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(All dollar amounts are United States dollars unless otherwise stated)
VANCOUVER, BC, April 13, 2021 /PRNewswire/ – Galiano Gold Inc. ("Galiano" or the "Company") (TSX: GAU) (NYSE American: GAU) reports preliminary first quarter ("Q1") operating results from the Asanko Gold Mine ("AGM"), located in Ghana, West Africa. The AGM is a 50:50 joint venture ("JV") with Gold Fields Ltd (JSE,NYSE: GFI) which is managed and operated by Galiano. The Company expects to release its full financial and operational results after the market closes on May 5, 2021. All financial information contained in this release is unaudited and reported in US$.
AGM Q1 2021 Highlights (100% basis):
"The Asanko Gold Mine delivered another solid operational quarter and with continued metal price strength was in a position to make a $10 million distribution to the JV partners, allowing Galiano's balance sheet to remain strong with approximately $65 million in cash and receivables as at March 31st and no debt," said Greg McCunn, Chief Executive Officer. "The exploration programs at the AGM continue to remain a focus area with step out drilling at Miradani underway. Additionally, as a result of the successful 2020 exploration program, we are advancing stripping at Akwasiso Cut 3."
Health and Safety
During the quarter, there were no lost time or recordable injuries reported resulting in 12-month rolling LTI and TRI frequency rates of 0.10 and 0.58 per million employee hours worked, respectively.
In Q1, the AGM sourced ore from the Akwasiso and Esaase pits as well as run of mine stockpiles. During the quarter, 1.4Mt of ore at an average gold grade of 1.4 g/t and 8.8Mt of waste were mined from the Esaase pit. At the Akwasiso pit, ore mined totaled 0.5Mt with an average grade of 1.1 g/t with 0.7Mt of waste mined.
The processing plant milled 1.4Mt at a feed grade of 1.4 g/t during the quarter with metallurgical recovery averaging 95%.
|AGM Key Production Statistics (100% basis)||Units||Q1 2021||Q4 2020||Q3 2020||Q2 2020||Q1 2020|
|Total Tonnes Mined||000 t||11,393||13,737||12,279||9,489||8,962|
|Waste Tonnes Mined||000 t||9,552||11,773||11,321||8,128||7,051|
|Ore Tonnes Mined||000 t||1,841||1,964||958||1,361||1,911|
|Average Gold Grade Mined||g/t||1.3||1.4||1.4||1.4||1.6|
|Ore Processed||000 t||1,444||1,438||1,467||1,638||1,400|
|Gold Feed Grade||g/t||1.4||1.5||1.1||1.4||1.6|
Sales and Liquidity
Gold production for the quarter totalled 59,999 ounces with gold sales of 62,925 ounces at an average realized price of $1,757 per ounce, generating gold revenue of $110.6 million for the quarter. Distributions from the AGM to the joint venture partners during the quarter totalled $10.0 million ($5.0 million to Galiano).
At the end of the quarter, the JV held approximately $59.3 million in unaudited cash (including $15.0 million drawn on the $30 million revolving credit facility), $10.3 million in gold sales receivables and $6.1 million in gold on hand.
Galiano held approximately $65.0 million in unaudited cash and receivables at quarter-end following receipt of the $5.0 million distribution from the JV. The Company has no debt.
About Galiano Gold Inc.
Galiano is focused on creating a sustainable business capable of long-term value creation for its stakeholders through exploration and disciplined deployment of its financial resources. The Company currently operates and manages the Asanko Gold Mine, located in Ghana, West Africa which is jointly owned with Gold Fields Ltd. The Company is strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighbouring communities. For more information, please visit www.galianogold.com.