,464 1,333 1,841 1,964 958
Strip Ratio W:O 6.8:1 6.8:1 5.2:1 6.0:1 11.8:1
Average Gold Grade Mined g/t 1.3 1.2 1.3 1.4 1.4
Ore Processed 000 t 1,542 1,475 1,444 1,438 1,467
Gold Feed Grade g/t 1.1 1.1 1.4 1.5 1.1
Gold Recovery % 90 94 95 95 93
Gold Produced oz 49,543 50,421 59,999 65,571 48,974
Sales and Liquidity
Gold production for the quarter totalled 49,543 ounces with gold sales of 48,435 ounces at an average
realized price of $1,758 per ounce, generating gold revenue of $85.2 million for the quarter.
At the end of the quarter, the JV held approximately $53.0 million in unaudited cash, $5.6 million in gold
sales receivables and $4.7 million in gold on hand. The AGM remains debt free with $30.0 million available
on its revolving credit facility.
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 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 com mitted 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 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
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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: projected gold
production and cost performance, the ability of the Company to achieve its restated full year guidance, the target
date for the Company releasing its full financial and operational results, and the ability of the Company to publish its
updated Mineral Reserve and Resource statement during Q4 of this year. 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 will be representative of actual production and cost results for ; that the Company will be able to
achieve its restated full year production and cost guidance; that the Company will publish its updated Mineral Reserve
and Resource statement on the timeline currently anticipated; 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 doré 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 accuracy 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, 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, taxation and exchange
rates; that required financin g 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 will retain its key personnel; and that changes in laws, rules and regulations appl icable 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 anticipate d 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 projected gold production and cost estimates referred to in this news
release may not be representative of actual production and cost results; the Company may not be able to achieve its
2021 restated production and cost guidance; the Company may not publish its updated Mineral Reserve and Resource
statement on the timeline currently anticipated 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 governmenta l 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 associa ted 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 d elays 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
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production due to equipment delays or the availability of equipment; the Company’s operation s 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 producti on 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 cla ims 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 m ay 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 acce ptable 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 r epatriate 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.
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.