Galane Gold Ltd. Releases Financial and Operating Results for Third Quarter 2012
November 26, 2012
TORONTO, Nov. 26, 2012 /CNW/ -
A copy of the unaudited condensed consolidated interim financial statements for the three and nine months ended
Third Quarter Highlights and Subsequent Events
- Produced 10,562 ounces of gold and sold 11,473 ounces of gold plus incidental silver at an average combined selling price of
- Total ore mined of 201,361 tonnes and total ore milled of 244,688 tonnes at an average head grade of 1.60 grams per tonne.
- Recovery rate at the processing plant of 84.0%.
- Net earnings after tax of
- Total operating cash cost of
$980per ounce (excluding royalties)(1).
- Realized earnings per share as follows:
- The accelerated stripping program at the Company's Tholo pit has progressed well and remains on schedule. A water aquifer was encountered earlier than anticipated, causing a temporary delay in mining. As the program has progressed, more ore of better grade has been mined with a resulting positive impact on the average grade of total ore mined.
- Process water dam extension was commissioned during Q3 2012, which has resulted in an increased process water storage capacity of approximately 200% as previously reported.
- Process control (SCADA) system upgrade has been installed providing more reliable and refined dynamic control of the ore processing plant.
- A major shutdown was completed on the SAG mill in
September 2012that required significant downtime to complete. The scope of work was mainly on the mill power train and included changing the drive pinion, reversing the mill girth gear, replacing drive couplings and reinstating the drive speed reduction gearbox mounting. Further significant work is scheduled to be carried out on the processing plant during Q4 2012 and the first half of 2013. It is anticipated that this work will be carried out during planned shutdowns to minimise production disruption.
- As a result of the ore sulphide/oxide ratio increasing as expected, the flotation circuit in the processing plant was invoked during Q3 2012.
- As part of the Operational Improvement Program ("OI Program"), the Company is reviewing all the sources of ore that are available to it to optimise the feed to the processing plant. It is anticipated that this review will be completed by the end of Q4 2012.
- Galane's exploration program during Q3 2012 progressed the drilling, pitting and soil sampling activities as planned. The first phase of this program is scheduled for completion in Q4 2012 before the onset of the wet season. Analysis of the results is expected to be carried out during Q4 2012 and into Q1 2013.
November 26, 2012, options to purchase up to an aggregate of 1,120,000 Common Shares were granted to certain officers and directors of the Company. The options are exercisable for a period of five years at an exercise price equal to the greater of $0.75and the first closing price of the Common Shares following the release of the Company's financial results for the three and nine month period ended September 30, 2012. The stock option grants are subject to necessary regulatory approvals.
- As part of its continuous review of the Company's compensation policies, the Board of Directors has approved a compensation plan for the non-executive directors of the Company. The anticipated annual fees are expected to total approximately
$205,000, which are in line with relative comparator groups.
(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 and nine months ended
September 30, 2012for a reconciliation to measures reported in the Company's financial statements.
Exploration is also making good progress on the current phase of the program throughout our portfolio of high priority exploration targets. The completion of field exploration during Q4 2012, receipt of associated assay results and analysis of this data will be an exciting conclusion to the first phase of our plan. The focus of the exploration program will continue to be both near mine and mostly brown fields targets, being associated with previous mining activity dating back in some cases to the mid 1800's, with the ultimate aim of building considerably on Galane's resource base and therefore mine life."
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
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