Galane GoldLtd. said July 18 that its board of directors has approved a US$2.0million capital expenditure program for the first phase of the restart ofproduction at the company's Galaxy gold mine in South Africa.
The first phase, anticipated to begin this month, isexpected to take six months to complete and will be funded from internal cashflows primarily from the company's core operation in Botswana. The company isforecasting that it will be able to produce gold at Galaxy by the end of thefourth quarter.
The first phase is designed to refurbish existinginfrastructure and upgrade the processing facility to take production to 18,000ounces per annum.
The refurbishment of the existing 15,000-tonne-per-monthprocessing plant include the installation of a new crusher, remedial work tothe float section, a new gravity separation section and re-establishment of theelution plant.
The company will also construct a new 25,000-tonne-per-monthcarbon in leach tailings retreatment plant within the current footprint of theexisting processing plant.
As Galane Gold will utilize cash flows from its other operations,it expects current cash reserves to remain same during this six-month period.
The company noted that the first phase forms a core part ofits long-term strategy that targets production of over 60,000 ounces per yearat Galaxy.
The 5,863-hectare Galaxy mine comprises 21 east-westtrending gold bodies and four prospects at 600 meters to 2,000 meters of depth.