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Galane Gold Ltd. Announces Mineral Resource at the Tekwane Prospect

October 31, 2013

TORONTO, ONTARIO - Oct. 31, 2013 /CNW/ - Galane Gold Ltd. ("Galane Gold" or the "Company") (TSX VENTURE:GG) is conducting a major long-term exploration programme over a number of prospects within its mining leases and exploration tenements which cover the bulk of the Tati greenstone belt in Botswana. The Company is pleased to provide an update on the final phase of exploration work at the Company's Tekwane Prospect ("Tekwane") which has defined gold mineralisation in a flat-lying quartz rubble bed within the soil profile, close to surface.

At Tekwane, the total indicated mineral resource is 12,735 ounces of gold and the total inferred mineral resource is 11,443 ounces of gold. The Company has commenced the process of applying for a mining licence and it is envisaged that mining will commence at Tekwane in 2015. The gold-bearing rubble horizon will be strip-mined and processed using a conventional mobile crusher and milling circuit which will recover the gold using a gravity concentrator. This mobile plant will be based at the mining site to reduce the cost of hauling material to the main plant at the Company's Mupane Mine. Galane Goldanticipates at least an 83% recovery consistent with our current reported recoveries, however, since Tekwane is an oxide, free gold, near-surface deposit it is anticipated that recoveries will exceed the historical recoveries of other deposits on the mining lease area. Our estimates are for a capital expenditure of less than $600,000 and for direct operating costs of $315 - 375 per ounce, inclusive of royalties. Direct operating cost is a non-GAAP measure. See "Direct Operating Costs" and "Cautionary Notes" below.

Location

Through a regional program completed by a predecessor to the Company in 2002 a gold-in-soil geochemical anomaly measuring 2.6 km X 1.0 km in size was shown to exist - Tekwane. It is located approximately 11 km by main road from the Company's processing plant at the Mupane Mine, just to the north of the Archaean Tati greenstone belt inBotswana. It is covered by in the main by Prospecting Licence 101/2011 held by the Company's wholly-owned subsidiary The Northern Lights Exploration Company (Pty) Limited ("NLE"). The mineralized quartz rubble can now be seen to extend slightly onto the adjoining Prospecting Licence 211/2010, also held by NLE.

Pit Excavation Results

Pits with average dimensions of 2.5m x 1.5m X 1.5m deep were excavated by mechanical digger in 3 phases of work. In total 420 pits were dug on a 100m X 50m grid in 2 phases to outline the resource. A further 218 pits were dug as an infill exercise, giving coverage on a 50m X 50m grid, over the areas of interest. This has delineated 3 areas, approximately 850m X 850m, 450m X 450m, and 400m X 200m to give a total area of roughly 1.0 sq km in size that is underlain by the auriferous quartz rubble of greater than 0.50g/t Au, covered by 206 pits in all.

Sample grades include values of:

Previously Reported

New Results

In addition and in total there are 13 pits that assay in the 5.0 to 10.0 g/t range, 36 pits that assay in the 2.5 to 5.0 g/t range, 81 pits that assay in the 1.0 to 2.5 g/t range, and 61 pits that assay in the 0.5 to 1.0 g/t range

Overall, the 206 pits above 0.50 g/t Au have yielded an average sampled width of 0.22m for the quartz rubble, with grades shown in the tabulated summary of all pit results which is attached to this release as Schedule "A".

There is a striking correlation between the original soil geochemistry, the quartz rubble values in the pits, and the bedrock type which is illustrated in the 3 diagrams below. From these it is deduced that the 'host' lithology, a porphyritic felsic rock (felsite) of unknown genesis, has controlled the gold mineralisation at Tekwane. In a few of the pits gold-carrying quartz veining can be seen and there are some historic gold workings nearby (away from the auriferous rubble area) characterised by gold in narrow quartz veins. Quartz, being very resistive tends to form a type of lag deposit - i.e. the rest of the rock becomes weathered, oxidised, and disintegrates as the surface lowers, but the quartz accumulates. The pits, being 50m apart, cannot expose all of the quartz veins that are narrow (2cm to 15cm in width). It is known that the Mafic rocks outside of the area of interest do not have quartz veining, and it is known that the host felsite itself does not carry gold, it is the quartz veins that carry the gold and they have formed the lag deposit in the soil profile.

To view the maps associated with this press release, please visit the following link:http://media3.marketwire.com/docs/GGMaps.pdf?v=0.604.

Mineral resource estimate - methodology.

  1. All resources were modelled using an approximate 0.6 g/t Au grade polygon around each mineralised zone.
  2. Assay data from each grade shell was evaluated and appropriately capped for the purpose of this estimation.
  3. A Grid model was created using each of the grade polygons based on a gold price of$1200/oz.
  4. Strip mining slope face angle of 85 degrees are anticipated, metallurgical recovery of 90%, and appropriate dilution, overhead costs, and royalties.


     
    • Independent Metallurgical Test work on the quartz rubble material to determine final possible recoveries is currently underway.
    • A conservative cut-off grade of 0.6g/t in line with current operational practices was therefore used in the interim.
    • Ore bed continuity was confirmed by logging and sampling of trenches excavated between the pits.
    • Planned Infill grade control pitting and trenching would allow mining of both the indicated and inferred material.
Tekwane Mineral Resource Estimate
Effective Date: September, 2013
Category     Indicated   Inferred
  Cutoff   Tons   AU   Au   Tons   AU   Au
Deposit grade   (000)   (g/t)   (000 oz)   (000)   (g/t)   (000 oz)
  (g/t)                        
                           
Tekwane 0.60   168,125   2.36   12,735   151,447   2.35   11,443

Work Conducted.

The program of work commenced in March of 2012 and the first phase of 72 pits was reported in December of 2012. A further 348 pits (for a total of 420) were excavated and reported on in June of 2013 - these programs "found the limits" of the auriferous quartz rubble horizon at Tekwane. The last phase has been the 'in-fill' program of another 218 pits (for a total of 638) which is covered by this release.

All pits were logged and the quartz rubble and bedrock exposures were sampled in detail. Finally 4 continuous trenches each roughly 200m long were excavated selectively between the 50m pits and they show that there is continuity of the quartz rubble horizon. This density of pits and the continuous trenches forms the basis of the resource estimate tabulated below, that is compliant with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

Laboratory Methodology and Quality Assurance

All samples summarised in this news release and shown in the related tables were collected by personnel of the Company under the supervision of senior staff and a qualified person, as defined by NI 43-101. Each collected sample weighs roughly 4 kg and employees transported these samples to the independently run sample preparation facility operated by Genalysis Laboratory Services Pty Ltd ("Genalysis"). The facility prepares samples for analysis (the samples are crushed and milled with 90% passing through 75 microns) and ships them to the Genalysis laboratory in Johannesburg, South Africa, where the gold is determined by a fire assay of a 50 gram sample.

The Genalysis laboratory is registered to ISO 9001:2001 and has received ISO/IEC 17025 accreditation. In addition to the internal QA-QC program used by this accredited laboratory, the Company also maintains an independent QA-QC program that includes the use of certified standard reference materials, blanks, as well as field duplicates. The quality control data associated with these results falls within acceptable ranges for all relevant parameters.

Mineral resource estimates and the quality control program were prepared and supervised by Steven Duma Pr.Sci.Nat, MAusIMM. Mr. Duma has more than 14 years relevant industry experience and is a BSc Honours graduate in Geology. He is the Mineral Resources Manager for Mupane Gold and serves as the "qualified person" as defined by NI 43-101.

Information of a technical and scientific nature that forms the basis of the disclosure in this news release has been prepared under the supervision of Mr. Charles Byron, Pr. Sci. Nat., MAusIMM. MGSSA who has verified the data disclosed, including sampling, analytical and test data underlying the technical information contained herein. Mr. Byron has more than 25 years relevant industry experience and is a BSc Honours graduate in Geology. He is the Chief Geologist with the Company and serves as the qualified person as defined by NI 43-101.

About Galane Gold

Galane Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in Botswana. Galane Gold is a public company and its shares are quoted on the TSX Venture Exchange and the Botswana Stock Exchange under the symbol GG. Galane Gold's management team is comprised of senior mining professionals with extensive experience in managing mining and processing operations and large-scale exploration programmes. Galane Gold is committed to operating at world-class standards and is focused on the safety of its employees, respecting the environment, and contributing to the communities in which it operates.

Direct Operating Costs

Direct operating cost includes mine site operating costs such as mining, processing, and attributable realized derivative gain or loss, but are exclusive of amortization, reclamation, administration, and exploration and development costs.

Direct operating cost incorporates the results of an economic analysis that includes inferred mineral resources. The economic analysis of inferred mineral resources is preliminary in nature and includes mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the results set forth in such economic analysis will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Cautionary Notes

Certain statements contained in this news release constitute "forward-looking statements". All statements other than statements of historical fact contained in this news release, including, without limitation, statements regarding exploration results, mineral resource estimates, potential mineral resources and/or assumptions in respect of gold production, cash flow and costs, estimated project economics and the Company's exploration and development plans and objectives and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements.

Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to: the possibility that future exploration results will not be consistent with the Company's expectations; failure to establish estimated mineral resources or mineral reserves (the Company's mineral resource and mineral reserve figures are estimates and no assurance can be given that the indicated levels of gold will be produced); the Company's dependence on a single mineral project; gold price volatility; risks associated with the conduct of the Company's mining activities in Botswana; regulatory, consent or permitting delays; risks relating to the Company's exploration, development and mining activities being situated in a single country; risks relating to reliance on the Company's management team and outside contractors; risks regarding mineral resources and reserves; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; mining tax regimes; risks arising from holding derivative instruments; the Company's need to replace reserves depleted by production; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; 

contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; operating or technical difficulties in connection with mining or development activities; lack of infrastructure; employee relations, labour unrest or unavailability; health risks in Africa; the Company's interactions with surrounding communities and artisanal miners; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; development of the Company's exploration properties into commercially viable mines; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; and litigation risk. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this news release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this news release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SCHEDULE "A": AURIFEROUS QUARTZ RUBBLE EXPOSED IN PITS AT TEKWANE.

    Arch 1950 Datum                
    Zone 35 South       Quartz Rubble   Assays Au    
Pit ID           Over Burden Thickness (m)               Number of Samples
    UTM_East   UTM_North       From (m)   To (m)   Thickness (m)   Grade (g/t)    
TKPT00386   578796.16   7644250.43   0.81   0.81   1.00   0.19   78.00    
TKPT00029   579996.79   7644250.80   0.50   0.50   1.00   0.50   43.47    
TKPT00030   580000.11   7644298.87   0.45   0.45   0.75   0.30   39.71    
TKPT00056   579699.53   7644245.23   0.70   0.70   0.80   0.10   30.50   7
TKPT00083   580200.00   7644750.00   0.61   0.61   0.73   0.12   22.71    
TKPT00625   579650.00   7644200.00   0.69   0.69   0.82   0.13   20.66    
TKPT00567   580050.00   7644700.00   0.07   0.07   0.45   0.38   20.57    
TKPT00556   580150.00   7644950.00   0.48   0.48   0.85   0.37   19.41    
TKPT00695   579050.00   7644150.00   1.00   1.00   1.23   0.23   17.60    
TKPT00607   579750.00   7644150.00   0.96   0.96   1.19   0.23   13.40    
TKPT00574   579950.00   7644300.00   0.47   0.47   0.50   0.03   12.76    
TKPT00589   579850.00   7644150.00   0.30   0.30   0.57   0.27   12.08   8
TKPT00133   579593.46   7644846.14   0.50   0.50   0.70   0.20   12.02    
TKPT00690   579150.00   7644250.00   1.20   1.20   1.44   0.24   11.32    
TKPT00197   579499.81   7643694.49   0.20   0.20   0.40   0.20   10.31    
TKPT00009   580105.00   7644595.00   0.15   0.15   0.45   0.30   8.09    
TKPT00084   580200.00   7644800.00   0.49   0.49   0.57   0.08   8.01    
TKPT00054   579797.69   7644604.54   0.70   0.70   0.80   0.10   8.00    
TKPT00537   580250.00   7644600.00   0.59   0.59   0.74   0.15   7.91    
TKPT00285   579194.23   7643800.88   0.30   0.30   0.97   0.67   7.87    
TKPT00545   580150.00   7644400.00   0.65   0.65   0.94   0.29   7.74    
TKPT00320   579096.97   7644347.07   1.03   1.03   1.30   0.27   7.03   13
TKPT00171   579796.07   7643901.64   0.20   0.20   0.30   0.10   6.79    
TKPT00176   579794.86   7644149.71   0.70   0.70   0.80   0.10   6.73    
TKPT00477   578299.87   7643798.35   0.48   0.48   0.94   0.46   6.63    
TKPT00055   579696.24   7644201.37   0.40   0.40   0.45   0.05   6.11    
TKPT00124   579699.92   7644798.58   0.37   0.37   0.48   0.11   5.66    
TKPT00543   580250.00   7644950.00   0.60   0.60   0.86   0.26   5.26    
TKPT00186   579695.56   7644152.37   0.60   0.60   0.90   0.22   4.95    
TKPT00090   580100.00   7644700.00   0.30   0.30   0.45   0.15   4.92    
TKPT00565   580050.00   7644650.00   0.29   0.29   0.50   0.21   4.88    
TKPT00294   579199.47   7644251.67   1.43   1.43   1.61   0.18   4.82    
TKPT00720   578750.00   7644250.00   0.73   0.73   0.99   0.26   4.68    
TKPT00704   578950.00   7644200.00   0.89   0.89   1.08   0.19   4.47    
TKPT00270   579296.02   7644300.81   1.00   1.00   1.10   0.10   4.35    
TKPT00687   579150.00   7644100.00   1.00   1.00   1.34   0.34   4.26    
TKPT00578   579950.00   7644500.00   0.36   0.36   0.55   0.19   4.11    
TKPT00089   580100.00   7644650.00   0.57   0.57   0.68   0.11   3.90    
  Arch 1950 Datum                
  Zone 35 South       Quartz Rubble   Assays Au  
Pit ID       Over Burden Thickness (m)             Number of Samples
    UTM_East   UTM_North       From (m)   To (m)   Thickness (m)   Grade (g/t)    
TKPT00719   578750.00   7644150.00   1.03   1.03   1.19   0.16   3.88    
TKPT00564   580050.00   7644600.00   0.22   0.22   0.50   0.28   3.66    
TKPT00558   580050.00   7644300.00   0.46   0.46   0.56   0.10   3.42    
TKPT00356   578895.83   7643849.50   1.13   1.13   1.21   0.08   3.38    
TKPT00101   579995.76   7644844.95   0.60   0.60   0.75   0.15   3.16    
TKPT00061   579698.14   7644500.08   0.30   0.30   0.40   0.10   3.12    
TKPT00571   580050.00   7644900.00   0.29   0.29   0.38   0.09   3.09    
TKPT00087   580200.00   7644950.00   0.43   0.43   0.64   0.21   3.06    
TKPT00016   580199.00   7644500.00   0.45   0.45   0.75   0.30   3.03    
TKPT00127   579699.10   7644949.60   0.39   0.39   0.51   0.12   2.99    
TKPT00651   579550.00   7644350.00   0.70   0.70   0.94   0.24   2.99    
TKPT00547   580150.00   7644500.00   0.31   0.31   0.51   0.20   2.93    
TKPT00559   580050.00   7644350.00   0.44   0.44   0.57   0.13   2.92    
TKPT00131   579596.23   7644743.96   0.60   0.60   0.63   0.03   2.91   36
TKPT00598   579850.00   7644600.00   0.37   0.37   0.64   0.27   2.89    
TKPT00038   579899.80   7644251.05   0.30   0.30   0.90   0.60   2.86    
TKPT00384   578797.82   7644148.65   0.90   0.90   1.17   0.27   2.84    
TKPT00591   579850.00   7644250.00   0.78   0.78   0.90   0.12   2.80    
TKPT00523   580400.00   7644700.00   0.64   0.64   0.85   0.21   2.79    
TKPT00338 &nb

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