Galiano Gold Inc. has recorded a US$95.1 million in revenue from its Asanko gold mine, a joint venture (JV) with Gold Fields Ltd. for the second quarter of 2021.
Particularly, the sales revenue as highlighted is generated from 53,348 ounces sold at an average realized price of $1,782 per ounce. At the end of the quarter, gold production totaled 50,421 ounces, however, this production recorded is 27 per cent less compared to 69,026 ounces of gold produced in Q1 2020.
Despite the decline in gold output in Q2 2021 which Galiano attributed to mill feed that was sourced primarily from Esaase and augmented with lower grade run of mine stockpiles, Galiano indicated that production is in line with its 2021 operational guidance.
Moreover, the 50:50 joint venture held approximately $41.3 million in unaudited cash, $13.4 million in gold sales receivables and 43.1 million in gold on hand. The Asanko gold mine had no debt outstanding at the end of the period due to the repayment of $15 million outstanding on its Revolving Credit Facility (RCF) during the quarter, thus rendering the company debt-free.
Considering the production capacity of the Asanko gold mine, by the end of Q2, it had sourced ore primarily from the Esaase Main pit (while stripping of Cut 3 at Akwasiso was ongoing) as well as run of mine stockpiles.
Production, health & Safety in operations
During the second quarter, 1.3 metric tonnes (Mt) of ore at an average gold grade of 1.2 g/t and 6.4 metric tonnes (Mt) of waste were mined from the Esaase Main pit. More so, at the Akwasiso pit, 2.6 metric tonnes (Mt) of waste was mined associated with Cut 3 stripping activities.
The processing plant milled 1.5Mt at a feed grade of 1.1 g/t during the quarter with metallurgical recovery averaging 94%.
Commenting on the development of the mine and its performance during the quarter, Matt Badylak, President and Chief Executive Officer remarked:
“Stripping of Cut 3 at Akwasiso advanced during Q2 2021 with ore delivery expected to resume on schedule in Q3 2021.
“In line with expectations, production in Q2 was lower than the previous quarter as mill feed was sourced primarily from Esaase and augmented with lower grade run of mine stockpiles. This in turn resulted in operating costs increasing relative to the previous quarter. Operating costs are forecast to decrease from Q3 2021 once Akwasiso is brought back into production.
“Moving forward we continue to focus on achieving consistent ore supply from Akwasiso and advancing the exploration program at the AGM.”
Matt Badylak, President and Chief Executive Officer
With health and safety as one of the core elements of mining activities, the mine recorded excellence in safety as no lost time (LTI) nor injuries were recorded. This is the case given data reports from 12-month rolling LTI and TRI frequency rates of 0.09 and 0.54 per million employee hours worked, respectively.
The company expects to release its full financial and operational results before the market opens on August 12, 2021.
READ ALSO: Tesah Capital ranks Zenith Bank the best bank in 2020
