TORONTO, April 29, 2019 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to announce the release of its financial results for the year ended December 31, 2018. All amounts are in United States dollars unless otherwise indicated.

A copy of the audited consolidated financial statements for the year ended December 31, 2018 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.

2018 Highlights

• For the third consecutive year, the Company has increased its production and cash balance, and reduced its operating cash cost⁽¹⁾ compared to the previous year.
• Produced 35,527 ounces of gold at the Mupane property at a head grade of 1.97 g/t (2017 – 29,354 ounces at a head grade of 1.75 g/t and 2016 – 26,783 ounces at a head grade of 1.29 g/t).
• Production at Tau in 2018 was 400,078 tonnes at a head grade of 3.03 grams per tonne (“g/t”) (2017 – 365,425 tonnes at a head grade of 2.71 g/t and 2016 – 206,591 tonnes at a head grade of 3.05 g/t).
• Operating cash cost⁽¹⁾ of $928 per ounce for the year (2017 - $933 and 2016 - $965).
• Cash balance of $4.2 million (2017 - $2.6 million and 2016 - $0.8 million).

Galane Gold CEO, Nick Brodie commented: “As I stated in the 2017 year end press release, I expected the results in 2018 to be an improvement on the previous two years and they have been. We have once again seen an increase in ounces produced at Tau, an increase in the Company’s cash balance and a reduction in operating cash costs per ounce. 2019 is expected to be a consolidation of the hard work done over the last three years with a modest contraction in production as we progress deeper into the Tau mineralized-body. With production now started at Galaxy and operations ramping up, we expect to show year-over-year production increases for the next several years.”

Outlook⁽²⁾

Mupane Property

The Company completed an updated three year mine plan for the Mupane Property in 2018 which provides the guide for the Company’s short term goals and long term strategy⁽³⁾.

The Company intends to utilize the following resources during 2019:

• Tau – It is estimated that the Company will process approximately 408,000 tonnes at an average grade of 2.27 g/t. The Company intends to continue exploration to further expand the potential resource as reported in the press release of October 5, 2017, and May 1, 2018⁽⁴⁾.
• Low Grade Stockpiles – It is estimated that the Company will process approximately 231,000 tonnes of low grade stockpile at an average grade of 0.77 g/t, which is located at the run-of-mine pad at the processing plant.
• Monarch slimes dump – It is estimated that the Company will process approximately 243,000 tonnes of tailings and slimes at an average grade of 0.86 g/t, which is located at the Monarch mine, approximately 53 kilometres from the Mupane processing plant.

The Mupane Property mine plan is subject to change according to the prevailing gold price⁽³⁾. The Company will adopt the appropriate plan for the prevailing gold price environment⁽³⁾.

Galaxy Property

With the re-commencement of the Galaxy project underway following the completion of the secured loan facility with Barak Fund SPC Limited (the “Barak Facility”) in October 2018, the first drawdown of funds from the Barak Facility in February 2019, and mining of its first ore and production of its first concentrate in April 2019, the Company is targeting to produce 12,500 tonnes of concentrate in 2019, containing approximately 9,000 ounces of payable gold. To achieve this outcome the Company will be processing approximately 170,000 tonnes of material from various sources including the Princeton underground and historic tailings facilities.

The Company is targeting an increase in capacity of the Galaxy processing plant to 30,000 tonnes per month⁽⁵⁾ and annual production to over 25,000 ounces of gold at a cash cost per ounce of less than US$800⁽¹⁾⁽⁶⁾. During the implementation of the first phase, the Company expects to complete a study on the second expansion phase with the objective of increasing the capacity at the Galaxy processing plant to 60,000 tonnes per month and decreasing the cash cost per ounce with increased economies of scale.

Information of a technical and scientific nature that forms the basis of the disclosure in the press release has been prepared and approved by Kevin Crossling Pr. Sci. Nat., MAusIMM. and Business Development Manager for Galane Gold, and a “qualified person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Project (“NI 43-101”). Mr. Crossling has verified the technical and scientific data disclosed herein and has conducted appropriate verification on the underlying data.

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 TSX Venture Exchange under the symbol “GG” and the OTCQB under the symbol “GGGOF”. 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 operating cash cost 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 year ended December 31, 2018, 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)	The decisions to update the mine plan are based on internal reporting by the Company and not based on an independent feasibility study or pre-feasibility study of mineral reserves demonstrating economic and technical viability. While there is increased uncertainty and economic and technical risks associated with the Company’s production decision to proceed without an independent feasibility study, the Company has been mining underground at the Tau property for the past three years, it carried out its own internal study based on its historic mining to support the new mine plan and, as a result, it believes it has sufficient knowledge to manage the risks associated with that decision.
(4)	Based on a technical report in respect of the Mupane property entitled "Independent Technical Report on the Mupane Gold Mine" dated May 10, 2011 (the “Mupane Technical Report”), a copy of which is available under the Company’s profile on www.sedar.com. The Mupane Technical Report was prepared by MSA Geoservices (Pty) Ltd. on behalf of Carlaw Capital III Corp. The potential extension of Tau has not been incorporated into the existing resource model found in the Mupane Technical Report. There has yet to be sufficient exploration on the potential expansion to extrapolate that it extends beyond the current mined area.
(5)	The Company is not basing its decision to expand the throughput capacity of the Galaxy mine’s processing plant to 30,000 tonnes per month on a feasibility study of mineral reserves demonstrating economic and technical viability of production at such levels, and as a result there is increased uncertainty and there are multiple technical and economic risks of failure which are associated with producing at such plant’s throughput capacity.  These risks, among others, include areas that are analyzed in more detail in a feasibility study, such as applying economic analysis to resources and reserves, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts.
(6)	Based on a technical report entitled “A Technical Report on the Galaxy Gold Mine, Mpumalanga Province, South Africa” which was issued January 4, 2016 with an effective date of September 1, 2015 (the “Galaxy Technical Report”), a copy of which is available under the Company’s profile on www.sedar.com. The Galaxy Technical Report was prepared by Minxcon (Pty) Ltd and approved by Daniel van Heerden, B Eng (Min.), MCom (Bus. Admin.), Pr. Eng., FSAIMM, AMMSA, a Qualified Person as defined by NI 43-101. The Galaxy Technical Report satisfies the requirements to be a pre-feasibility study. Cash cost per ounce is a non-GAAP measure. See “Supplemental Information to Management’s Discussion and Analysis”.

Cautionary Notes

Certain statements contained in this press release constitute “forward-looking statements”. All statements 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 targets, 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 expressions 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 performance 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 cause 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 and 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 contractors; 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 information 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 cautionary 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.

Estimates set out above under “Outlook” in respect of the Tau mineralized-body, low grade stockpiles and the Galaxy project are preliminary in nature and include inferred mineral resources. There is no certainty that such estimates will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information please contact:
Nick Brodie
CEO, Galane Gold Ltd.
+ 44 7905 089878
Nick.Brodie@GalaneGold.com
www.GalaneGold.com

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