Galane Gold Ltd. Releases Financial and Operating Results for Second Quarter 2014
August 13, 2014
TORONTO, Aug. 13, 2014 /CNW/ -
A copy of the unaudited condensed consolidated interim financial statements for the three and six months ended
Second Quarter 2014 Highlights
- Operating cash cost of
$1,201 per ounce (excluding royalties)(1)- As disclosed in the Company's press release of
May 26, 2014 there was a failure of the SAG mill motor during the quarter. The Company installed a smaller spare motor but as a result the milling capacity was restricted to 70% of the normal capacity. This adversely affected the amount of ounces produced in the quarter which in turn affected the financial result and the operating cash cost per ounce.
- As disclosed in the Company's press release of
- Net loss of
$694,941 . - Cash balance has been maintained above
$11,000,000 at the end of the first and second quarters of 2014.- Cash flows from operating activities of
$2,462,575 . - Cash flows used in investing activities of
$2,926,412 which included development at Tau Underground plus pre-stripping atGolden Eagle and Tawana.
- Cash flows from operating activities of
- Produced 7,196 ounces of gold.
- Total ore mined of 137,114 tonnes at an average grade of 1.92 grams per tonne.
- The highlight being 3,384 tonnes of ore from Tau Underground at an average grade of 2.85 grams per tonne.
- Total ore milled of 181,011 tonnes at a head grade of 1.58 grams per tonne.
- Due to the failure of the SAG mill motor and the reduction in milling capacity the Company focused on mining and processing softer material. As a result less Tholo ore which has a higher grinding index and a higher grade was processed. This higher grade ore will be processed in future quarters when the Company has replaced the mill motor.
We expect that a replacement mill motor with the same capacity as the original motor will be installed within the next three to five weeks."
Note:
(1) Operating cash cost excluding royalties is a non-GAAP measure. Refer to "Supplemental Information to Management's Discussion and Analysis" in the Company's Management's Discussion and Analysis for the three and six months ended
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Cautionary Notes
Certain statements contained in this press release constitute "forward-looking statements". All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company's future financial position and results of operations, strategy, proposed acquisitions, plans, objectives, goals and targets, 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 are set out under the heading "Risks and Uncertainties" in
Information of a technical and scientific nature that forms the basis of the disclosure in the press release has been approved by Charles Byron Pr. Sci. Nat., MAusIMM., MGSSA and Chief Geologist for
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.