Galane Gold releases financial, operating results for Q2, 2014

galane operationGalane Gold Ltd. has announced the release of its financial and operating results for the three and six months ended June 30, 2014 which showed the total ore mined stood at 137,114 tonnes at an average grade of 1.92 grams per tonne. Of the total, 3,384 tonnes of ore came from Tau Underground at an average grade of 2.85 grams per tonne. The operations produced 7,196
ounces of gold.
“Due to the failure of the SAG mill motor and the reduction in milling capacity the Company focused on mining and processing softer material,” Galane stated. “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.” Galane Gold Chairman, Ravi Sood said despite the failure of the SAG mill motor and the resultant reduced production during the quarter we managed to maintain our cash position.
“In fact, we generated positive operating cash flows which enabled us to continue to self-fund the capital projects critical to our 5 year plan,” Sood said. “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.”

The company reported a net loss of $694,941 and cash balance has been maintained above $11,000,000 at the end of the first and second quarters of 2014. The cash flows from operating activities of $2,462,575 and cash flows used in investing activities of $2,926,412 which included development at Tau Underground plus pre-stripping at Golden Eagle and Tawana. (All amounts are in United States dollars unless otherwise indicated.)

Galane stated in May 26, 2014 that there was a failure of the SAG mill motor during the quarter. The company then 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.”

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