Galane Gold Ltd, the un-hedged gold producer and explorer has commissioned a new screening plant at its operations in Botswana following the 2013 exercise to review the potential of screening its low grade stockpiles.

The results of the exercise and related test work showed there are 702,259 tonnes of low grade stockpile at an average grade of 0.97 grams per tonne (“g/t”), which is located at the run-of-mine (ROM) pad at the processing plant.

It was also noted that screening the ore using a 40mm screen deck is expected to increase 38% of the stockpile grade by 65% and the upgraded ore would report to the minus 40 mm product size fraction.

Galane said the process is expected to produce an additional 266,858 tonnes of ore at an average grade of 1.60 g/t to feed the processing plant and the screened material is expected to have a recovery rate of 83% and as it is predominately oxide in nature the milling rate is expected to increase by 20% due to the size and nature of the material.

The direct operating cost per ounce is forecast to be in the range of $600 to $700 and direct operating cost per ounce is a non-GAAP measure.

The $295,000 capital cost for the acquisition and construction of the plant was funded from the company’s operating cash flows. The screening plant is fed from the ROM pad by direct tipping and feeds the processing plant crushed ore stockpile.

The company said it intends to feed the low grade stockpile over the next three years, as required, to complement its other sources of ore. In addition, the screening plant will be used to process low and sub grade ore mined at the Company’s other open cast pits.

“The commissioning of the screening plant is an important part of our current five year plan and a key component of our ongoing effort to decrease production costs,” Chairman Ravi Sood said.

“This represents a testament to the experienced and innovative management team we have put in place and their commitment to making Galane a long mine-life, low-cost producer.”