Galleon Gold Announces Updated Mineral Resource Estimate for the West Cache Project,
Galleon Gold Announces Updated Mineral
Resource Estimate for the West Cache Project,
Timmins, Ontario
657,000 Indicated and 640,000 Inferred Gold Ounces
Toronto, Ontario--(Newsfile Corp. - September 8, 2021) - Galleon Gold Corp. (TSXV: GGO) (the
"Company" or "Galleon Gold") is pleased to announce the release of a National Instrument 43-101 ("NI
43-101") updated Mineral Resource Estimate for its 100% owned West Cache Gold Project, Timmins,
Ontario ("West Cache" or the "Project").
Highlights include:
Indicated
Mineral Resource of
657,000 ounces
(13.4 Mt at an average grade of 1.52 g/t Au);
Inferred
Mineral Resource of
640,000 ounces
(11.7 Mt at an average grade of 1.71 g/t Au);
The Mineral Resource Estimate utilizes optimized pit shells to constrain near surface Mineral
Resources, as well as underground (out-of-pit) potentially mineable shapes to constrain the Mineral
Resource Estimate for the deeper portion of the West Cache Deposit (see Figures 1 and 2 for pit
shell and mineable shape modelling);
The Mineral Resource Estimate utilizes US$1,650/ oz gold price at a gold recovery of 95%; and
The Mineral Resource Estimate will form the basis for the Company's Preliminary Economic
Assessment ("PEA") currently underway.
Note from the CEO
R. David Russell CEO and President of Galleon Gold comments,
"When we acquired West Cache, we
saw many opportunities to generate value in the Timmins camp.
With today's results, we have clearly
demonstrated the success achieved in our recent drill campaign and the tremendous exploration
potential of the Project. The PEA, which is currently underway, will build upon the West Cache story
and outline the design plan for a bulk sample of our Zone #9 high grade mineralized shoot along with
stages of development for open pit and additional underground mining. Work will also continue to
optimize our operational targets, including mining methods, toll processing availability and
throughput. Our ultimate goal is to stand shoulder to shoulder with other mine operators in the
Timmins camp."
The Mineral Resource Estimate was based on the results of 557 holes and 210,000 metres of drilling,
including 213 holes for 46,380 metres of surface diamond drilling completed since the Company
acquired the Project.
Zone #9, newly discovered in 2020, has contributed to the Out-of-Pit Indicated Mineral Resource
Estimate of 244,000 ounces based on 1.8 Mt at an average grade of 4.16 g/t Au and an Inferred Mineral
Resource of 359,000 ounces based on 4.1 Mt at an average grade of 2.71 g/t Au. The combined East
and West Pits contain 413,000 Indicated Au ounces and 281,000 Inferred Au ounces.
The Mineral Resource Estimate for the West Cache Project, with an effective date of September 3,
2021, is summarized in Table 1. The Mineral Resource is amenable to open pit mining and underground
(out-of-pit) mining methods.
Table 1: West Cache Mineral Resource Estimate
(1-7)
Pit Constrained Mineral Resource @ 0.3 g/t Au Cut-Off
Classification
Tonnes
k
Au
g/t
Au
koz
Indicated
11,575
1.11
413
Inferred
7,554
1.16
281
Out-of-Pit Mineral Resource @ 1.6 g/t Au Cut-Off
Classification
Tonnes
k
Au
g/t
Au
koz
Indicated
1,823
4.16
244
Inferred
4,116
2.71
359
Total Mineral Resource @ 0.3 and 1.6 g/t Au Cut-Offs
Classification
Tonnes
k
Au
g/t
Au
koz
Indicated
13,398
1.52
657
Inferred
11,670
1.71
640
1
.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
2
.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues.
3
.
The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and
must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could potentially
be upgraded to an Indicated Mineral Resource with continued exploration.
4
.
The Mineral Resources were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM
Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019) prepared by the CIM Standing
Committee on Reserve Definitions and adopted by the CIM Council.
5
.
Metal prices used were US$1,650/oz Au and 0.76 CDN$/US$ FX with process recoveries of 95% Au.
A CDN$16/t process cost and
CDN$4/t G&A cost were used.
6
.
The constraining pit optimization parameters were CDN$2.50/t mineralized material, CDN$2.00/t waste and CDN$1.50/t overburden
mining costs and 50-degree pit slopes with a 0.30 g/t Au cut-off.
7
.
The out-of-pit parameters were at a CDN$85/t mining cost. The out-of-pit Mineral Resource grade blocks were quantified above the 1.6 g/t
Au cut-off, below the constraining pit shell and within the constraining mineralized wireframes. Out-of-Pit Mineral Resources selected
exhibited continuity and reasonable potential for extraction by the long hole underground mining method.
Figure 1 - West Cache Deposit Plan View of 3D Model
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/1014/95787_42b730fa24c6aae4_001full.jpg
Figure 2 - West Cache Deposit Longitudinal Projection of 3D Model
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/1014/95787_42b730fa24c6aae4_002full.jpg
Tables 2 and 3 outline the cut-off grade sensitivity analysis for the pit constrained and out-of-pit
resources respectively.
Table 2: Select Au Cut-Off Grade Sensitivities of Pit Constrained Mineral Resource Estimate
Classification
Cut-off
Tonnes
Au
Contained Au
Au g/t
k
g/t
koz
Indicated
0.7
6,384
1.61
331
0.5
8,790
1.33
377
0.3
11,575
1.11
413
0.2
12,988
1.02
424
Inferred
0.7
4,773
1.54
236
0.5
6,225
1.32
264
0.3
7,554
1.16
281
0.2
8,114
1.10
286
Table 3:
Select Au Cut-Off Grade Sensitivities of Out-of-Pit Mineral Resource Estimate
Classification
Cut-off
Tonnes
Au
Contained Au
Au g/t
k
g/t
koz
Indicated
2.4
1,246
5.18
208
2.0
1,498
4.68
225
1.6
1,823
4.16
244
1.4
2,058
3.86
255
Inferred
2.4
1,782
3.73
214
2.0
2,671
3.22
276
1.6
4,116
2.71
359
1.4
5,503
2.41
426
Technical Report and Qualified Persons
The Mineral Resource Estimate for West Cache included in the press release was prepared under the
supervision of Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants Inc., an
Independent Qualified Person as defined by NI 43-101. The technical content has also been reviewed
and approved by West Cache Gold Project Manager Leah Page, P. Geo. (APGNS #217) and West
Cache Gold Resource Geologist, Rochelle Collins, P. Geo (PGO #1412), both "Qualified Persons" as
defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
A Technical Report to support the updated Mineral Resource Estimate for the West Cache Project,
prepared in accordance with NI 43-101, will be filed on SEDAR (
www.sedar.com
) within 45 days of this
news release.
About West Cache Gold Project
The West Cache Gold Project is located 13 km west of Timmins Ontario, and is serviced by Provincial
Highway 101 and secondary access roads. It is situated along the Porcupine - Destor Deformation Zone
in the Timmins Gold Belt, approximately 7 km northeast of Pan American Silver's Timmins West Mine
and 14 km southwest of Newmont's Hollinger Mine.
West Cache is an advanced-stage gold exploration project covering over 3,600 ha that hosts the current
Mineral Resource near the centre of the property, with additional Exploration Targets to the north and
south. The Mineral Resource is contained within the Porcupine Sedimentary Basin, a favourable litho-
structural corridor with over 2 km of strike-length on the Property. Mineralization is open in all directions
and at depth.
Recent metallurgical test work completed as part of a future Feasibility Study revealed that the three
primary processing options for gold recovery: 1) Gravity + Flotation, 2) Whole Ore, and 3) Gravity +
Whole Ore - all indicate strong gold extractions can be achieved on each of the low (1.77 g/t), mid (5.10
g/t) and high (21.9 g/t) grade portions of the recently identified Zone #9 gold mineralization (see
Company news release dated August 11, 2021).
About Galleon Gold
Galleon Gold is a North American exploration and development company. Eric Sprott holds
approximately 23% of the Company's outstanding common shares and is also the Company's partner on
the Neal Gold Project in Idaho. A Preliminary Economic Assessment is currently underway for the
Company's flagship project, the West Cache Gold Project, located 13 km west of Timmins, Ontario.
For further information:
Galleon Gold
R. David Russell
Chairman and CEO
T. (416) 644-0066
www.galleongold.com
Forward-Looking Statements
This document contains certain forward-looking statements that reflect the current views and/or
expectations of Galleon Gold with respect to its long-term strategy, proposed work and other plans and
expected timing of PEAs and other reports for its projects. Forward-looking statements are based on the
then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the
markets in which Galleon Gold operates.
Some of the statements contained herein may be forward-
looking statements which involve known and unknown risks and uncertainties. Without limitation,
statements regarding potential mineralization and resources, exploration results, expectations, plans,
and objectives of Galleon Gold are forward-looking statements that involve various risks. The following
are important factors that could cause Galleon Gold's actual results to differ materially from those
expressed or implied by such forward-looking statements: changes in the world-wide price of mineral
commodities, general market conditions, risks inherent in mineral exploration, risks associated with
development, construction and mining operations, risks related to infectious diseases, including Covid-
19 and the uncertainty of future exploration activities and cash flows, and the uncertainty of access to
additional capital. There can be no assurance that forward-looking statements will prove to be accurate
as actual results and future events may differ materially from those anticipated in such statements.
Galleon Gold undertakes no obligation to update such forward-looking statements if circumstances or
management's estimates or opinions should change. The reader is cautioned not to place undue
reliance on such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
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