TSX-V-listed Galane Gold achieved a 60% increase in all resource categories to 970 904 oz of gold in the measured and indicated categories, and more than 1.4-million ounces of gold in the inferred category.
This follows the publication of a new preliminary economic assessment (PEA) on April 28.
The PEA now states that Galane Gold’s Galaxy project, in South Africa, will have an initial 11-year mine plan and produce 413 421 oz of gold at an all-in sustaining cost (AISC) of $747/oz.
Galane CEO Nick Brodie said on April 28 that the results had given the company a stable platform to take into 2021 from which it could leverage its goals of continuing to grow its operations both organically and through acquisitions.
The company’s executive management team is currently focused on the expansion of Galaxy to reach the Phase 2 production target of 43 000 oz/y, at an AISC of $747/oz, the addition of resources at Mupane, in Botswana, to continue to extend mine life and the closing of the acquisition of the Summit mine and the Banner mill in New Mexico, following which Galane intends to bring the mine out of care and maintenance and back into production.
Additionally, the company also provided insight into its full-year results for the period ended December 31, 2020, during which the miner had a positive operating cash flow of more than $13.8-million.
The Mupane project produced 27 369 oz of gold at a head grade of 1.74 g/t and a recovery of 73.8%, despite production having been constrained in the first half of 2020 owing to Covid-19 restrictions.
Mupane’s average sales price achieved for 2020 was $1 766/oz, which was offset by an operating cash cost of $1 070/oz.
Galaxy, meanwhile, produced 3 742 t of concentrate containing 3 932 oz of gold for gross sales proceeds, on payable ounces of 2 721, or more than $4.9-million.
In 2020, Galane Gold made debt repayments of more than $4.8-million.