Galane GOLD Ltd. Releases Financial and Operating Results FOR Third Quarter 2017
For immediate release
GALANE GOLD LTD. RELEASES FINANCIAL
AND OPERATING RESULTS FOR THIRD QUARTER 2017
TORONTO, ONTARIO – October 25, 201 7: Galane Gold Ltd. (“Galane Gold” or the
“Company”) (TSX-V: GG) is pleased to announce the release of its financial results for
the three and nine months ended September 30, 2017. All amounts are in United States
dollars unless otherwise indicated.
A copy of the unaudited condensed consolidated interim financial statements for the
three and nine months ended September 30, 2017 prepared in accordance with
International Financial Reporting Standards and the corresponding Management’s
Discussion and Analysis will be available under the Company’s profile on
www.sedar.com.
Third Quarter 2017 Highlights
Produced 9,535 ounces of gold.
Positive cash flows from operating activities of $2,212,757.
Net income of $1,286,261.
All-in operating cash cost of $723 per ounce (excluding royalties).(1)
Galane Gold CEO, Nick Brodie commented: “ I am pleased that the investment in the
development of Tau has resulted in increasing positive cash flow s and declining cash
costs. With the extension of the current Tau mine plan, and possible further expansion
beyond that, it points to a long-term productive future for the Company in
Botswana.(2)(3)(4)
We have updated our mine plan for the Galaxy project, and we expect to recommence
operations at a n initial production level of over 25,000 ounces of gold per annum at a
cost per ounce of less than $800 . We have commenced further studies to support a
subsequent expansion to a production level of over 50,000 ounces per annum. (2)(3)(5)
About Galane Gold
Galane Gold is an un -hedged gold producer and explorer with mining operations and
exploration tenements in Botswana and South Africa . Galane Gold is a public company
and its shares are quoted on the Exchange under the symbol “GG”. Galane Gold’s
management team is comprised of senior mining professionals with extensive experience
in managing mining and processing operations and large -scale exploration programmes.
Galane Gold is committed to operating at world -class standards and is focused on the
safety of its employees, respecting the environment, and contributing to the
communities in which it operates.
Notes:
(1) Total o perating cash cost excluding royalties is a non -GAAP measure. Refer to
“Supplemental Information to Management’s Discussion and Analysis” in the
Company’s Management’s Discussion and Analysis for the three and six months
ended September 30, 2017 for reconciliation to measures reported in the
Company’s financial statements.
(2) This is forward-looking information and is based on a number of assumptions. See
“Cautionary Notes”.
(3) There has yet to be sufficient exploration on the potential expansion to
extrapolate that it extends beyond the current mined area.
(4) The updated mine plan prepared by the Company in respect of the Tau property
is based on internal reporting by the Company following open pit mining and not
based on an independent feasibility study or pre -feasibility study of mineral
reserves demonstrating economic and technical viability.
(5) The updated mine plan prepared by the Company in respect of the Galaxy
property is based on internal reporting by the Company following underground
mining and not based on an independent feasibility study or pre -feasibility study
of mineral reserves demonstrating economic and technical viability.
Cautionary Notes
Certain statements contained in this press release constitute “forward -looking
statements”. All statem ents other than statements of historical fact contained in this
press release, including, without limitation, those regarding the Company’s future
financial position and results of operations, strategy, proposed acquisitions, plans,
objectives, goals and t argets, and any statements preceded by, followed by or that
include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”,
“would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or
similar expressi ons or the negative thereof, are forward -looking statements. These
statements are not historical facts but instead represent only the Company’s
expectations, estimates and projections regarding future events. These statements are
not guarantees of future p erformance and involve assumptions, risks and uncertainties
that are difficult to predict. Therefore, actual results may differ materially from what is
expressed, implied or forecasted in such forward-looking statements.
Additional factors that could caus e actual results, performance or achievements to differ
materially include, but are not limited to: the Company’s dependence on two mineral
projects; gold price volatility; risks associated with the conduct of the Company’s mining
activities in Botswana an d South Africa; regulatory, consent or permitting delays; risks
relating to the Company’s exploration, development and mining activities being situated
in Botswana and South Africa; risks relating to reliance on the Company’s management
team and outside co ntractors; risks regarding mineral resources and reserves; the
Company’s inability to obtain insurance to cover all risks, on a commercially reasonable
basis or at all; currency fluctuations; risks regarding the failure to generate sufficient
cash flow from operations; risks relating to project financing and equity issuances; risks
arising from the Company’s fair value estimates with respect to the carrying amount of
mineral interests; mining tax regimes; risks arising from holding derivative instruments;
the Company’s need to replace reserves depleted by production; risks and unknowns
inherent in all mining projects, including the inaccuracy of reserves and resources,
metallurgical recoveries and capital and operating costs of such projects; contests over
title to properties, particularly title to undeveloped properties; laws and regulations
governing the environment, health and safety; operating or technical difficulties in
connection with mining or development activities; lack of infrastructure; employee
relations, labour unrest or unavailability; health risks in Africa; the Company’s
interactions with surrounding communities and artisanal miners; the Company’s ability
to successfully integrate acquired assets; risks related to restarting production; the
speculative nature of exploration and development, including the risks of diminishing
quantities or grades of reserves; development of the Company’s exploration properties
into commercially viable mines; stock market volatility; conflicts of interest among
certain directors and officers; lack of liquidity for shareholders of the Company; risks
related to the market perception of junior gold companies; and litigation
risk.Management provides forward -looking statements because it believes they provide
useful i nformation to investors when considering their investment objectives and
cautions investors not to place undue reliance on forward -looking information.
Consequently, all of the forward -looking statements made in this press release are
qualified by these ca utionary statements and other cautionary statements or factors
contained herein, and there can be no assurance that the actual results or developments
will be realized or, even if substantially realized, that they will have the expected
consequences to, or effects on, the Company. These forward -looking statements are
made as of the date of this press release and the Company assumes no obligation to
update or revise them to reflect subsequent information, events or circumstances or
otherwise, except as required by law.
Information of a technical and scientific nature that forms the basis of the disclosure in
the press release has been approved by Charles Byron Pr. Sci. Nat., MAusIMM., MGSSA
and Chief Geologist for Galane Gold, and a “qualified person” as defined by National
Instrument 43-101.
Neither the Exchange nor its regulation services provider (as that term is defined in the
policies of the Exchange) accepts responsibility for the adeq uacy or accuracy of this
release.
For further information please contact:
Nick Brodie
CEO, Galane Gold Ltd.
+ 44 7905089878
www.GalaneGold.com