Stoping Commences At The Galaxy Ore Body

TORONTO - Galane Gold Ltd. has commenced stoping at the Galaxy ore body. The Company expects to see a marked increase in tonnes delivered to the processing plant going forward. This represents the final milestone to be met as it ramps up production to over 26,000 ounces per annum. In addition, Galaxy has exceeded its production budget for the second quarter, producing 2,496 ounces of gold (1,872 payable ounces). The Company also notes that Galaxy experienced no material effects from the recent unrest in South Africa.

The Company’s Mupane property has continued to suffer from lower production than expected in the second quarter with problems experienced at its main jaw crusher, employee absence due to COVID-19, issues with its main incoming transformer and production complications at Tau due to poor performance by its mining contractor. Production at Mupane for the second quarter was however slightly better than the first quarter at 5,858 ounces. The Company is working closely with its mining contractor to improve its performance and with the Botswana Power Corporation to improve the power supply to the mine. The Company is forecasting an improvement in production in the next two quarters.

CEO, Nick Brodie, said, “It is disappointing that we continue to face challenges at Mupane but we will continue to work diligently to address them and expect production improvements moving forward.

“The results at Galaxy exceeded our expectations which was due to the additional hard rock feed and the mined grades being higher than the block models predicted. In addition, the commencement of stoping in Galaxy is the last milestone in the ramp up to the completion of Phase 1. Finally, on the site visit to Summit, I was impressed by the condition of both the mill and the underground. There is already almost two years of potential production available from stopes in the underground due to historic development that was not exploited before the mine went into care and maintenance in 2013. This represents a great platform for us to restart the operation with minimal capital investment.”