Galane Gold Ltd. Releases Financial and Operating Results for First Quarter 2013
May 14, 2013
TORONTO, May 14, 2013 /CNW/ -
A copy of the unaudited condensed consolidated interim financial statements for the three months ended
First Quarter Highlights and Subsequent Events
- Produced 7,430 ounces of gold and sold 7,466 ounces of gold plus incidental silver at an average combined selling price of
- Total ore mined of 131,702 tonnes and total ore milled of 213,126 tonnes at an average head grade of 1.36 grams per tonne.
- Recovery rate at the processing plant of 79.7%.
- Net loss after tax of
- Total operating cash cost of
$1,643per ounce (excluding royalties)(1)
- In the quarter, 84,435 tonnes of ore were mined at Tholo with an average grade of 2.30 grams per tonne. As anticipated the grade has continued to improve with depth and has increased from 1.36 grams per tonne in Q1 2012.
- Due to the poor availability of the Company's own mining fleet the total tonnes mined at the Tholo pit were lower than planned. As a result, the Company decided to outsource all mining at Tholo and this process was completed in
- In the quarter, 47,267 tonnes of ore were mined at
Golden Eaglewith an average grade of 1.58 grams per tonne.
- Processing and gold production in Q1 2013 was, as anticipated, adversely affected by the following issues:
- The head grade of 1.36 grams per tonne was lower than the average mined grade of 2.04 grams per tonne as ore stockpiles were used to supplement feed to the plant.
- Recovery increased from the previous quarter to 79.7% but was still affected by the low grade and the processing of predominantly sulphide ore.
- A mineral resource update in respect of the Company's Mupane Property was released in
March 2013. As at December 31, 2012, the measured and indicated mineral resource was 508,400 ounces of gold and a total inferred mineral resource of 261,100 ounces of gold.
Total production for the quarter at
Processing and gold production in the quarter was also adversely affected by the less than anticipated ore milled of 213,126 tonnes. This was due to poor mining performance coupled with lower than expected milling rates. The lower than expected milling rates are a result of the ore processed having a higher grinding index than expected due to the lack of ore from
Exploration continued as planned with progress at existing exploration sites to further define potential resources, exploration on existing mines to define existing resources at depth and soil sampling at new sites to follow up on previously identified exploration targets.
The Company has faced challenges within the quarter and I have been impressed with how we have reacted to them and implemented solutions that have maintained production. The solutions that we have implemented, for example the outsourcing of mining at Tholo, are also expected to improve productivity and profitability going forward.
In light of the recent movements in gold price the Company has reviewed its operations and revised its plans going forward to ensure it remains cash positive at the current gold price levels."
|(1)||Total operating cash cost excluding royalties is a non-GAAP measure. Refer to "Supplemental Information to Management's Discussion and Analysis" in the Company's Management's Discussion and Analysis for the three months ended March 31, 2013 for a reconciliation to measures reported in the Company's financial statements.|
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 a single mineral project; gold price volatility; risks associated with the conduct of the Company's mining activities in
Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that any of the mineral resources disclosed in the press release will be converted to mineral reserves. There is also no guarantee that any of the inferred mineral resources will be upgraded to measured or indicated mineral resources. Information of a technical and scientific nature that forms the basis of the disclosure in this press release has been approved by Charles Byron Pr. Sci. Nat., MAusIMM., MGSSA and Chief Geologist for
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