Galiano Gold Inc. has announced its acquisition of 100 percent stake in ABG Mali Exploration SARL, a subsidiary of Barrick Gold for US$1.5 million.
The land size of the ABG Mali property covers over 167 sq. km and includes four exploration licenses. The ABG Mali property is located in the Senegal Mali Shear Zone, having quite huge deposits of gold.
The ABG Mali property is located in south-west Mali, near Senegal’s border. The property is located at the top of greenstone belts where gold deposits commonly occur. Also, the ABG Mali property has tarkwaian equivalent rocks as well as gold occurrences.
Galiano Gold Inc. having completed a thorough historical work on the property explains that a previous drilling and six multi-km gold-in-soil surveys are underway. The company has also planned a soil sampling agenda for the year. As such, the company is seeking to employ other geographical surveys for later in 2021.
Greg McCunn, Chief Executive Officer of Galiano Gold commented: “Acquiring the ABG Mali properties is a small but meaningful step for Galiano. We believe that the properties have a lot of promise including several attractive intercepts from previous drilling.”
Meanwhile, geological information about the site indicates that the concessions are connected to the Senegal Mali shear zone. As such, it is host to several established gold deposits. Gold mineralisation along the concession comes with second and third order subsidiary shear zones, varying in strike from north-south, to northeast and northwest.
Galiano Gold Inc. financial performance
According to the company’s published unaudited financial account, gold production for the first quarter totalled 59,999 ounces. Meanwhile, the company made gold sales of 62,925 ounces at an average price of $1,757 per ounce. From the financial results, this reflects a $110.6 million in revenue for the quarter.
Consequently, at the end of the quarter, Galiano and its joint venture partners held approximately $59.3 million in unaudited cash, $10.3 million in gold sales receivables and $6.1 million in gold on hand.
Along these lines, Greg McCunn, the Chief Executive Officer of Galiano remarked that:
“The Asanko Gold Mine delivered another solid operational quarter and with continued metal price strength was in a position to make a $10 million distribution to the joint venture partners, allowing Galiano’s balance sheet to remain strong with approximately $65 million in cash and receivables as at March 31st and no debt.”
“The exploration programs at the Asanko Gold Mine continue to remain a focus area with step-out drilling at Miradani underway. Additionally, as a result of the successful 2020 exploration program, we are advancing stripping at Akwasiso Cut 3.”Greg McCunn, Chief Executive Officer, Galiano Gold Inc.
Thus, by acquiring ABG Mali property, Galiano’s focus on creating a sustainable business capable of long-term value creation for its stakeholders is still on course. This the company has underscored to achieve through exploration and disciplined deployment of its financial resources.
The Company currently operates and manages the Asanko Gold Mine in Ghana, which is jointly owned with Gold Fields Ltd.