Galiano Gold's Abore Deposit: A High-Grade Catalyst for Near-Term Growth

Galiano Gold Inc. (TSX: GG) has emerged as a standout performer in the gold sector, driven by the exceptional 2025 Phase 2 drilling results at its Abore Deposit within the Asanko Gold Mine (AGM) in Ghana. The discovery of multiple high-grade gold intercepts and new ore zones has positioned the company for material resource upgrades and operational scalability, making it a compelling near-mid-term play in a sector poised for sustained demand.

High-Grade Discoveries and Resource Expansion

The 2025 Phase 2 drilling program at Abore has delivered transformative results, including a 50-meter intercept grading 3.2 grams per tonne (g/t) gold and a 36-meter interval at 2.5 g/t Au. These findings, along with a newly identified high-grade zone at Abore North—located 200 meters below the current Mineral Reserve pit shell—highlight the deposit's open-ended potential. The mineralized system now spans at least 1,200 meters along strike and remains open in all directions, suggesting significant upside for resource growth.

Current Measured and Indicated Resources at Abore stand at 638,000 ounces at 1.24 g/t Au, with Inferred Resources of 78,000 ounces at 1.17 g/t Au. However, the recent high-grade intercepts, particularly the 3.2 g/t zone, indicate that the resource base could be upgraded as these areas are further delineated. This conversion of Inferred to Measured/Indicated categories will not only bolster the technical resource but also support higher-grade mill feed, directly enhancing production economics.

Operational Scalability and Infrastructure Gains

Galiano's operational strategy is equally robust. In Q2 2025, the company achieved an 18% increase in mined ore at Abore, while reducing the strip ratio to 6.2:1—a 17% improvement from Q1. This efficiency gain, coupled with the completion of a secondary crushing circuit in July 2025, has enabled the processing plant to maintain its design capacity of 5.8 million tonnes per annum. The secondary crusher is critical for handling harder granite ore, a key component of Abore's mineralization, and ensures throughput remains stable as the mine transitions to higher-grade underground operations.

The CEO, Matt Badylak, has emphasized the potential for bulk underground mining at Abore, leveraging the newly identified deep mineralization. This shift could extend the mine's life and reduce operational costs by focusing on higher-grade ore. With production guidance for 2025 set at 130,000–150,000 ounces, the company is on track to meet the lower end of its target, with second-half output bolstered by the secondary crusher and increased activity at the Nkran deposit.

Strategic Position in the Gold Sector

Gold's role as a safe-haven asset remains intact, with central bank purchases and inflationary pressures driving demand. Galiano's focus on high-grade, near-mine resource expansion aligns with investor preferences for projects with clear, near-term production scalability. The Abore Deposit's geological consistency—characterized by quartz veining, brecciation, and disseminated arsenopyrite—further supports the likelihood of continued exploration success.

Investment Thesis

Galiano Gold's Abore Deposit represents a rare combination of high-grade mineralization, operational efficiency, and near-term resource growth. The 2025 drilling results have not only expanded the deposit's footprint but also validated the potential for underground mining, which could unlock decades of production. With a 2025 production outlook supported by infrastructure upgrades and a disciplined exploration budget, the company is well-positioned to capitalize on gold's upward trajectory.

For investors seeking exposure to a gold producer with clear catalysts—namely, resource upgrades, production scalability, and a strong balance sheet—Galiano Gold offers an attractive risk-reward profile. The stock's valuation, currently trading at a discount to peers with similar growth metrics, further enhances its appeal in a sector where premium assets are scarce.

In conclusion, Galiano Gold's Abore Deposit is a high-conviction opportunity for those targeting the next phase of gold's bull market. With its near-term resource growth and operational scalability, the company is poised to deliver outsized returns as it transitions from a mid-tier producer to a high-grade, long-life gold asset.