Galane Gold Ltd. Releases Financial and Operating Results for 2020

TORONTO, April 28, 2021 (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 year ended December 31, 2020. All amounts are in United States dollars unless otherwise indicated.

A copy of the audited consolidated financial statements for the year ended December 31, 2020 prepared in accordance with International Financial Reporting Standards and the corresponding Management’s Discussion and Analysis will be available under the Company’s profile on www.sedar.com.

2020 Highlights

• Positive operating cash flow of $13,877,756 and net earnings of $4,434,028 (2019 - $2,919,378 and a loss of $3,823,364).
• Mupane produced 27,369 ounces of gold at a head grade of 1.74 g/t and a recovery of 73.8% (2019 – 30,294 ounces at a head grade of 1.81 g/t and recovery of 71.2%). Production was constrained in the first half of 2020 due to the COVID-19 restrictions.
• Mupane’s average sales price achieved for 2020 was $1,766 per ounce (2019 - $1,378) offset by an operating cash cost⁽¹⁾ of $1,070 per ounce (2019 - $1,090).
• Galaxy produced 3,742 tonnes of concentrate containing 3,932 ounces of gold for gross sales proceeds, on payable ounces of 2,721, of $4,948,678.
• In 2020, Galane Gold made debt repayments of $4,824,898 (2019 - $3,442,292).
• The closing cash balance at December 31, 2020 was $4,971,880 (2019 - $2,201,853).
• A new technical report and preliminary economic assessment (the “PEA”) was produced for Galaxy that showed:⁽³⁾⁽⁴⁾ 
  • A sixty percent increase, 891,773 ounces, in all resource categories when compared to the previous technical report to give a new total of 970,904 ounces of measured and indicated mineral resources, and 1,409,764 ounces of inferred mineral resources.
  • New Preliminary Economic Assessment, modelled at an average gold price of $1,466 per ounce, with:
    • an initial 11 year mine plan;
    • producing 413,421 ounces;
    • at an all in sustainable cost of $747 per ounce; and
    • a peak funding requirement of approximately $600,000.
  • At a gold price of $1,700 per ounce and a 11-year life, the project has an internal rate of return of 1,498% and a NPV (5%) of $147 million.⁽⁵⁾

Galane Gold CEO, Nick Brodie commented: “In 2020, as with the rest of the world, we faced the challenges resulting from the impacts of the COVID-19 pandemic. It is a testament to our teams in Botswana and South Africa that we managed to prioritise the health and safety of our employees, while still ensuring the continuation of economic operations and the advancement of our projects.