Galane Gold Releases Financial and Operating Results for Q3 2020

TORONTO, Nov. 17, 2020 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to announce the release of its financial results for the three and nine months ended September 30, 2020.

A copy of the unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2020 (the “Interim Financial Statements”) prepared in accordance with International Financial Reporting Standards and the corresponding Management’s Discussion and Analysis (the “MD&A”) are available under the Company’s profile on www.sedar.com. All references to “$” in this press release refer to United States dollars.

Third Quarter 2020 Highlights

• 7,974 ounces produced at Mupane with an average sale price of $1,872 per ounce.
• 1,284 ounces produced at Galaxy with the final pricing to be confirmed at the end of the quotational period in December.
• Earnings from mining operations for the period of $3,536,779.
• Positive cash flows from operating activities of $5,063,401.
• Debt repayments in the period of $1,755,218.
• Closing cash balance of $5,332,651.

Galane Gold CEO, Nick Brodie commented: “All in all a very pleasing quarter with the increased gold price continuing to positively impact our operating results, cash flow and debt reduction plan. We expect this impact to grow as we increase production at Galaxy and ramp up to the completion of Phase 1.

We expect to provide a comprehensive update to the market in December on our progress on Phase 1 at Galaxy and our plans for the Phase 2 expansion, with forecasted annual production of 43,000 ounces per year at an all in sustaining cost of $747 per ounce⁽¹⁾ during Phase 2, an increase from the previous forecasted annual production of 26,700 ounces at an all in sustaining cost of $897 an ounce⁽²⁾ for Phase 1."

Covid-19 Update

The Company continues to face challenges related to COVID-19 and operations at both the Mupane and Galaxy sites are currently operating at less than a hundred per cent to ensure the Company complies with best operating practices relating to COVID-19 prevention.

Since September 21, 2020, South Africa has been on Alert Level 1 which is the lowest level and means that most normal activities are allowed as long as health guidelines are followed. As a result, production at Galaxy is restricted to ensure social distancing across the mine and the Company has had to on several occasions cease operations for a limited time in specific areas to manage positive cases in the work force.