Galiano LOM production of 1.85 mn Oz

Apr 10, 2023

Galiano Gold report the results of an independent Feasibility Study report, which includes the reinstatement of Mineral Reserves, along with Galiano’s operating outlook at the AGM. The adoption and implementation of the revised life-of-mine plan and the operating outlook remain subject to approval pursuant to the JV agreement.

The reinstated Mineral Reserve and updated Mineral Resource estimates, underpinning the Independent FS, was led by SRK Consulting Inc and was reported in accordance with National Instrument. The Mineral Reserve estimate forms the basis of a revised LOM plan at the AGM, encompassing 4 main open-pit mining areas:

Abore, Miradani North, Esaase and Nkran, and 2 satellite deposits: Dynamite Hill and Adubiaso. The Independent FS demonstrates an operating plan with a total LOM production of 1.85 million ounces of gold, at an all-in-sustaining cost of $1,1431 per oz. Production during the LOM averages 217,000 oz of gold per year. Using the base case of $1,700 per oz gold price, the AGM has an after-tax net present value discounted at 5% of $343 million.

“On the back of significant exploration success, the new life of mine plan now includes four cornerstone deposits at the Asanko Gold Mine. The plan demonstrates a solid production profile averaging 217,000 ounces per year with an extended mine life through 2031,” stated Matt Badylak, Galiano’s President and Chief Executive Officer.

“Restructuring our operating cost base in 2022 has in part enabled the life of mine plan to achieve all-in-sustaining costs of $1,143 per ounce4, which is expected to generate approximately $500 million in cumulative cash flow over the mine life. Significant opportunities also remain to further enhance the asset through both the continued optimization of operations, and exploration success on the highly prospective Asankrangwa gold belt.

It is also important to note that the Joint Venture held $91 million of cash at December 31, 2022 placing the AGM in a strong position to execute the life of mine plan, commencing with the restart of mining later this year.”

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