Galiano Gold provides Asanko mine operational update, Ghana

Galiano Gold Inc. [GAU-TSX; NYSE American provided an update on metallurgical test work and plant recoveries at the Asanko gold mine, located in Ghana, West Africa. The AGM is a 50:50 joint venture with Gold Fields Ltd. [GFI-JSE, NYSE] which is managed and operated by Galiano. The company expects to release its full Q2 financial and operational results after the market closes on August 11, 2022.

As previously announced on February 25, 2022, Galiano reported that the AGM experienced lower than expected recoveries in Q1 2022. Subsequent to the announcement, an extensive drilling campaign was completed to provide representative samples for metallurgical testing. The objective of the program was aimed at further defining metallurgical recoveries at Esaase, and to add to the extensive metallurgical test work previously carried out on the Esaase deposit.

During Q2, 16 diamond drill holes were completed, along strike through both the Esaase Main and South pits. The resulting 2,221-metre increments were tested individually at the AGM laboratory as a preliminary recovery assessment.

Encouraging results have been received from the initial site assessment which determined the cyanide soluble gold content of pulverized intervals via Bulk Leach Extractable Gold (BLEG) technique followed by fire assay of solid residue. Results to date indicate alignment with the historical metallurgical testwork previously carried out on the Esaase deposit.

The metallurgical testing performed at the AGM was conducted on half core material, while the corresponding retained halves have been dispatched to Bureau Veritas in Vancouver for independent 3rd party testing. Results of the independent laboratory testing are expected late in Q3 2022.

During Q2, significant work took place to optimize the AGM’s plant performance this included revising the mill feed blend regime, increasing the mass pull in the gravity circuit and adjusting operating parameters and reagent additions in the carbon-in-leach circuit. The optimizations resulted in recoveries increasing quarter on quarter, averaging 84% in Q2. Consequently, gold production was positively impacted with preliminary production of approximately 50,000 ounces during the quarter.

“Although work continues to further define metallurgical recoveries at Esaase, we are pleased with the initial laboratory recovery results,” said Matt Badylak President and CEO. “We are additionally encouraged by the strong performance in the plant during the quarter which resulted in preliminary production of 92,300 ounces for the first half of 2022. On the back of improving recoveries and robust production in H1, we expect to provide an update to full year guidance in our upcoming Q2 disclosures.”