Galiano Gold Provides Abore Exploration Update

Rhea-AI Summary

Galiano Gold Inc. (GAU) reported on its 2020 exploration program at the Asanko Gold Mine in Ghana. Drilling is 40% complete, with 36,000m planned. Recent results show significant gold interception at the Abore open pit, including 28m @ 4.9 g/t and 6m @ 24.3 g/t. The company aims to upgrade Inferred to Indicated Mineral Resources in the main pit, with mining slated to resume in late 2021. Estimated resources as of December 31, 2019, include 4.7 Mt of Indicated Resources and 0.9 Mt of Inferred Resources. Further drilling is planned to assess extensions and improve mineral resources.

Positive

• Significant drill results from Abore pit, including 28m @ 4.9 g/t and 6m @ 24.3 g/t gold.
• Planned follow-up drilling to further assess mineralization along strike.
• Improvement in confidence for Indicated Mineral Resources in current drilling.
• Mining operations at Abore expected to resume in late 2021.

Negative

• None.

VANCOUVER, BC, July 6, 2020 /PRNewswire/ - Galiano Gold Inc. ("Galiano" or the "Company") (TSX: GAU) (NYSE American: GAU) (formerly Asanko Gold Inc.) is pleased to announce an update from its 2020 exploration program underway at the Asanko Gold Mine ("AGM"), located in Ghana, West Africa. The AGM is a 50:50 joint venture ("JV") with Gold Fields Ltd (JSE: GFI) (NYSE: GFI), which is managed and operated by Galiano.  The previously announced 2020 exploration program at the AGM (see news release dated May 5, 2020) consisting of approximately 36,000m of Diamond (DD) and Reverse Circulation (RC) drilling, has been underway with four drill rigs and is now approximately 40% completed.  This news release provides an update on the drilling and results for the Abore open pit.

Highlights

• Drilling highlights (see Table 1 for details):
• Hole 029: 28 meters @ 4.9 g/t gold (from 75m to 103m)
• Hole 024: 6 meters @ 24.3 g/t gold (from 70m to 76m)
• Hole 018: 3 meters @ 11.3 g/t gold (from 48m to 51m)
• Hole 005: 9 meters @ 3.6 g/t gold (from 106m to 115m)
• Hole 013: 16 meters @ 1.9 g/t gold (from 84m to 100m)
• Mineralization extended at the north end of the main pit and in the north pit, open along strike with a follow-up drill program planned this quarter
• Inferred Mineral Resources infill drilled and confidence in Indicated Mineral Resources in main pit improved
• Initial drilling program at Abore complete with 5,662 meters consisting of 3,331 meters of RC and 2,331 meters of DD
• Core logging complete with 80% of samples submitted and 77% of sample results received

"Our second set of drill results from our 2020 exploration program were promising. They extend the known mineralization at Abore to the north and justify planned further drilling that will continue to test for mineralization along strike," said Greg McCunn, Chief Executive Officer.  "Abore plays an important role in our objective of replacing depletion in 2020 and 2021 and the recent drill results at Abore add to the drill results from the Akwasiso pit.  We expect Abore and Akwasiso to be the main sources of ore supplementing our Esaase pit in H2 2020 and through 2021 and we believe that we have shown the potential for resource expansion at both pits with our drill program."

The Abore pit is located about 13km north of the processing plant, on the Esaase ore haul road and was mined by a previous operator in the early 2000's.  Mining operations are scheduled to resume at Abore in late 2021 and the purpose of the current drill program was to upgrade Inferred Mineral Resources to Indicated Mineral Resources and test extensions of the orebody to the north.  Mineral Reserves and Resources¹ at the Abore deposit as at December 31, 2019 were as follows:

• 4.7 Mt of Indicated Resources at 1.46 g/t gold (221 koz contained gold), and
• 0.9 Mt of Inferred Resources at 1.69 g/t gold (48 koz contained gold), including
• 2.8 Mt of Probable Reserves at 1.42 g/t gold (127 koz continued gold).

The current drilling program (3,315 meters of RC drilling and 2,347 meters of DD over 32 holes) appears to have successfully provided infill drilling in the main pit area, targeting an upgrade to Inferred Mineral Resources and improved confidence in Indicated Mineral Resources.  In addition, hole 024 delineated an extension of the mineralization to the north end of the main pit with 6 meters at 24.3 g/t gold intercepted and hole 029 also defined an extension of the mineralization in the north pit with 28 meters at 4.9 g/t gold intercepted.  Mineralization is open along strike to the north-east of the north pit and a follow up drill program is planned during this quarter.

With approximately 77% of the results returned so far, key intercepts are shown in Table 1. Estimates of the contribution of this material to the Mineral Resources and Reserves at the AGM, if any, will become part of the end-of-year updated Resource Estimate expected to be dated December 31, 2020 and published in Q1 2021.

Table 1.  Key intercepts in Current Abore Drill Holes

Hole ID	From (m)	To (m)	Interval (m)	Grade (g/t Au)	Intercept Description
ABPC20-001	1	3	2	0.7	2m @ 0.7 g/t
ABPC20-001	118.32	123.16	4.84	0.6	4.84m @ 0.6 g/t
ABPC20-001	127.5	129.5	2	2	2m @ 2.0 g/t
ABPC20-001	144.85	150.9	6.05	0.9	6.05m @ 0.9 g/t
ABPC20-002	106	108.63	2.63	1	2.63m @ 1.0 g/t
ABPC20-002	112	117	5	1	5m @ 1.0 g/t
ABPC20-004	86	90	4	0.8	4m @ 0.8 g/t
ABPC20-004	101	106	5	0.5	5m @ 0.5 g/t
ABPC20-004	118	122	4	0.7	4m @ 0.7 g/t
ABPC20-005	67	76	9	0.6	9m @ 0.6 g/t
ABPC20-005	80	82	2	0.9	2m @ 0.9 g/t
ABPC20-005	86	101	15	1.5	15m @ 1.5 g/t
ABPC20-005	106	115	9	3.6	9m @ 3.6 g/t
ABPC20-006	93	98	5	0.6	5m @ 0.6 g/t
ABPC20-006	114	121	7	0.8	7m @ 0.8 g/t
ABPC20-006	135	137	2	0.6	2m @ 0.6 g/t
ABPC20-006	147	156	9	1.1	9m @ 1.1 g/t
ABPC20-007	75	79	4	0.7	4m @ 0.7 g/t
ABPC20-007	89	100	11	1.4	11m @ 1.4 g/t
ABPC20-009	1	2	1	1.3	1m @ 1.3 g/t
ABPC20-013	65	80	15	0.8	15m @ 0.8 g/t
ABPC20-013	84	100	16	1.9	16m @ 1.9 g/t
ABPC20-022	34	38	4	0.6	4m @ 0.6 g/t
ABPC20-024	53	55	2	1.1	2m @ 1.1 g/t
ABPC20-024	70	76	6	24.3	6m @ 24.3 g/t
ABPC20-024	82	83	1	1.3	1m @ 1.3 g/t
ABPC20-024	91	96	5	1.2	5m @ 1.2 g/t
ABPC20-025	69	81	12	0.8	12m @ 0.8 g/t
ABPC20-025	88	99	11	0.6	11m @ 0.6 g/t
ABPC20-031	7	13	6	0.8	6m @ 0.8 g/t
ABPC20-031	69	71	2	1.3	2m @ 1.3 g/t
ABPC20-031	76	78	2	1.9	2m @ 1.9 g/t
ABPC20-032	46	51	5	2	5m @ 2.0 g/t
ABPC20-032	59	73	14	1.8	14m @ 1.8 g/t
ABPC20-032	78	94	16	0.6	16m @ 0.6 g/t
ABRC20-012	45	54	9	0.8	9m @ 0.8 g/t
ABRC20-012	58	61	3	1.9	3m @ 1.9 g/t
ABRC20-012	66	68	2	0.6	2m @ 0.6 g/t
ABRC20-012	75	77	2	5.6	2m @ 5.6 g/t
ABRC20-012	83	91	8	1.3	8m @ 1.3 g/t
ABRC20-012	101	117	16	1.6	16m @ 1.6 g/t
ABRC20-012	122	124	2	3.4	2m @ 3.4 g/t
ABRC20-017	84	106	22	0.8	22m @ 0.8 g/t
ABRC20-017	111	116	5	5.7	5m @ 5.7 g/t
ABRC20-017	127	133	6	1.1	6m @ 1.1 g/t
ABRC20-018	13	17	4	0.7	4m @ 0.7 g/t
ABRC20-018	48	51	3	11.3	3m @ 11.3 g/t
ABRC20-018	89	94	5	1.2	5m @ 1.2 g/t
ABRC20-021	67	69	2	1.2	2m @ 1.2 g/t
ABRC20-021	81	87	6	1.4	6m @ 1.4 g/t
ABRC20-021	99	114	15	0.9	15m @ 0.9 g/t
ABRC20-021	120	122	2	1.2	2m @ 1.2 g/t
ABPC20-022	34	38	4	0.6	4m @ 0.6 g/t
ABPC20-024	53	55	2	1.1	2m @ 1.1 g/t
ABPC20-024	70	76	6	24.3	6m @ 24.3 g/t
ABPC20-024	82	83	1	1.3	1m @ 1.3 g/t
ABPC20-024	91	96	5	1.2	5m @ 1.2 g/t
ABRC20-029	75	103	28	4.9	28m @ 4.9 g/t
ABPC20-031	7	13	6	0.8	6m @ 0.8 g/t
ABPC20-031	69	71	2	1.3	2m @ 1.3 g/t
ABPC20-031	76	78	2	1.9	2m @ 1.9 g/t
ABPC20-032	46	51	5	2	5m @ 2.0 g/t
ABPC20-032	59	73	14	1.8	14m @ 1.8 g/t
ABPC20-032	78	94	16	0.6	16m @ 0.6 g/t

Note:  Intervals indicated are not true widths as there is insufficient geologic information to calculate true widths.  However, drill holes have been drilled to cross interpreted mineralized zones as close to perpendicular as possible.

The Abore geological setting is typical of the Asankagrawa belt with sedimentary sequence of shale and siltstone intruded by a tabular granitic body.  Mineralization occurs in steeply west-dipping quartz vein arrays along the eastern margin of the granite contact with the metasediments and within the granite.  VTEM electromagnetic surveys and anomalous soil samples support extrapolation of the mineralization to the north-east.

FAQ

What are the key highlights of Galiano Gold's GAU July 2020 press release?

The key highlights include significant drill results from the Abore open pit, with notable interceptions of 28m @ 4.9 g/t and 6m @ 24.3 g/t gold, and plans for further drilling to assess mineralization.

What is the status of Galiano Gold's exploration program in 2020?

The exploration program is 40% complete, with a total of 36,000m of drilling planned at the Asanko Gold Mine.

When are mining operations expected to resume at the Abore pit?

Mining operations at the Abore pit are scheduled to resume in late 2021.

What resources does Galiano Gold report for the Abore deposit?

As of December 31, 2019, the Abore deposit includes 4.7 Mt of Indicated Resources at 1.46 g/t gold and 0.9 Mt of Inferred Resources at 1.69 g/t gold.

How has drilling affected Galiano Gold's mineral resources at the AGM?

The recent drilling has aimed to upgrade Inferred Mineral Resources to Indicated and has shown promising extensions of mineralization, potentially enhancing future resource estimates.