Galiano Gold Inc., which currently operates and manages the Asanko Gold Mine located in Ghana, which is jointly owned with Gold Fields Ltd., has reported first-quarter revenue of $110.6 million.

According to the Q1 2021 report, gold production for the period totalled 59,999 ounces with gold sales of 62,925 ounces at an average realised price of $1,757 per ounce, generating gold revenue of $110.6 million.

The report said distributions from the AGM to the joint venture partners during the quarter totalled $10.0 million ($5.0 million to Galiano).

Read excerpts of the report below:

GALIANO GOLD REPORTS PRELIMINARY Q1 2021 OPERATING RESULTS

Galiano Gold Inc. (TSX: GAU) (NYSE American: GAU) has reported preliminary first quarter ("Q1") operating results from the Asanko Gold Mine ("AGM"), located in Ghana, West Africa. The AGM is a 50:50 joint venture ("JV") with Gold Fields Ltd (JSE, NYSE: GFI) which is managed and operated by Galiano. The Company expects to release its full financial and operational results after the market closes on May 5, 2021. All financial information contained in this release is unaudited and reported in US$.

AGM Q1 2021 Highlights (100% basis):

* Continued cash distributions: $10.0 million Q1 cash distribution paid to the JV partners ($5.0 million to Galiano)

* Strong sales: Gold revenue of $110.6 million generated from 62,925 ounces sold at an average realised price of $1,757 per ounce

* Consistent production: Gold production of 59,999 ounces, in line with 2021 guidance

* Mined 1.8 million tonnes ("Mt") of ore at 1.3 grams per tonne gold ("g/t")

* Processed 1.4Mt of ore at 1.4 g/t gold

* Gold recovery 95%

* Excellence in safety: zero total recordable injuries ("TRI") recorded in the quarter, resulting in a 12-month rolling TRI frequency rate of 0.58 per million employee hours worked

"The Asanko Gold Mine delivered another solid operational quarter and with continued metal price strength was in a position to make a $10 million distribution to the JV partners, allowing Galiano's balance sheet to remain strong with approximately $65 million in cash and receivables as at March 31st and no debt," said Greg McCunn, Chief Executive Officer. "The exploration programs at the AGM continue to remain a focus area with step-out drilling at Miradani underway. Additionally, as a result of the successful 2020 exploration program, we are advancing stripping at Akwasiso Cut 3."

Health and Safety

During the quarter, there were no lost time or recordable injuries reported resulting in 12-month rolling LTI and TRI frequency rates of 0.10 and 0.58 per million employee hours worked, respectively.

Production

In Q1, the AGM sourced ore from the Akwasiso and Esaase pits as well as run of mine stockpiles. During the quarter, 1.4Mt of ore at an average gold grade of 1.4 g/t and 8.8Mt of waste were mined from the Esaase pit. At the Akwasiso pit, ore mined totalled 0.5Mt with an average grade of 1.1 g/t with 0.7Mt of waste mined.

The processing plant milled 1.4Mt at a feed grade of 1.4 g/t during the quarter with metallurgical recovery averaging 95%.

Sales and Liquidity

Gold production for the quarter totalled 59,999 ounces with gold sales of 62,925 ounces at an average realised price of $1,757 per ounce, generating gold revenue of $110.6 million for the quarter.

Distributions from the AGM to the joint venture partners during the quarter totalled $10.0 million ($5.0 million to Galiano).

At the end of the quarter, the JV held approximately $59.3 million in unaudited cash (including $15.0 million drawn on the $30 million revolving credit facility), $10.3 million in gold sales receivables and $6.1 million in gold on hand.

Galiano held approximately $65.0 million in unaudited cash and receivables at quarter-end following receipt of the $5.0 million distribution from the JV. The Company has no debt.