Heliostar Metals Ltd. press release
Galiano Gold Delivers Annual Mineral Reserve and Mineral Resource Update, Highlighted by Maiden Underground Mineral Resources at Nkran and Abore
TSX - Toronto Stock Exchange
Galiano Gold Delivers Annual Mineral Reserve and Mineral Resource Update, Highlighted by Maiden Underground Mineral Resources at Nkran and Abore
Vancouver, British Columbia--(Newsfile Corp. - February 12, 2026) - Galiano Gold Inc. (TSX: GAU) (NYSE American: GAU) ("Galiano" or the "Company") is pleased to provide updated Mineral Reserve and Mineral Resource ("MRMR") estimates for the Asanko Gold Mine ("AGM"), effective December 31, 2025, including maiden underground Mineral Resources at the Nkran and Abore deposits. Galiano owns a 90% interest in the AGM, located on the Asankrangwa Gold Belt in the Republic of Ghana, West Africa. All dollar amounts contained in this news release are in United States dollars.
MINERAL RESERVE HIGHLIGHTS
Mineral Reserve Estimate
Proven and Probable Mineral Reserves of 47.5 million tonnes ("Mt") at 1.29 grams per tonne ("g/t") for 1.97 million ounces ("Moz") gold contained.
Mineral Reserves were reported based on gold prices of $1,900 per ounce ("/oz") for Esaase, $1,700/oz for Nkran, Abore, Adubiaso, and Midras South, and $1,500/oz for Miradani North and Dynamite Hill.
MINERAL RESOURCE HIGHLIGHTS
Open Pit Mineral Resources
Measured and Indicated Mineral Resources for open pit mines of 77.0 Mt at 1.27 g/t for 3.14 Moz gold contained, inclusive of Mineral Reserves.
Inferred Mineral Resources are estimated at 20.7 Mt at 1.14 g/t for 0.76 Moz gold contained.
Open pit Mineral Resources were reported based on gold prices of $2,400/oz for Esaase, Adubiaso and Midras South, and $1,800/oz for Miradani North, Akwasiso, Asuadai and Dynamite Hill. Open pit Mineral Resources for Nkran and Abore are reported within the current Mineral Reserve pit designs.
Nkran and Abore Mineral Resources are constrained to the Mineral Reserve pit design due to the reasonable prospect for eventual economic extraction of mineralized materials below the pit design, using underground mining methodology.
Underground Mineral Resources
Maiden underground Mineral Resource estimates for the Abore and Nkran deposits totaling 3.4 Mt of Indicated Mineral Resources at an average grade of 2.74 g/t, containing an estimated 0.30 Moz gold, and 6.5 Mt of Inferred Mineral Resources at an average grade of 2.52 g/t, containing an estimated 0.53 Moz gold.
Underground Mineral Resource estimates are based on a gold price of $2,400/oz and a mineable stope cut-off grade of 1.5 g/t gold.
Underground Mineral Resources are limited by the extent of current exploration drilling and are believed to represent a small portion of a much larger mineralizing system at Nkran and Abore, which remain open along strike and at depth beyond the current extent of Mineral Resources.
The Company plans to advance near-term evaluation work to further assess the economic viability of integrating underground mining with the AGM's existing open-pit operations, with the goal of declaring an underground Mineral Reserve and incorporating underground mining into the long-term mine plan.
"The maiden underground Mineral Resources at Nkran and Abore represent a new and meaningful growth avenue for Galiano, marking a clear inflection point for the Company," said Matt Badylak, Galiano's President and Chief Executive Officer. "With significant potential to expand resources at depth and along strike, we see a compelling opportunity to extend mine life, further convert resources into reserves, and unlock long-term value. As we execute our exploration strategy, we believe the AGM is well positioned to deliver sustainable growth and enhanced shareholder returns."
MAIDEN UNDERGROUND MINERAL RESOURCE
Significant technical work was undertaken to develop the underground Mineral Resource estimates at Nkran and Abore, which was supported by exploration drilling results received through the end 2025. Geotechnical work undertaken by the Company's Technical Team, and an independent consultant, suggests that the size, geometry and grades of the Nkran and Abore deposits are amenable to bulk underground mining extraction. Rigorous application of industry best practices in resource modeling and a technical assessment of mining methods demonstrate the positive economic prospect of underground mining at Nkran and Abore at a $2,400/oz gold price and a mineable stope cut-off grade of 1.5 g/t gold.
Mineable stopes for underground Mineral Resource estimates were generated and evaluated using an MSO (Minable Shape Optimizer) software program at a stope cut-off grade of 1.5 g/t gold. Unclassified blocks, beyond Measured, Indicated and Inferred categories, due to a lack of sufficient drilling density were conservatively assumed 0 g/t grade in the stope evaluation. Subject to additional infill drilling, portions of these unclassified blocks may become economic and add to the existing Mineral Resource. The mineable shapes (MSO stopes) at both Nkran and Abore also respond well to multiple cut-off grades and show potentially good scalability in response to different economic and operational conditions (see Table 1 below with the base case for underground Mineral Resource estimates highlighted).
Table 1: Sensitivity of MSO Stope Tonnage, Grade and Ounces to Various Stope Cut-Off Grades
MSO Stope
Cut-off
Grade (g/t)Indicated Mineral ResourceInferred Mineral Resource
Tonnes
(000's)Grade
(g/t)Ounces
(000's)Tonnes
(000's)Grade
(g/t)Ounces
(000's)
1.05,2172.2337511,9781.95750
1.24,3692.453449,2092.19647
1.43,7282.643167,2792.41563
1.53,4442.743036,4892.52525
1.63,1692.832895,7862.62488
1.82,6633.042614,6012.85421
2.02,2133.272333,6563.08362
Mineralization at Nkran and Abore remains open along strike and at depth beyond the current extent of exploration drilling (see images below). Various options to expedite exploration and aggressively expand the underground Mineral Resources through drilling are being assessed, which may include an investment decision on the opening of underground access.
Image 1: Nkran Long Section View of 1.5 g/t Cut-Off Grade MSO Stopes and Drillholes below Mineral Reserve Pit
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3796/283757_galianoimg1.jpg
Image 2: Abore Long Section View of 1.5 g/t Cut-Off Grade MSO Stopes and Drillholes below Mineral Reserve Pit
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3796/283757_galianoimg2.jpg
BUSINESS STRATEGY AND GROWTH INITIATIVES
The Company's strategic priority is to grow its business into a sustainable mid-tier gold producer, with a focus on organic growth and mine life extension at the AGM through continued success in our exploration strategies, as well as accretive acquisition opportunities. These objectives are underpinned by the Company's capital allocation strategy, which focuses on deployment of capital to grow the AGM's production profile, extend its mine life, maximize asset value, and ultimately return capital to shareholders. The Company's current growth initiatives are captured under the following headings, which the Company believes will drive shareholder value over the short, medium and long-term.
Organic Growth at the AGM
Near-Term Organic Production Growth - Improved Throughput and Higher Grades from Abore
Installation of the secondary crushing circuit in July 2025, combined with improving grades from Abore, positions the AGM for meaningful near-term production growth. Mill throughput is expected to rise by approximately 15% in FY 2026, supported by higher-grade ore sourced from lower elevations of the Abore pit through 2026 and 2027. As a result, the Company forecasts an approximate 25% increase in FY 2026 production compared to FY 2025.
The AGM's Abore deposit has grown over the past two years from a satellite deposit to one of the AGM's cornerstone primary deposits, hosting open pit Probable Mineral Reserves of 9.3 Mt at 1.16 g/t for 346,000 ounces gold contained as of December 31, 2025, in addition to an underground Mineral Resource as described below.
Medium-Term Production Growth - Nkran
Following the depletion of open pit Mineral Reserves at Abore, the AGM is positioned to further increase its production profile by transitioning to the higher-grade Nkran deposit. As of December 31, 2025, the Nkran deposit hosts open pit Probable Mineral Reserves of 10.6 Mt at 1.67 g/t for 570,000 ounces gold contained. Waste stripping of Nkran Cut 3 is progressing on schedule, with steady-state ore delivery to the processing plant expected by early 2029. Once in full production, the Company anticipates annual gold production well above 200,000 ounces per annum.
Long-Term Growth - Underground Mining at Nkran and Abore
The known mineral deposits hosted along the four shear corridors at the AGM share common geological features, which control gold distribution and placement in the same regional tectonic setting. Importantly, these features are consistent with classic orogenic gold deposits that can extend kilometers in the vertical direction and are known to host long-life underground mines globally. In the past year, the Company's brownfield exploration strategy has focused on testing the vertical extents of mineralization at Nkran and Abore by drilling beneath the open pit Mineral Reserve shells at these deposits.
On the back of successful exploration results to date, these deposits currently host underground Indicated Mineral Resources of 3.4 Mt at 2.74 g/t for 303,000 ounces gold contained and underground Inferred Mineral Resources of 6.5 Mt at 2.52 g/t for 525,000 ounces gold contained as of December 31, 2025, highlighting the scale and growth potential of the underground system below the existing open pit operations.
These initial underground Mineral Resources confirm that mineralization continues below the current open pit limits, with sufficient volume, grade and geometry to potentially support economic extraction. Importantly, mineralization at both deposits remains open along strike and at depth, and further growth is expected with ongoing drilling planned for 2026. The Company's immediate priority is to expand these underground Mineral Resources through step-out drilling and advance these deposits through mining studies toward Mineral Reserve classification, thereby extending the AGM's mine life. These workstreams are targeted for completion within the next 12 to 24 months.
Long-Term Growth - Esaase Mineral Reserve Expansion
Given the extensive drilling completed at the Esaase deposit to date, and the relatively wide distribution of mineralization, it is uniquely positioned for rapid open pit Mineral Reserve expansion at current metal prices. The existing Mineral Reserve estimate is based on a long-term gold price of $1,900/oz; however, current drilling demonstrates that the Mineral Reserve continues to expand laterally and at depth without a material increase to strip ratios, up to and beyond metal prices of $2,500/oz. The objective of the Company's 2026 drilling program at Esaase is to rapidly convert Inferred Mineral Resources contained within the $2,400/oz Mineral Resource shell and perform mining studies to significantly expand Esaase's Mineral Reserve base. Such an expansion would extend the life of mine and provide an additional source of mill feed to complement potential underground ore production from Abore and Nkran. The Company expects to incorporate the results of this exploration program into the AGM's December 31, 2026 Mineral Reserve estimate and revised life of mine plan.
Exploration
The Company continues to invest significantly in exploration at the AGM and has delivered meaningful results over the past three years, including the discovery of high-grade zones at the Abore Main and South pits and successful drilling beneath the existing Mineral Reserve boundaries at Nkran and Abore.
Over the next two to three years, the Company's strategic objective is to add 1.0 million to 1.5 million gold ounces to the AGM's combined open pit and underground Mineral Resources and Reserves, relative to the December 31, 2025 estimate, through continued brownfield and targeted greenfield exploration.
MINERAL RESERVE AND MINERAL RESOURCE STATEMENTS
The following tables outline the MRMR estimates for the AGM, effective December 31, 2025, December 31, 2024 and December 31, 2022, as applicable, including the maiden underground Mineral Resource estimates at the Nkran and Abore deposits. The updated MRMR incorporates extensive infill and step-out drilling conducted on the Abore deposit during 2025, which resulted in the replacement of virtually all depleted Mineral Reserves compared to the December 31, 2024 Mineral Reserve estimate.
AGM Mineral Resource and Mineral Reserve Estimates
Table 2: Mineral Resource Estimate as of December 31, 2025
DepositMeasuredIndicatedMeasured + IndicatedInferred
TonnesGradeAu ContainedTonnesGradeAu ContainedTonnesGradeAu ContainedTonnesGradeAu Contained
(Mt)(g/t)(koz)(Mt)(g/t)(koz)(Mt)(g/t)(koz)(Mt)(g/t)(koz)
Open Pit ("OP") Mineral Resources
Nkran---10.81.7360210.81.736022.11.0270
Esaase---33.01.191,26633.01.191,26612.21.15449
Abore---10.51.1538810.51.153880.30.617
Miradani North---7.91.393527.91.393522.91.30122
Midras South---4.91.021624.91.021621.41.0648
Adubiaso---2.61.361132.61.361130.40.7610
Dynamite Hill---2.21.34952.21.34951.01.2440
Asuadai---1.61.23641.61.23640.11.294
Akwasiso---1.41.16521.41.16520.21.289
Stockpiles2.00.7247---2.00.7247---
OP Total2.00.724774.91.283,09477.01.273,14120.71.14758
Underground ("UG") Mineral Resources
Nkran---1.82.791641.82.791644.32.61360
Abore---1.62.671391.62.671392.22.32165
UG Total---3.42.743033.42.743036.52.52525
OP and UG Total2.00.724778.41.353,39780.41.333,44427.21.471,283
Mineral Resource Notes:
Mr. Eric Chen, P.Geo., Vice President Mineral Resources for Galiano Gold Inc., is the Qualified Person (as defined under NI 43-101) responsible for the open pit Mineral Resources statements of the Nkran, Esaase, Abore, Adubiaso, Akwasiso, Asuadai and Dynamite Hill deposits, and underground Mineral Resources statements of the Nkran and Abore deposits. Open pit Mineral Resources of Esaase and Adubiaso are reported within an optimized pit shell assuming a gold price of $2,400/oz and using various cut-off grades: 0.40 g/t gold in Oxides and 0.50 g/t gold in Transition and Fresh for Esaase, and 0.35 g/t gold for Adubiaso. Open pit Mineral Resources of Akwasiso, Asuadai and Dynamite Hill are reported within an optimized pit shell assuming a gold price of $1,800/oz and using cut-off grade of 0.45 g/t gold. Open pit Mineral Resources for Nkran and Abore are reported within the current reserve pit designs. Underground Mineral Resources of Nkran and Abore are reported below current reserve pit designs at 0 g/t cut-off grade of all materials contained inside MSO stopes, generated at 1.5 g/t gold economic cut-off grade, assuming a gold price of $2,400/oz. Metallurgical recovery of 94% is assumed for the Nkran, Adubiaso, Akwasiso, Asuadai and Dynamite Hill deposits. Metallurgical recovery for Abore assumes a constant tails grade of 0.10 g/t gold and capped at 94%. Metallurgical recovery for Esaase varies based on lithology and grade.
Mr. Ertan Uludag, P.Geo., Director Mineral Resources for Galiano Gold Inc., is the Qualified Person (as defined under NI 43-101) responsible for the Mineral Resources statements of the Midras South and Miradani North deposits. Mineral Resources of Midras South are reported within an optimized pit shell assuming a gold price of $2,400/oz and using a cut-off grade of 0.35 g/t gold. Mineral Resources of Miradani North are reported within an optimized pit shell assuming a gold price of $1,800/oz and using a cut-off grade of 0.45 g/t gold. Processing recovery assumes 0.10 g/t gold residual tails with a maximum of 94.0% for Midras South and Stockpiles. Processing recovery for Miradani North assumes flat 94.0%.
Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates. Due to rounding, some columns or rows may not compute exactly as shown.
Open pit Mineral Resources are inclusive of Mineral Reserves.
All tonnages are reported as in situ dry tonnes.
All quantities are reported on a 100% basis.
Mineral Resources for Nkran, Esaase, Abore, Adubiaso, Midras South and Stockpiles are stated with an effective date of December 31, 2025. Mineral Resources for Miradani North, Akwasiso, Asuadai, and Dynamite Hill are stated with an effective date of December 31, 2022.
Table 3: Mineral Reserve Estimate as of December 31, 2025
DepositProvenProbableTotal Proven and Probable
Tonnes (Mt)Au Grade
(g/t)Au Content (koz)Tonnes (Mt)Au Grade
(g/t)Au Content (koz)Tonnes (Mt)Au Grade (g/t)Au Content (koz)
Open Pit
Nkran---10.61.6757010.61.67570
Esaase---14.81.1253114.81.12531
Abore---9.31.163469.31.16346
Miradani North---6.81.413106.81.41310
Dynamite Hill---1.11.31451.11.3145
Adubiaso---1.51.39671.51.3967
Midras South---1.41.12491.41.1249
Stockpiles2.00.7247 ---2.00.7247
Total2.00.724745.51.311,91847.51.291,965
Mineral Reserve Notes:
Mineral Reserves are reported at the point of delivery to the process plant or to stockpile. All tonnages are reported as diluted dry metric tonnes. Mineral Reserves are reported using the 2014 CIM Definition Standards.
The Nkran, Esaase, Abore and Stockpiles Mineral Reserves are stated as of December 31, 2025. The Adubiaso and Midras South are stated as of December 31, 2024. Miradani North and Dynamite Hill are stated as of December 31, 2022.
Mineral Reserves are reported based on gold prices of $1,900/oz for Esaase, $1,700/oz for Nkran, Abore, Adubiaso, Midras South, and $1,500/oz for Miradani North and Dynamite Hill.
Mineral Reserves for Adubiaso, Midras South, Miradani North and Dynamite Hill remain unchanged from the previous estimate dated December 31, 2024 and December 31, 2022. No new drilling, mining depletion, or other material information has occurred since that time.
Cut-off grades vary by deposit and oxidation. All cut-off grades are applied to the fully diluted gold grade. The Mineral Reserves are reported at the following gold cut-off grades: 0.35 g/t for Nkran, 0.50 g/t for Abore, Miradani North, and Dynamite Hill, 0.60 g/t for Esaase, 0.40 g/t for Adubiaso and Midras South.
Mineral Reserves are defined within pit designs guided by pit shells derived from the optimization software, HxGN MinePlan's Minesight Economic Planner, GEOVIA Whittle™ and Datamine Studio NPVS™.
Mining costs vary by pit, rock type, and pit depth. The base mining costs for Nkran, Esaase, Miradani North, Abore, Dynamite Hill, Adubiaso and Midras South are $2.63/t, $2.26/t, $1.94/t, $2.03/t, $2.29/t, $2.03/t, and $2.03/t respectively. Additional costs include fixed monthly contractor fees, grade control, community fees, owner's mining general and administrative, and other minor costs that vary by deposit and are in addition to the stated unit costs.
Processing assumptions range in unit costs from $8.81/t ore to $11.52/t ore.
General and administration cost assumptions range in unit costs from $5.17/t to $6.69/t ore.
Ore transportation cost varies for each pit based on the haul distance. It ranges between $0.61/t ore to $5.57/t ore.
Processing recovery assumes 0.10 g/t gold residual tails with a maximum of 94.0% for Nkran, Abore, Adubiaso, Midras South, Stockpiles and Esaase oxides. Processing recovery for Esaase transition and fresh ore vary by head grade and lithology, and average 76% for upper and central sandstones, and 72% for cobra. Processing recovery for Dynamite Hill and Miradani North assume flat 94.0%.
Mining dilution varies between pits, with average dilution ranging from 6.0% at Miradani North to 19.0% at Abore. Mining ore loss varies between pits, with average ore loss ranging from 2.0% at Miradani North to 11.7% at Midras South.
Mining ore loss varies between pits. The average mining ore loss is calculated to be 3.7%, 2.0%, 2.0%, 6.2%, 2.0%, 3.7% and 11.7%, for Nkran, Esaase, Miradani North, Abore, Dynamite Hill, Adubiaso and Midras South, respectively.
The overall strip ratio (the amount of waste tonnes mined for each tonne of ore) for the AGM is 7.4:1. The strip ratio for Nkran, Esaase, Miradani North, Abore, Dynamite Hill, Adubiaso and Midras South are 12.5, 6.2, 5.6, 4.5, 9.8, 9.3, and 6.9, respectively.