Galane Gold Ltd. Releases Financial and Operating Results for Q1

TORONTO, May 26, 2022 (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 months ended March 31, 2022.

A copy of the unaudited condensed consolidated interim financial statements for the three months ended March 31, 2022 prepared in accordance with International Financial Reporting Standards and the corresponding Management’s Discussion and Analysis are available under the Company’s profile on www.sedar.com. All references to “$” in this press release refer to United States dollars.

First Quarter 2022 Highlights

• Produced 2,286 tonnes of concentrate containing 3,143 ounces of gold (Q4 2021 - 2,662 tonnes of concentrate containing 2,440 ounces of gold) at Galaxy.
• 2,357 payable ounces of gold produced at an operating cash cost before royalties of $1,067 per ounce (Q4 2021 - 1,620 payable ounces at an operating cash cost before royalties of $1,677 per ounce) at Galaxy ⁽¹⁾.
• Positive cash flows from operating activities before working capital of $1.6 million (Q1 2021 - $1.5 million operating cash outflow).
• $1.1 million of debt repaid, resulting in net debt of $0.8 million (Q4 2021 - $1.4 million).

Galaxy Update

In April 2022, Durban, South Africa suffered severe flooding as a result of unseasonably high rain fall.  The Port of Durban was impacted by these floods including the warehouse that the Company uses to store its gold concentrate before it is exported overseas for smelting.  Subsequent to the floods, the Company has been able to physically verify over 99% of its concentrate that was in the warehouse at the time of the flood, meaning that there are no material loses anticipated, however, there has been a delay to the time it is taking to finalise, ship and receive any remaining payments for those concentrate lots that were not fully paid at the time of the flood.  A new warehouse facility has been set up on the outskirts of Durban which is accepting all new concentrate production from the Galaxy mine and payment for concentrate production going forward is not expected to be materially impacted⁽²⁾.