Galleon Gold Contracts Drill-Rig and Provides 2022 Exploration Outlook for West Cache Gold Project
Galleon Gold Contracts Drill-Rig and Provides
2022 Exploration Outlook for West Cache Gold
Project
Toronto, Ontario--(Newsfile Corp. - April 26, 2022) - Galleon Gold Corp. (TSXV: GGO) (the "Company"
or "Galleon Gold") is pleased to provide an exploration update for its 100% owned West Cache Gold
Project ("West Cache" or the "Project") in Timmins, Ontario. Following the release of the Project's
updated Mineral Resource Estimate and maiden Preliminary Economic Assessment ("PEA") in early
2022 (see press releases dated January 12 and February 23, 2022), the Company is planning its
exploration and permitting programs for the upcoming field season.
Drill-Rig Contracted
Galleon Gold intends to follow-up on high-priority drill targets at West Cache identified during the
Company's 46,380-meter drill program in 2020-2021, beginning with higher-grade targets in the
metasediment units near Zone #9 and the South Area. An initial 5,000-meter program will commence in
May 2022 with additional drilling to be planned based on the results from this first phase of drilling. The
Company has contracted NPLH Drilling of Timmins, Ontario. NPLH has extensive experience at West
Cache, having completed over 75% of the 210,000 meters of core drilling on the Property since 2009.
Permitting and Baseline Activity for Zone #9 Test Mining
Ongoing permitting and baseline studies in support of a bulk sample will continue through 2022. The
Company intends to submit permit applications for approximately 100,000 tonnes of Zone #9 material to
be extracted from four levels within 200 meters of the surface.
A portion of the overall 2022 budget will
be reserved for geotechnical and condemnation drilling in support of the Zone #9 bulk sample ramp
design work.
A Metal Leaching and Acid Rock Drainage ("MLARD") geochemical study has been
initiated on representative rock samples from the planned bulk sample ramp area and ore
characterization test work on high grade samples from Zone #9 has begun.
Comments from the CEO
R. David Russell, President and CEO of Galleon Gold commented,
"We are pleased to be embarking
on the next stage of exploration for West Cache.
Our success last year in discovering Zone 9 and the
South Area highlights the potential of the project as we have explored less than 10% of the ground
within the main West Cache lease area.
This blue-sky scenario coupled with our recently announced
initial PEA, which demonstrated strong economics, is setting the stage for Galleon Gold to contribute
significantly to the Timmins Community going forward. We anticipate 2022 will be a very rewarding
year."
2022 Geochemical Sampling
In addition to drilling, a soil sampling survey will be initiated during the 2022 field season. The Company
completed an orientation soil sampling survey over three areas of known gold mineralization in 2021 and
received favourable results suggesting that soil geochemistry may be successful at detecting buried gold
mineralization at West Cache. Additional baseline orientation work will be completed over known gold
zones and an extensive sampling grid is planned to cover unexplored areas outside of the West Cache
Resource Area which is identified in Figure 1.
Figure 1 - Galleon Gold's Land Position in the Timmins Gold Camp
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/1014/121605_galleonfigure1.jpg
Regional Exploration & Targeting
Compilation of regional exploration targets is ongoing with the recent acquisition of 4,230 hectares of
contiguous property in Ogden and Price Townships (see press releases dated February 8, 2022, and
March 3, 2022).
About the West Cache Gold Property
The Property is situated in the Western Porcupine Gold Camp along the Destor-Porcupine Fault Zone
("DPFZ") within the Abitibi greenstone belt.
The Property is predominantly underlain by Archean rocks of
the Tisdale and Deloro Assemblages (metavolcanics), Porcupine Assemblage (metasediments) and
quartz feldspar porphyry of the Porcupine Intrusive Suite. Paleoproterozoic diabase dikes trend north-
south to northwest-southeast across the Property. The main break of the DPFZ trends east-west through
the eastern part of the Property and is offset to the south in the western portion of the Property by the
Mattagami River Fault. Gold mineralization is characterized by roughly east-west trending "shear" zones,
dipping 60° to 80° to the north, and is associated with pyrite, chalcopyrite and sphalerite. To-date, the
quartz feldspar porphyry unit and associated contacts with the metasedimentary units have been the
focus of exploration activities. In addition, large areas of Tisdale and Deloro metavolcanics have yet to
be explored, including the Rusk contact zone, which is associated with gold mineralization at the
Timmins West Complex, approximately 7 km southwest of the Property.
Preliminary Economic Assessment - filed on SEDAR February 2022
The Company's maiden Preliminary Economic Assessment provided the
first economic valuation for
West Cache. The results demonstrate that the project could support a profitable underground mining
operation; including Pre-Tax Net Present Value at a 5% discount rate ("NPV
5%
") of $378 million with
Internal Rate of Return ("IRR") of 33.7%; 3.0 year payback at US$1,700/oz gold price. Importantly, the
project is highly leveraged to the gold price as outlined in the Table 1 below.
Table 1: Economic Sensitivity to Gold Prices
(0.76 US$/C$).
Pre-Tax
After-Tax
Price
(US$/oz)
NPV
5%
(C$ million)
IRR
(%)
NPV
5%
(C$ million)
IRR
(%)
1,500
224.5
23.3
128.6
17.2
1,600
301.4
28.6
184.3
22.0
1,700
378.3
33.7
240.1
26.7
1,800
455.5
38.7
291.8
30.8
1,900
532.6
43.6
343.6
34.8
2,000
609.8
48.4
395.3
38.7
Technical Content and Qualified Persons
The technical content of this news release has 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.
Galleon Gold Webinar Initiation
The Company will be providing a webinar update on the West Cache Gold Project on Thursday, May, 5th
at 2:00 pm ET.
Registration for the event hosted by Red Cloud Financial Services is available at this
link
:
Click here to register
.
About Galleon Gold
Galleon Gold is an exploration and development company focused on advancing the West Cache Gold
Project in Timmins, Ontario. The project is situated approximately 7 km northeast of Pan American
Silver's Timmins West Mine and 14 km southwest of Newmont's Hollinger Mine.
Since acquiring the
project the Company has demonstrated significant resource growth while providing a strong valuation in
its maiden Preliminary Economic Assessment. Permitting and baseline studies in support of a bulk
sample are currently underway. Eric Sprott holds approximately 21% of the Company's outstanding
common shares.
For further information:
Galleon Gold
R. David Russell
Chairman and CEO
T. (416) 644-0066
www.galleongold.com
Investor Relations
Harbor Access
Graham Farrell
T. (416) 842-9003
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, plans and other
reports including the PEA 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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/121605