Galiano Gold talks 2023 exploration at Asanko
2023-10-25 10:24 ET - News Release
Mr. Chris Pettman reports
GALIANO GOLD PROVIDES ASANKO GOLD MINE 2023 EXPLORATION PROGRAM UPDATE
Galiano Gold Inc. has provided an update on its exploration activities at the Asanko gold mine (the AGM) completed to date in 2023.
The 2023 exploration program at the AGM has focused on expanding mineralization at known deposits, as well as advancing a robust pipeline of regional greenfields targets toward potential new discoveries. Highlights include:
- Resource and reserve upgrade drilling at Nkran: Completed 6,689 metres of drilling focused on the southern extent of the deposit which has further demonstrated the upside potential of the orebody. The drilling confirmed zones of strong mineralization extend beyond the current mineral reserve pit shell, which remains open along strike and at depth, with intercepts including 19 m at three grams per tonne gold from 567 m, and 18 m at 2.6 g/t Au from 361 m.
- Resource conversion drilling at Abore: Early results returned strong intercepts outside the current mineral reserve pit shell, including 36 m at 2.1 g/t Au from 278 m and 21 m at 2.6 g/t Au from 226 m, highlighting potential pit expansion opportunities.
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- Resource conversion drilling at Midras South: Completed the first phase of infill drilling of inferred mineral resources at Midras South, with the deposit advancing toward a maiden mineral reserve estimate. Significant intercepts from the first two holes drilled include 18 m at four g/t Au from seven m, 17 m at 2.3 g/t Au from 24 m and 28 m at 1.2 g/t Au from 24 m.
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- Drilling at the Gyagyatreso regional prospect: Encouraging first results including intercepts of 38 m at two g/t Au from 20 m, 20 m at 1.7 g/t Au from 32 m and 11 m at 3.6 g/t Au from 98 m, highlighting the presence of a fertile gold-bearing system with significant strike length potential.
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- Regional greenfield exploration: Through early-stage mapping, geochemistry and geophysics work, large soil geochemical anomalies have been identified at the Aburi and Sky Gold targets, as well as induced polarization (IP) chargeability anomalies on the Esaase-Abore shear zone identified for follow-up trenching and/or drilling.
"The 2023 exploration results received to date bode well not only for extending the life of our current operations at the AGM, but also in identifying additional deposits located throughout our large, underexplored land package," stated Galiano's vice-president of exploration, Chris Pettman.
"The positive drill results at Nkran and Abore highlight examples of the growth potential at our existing deposits, and it is exciting to see robust new regional targets, including Gyagyatreso, being proven across the wider AGM tenements. We look forward to continuing our aggressive exploration program in 2024 and beyond in order to further extend the life of the mine."
Nkran highlights
The Nkran South drill program was designed to upgrade a zone of inferred mineral resources at the south end of the deposit and determine the potential for growth in the open-pit mineral reserves. In addition to the potential expansion of mineral reserves, the company is incorporating the drilling results into the Nkran underground study that is currently under way. Drilling began in late 2022 and was completed in 2023.
Based on these positive results, the company has confirmed the primary mineralized zones at Nkran are contiguous and remain open at the southern end of the deposit. The mineralized zones currently extend up to 185 m immediately along strike to the south of the proposed Nkran Cut 3 pit shell.
Highlighted drilling intercepts
Thirteen combination reverse circulation/diamond drill holes totalling 6,689 m were drilled as part of this program. Results include:
- Hole NKPC22-111: 19 m at three g/t gold from 567 m;
- Hole NKPC22-114W1: 18 m at 2.6 g/t gold from 361 m;
- Hole NKPC23-118: Nine m at 5.9 g/t gold from 565 m;
- Hole NKPC23-116: 19.5 m at 1.6 g/t gold from 451 m;
- Hole NKPC23-119: 19 m at 1.3 g/t gold from 483 m and seven m at 5.6 g/t gold from 324 m.
The Nkran pit is located immediately adjacent to the AGM's processing plant and has historically yielded the highest average mined grades on the Asankrangwa gold belt, while contributing significant cash flows over the years. During the mining of Cut 2 (years 2016 to 2020), Nkran produced 15.2 million tonnes at 1.63 g/t and reported metallurgical recoveries of 94 per cent.
The Nkran geological setting is typical of the Asankrangwa gold belt with a sedimentary sequence of interlayered shale, siltstone and sandstone. Two granitic bodies intrude along shear zones that control mineralization which dips steeply to the northwest along with the sheared host stratigraphy.
Abore highlights
Abore is located directly on the Esaase haul road approximately 13 kilometres north of the AGM processing plant and has current measured and indicated mineral resources of 477,000 ounces at 1.16 g/t Au and inferred resources of 131,000 ounces at 1.14 g/t Au as described in the "NI 43-101 Technical Report and Feasibility Study for Asanko Gold Mine, Ghana" with an effective date of Dec. 31, 2022, filed on SEDAR+ (see news release dated Feb. 22, 2023).
Exploration drilling throughout 2023 has been primarily focused on the conversion of inferred mineral resources below the mineral reserve pit shell and infilling zones below the $1,800 measured, indicated and inferred mineral resource pit shell. While drilling is continuing, results received to date demonstrate that mineralization remains robust in the inferred mineral resource zones tested with intercepts including 36 m at 2.1 g/t Au (ABPC23-190) from 278 m and 21 m at 2.6 g/t Au (ABPC23-189) from 226 m.
The deposit sits along the Esaase shear corridor, which also hosts the Esaase deposit. Geology here is characterized by a sedimentary sequence composed primarily of siltstones, shales and thickly bedded sandstones that has been intruded by a granite which lies parallel to the shear and dipping steeply to the northwest. Mineralization is mostly constrained to the granite, hosted in west-dipping quartz vein areas developed primarily along the eastern margin of the granite/sediment contact.
Midras South highlights
The Midras South deposit lies approximately five km south of the AGM processing plant along the Takorase-Afraso shear zone, a laterally extensive structure recognized from airborne VTEM (versatile time-domain electromagnetic), magnetic surveys and extensive ground mapping.
Midras South consists of three distinct zones of mineralization, interpreted to be fault offsets of the primary mineralized structure. Typical of Asankrangwa gold belt deposits, indicated mineralization at Midras South is developed within a package of deformed sandstone, siltstone and phyllite with stratigraphy and structure both steeply dipping to the northwest. Gold mineralization occurs in association with quartz veining, arsenopyrite and pyrite, within a broader envelope of quartz-sericite-pyrite and carbonate alteration.
Midras South has a current inferred mineral resource of 5.4 Mt at 1.32 g/t Au totalling 232,000 oz. Current drilling is designed to upgrade the primary mineralized zones to the indicated mineral resource category to advance the deposit toward a maiden mineral reserve estimate.
Drilling throughout 2023 consisted of 5,061 m of resource conversion drilling which targeted inferred mineral resources within the southern zones of the deposit. Notable results from the program include:
- Hole MSRC23-253: 28 m at 1.2 g/t Au from 24 m;
- Hole MSRC23-257: 10 m at 2.6 g/t Au from 18 m;
- Hole MSRC23-258: 12 m at 2.5 g/t Au from five m;
- Hole MSRC23-284: 18 m at four g/t Au from seven m;
- Hole MSRC23-285: Three m at 26.6 g/t Au from 24 m;
- Hole MSRC23-287: 17 m at 2.3 g/t Au from 24 m.
Two of the fertile structural trends that host mineralization at Midras South also remain open along strike and are considered targets for further exploration drilling.
Regional greenfield highlights
The AGM controls the largest land package on the Asankrangwa gold belt with tenements covering 476 square km of highly prospective ground with a portfolio of high-quality greenfields exploration targets.
Work in the regional tenements throughout 2023 has focused on a series of prioritized targets in various stages of exploration. This work has included initial mapping and target identification, surficial geochemical and geophysical surveying, and early-stage drill testing. Highlights of some of this work are outlined below.
The Gyagyatreso prospect is located approximately four km northwest of the AGM processing plant and is highlighted by an approximately three km long surficial gold-in-soils anomaly that is coincident to interpreted northeast-trending structural zone believed to be a southwest extension of the Esaase-Abore shear zone.
A small historic drilling campaign confirmed gold mineralization, but the drilling was localized and limited to shallow depths, leaving the target largely untested.
Subsequent field mapping conducted by AGM geologists identified visible gold-in-hand samples and the area was prioritized for follow-up drilling.
Drilling throughout the year has consisted of 5,783 m of combined RC and diamond drilling across 55 holes. Results have been very encouraging, returning multiple significant intercepts, including 38 m at two g/t Au from 20 m (GYDD23-045), 20 m at 1.7 g/t Au from 32 m (GYRC23-004), 11 m at 3.6 g/t Au from 98 m (GYRC23-038) and 13 m at 1.3 g/t Au from 42 m (GYRC23-011),
demonstrating that mineralization is present over at least two km of strike length. The full extent of the surficial geochemical anomaly has not yet been tested and mineralization remains open along strike to the southwest and northeast.
Data from the 2023 exploration programs have also provided a significantly increased understanding of the local geology and structural controls which will be integrated into the design of follow-up drilling planned for 2024.
The Gyetwi prospect is located immediately along strike to the south of the Esaase deposit. Esaase has produced nearly 500,000 ounces to date and still contains over 1.2 million ounces in indicated mineral resources and 300,000 ounces in inferred mineral resources, and lies on the same structural corridor.
Visible gold-in-hand samples have been identified during prospecting work and the area was prioritized for ground IP survey follow-up. Line-cutting and a combination of ground pole-dipole and gradient array IP surveys were carried out between late 2022 and early 2023.
A total of 56 line km of IP were collected, which identified a series of chargeability anomalies interpreted to be associated with the southwest extension of the Esaase shear zone across a strike length of approximately 1.3 km. These anomalies have been prioritized and follow-up surface trenching is planned to test for shallow oxide mineralization.
The Sky Gold B target area is located approximately nine km northwest of the Esaase deposit and has seen no known historic exploration work. As part of the continuing regional generative targeting program, AGM geologists recognized through regional geophysics that the area may be underlain by lithologies and structural settings similar to those that host the known Asankrangwa gold deposits.
The 2023 exploration program included initial mapping and reconnaissance prospecting along with a tenement-wide soil geochemical survey.
Mapping of surface pits and small-scale artisanal workings successfully identified a structural corridor of interest and lithologies favourable to gold mineralization.
The first phase of soil sampling consisted of 768 samples collected across approximately 23 square km. A four km long trend of highly anomalous gold in soils has been identified, coincident with the newly mapped structures and consistent with the orientation of the major gold-bearing shear zones of the Asankrangwa gold belt. Follow-up work is planned to delineate potential drill targets for 2024.
The Aburi target area lies directly southwest of Nkran, covering approximately 46 square km, and is interpreted to be underlain by the extension of the Adubiaso shear zone over a strike length of approximately five km.
Historic work in this area has been sporadic and localized with small mapping and shallow drilling programs identifying gold mineralization with little to no follow-up.
The AGM exploration team undertook a holistic review of all historic data, including regional VTEM surveys with drilling data, and prioritized the area for a regional surficial geochemical survey. The 2023 program consisted of a regional soil geochemistry survey that covered the entire tenement area with 3,141 samples collected. A second infill survey was conducted consisting of 1,038 additional samples to further delineate several robust geochemical anomalies identified.
The results have identified two distinct trends highlighted by anomalous gold coincident with interpreted structures that extend across the length of the tenement. Follow-up work is planned to delineate possible drill targets in 2024.
Qualified person and quality assurance/quality control
Mr. Pettman, PGeo, vice-president, exploration, of Galiano, is a qualified person as defined by National Instrument 43-101 (as defined below) and has supervised the preparation of the scientific and technical information that forms the basis for this news release. Mr. Pettman is responsible for all aspects of the work, including the data verification and quality assurance/quality control programs, and has verified the data disclosed, by reviewing all data and supervising their compilation. There are no known factors that could materially affect the reliability of data collected and verified under his supervision. No quality assurance/quality control issues have been identified to date. Mr. Pettman is not independent of Galiano.
Certified reference materials and blanks are inserted by Galiano into the sample stream at the rate of 1:14 samples. Field duplicates are collected at the rate of 1:30 samples. All samples have been analyzed by Intertek Minerals Ltd. in Tarkwa, Ghana, with standard preparation methods and 50-gram fire assay with atomic absorption finish. Intertek does its own introduction of QA/QC samples into the sample stream and reports them to Galiano for double checking. Higher-grade samples are reanalyzed from pulp or reject material or both. Intertek is an international company operating in 100 countries and is independent of Galiano. It provides testing for a wide range of industries, including the mining, metals and oil sectors.
About Galiano Gold Inc.
Galiano is focused on creating a sustainable business capable of long-term value creation for its stakeholders through exploration and disciplined deployment of its financial resources. The company currently operates and manages the Asanko gold mine, located in Ghana, West Africa, which is jointly owned with Gold Fields Ltd. The company is strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighbouring communities.
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