Benzinga | Oct 14, 2021 05:06PM EDT

Galiano Gold Sees Q3 Gold Sales $85.2M Generated From 48.435K Oz.

Galiano Gold Inc. ("Galiano" or the "Company") (TSX:GAU) (NYSE:GAU) reports preliminary third quarter ("Q3") operating results from the Asanko Gold Mine ("AGM"), located in Ghana, West Africa. The AGM is a 50:50 joint venture ("JV") with Gold Fields Ltd ((JSE, NYSE:GFI) which is managed and operated by Galiano. The Company expects to release its full financial and operational results after the market closes on November 10, 2021. All financial information contained in this release is unaudited and reported in US$.

AGM Q3 2021 Highlights (100% basis):

* Sales on plan: Gold revenue of $85.2 million generated from 48,435 ounces sold at an average realized price of $1,758 per ounce

* Development of Akwasiso Cut 3: Stripping at Akwasiso advanced throughout the quarter and will be completed in Q4

* Production on target: Gold production of 49,543 ounces, in line with 2021 production guidance

"Production for Q3 remained at similar levels to Q2 as we continued to develop Akwasiso for its third phase of mining," said Matt Badylak, President and Chief Executive Officer. "With Akwasiso pivoting to sustainable ore delivery in Q4 we expect gold production to revert to historical levels with per unit costs trending downwards positioning the AGM well for the achievement of restated full year guidance. We continue to remain on schedule to publish our updated Reserve and Resource statement in Q4 of this year."

Health and Safety

During the quarter, there was one recordable injury and lost time injury reported resulting in 12-month rolling TRI and LTI frequency rates of 0.20 and 0.41 per million employee hours worked, respectively.

Production

In Q3, the AGM sourced ore from the Esaase Main pit in addition to incremental ore production from Cut 3 at Akwasiso. During the quarter, 1.3Mt of ore at an average gold grade of 1.4 g/t and 7.4Mt of waste were mined from the Esaase Main pit and 0.1Mt of ore at an average gold grade of 1.2 g/t and 2.6Mt of waste from the Akwasiso pit.

The processing plant milled 1.5Mt at a feed grade of 1.1 g/t during the quarter with metallurgical recovery averaging 90%.

AGM Key Production StatisticsUnitsQ3 2021Q2 2021Q1 2021Q4 2020Q3 2020(100% basis)

Total Tonnes Mined 000 t11,481 10,406 11,393 13,737 12,279

Waste Tonnes Mined 000 t10,017 9,073 9,552 11,773 11,321

Ore Tonnes Mined 000 t1,464 1,333 1,841 1,964 958

Strip Ratio W:O 6.8:1 6.8:1 5.2:1 6.0:1 11.8:1

Average Gold Grade Mined g/t 1.3 1.2 1.3 1.4 1.4

Ore Processed 000 t1,542 1,475 1,444 1,438 1,467

Gold Feed Grade g/t 1.1 1.1 1.4 1.5 1.1

Gold Recovery % 90 94 95 95 93

Gold Produced oz 49,543 50,421 59,999 65,571 48,974