Highlights
- A 60% increase, 891,773 ounces, in all resource categories when compared to the previous technical report to give a new total of 970,904 ounces of measured and indicated mineral resources, and 1,409,764 ounces of inferred mineral resources.
- New PEA, modelled at an average gold price of
$1,466 per ounce, with:- an initial 11 year mine plan;
- producing 413,421 ounces;
- an all in sustainable cost of
$747 per ounce; and - a peak funding requirement of approximately
$600,000 .
- Based on the PEA with a gold price of
$1,700 per ounce and 11 year life, the project has a pre-tax internal rate of return of 1,498% and a NPV (5%) of$147 million (CAD$ 199 million ).(1)(2)
The decision to undertake a new technical report was made so that we could advise the market on the actual potential of Galaxy and how we plan to expand the current operation. Given our progress to date at Galaxy in the Phase 1 ramp up to approximately 26,000 ounces per annum, generation of positive cash flows (as announced on
The Galaxy mine camp currently hosts 21 known mineralised zones and we continue our expansion objectives, by first implementing our Phase 3 expansion plan. We have thus far increased our compliant resource by concentrating on data already available for the three existing orebodies we have been targeting, and improving the economics on those orebodies. We will now start the same process on the remaining 18 mineralised zones. In addition, we will start a drilling campaign to prove extension of the mineralised zones at depth. We are optimistic that we can present a plan to double production again once we have proved the resource to support the data.”(3)
The Technical Report entitled “NI 43-101 Technical Report on the
It should be noted that the PEA is preliminary in nature as the resources included in the PEA are comprised 54% of Inferred Mineral Resources. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the PEA will be realized.
Mineral Resource
The mineral resources for the Mine (the “Mineral Resources”) were previously declared in a technical report titled "A Technical Report on the
Resource Category | New Technical Report | 2015 Technical Report | Content | ||||
Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | Change % | |
Measured | 3,208,575 | 2.97 | 306,122 | 1,876,126 | 3.37 | 203,435 | 50% |
Indicated | 7,694,349 | 2.69 | 664,783 | 4,350,781 | 2.85 | 399,261 | 67% |
Total Measured and Indicated | 10,902,925 | 2.77 | 970,904 | 6,226,907 | 3.01 | 602,696 | 61% |
Inferred | 16,734,418 | 2.62 | 1,409,764 | 8,095,521 | 3.40 | 886,199 | 59% |
- The
Princeton orebody has been remodelled due to newly captured historical data that was made available. This enabled the delineation of lenses PS5, PS19 and a new middling PS12. In addition, the previous upper and lower orebodies have been linked to constitute one continuous model. Thickness and grade continuity can be correlated from the upper to the lower models. An Indicated Mineral Resource and Inferred Mineral Resource can be declared atPrinceton , with a significant increase in reported tonnage with a slight decrease in grade. This is due to the new interpretation of the geological models, and significant addition of tonnage linking the upper and lower orebodies atPrinceton . - The Galaxy orebody has been re-estimated to populate the existing manually estimated gap area. As a result of improved variogram ranges and improved sub-celling, additional areas have also been estimated for the 24 Level and 17 Level domains.
- The Giles and Woodbine orebodies have been reviewed in detail. All estimation performed in 2015, is of sufficient quality to enable reporting of Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources. The input parameters and resulting estimate compare well with the data and can be reproduced. Mineral Resource categories have been optimised to increase connectivity between them. In addition, the classification has been adjusted where less than two drillholes were utilised to define a Measured Mineral Resource.
- The Hostel West, Woodbine West and Woodbine South tailings storage facilities have been updated to account for mining activity that occurred since the 2015 Report.
- A higher gold price in 2020 of
$1,600 /oz has been applied, lowering the cut-off grade for the underground Mineral Resources from 1.85 g/t (2015) to 1.4 g/t (2020).
Preliminary Economic Assessment
A new life of mine (“LoM”) plan was created with mining plans produced around the newly delineated resources. The mining strategy is to produce a concentrate with a grade greater than 25 g/t from the
The stope optimiser results were analysed at a range of cut-off grades for each orebody to determine at what cut-offs the correct mix of tonnes and grade are obtained to satisfy the mining strategy and provide sufficient LoM.
The processing plant was recommissioned in
The metallurgical recoveries of the various orebodies are well known from both historic production and current production.
With this information the following production schedule for the PEA was created:
Production Values | ||
Item | Measure | |
Waste Tonnes Mined | kt | 3,107 |
Ore Tonnes Mined | kt | 4,335 |
Total Tonnes Mined | kt | 7,442 |
Average Mined Grade | g/t | 3.35 |
Total Oz in Mine Plan | oz | 466,447 |
Grade Delivered to Plant | g/t | 3.35 |
Recovered grade | g/t | 2.97 |
Yield/Recovery | % | 88.60% |
Total Oz Recovered | oz | 413,421 |
Concentrate Tonnes Produced | dmt | 435,819 |
Concentrate Tonnes Produced | wmt | 479,401 |
Concentrate Grade | g/t | 29.50 |
LoM | Years | 11 |
About
Notes:
(1) Based on the valuation information and assumptions contained in the Technical Report, with the exception of the replacement of the gold price of
(2) At a CAD:USD exchange rate of 1:0.7378.
(3) 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 expansion at the Mine, capital requirements for such expansion, mining strategies at the Mine, technical, financial and business prospects of the Company, 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
Information of a technical and scientific nature that forms the basis of the disclosure in the press release has been prepared and approved by Kevin Crossling Pr. Sci. Nat., MAusIMM. and Business Development Manager for
Neither the
For further information please contact:
CEO,
+ 44 7905 089878
Nick.Brodie@GalaneGold.com
www.GalaneGold.com
Source:
2020 GlobeNewswire, Inc., source