Galiano advancing toward West Africa gold resource
Galiano Gold Inc. [GAU-TSX, NYSE American] on Thursday May 20 announced an update on exploration underway at its Asanko Gold Mine in Ghana, West Africa.
Galiano operates and manages the Asanko Gold mine, which it owns jointly with Gold Fields Ltd. [JSE-NYSE] Both companies have a 50% interest in the mine.
The mine produced 59,999 ounces during the first quarter of 2021, an amount that was in line with 2021 production guidance of 225,000 to 245,000 ounces.
Asanko is a multi-deposit complex, with two main deposits, Nikran and Esaase, and multiple satellite deposits situated on the Asankrangwa Gold Belt. The complex includes a 5.0 million tonne per annum carbon-in-leach (CIL) processing plant. Commercial production commenced in April, 2016.
On Thursday, the company released an update on Phase 3 drilling at the Miradani North target located on the Dantano Mining Lease, approximately 10 km south of the processing plant.
Highlights include 54 metres of 1.7 g/t gold.
To date, over 17,300 metres of drilling have been completed in 59 holes over three phases of drilling from the first quarter of 2019 to May, 2021. Assays have been received for all drill holes expected to be included in the planned maiden resource estimate for Miradani North. The maiden resource estimate is expected to be announced by Q3 2021.
“The latest set of results from Miradani North continue to indicate that a mineralized system is present at depth,” said Galiano CEO Greg McCunn. “Our drilling results indicate that mineralization extends to 300 metres vertical depth and beyond, with a +100 gram-metre shoot plunging steeply to the northeast, remaining open at depth,” he said.
Now that mineral resource drilling of the deposit has been completed, step-out drilling along the +5.0-km greater Mirandani trend is underway. A second rig is expected to be deployed to acceleratedrilling.
The Miradani North target is along the Fromenda shear zone, a laterally extensive structure recognized from VTEM and magnetic surveys and mapped on the ground. The Fromenda shear zone forms part of the prominent northeast striking Asankrangwa gold belt which hosts all nine of the Asanko Gold Mine’s deposits. Numerous historical and geochemical anomalies and artisanal workings are associated with this feature, making it an attractive exploration target.
On Thursday, Galiano shares rose 0.645% or $0.01 to $1.56. Shares trade in a 52-week range of $2.80 and $1.28.
The company recently reported a net profit after tax of $13 million or $0.06/share, down from $21.8 million or $0.10 in Q1 2020.