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Galane Gold Ltd. (TSXV:GG) announced its financial and operational results for the first quarter of 2015, which showed a net loss of $1,969,368 due to the transition from predominately open pit to underground mining at the company’s Tau operation.
Highlights from the first quarter 2015:
- All-in operating cash cost of $1,270 per ounce (excluding royalties).(1)
- Net loss of $1,969,368.
- Cash balance of $6,565,677 at the end of the quarter.
- Cash out-flows from operating activities of $789,477.
- Cash flows used in investing activities of $2,482,872 which included infrastructure and initial development for Tau underground plus pre-stripping at Golden Eagle.
- Produced 5,030 ounces of gold.
- Total ore mined of 97,722 tonnes at an average grade of 1.55 grams per tonne.
- Total ore milled of 158,765 tonnes at a head grade of 1.41 grams per tonne.
- Mining licence for Tekwane received which has a measured and indicated mineral resource is 12,735 ounces of gold and the Company will commence trial mining in Q2 2015.
- Announcement of potential acquisition of Galaxy Gold.
Nick Brodie, CEO of Galane Gold, commented:
In isolation the results for the quarter appear disappointing, but this does not represent the achievements we have actually made in the quarter. The results are in fact as planned by the Company as we undertake the transition from predominately open pit to underground mining at the Company’s Tau operation. It is currently expected that the Company will be in full production from Tau underground towards the end of Q3 2015 at which point we expect there to be a marked improvement in the performance of the Company. It is also an exciting time for the Company as we start the process of due diligence at Galaxy, which was announced subsequent to the end of the quarter. The Company sees Galaxy as a potential near term production asset, with minimal capital costs and an ability to increase production in easily manageable steps. This is also expected to be at a cost which is a fraction of replacement cost.
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