Galleon Gold starts 2022 summer drill program at West Cache Project

Galleon Gold Corp. (TSXV: GGO) (the “Company” or “Galleon Gold”) is pleased to report the 2022 exploration drill program at its 100% owned West Cache Gold Project (“West Cache” or the “Project”) in Timmins, Ontario has commenced with set up for the first drill hole underway.

The initial 5,000-meter drill program will focus on high-priority drill targets identified during the Company’s drill program in 2020-2021. Figure 1 shows the target areas in the sediment dominant stratigraphy near Zone #9 and the South Area, while Figure 2 provides a closer look at some of the significant Zone #9 and South Zone intercepts as they relate to this phase of drilling. 

R. David Russell, President and CEO of Galleon Gold commented, “Two years ago when Galleon Gold acquired the West Cache Project, we had two main objectives: 1) to infill drill the known mineralization to confirm the geological continuity of the deposit and 2) to update the mineral resource and complete a PEA.  I am very proud of the team for delivering on those goals, while also making the Zone #9 and South Zone discoveries. As we enter the next stage of development for West Cache, we have set equally ambitious targets.  Based on the strength of the Project’s initial PEA we will continue to aggressively advance our permitting initiatives, and pending  approval, start the ramp for test mining in 2023.  In concert with the important work on permits, we will continue to explore in and around known gold zones, while attempting to locate new mineralized areas and trends over the next few months.”

 

 

About the West Cache Gold Property

In February 2022, the Company released an updated mineral resource estimate and a preliminary Economic Assessment Technical Report (PEA). The Underground Mineral Resource at a 1.6 g/t Au cut off grade reported an Indicated Mineral Resource of 472,000 ounces (4,051 kt at an average grade of 3.63 g/t Au) and Inferred Mineral Resource of 1,088,000 ounces (11,788 kt at an average grade of 2.87 g/t Au).

The Company’s maiden PEA provided the  first economic valuation for West Cache. The results demonstrate that the project could support a profitable underground mining operation; including Pre-Tax Net Present Value at a 5% discount rate (“NPV5%”) of $378 million with Internal Rate of Return (“IRR”) of 33.7%; 3.0 year payback at US$1,700/oz gold price. Importantly, the project is highly leveraged to the gold price as outlined in the Table 1 below.

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