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Galleon Gold to make major break-through in 2023

May 9, 2023

Galleon Gold an exploration and development company focused on advancing the West Cache Gold Project in Timmins, Ontario anticipates 2023 to be a breakthrough year as it enters the advanced exploration and bulk sampling phase that will set the course for the construction of a fully operational mine.
The company outlined its 2023 plans to develop its flagship West Cache Gold Project in the prolific Timmins Gold Belt. The plans include extracting a bulk sample to ascertain the quantity of gold present at West Cache.
The West Cache Gold Project is located 7 km northeast of Pan American Silver’s Timmins West Mine and 14 km southwest of Newmont’s Hollinger Mine. A 2022 Preliminary Economic Assessment (PEA) for the project demonstrates strong economics.  Detailed engineering design and baseline studies in support of a permit application for an underground bulk sample are underway.


2022 laid the groundwork  

2022 was an active year for Galleon Gold as they issued their first preliminary economic assessment (PEA) of the West Cache project in keeping with National Instrument 43-101 standards.
The PEA highlighted strong project economics with a pre-tax NPV at a 5% discount rate of $378 million and IRR of 33.7%. Cash costs of US$814 per ounce and all-in sustaining costs of US$987 per ounce for 940,200 ounces of gold mined over Life of Mine (“LOM”) of 11 years with average annual production of 85,500 ounces. According to the PEA, recovered gold is estimated at 893,200 ounces over the LOM.
Galleon also provided an updated Mineral Resource Estimate significantly increasing the grade and total ounces in the Indicated and Inferred Mineral Resource classification. In addition, Galleon acquired additional mining claims adjacent to the West Cache Project expanding the total claim package to 10,370 hectares.
Galleon commenced an exploration drilling program and announced one of the best Zone #9 intercepts to date (determined by grade x thickness) of 15.6 g/t Au over 7.6 m within a broader zone of 7.41 g/t Au over 18.1 meters. The drilling program also discovered additional ounces of gold in the South Area with intercepts of 13.29 g/t Au over 4.5 m (incl. 79.2 g/t Au over 0.7 m) and 5.23 g/t Au over 5.7 m.
The Company received a new 21- year mining lease – an important milestone for the West Cache project. Lease status is required before mining activities such as infrastructure development and ore extraction can be conducted on the property.
Finally, Galleon progressed with the underground bulk sample permitting and baselines studies; and initiated geomechanical and geotechnical drill programs in support of the detailed design of the 1) box cut and portal design, 2) ground support recommendations, 3) stope size and dilution estimates.
In late 2022, Galleon Gold completed 876 meters of HQ3 geomechanically drilling in eight (8) holes and commenced overburden (till) drilling and test pit sampling – all in support of the Zone #9 bulk sample facilities and underground access detail design. Geomechanical hole WC-22-219A intersected Zone #9 and returned 9.97 g/t Au over 5.0 m within a broader zone of 5.53 g/t Au over 12.5 m.
The company completed 3,527 meters of NQ drilling in eight exploration drill holes or drill hole extensions to better define multiple gold-bearing zones located 300 meters south of Zone #9 and only 100 meters south of planned development ramps.
There are two predominant mineralized horizons emerging in the South Area felsic metavolcanic unit, the “Upper South Zones” just below the contact with metasediments and the “Lower South Zones” nearer the metavolcanic unit’s lower contact with metasediments. The upper zones dip 55° to the north like Zone #9 while the lower zones dip 80° to vertical.


Galleon enters 2023 with an ambitious agenda


“Our permit application work is in full swing and we are well into the detailed engineering of the portal and decline for the underground bulk sample,” said David Russell, President and CEO of Galleon Gold.
“Progressing to the test mining stage is an important step for West Cache, as we continue to de-risk the project,” Russell added. “Not only should the gold produced from the bulk sample cover the development costs; but the data collected from the stope development, milling and gold recoveries will support pre-feasibility work.”


Drill program nears completion

Galleon is close to completing its geotechnical overburden drill program by the end of the first quarter of 2023. Information from this program, along with third-party detailed engineering work, will be included in the permit application for the mine.

The updated mine plan for the bulk sample
The company updated its mine plan for the bulk sample. The bulk sample is estimated to extract  86,500 tonnes of sulphide mineralization grading 8.13 g/t gold and containing an estimated 22,600 ounces of gold.
Public consultation meetings will be announced in the next few months and pending approval of the permit(s) the company plans to start construction of some of the site infrastructure. Detailed progress reports will be provided as work advances, including power line drop and connections, infrastructure builds, and the progress of the portal and decline.

Galleon Gold's President and CEO, David Russel will be delivering an update on the project and will be presenting Galleon Gold’s West Cache Gold Project, Destined for development. David is one of 11 guest speakers taking part in the Projects in the Pipeline Conference in Timmins on June 8th as part of the Canadian Mining Expo. If you are not registered there is still time to do so but tickets are limited. Visit www.canadianminingexpo.com to reserve your tickets or call 705-264-2251 and ask for Audrey.




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