Galane Gold Ltd. Releases Drilling Results From the Jim's Luck Prospect That Show Significant Gold Mineralisation from Surface Open at Depth and Along Strike
TORONTO, ONTARIO -- (Marketwire) -- 02/05/13 -- Galane Gold Ltd. ("Galane Gold" or the "Company") (TSX VENTURE: GG)(BOTSWANA: GG) is conducting a comprehensive exploration program over a large number of prospects contained within its mining leases and exploration tenements which cover the bulk of the Tati greenstone belt in Botswana.
Jim's Luck
The Company is pleased to provide an update concerning on-going exploration work at the Jim's Luck Prospect to define gold mineralisation found from surface in outcropping, steeply dipping ironstone horizons located approximately 25km from the Mupane plant. The Jim's Luck prospect forms part of Prospecting Licence 211/2010 which was acquired on the acquisition of NLE in April of 2012.
Conclusions of on-going work
The Jim's Luck Prospect hosts some 7 km of strike of prospective ironstone lithologies of which 830m has been drilled in detail. Mineralization exists over most, if not all, of the balance of this overall strike. Furthermore, the Western Parallel and the Southern Extension (both defined later) constitute additional strike potential.
Results of the drilling program
Significant intersections from this drilling program include:
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Hole ID Area Intersections
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JLDD 170 Western Parallel 9.37 metres at 5.23 g/t Au and
10.82 metres at 2.66 g/t Au
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JLRC 175 Western Parallel 7.00 metres at 2.38 g/t Au
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JLRC 177 WBMC Zone 5.00 metres at 2.86 g/t Au
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JLRC 180 WBMC Zone 6.00 metres at 2.61 g/t Au
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JLRC 188 EBCC Zone 12.00 metres at 1.86 g/t Au
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JLRC 190 EBCC Zone 19.00 metres at 1.75 g/t Au
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JLRC 219 Southern Extension 6.00 metres at 3.09 g/t Au
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JLRC 223 EBCC Zone 5.00 metres at 11.98 g/t Au
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JLRC 229 EBCC Zone 16.00 metres at 2.39 g/t Au
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A full set of the results from the Jim's Luck Prospect is included in Appendix "A" attached to this news release.
New work carried out
Jim's Luck drilling program started in May 2012 and was recently completed with 66 RC holes (12,141m) and 2 diamond core holes (713m) drilled. To view a map of the drilling, please visit the following link: http://media3.marketwire.com/docs/25ggmap.pdf.
Geology
The Archaean aged Matsiloje Formation forms the generally north to south striking, but arcuate, Matsiloje Mountains and is made up predominantly of mafic volcanics with subordinate chemical sediments, known as Banded Iron Formations ("BIF"), which form the resistive rocks making up the mountain ridge.
The gold mineralization at Jim's Luck is located within two parallel BIF units, some 50m apart, which are distinctive:
-- the more deformed, Eastern Banded Carbonate Chert ("EBCC"); and
-- the less deformed, Western Banded Magnetic Chert ("WBMC")
Historically the former has attracted the majority of the exploration attention. The latter, which is now known to carry mineralisation, is being reviewed as part of the 2013 exploration work program. Sporadic gold mineralisation is known to extend for some 3.5km along strike, making a total of 7km of strike for the two BIF horizons. The whole area is cross cut by, east to west striking, younger dolerite dykes.
Historic workings
In the area there is evidence of old workings (early 1900s) and there is also a fines dump of some 8,000 tonnes, at unknown grade, dating from the same period. In the 1980s Gold Fields Ltd. of South Africa examined the property and drilled diamond core holes MH 1 to 4 beneath the old Jim's Luck mine which is located on the WBMC. Subsequently Gallery Gold in the late 1990s carried out the excavation of 28 trenches (1,935m) and the drilling of 42 RC holes (3,215m). Finally in 2006 IAMGOLD drilled approximately 100 RC holes for approximately 9,000m and 7 diamond core holes for 1,212m. Of these, 77 (8,116m) were drilled into an enriched zone extending along some 830m of strike to the south of the main road, on the EBCC only. Data from all of these previous drilling programs is available to Galane Gold and it was used in the planning of the new drill program.
Additional Findings
A third zone of mineralisation parallel to the 2 BIF horizons has been identified during this work. This "Western Parallel" is not hosted in BIF, but quartz sericite schist in a fault zone. A subtle induced polarization anomaly on this structure suggests that it could be present along the full strike of some 3.5 km. A similar looking unit in a similar stratigraphic setting, has been exposed and sampled in old trenches 1.0 km to the north, which yielded low grade gold values. Other drill holes have also intersected this zone while drilling deeper into the two ironstone horizons (EBCC & WBMC). Another new discovery from the work is a strike extension to the south which was missed by previous exploration. This could add significant strike length to the mineralisation. Both the Western Parallel and the Southern strike extension are currently being followed in the 2013 exploration program.
Comment
Charles Byron, Galane Gold's Chief Geologist commented as follows on Jim's Luck and the work program for 2013:
"The 2012 work program at Jims Luck was an infill drilling exercise to confirm the known gold mineralisation on the prospect and adds valuable data to the historical drilling. What is most exciting to me is the confirmation of some 7km of strike coupled with the discovery of two new mineralisation zones. Work in 2013 will initially be focused on the resource compilation and then on drill testing of the two new gold bearing horizons discovered.
In addition, the Company's exploration program for 2013 is focused on extending the mine life by defining depth extensions for potential underground mining of both operating and mined-out open pits, and by following up on targets generated by the 2012 work. There is also an element of 'blue sky' work planned on new prospects like 'Orapa Road' where the 2012 soil geochemistry survey has yielded distinct anomalies that look encouraging."
Laboratory Methodology and Quality Assurance
All samples summarised in this news release and shown in Appendix "A" were collected by personnel of the Company under the supervision of senior staff and a qualified person, as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Each collected sample weighs roughly 4 kg and employees transported these samples to the independently run sample preparation facility operated by Genalysis Laboratory Services Pty Ltd ("Genalysis"). The facility prepares samples for analysis (the samples are crushed and milled with 90% passing through 75 microns) and ships them to the Genalysis laboratory in Johannesburg, South Africa, where the gold is determined by a fire assay of a 50 gram sample.
The Genalysis laboratory is registered to ISO 9001:2001 and has received ISO/IEC 17025 accreditation. In addition to the internal QA-QC program used by this accredited laboratory, the Company also maintains an independent QA-QC program that includes the use of certified standard reference materials, blanks, as well as field duplicates. The quality control data associated with these results falls within acceptable ranges for all relevant parameters.
This news release has been prepared under the supervision of Mr. Charles Byron, Pr. Sci. Nat., MAusIMM, MGSAA who has verified the data disclosed, including sampling, analytical and test data underlying the technical information contained herein. Mr.Byron has more than 25 years relevant industry experience and is a BSc Honours graduate in Geology. He is the Chief Geologist of the Company and serves as the qualified person 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 exploration results 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.
Any potential quantity and grade disclosed herein is conceptual in nature. There has been insufficient exploration to define a mineral resource at Jim's Luck and it is uncertain if further exploration will result in a target being delineated as a mineral resource.
Appendix "A"
Jim's Luck Prospect Drilling Results
To view "Table 1: Jim's Luck: EBCC Zone Summary of Drill Hole Intersections" please visit the following link: http://media3.marketwire.com/docs/25ggtable1.pdf.
To view "Table 2: Jim's Luck: WBMC Zone Summary of Drill Hole Intersections" please visit the following link: http://media3.marketwire.com/docs/25ggtable2.pdf.
To view "Table 3: Jim's Luck: Western Parallel Zone Summary of Drill Hole Intersections" please visit the following link: http://media3.marketwire.com/docs/25ggtable3.pdf.
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