TORONTO, Dec. 03, 2018 (GLOBE NEWSWIRE) -- Galane Gold Ltd. (“Galane Gold” or the “Company”) (TSX-V: GG) is pleased to announce
that it has placed the material orders required for the processing plant upgrade according to its plan to recommence production at
its Galaxy Project by April 2019.
Galane has already refurbished the existing 15,000 tonnes per month (“tpm”) processing plant at Galaxy and the upgrade will
increase the plant capacity to 30,000 tpm.
The Company advises that it is not basing its decision to expand the throughput capacity of the Galaxy mine’s processing plant
to 30,000 tpm on a feasibility study of mineral reserves demonstrating economic and technical viability of production at such
levels and as a result there is increased uncertainty. These risks, among others, include areas that are analyzed in more
detail in a feasibility study, such as applying economic analysis to resources and reserves and environmental and community
impacts.
The processing plant upgrade allows for the refurbishment of the Galaxy crushing plant and includes the installation of a new
jaw and cone crusher which will be able to crush up to 90 tonnes per hour (“tph”). This will provide for ample maintenance time,
even at maximum mill throughput, and also accommodate future expansion. The consistency of the mineralized feed to the plant will
be improved by the installation of an apron feeder under the ROM bin.(1)
Initially the existing mill and a single stream flotation will be used to operate up to 15,000 tpm while the new 3.6m x 6.7m
ball mill and second flotation stream are being erected. Once the new mill is completed both flotation streams will be brought on
line to produce concentrate. In addition, a new reagent makeup and dosing plant will be installed to accurately mix and dose
flotation chemicals into the circuit.(1)
The concentrate will then be thickened, initially in one 4.2m high rate thickener, while a second unit is installed to cater for
a 30,000 tpm throughput. Two 1250mm x1250mm automatic side bar hydraulic filter presses will be installed to dewater the
concentrate to approximately 10% moisture prior to bagging, containerization and dispatch.(1)
The following material orders have been made:
- Jaw crusher - NMS JC850 jaw crusher, feed intake 850mm x 510mm, max feed size 450mm, expected discharge size 0mm to 75mm,
throughput 65 to 95 tph.
- Cone crusher - NMS CC 100 EC cone crusher, maximum feed size 135mm, close size setting 10mm to 13mm, product size 80% minus
16mm, throughput 48 to 89 tph.
- Reconditioned ball mill - Size 3.6m x 6.7m, motor size 1700kW, feed size 80% at minus 16mm, product size 80% passing 106
micron, design throughput 50 tph.
- Concentrate filtration - 2 side bar hydraulic filter press units, 1250mm x 1250mm, automated electric operation, 200 m2
filter area, 76 filter chambers, design tonnage 8.5 tph, product moisture 10-11%.
Furthermore, preparations for mining have commenced with the contractor having mobilised to site to start the development and
first fit work required to recommence underground operations in the new year.
Galane Gold CEO, Nick Brodie commented: “With the completion of the funding requirements for our facility with Barak, Galane is
now in a position that it can progress to the restarting of the operations at Galaxy.
“The work done by Galane while Galaxy was in care and maintenance has resulted in a detailed scope of work for the plant upgrade
which we have had verified by independent third parties. Galane has also followed the same process for the restart of underground
operations.
“This represents only the first step of our resurrection of the Galaxy mine and we will shortly commence a study with the aim
being to double production and lower the all-in cost as a result of increased economies of scale.”
About Galane Gold
Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in Botswana and South
Africa. Galane Gold is a public company and its shares are quoted on the TSX Venture Exchange and the Botswana Stock Exchange under
the symbol “GG”. Galane Gold’s management team is comprised of senior mining professionals with extensive experience in
managing mining and processing operations and large-scale exploration programmes. Galane Gold is committed to operating at
world-class standards and is focused on the safety of its employees, respecting the environment, and contributing to the
communities in which it operates.
Notes:
(1) This is forward-looking information and is based on a number of assumptions. See “Cautionary Notes”.
Cautionary Notes
Certain statements contained in this press release constitute “forward-looking statements”. All statements other than statements
of historical fact contained in this press release, including, without limitation, those regarding the Company’s future financial
position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, and any statements
preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”,
“would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions or the negative
thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company’s
expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and
involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from
what is expressed, implied or forecasted in such forward-looking statements.
Additional factors that could cause actual results, performance or achievements to differ materially include, but are not
limited to: the Company’s dependence on two mineral projects; gold price volatility; risks associated with the conduct of the
Company’s mining activities in Botswana and South Africa; regulatory, consent or permitting delays; risks relating to the Company’s
exploration, development and mining activities being situated in Botswana and South Africa; risks relating to reliance on the
Company’s management team and outside contractors; risks regarding mineral resources and reserves; the Company’s inability to
obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the
failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks arising
from the Company’s fair value estimates with respect to the carrying amount of mineral interests; mining tax regimes; risks
arising from holding derivative instruments; the Company’s need to replace reserves depleted by production; risks and unknowns
inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and
operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and
regulations governing the environment, health and safety; operating or technical difficulties in connection with mining or
development activities; lack of infrastructure; employee relations, labour unrest or unavailability; health risks in Africa; the
Company’s interactions with surrounding communities and artisanal miners; the Company’s ability to successfully integrate acquired
assets; risks related to restarting production; the speculative nature of exploration and development, including the risks of
diminishing quantities or grades of reserves; development of the Company’s exploration properties into commercially viable mines;
stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the
Company; risks related to the market perception of junior gold companies; and litigation risk.Management provides forward-looking
statements because it believes they provide useful information to investors when considering their investment objectives and
cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements
made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained
herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized,
that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the
date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events
or circumstances or otherwise, except as required by law.
Information of a technical and scientific nature that forms the basis of the disclosure in the press release has been approved
by Kevin Crossling Pr. Sci. Nat., MAusIMM., SACNASP and Business Development Manager for Galane Gold, and a “qualified person” as
defined by National Instrument 43-101.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information please contact:
Nick Brodie
CEO, Galane Gold Ltd.
+ 44 7905089878
Nick.Brodie@GalaneGold.com
www.GalaneGold.com
