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GALIANO GOLD REPORTS PRELIMINARY Q2 2021 OPERATING RESULTS FOR THE ASANKO GOLD MINE
Galiano Gold Inc. has released preliminary second quarter operating results from the Asanko gold mine, 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 before the market opens on August 12, 2021. All financial information contained in this release is unaudited and reported in US$.
AGM Q2 2021 Highlights (100% basis):
"Stripping of Cut 3 at Akwasiso advanced during Q2 2021 with ore delivery expected to resume on schedule in Q3 2021. In line with expectations, production in Q2 was lower than the previous quarter as mill feed was sourced primarily from Esaase and augmented with lower grade run of mine stockpiles. This in turn resulted in operating costs increasing relative to the previous quarter . Operating costs are forecast to decrease from Q3 2021 once Akwasiso is brought back into production, " said Matt Badylak, President and Chief Executive Officer. "Moving forward we continue to focus on achieving consistent ore supply from Akwasiso and advancing the exploration program at the AGM."
Health and Safety
During the quarter, there were no lost time ("LTI") nor recordable injuries reported resulting in 12-month rolling LTI and TRI frequency rates of 0.09 and 0.54 per million employee hours worked, respectively.
In Q2, the AGM sourced ore primarily from the Esaase Main pit (while stripping of Cut 3 at Akwasiso was ongoing) as well as run of mine stockpiles. During the quarter, 1.3Mt of ore at an average gold grade of 1.2 g/t and 6.4Mt of waste were mined from the Esaase Main pit. At the Akwasiso pit, 2.6Mt of waste was mined associated with Cut 3 stripping activities.
The processing plant milled 1.5Mt at a feed grade of 1.1 g/t during the quarter with metallurgical recovery averaging 94%.
Sales and Liquidity
Gold production for the quarter totalled 50,421 ounces with gold sales of 53,348 ounces at an average realized price of $1,782 per ounce, generating gold revenue of $95.1 million for the quarter.
At the end of the quarter, the JV held approximately $41.3 million in unaudited cash, $13.4 million in gold sales receivables and $3.1 million in gold on hand. The AGM repaid the remaining $15 million outstanding on its RCF during the quarter and is now debt-free.
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.
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