Galane Gold Ltd. Announces a Mineral Resource Update for Its Botswana Properties
TORONTO, ONTARIO -- (Marketwire) -- 03/18/13 -- Galane Gold Ltd. ("Galane Gold" or the "Company") (TSX VENTURE: GG)(BOTSWANA: GG) is pleased to announce the results of the 2013 mineral resource update at the Company's Mupane Property, located on the Tati greenstone belt in North Eastern Botswana. The total measured and indicated mineral resource is 508,400 ounces of gold and the total inferred mineral resource is 261,100 ounces of gold. This is the first mineral resource update for the Mupane Property since the completion of the Company's technical report dated May 10, 2011 (the "2011 Technical Report").
The measured and indicated gold resource at the Mupane Property, excluding the Mupane Slimes Dump (described below), has increased by 17,600 ounces of gold compared to the figures presented in the 2011 Technical Report, despite two years of depletion through mining activities. The Company has also declared, for the first time, a measured mineral resource of 91,800 ounces of gold at the Mupane Slimes Dump, which is located next to the Mupane plant and is currently the Company's operating slimes dump.
The mineral resource estimate, effective as at December 31, 2012, was carried out under the supervision of Charles Byron, Chief Geologist for Galane Gold and Steven Duma, Mineral Resources Manager for the Company's wholly-owned indirect subsidiary, Mupane Gold Mining (Pty) Ltd. ("Mupane Gold"). The Company's mineral resources update is expected to serve as a basis for the preparation of a new technical report in respect of the Mupane Property which is scheduled to be completed in 2013.
The following table summarises the results of the mineral resources update:
Galane Gold Mineral Resource Statement
Effective Date: December 31, 2012
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Category Measured Indicated
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Cutoff Au Au
grade Tons AU (000 Tons AU (000
Deposit (g/t) (000) (g/t) oz) (000) (g/t) oz)
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Jim's Luck 0.50 859 1.05 29.0 1,659 1.20 64.0
Tholo 0.50 20 1.14 0.7 926 2.28 67.8
Golden Eagle 0.50 516 1.45 24.1 1,087 1.48 51.7
Kwena 0.50 266 0.98 8.4 535 1.19 20.5
Tau 0.80 578 3.00 55.7 824 2.75 72.8
Mupane Stockpiles 702 0.97 21.9 - - -
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Total 2,941 1.48 139.8 5,030 1.71 276.9
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Category Measured Indicated
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Cutoff Au Au
grade Tons AU (000 Tons AU (000
Dump (g/t) (000) (g/t) oz) (000) (g/t) oz)
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Mupane Slimes Dump 0.30 7,195 0.40 91.8 - - -
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Total 7,195 0.40 91.8 - - -
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Measured and
Category Indicated Inferred
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Au Au
Tons AU (000 Tons AU (000
Deposit (000) (g/t) oz) (000) (g/t) oz)
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Jim's Luck 2,518 1.15 93.0 1,337 1.08 46.4
Tholo 945 2.26 68.6 61 1.53 3.0
Golden Eagle 1,603 1.47 75.8 1,637 1.56 82.1
Kwena 801 1.12 28.8 1,642 1.11 58.6
Tau 1,402 2.85 128.6 723 3.05 70.9
Mupane Stockpiles 702 0.97 21.9 - - -
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Total 7,971 1.63 416.6 5,401 1.50 261.1
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Measured and
Category Indicated Inferred
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Au Au
Tons AU (000 Tons AU (000
Dump (000) (g/t) oz) (000) (g/t) oz)
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Mupane Slimes Dump 7,195 0.40 91.8 - - -
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Total 7,195 0.40 91.8 - - -
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The Company has reported the mineral resources for its mineral deposits (including the Mupane Stockpiles) separately from the Mupane Slimes Dump, as the Company considers the Mupane Slimes Dump to be a distinct mineral resource type as it could involve a different processing methodology. The Company is still reviewing the available options with regards to the processing of the material on the Mupane Slimes Dump.
Philip Condon, Galane Gold's CEO stated, "Our continued ability to renew resources as we produce is evidence that supports my view that the Company will extend its mine life as it continues with its current exploration programme. In addition, it points to the untapped potential of the Tati greenstone belt in Botswana.
"I am particularly pleased with the addition of Jim's Luck which represents an exciting resource which the Company is expecting to be a replacement for Golden Eagle when we finish mining that resource. The confirmation of the resource at the Mupane Slimes Dump, which is located next to our processing plant, also provides an opportunity to expand our production still further."
Mineral Resource Estimates - Methodology.
Resource tonnages and gold grades were reported at a 0.5 g/t Au cut-off grade. Resources from contiguous portions of the mineralisation outside of the optimized pit shell, and potentially amenable to underground mining methods, were reported at a cut-off grade of 0.8 g/t Au. A cutoff grade of 0.3g/t Au was used for the slimes dump due to the possible need for a different processing method.
Quality control checks were undertaken on the sampling and analytical procedures and on the assay results. Assay data from each grade shell was evaluated and appropriately capped for the purpose of this estimation. Variogram models were created for all of the grade shell solids. Block models were created for each of the grade shells and the reported resources are constrained by an optimized Whittle shell. All resources were modelled using a 0.5 g/t Au grade cutoff for each mineralised zone, except Tau where a 0.8 g/t Au grade shell was used. A gold price of US$1,700 was used.
The reader is cautioned that the mine utilizes results from the conceptual optimization work solely for the purpose of constraining and reporting resources that have "reasonable prospects" for economic extraction by open pit or underground mining method and do not represent mineral reserves.
Mineral resources for Jim's Luck, Golden Eagle, Tau, Tholo, Kwena, and the Mupane Slimes Dump are reported in accordance with the guidelines set out in National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"), and have been estimated in conformity with generally accepted guidelines from the Canadian Institute of Mining, Metallurgy and Petroleum. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that any of the mineral resource disclosed in this news release will be converted to mineral reserves. There is also no guarantee that any of the inferred mineral resource will be upgraded to measured or indicated mineral resource.
Summary of Projects
Jim's Luck
This is a maiden resource for the Jim's Luck deposit and the application process for a mining license in respect of Jim's Luck is in progress. As part of the initial requirements for a mining license, the Environmental Impact Assessment has been submitted to the appropriate regulatory authorities for approval. For further details regarding the most recent results of the exploration program at Jim's Luck, please refer to the Company's news release dated February 5, 2013 which has been filed under the Company's profile on SEDAR at www.sedar.com.
The project is located 25 km to the west of the Mupane plant and is connected by existing gravel roads. In summary, gold mineralisation occurs in banded iron formation ("BIF") rocks hosted by other meta-sedimentary and meta-volcanic rocks equivalent to the Lady Mary formation of the Tati greenstone belt. The mineralisation is from surface, the BIFs forming a positive topographic feature. The drill base for the resource comprises 149 holes for 13,427m from the historic database, and 68 holes for 12,854m from the 2012 drill program, for a total of 217 holes for 26,281m.
Golden Eagle
Golden Eagle is located 25 km to the Northeast of the Mupane plant and connected by a gravel haul road. The gold mineralisation is hosted in a highly altered schistose package within meta-basalts of the Lady Mary formation of the Tati greenstone belt.
Tau, Kwena and Tholo
The Tau, Kwena and Tholo resources are all from the Mupane mine area adjacent to the plant. Mineralisation is in graphitic iron formation rocks hosted by the intermediate volcanic suite comprising the Penhalonga Formation of the Tati greenstone belt. Both the Tau and Kwena pits have been mined to the initial pit limit and these resources represent depth extensions to the mineralisation. Tholo is currently being mined and these resources represent extensions to known mineralisation.
Mupane Stockpiles
The stockpiles were accumulated during the tenure of predecessor companies and the majority is made up of material from the Tau pit.
Mupane Slimes Dump
The Mupane Slimes Dump also yields its maiden resource having been drilled out by hydraulic auger drill in late 2012. This program comprised 248 auger holes for 2,418 samples (at 1.5m intervals). The dump is located next to the Mupane plant and is currently the operating slimes dump.
Additional Potential
Jim's Luck is open at depth and along strike and there is a newly discovered parallel reef currently being exposed and drilled. There are therefore three parallel mineralised zones and the strike potential is in excess of 10km.
At Tau, a future resource at deeper levels is being tested by drilling and results will be reported at a future date.
A further fourteen historic slimes dumps in the region have been auger drilled, sampled and surveyed by the Company. It is expected that applications will be made for mining licences in respect of those additional slimes dumps, if any, that are found to be economic. Subject to the granting of the necessary mining licences, it is expected that the slimes dumps will be added to the resources of the Company in the future.
Galane is also conducting ten other active exploration projects which the company expects to advance during 2013. Each of these projects provides further opportunities for the delineation of mineral resources in the future.
Mineral resource estimates and the quality control program were prepared and supervised by Steven Duma Pr. Sci. Nat, MAusIMM, Mineral Resources Manager for Mupane Gold and a "qualified person" as defined by NI 43-101.
Information of a technical and scientific nature that forms the basis of the disclosure in this news release has been prepared under the supervision of Charles Byron Pr. Sci. Nat., MAusIMM.,MGSSA and Chief Geologist for Galane Gold, and a "qualified person" as defined by NI 43-101. Mr.Byron has more than 25 years relevant industry experience and is a BSc Honours graduate in Geology. Mr. Duma has more than 14 years relevant industry experience and is a BSc Honours graduate in Geology. They are Chief Geologist and Mineral Resource Manager respectively of the Company and serve as the qualified persons as defined by NI 43-101.
About Galane Gold
Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in Botswana. Galane Gold is a public company and its shares are quoted on the TSX Venture Exchange and the Botswana Stock Exchange under the symbol GG. Galane Gold's management team is comprised of senior mining professionals with extensive experience in managing mining and processing operations and large-scale exploration programs. Galane Gold is committed to operating at the highest standards and is focused on the safety of its employees, respecting the environment, and contributing to the communities in which it operates.
Cautionary Notes
Certain statements contained in this news release constitute "forward-looking statements". All statements other than statements of historical fact contained in this news release, including, without limitation, statements regarding the preparation of a new technical report, gold production at the Mupane Slimes Dump and Jim's Luck, the extension of mine life at the Company's Mupane Mine, the applications for mining licences at Jim's Luck and the historic slimes dumps, the disclosure of mineral resources at the historic slimes dumps, exploration results, mineral reserve and resource estimates, potential mineral resources and/or assumptions in respect of gold production, cash flow and costs, estimated project economics and the Company's exploration and development plans and objectives 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 possibility that future exploration results with not be consistent with the Company's expectations; failure to establish estimated mineral resources or mineral reserves (the Company's mineral resource and mineral reserve figures are estimates and no assurance can be given that the indicated levels of gold will be produced); the Company's dependence on a single mineral project; gold price volatility; risks associated with the conduct of the Company's mining activities in Botswana; regulatory, consent or permitting delays; risks relating to the Company's exploration, development and mining activities being situated in a single country; 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; 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; 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; 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 news 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 news 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.
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.
Contacts:
Galane Gold Ltd.
Ravi Sood
Chairman
(416) 907-2026
Ravi@GalaneGold.com
www.GalaneGold.com