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Galiano Gold reports Q3 2021 results for Asanko - Canadian Insider

Friday, 15 October 2021

(All dollar amounts are United States dollars unless otherwise stated)

VANCOUVER, BC, Oct. 14, 2021 /CNW/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX: GAU) (NYSE American: GAU) reports preliminary third quarter ("Q3") 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 November 10, 2021. All financial information contained in this release is unaudited and reported in US$.

AGM Q3 2021 Highlights (100% basis):

"Production for Q3 remained at similar levels to Q2 as we continued to develop Akwasiso for its third phase of mining," said Matt Badylak, President and Chief Executive Officer. "With Akwasiso pivoting to sustainable ore delivery in Q4 we expect gold production to revert to historical levels with per unit costs trending downwards positioning the AGM well for the achievement of restated full year guidance. We continue to remain on schedule to publish our updated Reserve and Resource statement in Q4 of this year."

Health and Safety 

During the quarter, there was one recordable injury and lost time injury reported resulting in 12-month rolling TRI and LTI frequency rates of 0.20 and 0.41 per million employee hours worked, respectively.

Production

In Q3, the AGM sourced ore from the Esaase Main pit in addition to incremental ore production from Cut 3 at Akwasiso. During the quarter, 1.3Mt of ore at an average gold grade of 1.4 g/t and 7.4Mt of waste were mined from the Esaase Main pit and 0.1Mt of ore at an average gold grade of 1.2 g/t and 2.6Mt of waste from the Akwasiso pit.

The processing plant milled 1.5Mt at a feed grade of 1.1 g/t during the quarter with metallurgical recovery averaging 90%. 

AGM Key Production Statistics
(100% basis)
Units Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020
Total Tonnes Mined 000 t 11,481 10,406 11,393 13,737 12,279
Waste Tonnes Mined 000 t 10,017 9,073 9,552 11,773 11,321
Ore Tonnes Mined 000 t 1,464 1,333 1,841 1,964 958
Strip Ratio W:O 6.8:1 6.8:1 5.2:1 6.0:1 11.8:1
Average Gold Grade Mined g/t 1.3 1.2 1.3 1.4 1.4
Ore Processed 000 t 1,542 1,475 1,444 1,438 1,467
Gold Feed Grade g/t 1.1 1.1 1.4 1.5 1.1
Gold Recovery % 90 94 95 95 93
Gold Produced oz 49,543 50,421 59,999 65,571 48,974

Sales and Liquidity 

Gold production for the quarter totalled 49,543 ounces with gold sales of 48,435 ounces at an average realized price of $1,758 per ounce, generating gold revenue of $85.2 million for the quarter.

At the end of the quarter, the JV held approximately $53.0 million in unaudited cash, $5.6 million in gold sales receivables and $4.7 million in gold on hand. The AGM remains debt free with $30.0 million available on its revolving credit facility.

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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