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Galleon Gold announces updated mineral resource estimate for West Cache

Sep 8, 2021

Galleon Gold Corp. has announced the release of a National Instrument 43-101 updated Mineral Resource Estimate for its 100% owned West Cache Gold Project.

Highlights include:

  • Indicated Mineral Resource of 657,000 ounces (13.4 Mt at an average grade of 1.52 g/t Au);
  • Inferred Mineral Resource of 640,000 ounces (11.7 Mt at an average grade of 1.71 g/t Au);
  • The Mineral Resource Estimate utilizes optimized pit shells to constrain near surface Mineral Resources, as well as underground (out-of-pit) potentially mineable shapes to constrain the Mineral Resource Estimate for the deeper portion of the West Cache Deposit (see Figures 1 and 2 for pit shell and mineable shape modelling);
  • The Mineral Resource Estimate utilizes US$1,650/ oz gold price at a gold recovery of 95%; and
  • The Mineral Resource Estimate will form the basis for the Company's Preliminary Economic Assessment ("PEA") currently underway.

Note from the CEO

R. David Russell CEO and President of Galleon Gold comments, "When we acquired West Cache, we saw many opportunities to generate value in the Timmins camp. With today's results, we have clearly demonstrated the success achieved in our recent drill campaign and the tremendous exploration potential of the Project. The PEA, which is currently underway, will build upon the West Cache story and outline the design plan for a bulk sample of our Zone #9 high grade mineralized shoot along with stages of development for open pit and additional underground mining. Work will also continue to optimize our operational targets, including mining methods, toll processing availability and throughput. Our ultimate goal is to stand shoulder to shoulder with other mine operators in the Timmins camp."

The Mineral Resource Estimate was based on the results of 557 holes and 210,000 metres of drilling, including 213 holes for 46,380 metres of surface diamond drilling completed since the Company acquired the Project.

Zone #9, newly discovered in 2020, has contributed to the Out-of-Pit Indicated Mineral Resource Estimate of 244,000 ounces based on 1.8 Mt at an average grade of 4.16 g/t Au and an Inferred Mineral Resource of 359,000 ounces based on 4.1 Mt at an average grade of 2.71 g/t Au. The combined East and West Pits contain 413,000 Indicated Au ounces and 281,000 Inferred Au ounces.

The Mineral Resource Estimate for the West Cache Project, with an effective date of September 3, 2021, is summarized in Table 1. The Mineral Resource is amenable to open pit mining and underground (out-of-pit) mining methods.





About West Cache Gold Project

The West Cache Gold Project is located 13 km west of Timmins, and is serviced by Provincial Highway 101 and secondary access roads. It is situated along the Porcupine - Destor Deformation Zone in the Timmins Gold Belt, approximately 7 km northeast of Pan American Silver's Timmins West Mine and 14 km southwest of Newmont's Hollinger Mine.

West Cache is an advanced-stage gold exploration project covering over 3,600 ha that hosts the current Mineral Resource near the centre of the property, with additional Exploration Targets to the north and south. The Mineral Resource is contained within the Porcupine Sedimentary Basin, a favourable litho-structural corridor with over 2 km of strike-length on the Property. Mineralization is open in all directions and at depth.

Recent metallurgical test work completed as part of a future Feasibility Study revealed that the three primary processing options for gold recovery: 1) Gravity + Flotation, 2) Whole Ore, and 3) Gravity + Whole Ore - all indicate strong gold extractions can be achieved on each of the low (1.77 g/t), mid (5.10 g/t) and high (21.9 g/t) grade portions of the recently identified Zone #9 gold mineralization (see Company news release dated August 11, 2021). 

About Galleon Gold

Galleon Gold is a North American exploration and development company. Eric Sprott holds approximately 23% of the Company's outstanding common shares and is also the Company's partner on the Neal Gold Project in Idaho. A Preliminary Economic Assessment is currently underway for the Company's flagship project, the West Cache Gold Project, located 13 km west of Timmins, Ontario.

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