Galane Gold Provides an Update on Its Galaxy Property and Announces that it has Initiated Phase 2 of Its Galaxy Expansion Plan

TORONTO, Dec. 16, 2020 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG; OTCQB: GGGOF) is pleased to provide an update on its Galaxy property and to announce that it has initiated phase 2 of its Galaxy expansion plan (“Phase 2”) to take production to over 43,000 ounces per year at an all in operating cash cost of less than $750 per ounce.⁽¹⁾ All dollar amounts referenced herein are stated in United States dollars.

GALAXY UPDATE

Processing Plant Upgrade

Galane has commissioned and completed the upgrade of the processing capacity at the plant at Galaxy (the “Galaxy Plant”) from 15,000 tonnes per month to 50,000 tonnes per month.^(2)(3)(4) This means that the plant is now right sized for the completion of Phase 2.

The following is a summarized description of the work performed at the Galaxy Plant:

• Ore bins –
  • Modification of the first ore bin to allow the installation of a Titan 850 x 4000 apron feeder
  • Installation of three new chutes and five refurbished vibrating feeders with new vibrating motors
• Upgrade of all conveyors in the crushing area
• Installation of a NMS JC850 jaw crusher into the existing structure
• Installation of a new NMS CC100 hydraulic cone crusher
• Installation of a 3.6m x 6.7m ball mill complete with cyclone tower and feed conveyors with a milling capacity of 50,000 tonnes per month
• Refurbishment of the existing flotation plant
• Installation of two new rougher flotation units and three new scavenger units to increase flotation capacity
• Conversion of the old plane table building to house copper sulphate, sodium isobutyl xanthate, and sodium hydrosulfide reagent mixing and dosing systems
• Conversion of old carbon-in-leach (“CIL”) tanks to slurry storage, pre flotation conditioning tanks and concentrate storage tanks
• Installation of two bright 200m² x 76 plate, 4.25 tonnes/hour side bar hydraulic concentrate filter presses
• Installation of three concentrate transport conveyors to feed a new bagging system
  

Mining Update

On December 14, 2020, Galaxy commenced mining at both Princeton and Galaxy (the “Projects”) with its newly acquired Rham mining fleet. Due to poor performance by the existing contractor at the Projects, management of the Company made a decision to capitalise and supervise the mining operations at the Projects itself. It is expected that the introduction of the new fleet and a new management structure will greatly improve the performance of mining at the Projects.⁽³⁾