Galane Gold announces rise in mineral resources

CHAKALISA DUBE
Staff Writer | Friday March 22, 2013 00:00

The announcement through a technical report shows that the total measured and indicated mineral resource is 508,400 ounces of gold. This is the first mineral resource update for the Mupane Property since the completion of the company's technical report dated May 10, 2011.The measured and indicated gold resources at the Mupane Property, excluding the Mupane Slimes Dump, have increased by 17,600 ounces of gold compared to the figures presented in the 2011 technical report. This is despite two years of depletion through mining activities.

The company has declared, for the first time, a measured mineral resource of 91,800 ounces of gold at the Mupane Slimes Dump, which is located next to the Mupane plant.The mineral resource estimate, effective December 31, 2012, was carried out under the supervision of Charles Byron, chief geologist for Galane Gold and Steven Duma, mineral resources manager for the company's wholly-owned indirect subsidiary, Mupane Gold Mining Ltd. Galane's mineral resources update is expected to serve as a basis for the preparation of a new technical report in respect of the Mupane Property, which is scheduled to be completed in 2013. The report shows that the mine's total inferred mineral resource is 261,100 ounces of gold.

The company has reported the mineral resources for its mineral deposits (including the Mupane Stockpiles) separately from the Mupane Slimes Dump. This is because Galane considers the Mupane Slimes Dump to be a distinct mineral resource type as it could involve a different processing methodology. The company is still reviewing the available options on the processing of the material on the Mupane Slimes Dump. Philip Condon, Galane Gold's CEO stated that their continued ability to renew resources as they produce is evidence that supports his view that the company will extend its mine life as it continues with its current exploration programme. 'In addition, it points to the untapped potential of the Tati greenstone belt in Botswana,' he added.  Gold mining in Botswana has made significant strides for the past two decades. In 1990, only 46kg of gold was produced in the country but from 2005, there has been a vast improvement.

Stronger gold export figures were recorded from 2005 when Galane took over from Gallery Gold and started operating Mupane Gold Mine.  In September last year, Galane generated $67.7 million (P532.1 million) (recorded in nine months ending in September) in revenue from the sale of 40,652 ounces of gold at an average of $1,666 per ounce. Galane's efforts to expand its mining life will be soundly complemented by analysts' projections of healthy gold prices this year and beyond. Last year, leading UK bank, HSBC forecast the average 2013 gold price at $1,760 per ounce, with the figure rising to $1,775 in 2014.