Galiano Gold Inc. on Wednesday released results of an independent Feasibility Study report which includes the reinstatement of Mineral Reserves, along with Galiano’s operating outlook at the Asanko Gold Mine.
Asanko Gold Mine is a 50:50 joint venture with Gold Fields which is managed and operated by Galiano.
According to Galiano, the ”reinstated Mineral Reserve and updated Mineral Resource estimates, underpinning the Independent FS, was led by SRK Consulting (Canada) Inc. and was reported in accordance with National Instrument 43-101 (“NI 43-101″)”.
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 (“Moz”) of gold, at an all-in-sustaining cost (“AISC”) 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% (“NPV5%”) 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.
Galiano added that ” It is also important to note that the Joint Venture held $91 million of cash at December 31, 20222 placing the AGM in a strong position to execute the life of mine plan, commencing with the restart of mining later this year” a statement from the Company revealed.
They explained that the processing facility will continue to operate at the rate of approximately 5.8M tonnes per annum (“Mtpa”) throughout the remaining life of mine to mid-2031. The life of mine is expected to produce a total of 1.846 Moz Au from a reserve of 2.068 Moz with a weighted average recovery of 89% .
As of December 31, 2022, current stockpiled ore inventory totaled 7.2 Mt at 0.67 g/t gold. The stockpiles are of sufficient tonnage and grade to continue operations, both independently and as supplemental feed, until the Abore pit has exposed sufficient ore to produce the majority of mill feed, expected by the second quarter 2024.
About Galiano Gold Inc.
Galiano is focused on creating a sustainable business capable of value creation for all stakeholders through production, exploration and disciplined deployment of its financial resources. The Company operates and manages the Asanko Gold Mine, located in Ghana, West Africa, jointly owned with Gold Fields Ltd. Galiano is committed to the highest standards for environmental management, social responsibility, and the health and safety of its employees and neighbouring communities.
