Galleon Gold Outlines Development Plans for 2023
Galleon Gold Outlines Development Plans for
2023
Toronto, Ontario--(Newsfile Corp. - January 27, 2023) -
Galleon Gold Corp.
(TSXV: GGO) (the
"
Company
") is pleased to outline its plans for 2023 as the Company develops its flagship West Cache
Gold Project in the prolific Timmins Gold Belt in Timmins, Ontario.
Comment from CEO
David Russell, President and CEO of Galleon Gold commented,
"We enter 2023 with an ambitious
agenda; our permit application work is in full swing and we are well into the detailed engineering of the
portal and decline for the underground bulk sample. This progression to the test mining stage is an
important step for West Cache as we continue to de-risk the project.
Not only should the gold
produced from the bulk sample cover the development costs; but the data collected from the stope
development, milling and gold recoveries will support pre-feasibility work."
Looking Into 2023
The Company anticipates 2023 to be a watershed year as it transitions from exploration and resource
development to test mining and pre-development.
The geotechnical overburden drill program is close to completion and information from this
program, along with third-party detailed engineering work, will be included in the
permit
application
.
The updated mine plan for the bulk sample details Single Panel Transverse Longhole Open
Stoping based on a two-production level and a four-stope plan.
The bulk sample is estimated at
86,500 tonnes of sulphide mineralization grading 8.13 g/t gold and containing an
estimated 22,600 ounces of gold
.
Figure 1
provides a broad overview of the bulk sample
location in relation to currently recognized mineral envelopes at West Cache.
Public consultation meetings will be announced in the next few months and pending approval of the
permit(s) the Company plans to start construction. Detailed progress reports will be provided as
work advances, including power line drop and connections, infrastructure builds, and the progress
of the
portal and decline
.
From an exploration perspective, there is still much work to do as the project is
less than 10%
drill tested
and mineralization is open in all directions and at depth. In addition to infill drilling the
resource, new targets to the north and south of the known mineralization are starting to emerge
with new interpretation of soil sampling programs.
2022 Laid the Groundwork (Milestones & Highlights)
Published the first
Preliminary Economic Assessment
("PEA") for the West Cache project,
prepared in accordance with National Instrument 43-101 by P&E Mining Consultants of Brampton,
Ontario, Canada, with an effective date of January 10, 2022. The PEA highlighted strong project
economics with a pre-tax NPV at a 5% discount rate ("NPV
5%
") of $378 million and IRR of 33.7%.
Cash costs of US$814 per ounce and all-in sustaining costs of US$987 per ounce for 940,200
ounces of gold mined over Life of Mine ("LOM") of 11 years with average annual production of
85,500 ounces. Recovered gold is estimated at 893,200 ounces over the LOM. See press release
dated February 23, 2022.
Provided an updated
Mineral Resource Estimate
significantly increasing the grade and total
ounces in the Indicated and Inferred Mineral Resource classification.
Acquired additional mining claims adjacent to the West Cache project, expanding the total claim
package to
10,370 hectares
.
Commenced an exploration drilling program and announced one of the best Zone #9 intercepts to
date (determined by grade x thickness) of
15.6 g/t Au over 7.6 m within broader zone of 7.41
g/t Au over 18.1 meter
s. Also discovered additional ounces of gold in the South Area with
intercepts of
13.29 g/t Au over 4.5 m
(incl. 79.2 g/t Au over 0.7 m) and
5.23 g/t Au over 5.7 m
.
Received a new
21- year mining lease
- an important milestone for the West Cache project.
Lease status is required before mining activities such as infrastructure development and ore
extraction can be conducted on the property.
Progressed the underground bulk sample permitting and baselines studies; initiated
geomechanical
and
geotechnical drill
programs in support of the detailed design of the 1) box
cut and portal design, 2) ground support recommendations, 3) stope size and dilution estimates.
Figure 1: West Cache Bulk Sample Location
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/1014/152644_b75f720bc413b864_001full.jpg
Option Grants
The Company also announces, pursuant to the Company's stock option plan, a total of 815,000 stock
options have been granted to directors, officers, employees and consultants of the Company. The
options are exercisable into one common share of the Company at a price of $0.23, vest immediately
and expire on January 27, 2028. The Board of Directors of Galleon Gold is solely compensated via
stock options that are typically granted once a year.
Technical Content and Qualified Persons
The technical content of this news release has been reviewed and approved by West Cache Gold Chief
Operating Officer, Tim Smith, P. Eng. and Project Manager Leah Page, P. Geo. (APGNS #217)
both
"Qualified Persons" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral
Projects.
About the West Cache Gold Project
The West Cache Gold Project is an advanced-stage gold exploration project covering approximately
10,370 ha located 13 km west of Timmins Ontario on Provincial Highway 101.
It is situated in the
Western Porcupine Gold Camp along the Destor-Porcupine Fault Zone within the Abitibi greenstone
belt, approximately 7 km northeast of Pan American Silver's Timmins West Mine. The mining lease area
hosts the current mineral resource estimate near the center, with additional exploration targets to the
north and south. The mineral resource estimate is contained within the Porcupine Sedimentary Basin, a
favourable litho-structural corridor with over 5 km of strike-length on the Property. Mineralization is open
in all directions and at depth.
About Galleon Gold
Galleon Gold is an exploration and development company focused on advancing the West Cache Gold
Project in Timmins, Ontario. The West Cache Gold Project is located 7 km northeast of Pan American
Silver's Timmins West Mine and 14 km southwest of Newmont's Hollinger Mine.
A 2022 Preliminary
Economic Assessment (PEA) for the project demonstrates strong economics.
Detail engineering design
and baseline studies in support of a permit application for an underground bulk sample are underway.
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/152644