TORONTO, March 26, 2019 (GLOBE NEWSWIRE) -- Galantas Gold Corporation (the "Company" or “Galantas”) (TSXV:GAL) (AIM:GAL) is pleased to report an expansion of gold milling operations underway at the Omagh, Northern Ireland processing plant. The plant, which produces a gold & silver concentrate using a non-toxic, froth-flotation process, is running on a batch basis from a stockpile of underground vein material plus additional feed produced from on-vein development operations. Milling operations are expected to continue on an extended dayshift basis for the remainder of the quarter.
Extended dayshift operations are planned to continue until late in the second quarter, when a second milling shift is expected to be added to process increasing quantities of feed expected to be available. Additional milling shifts are planned to be added in the third quarter.
Current expectations are that the private placing in December 2018 provided sufficient financial resources to bring operations to a monthly cash positive position before the end of 2019.
Target production is 2,000 to 2,500 troy ounces of gold in concentrate per month, planned to be achieved in 2020 /2021. This is in line with the production rates outlined in the Galantas Technical Report, July 2014. The Company considers that further expansion may be possible, targeting 50,000 ounces of gold per year. Any expansion will be dependent on and driven by the definition of additional resources, for which hard targets are already well identified (see Galantas Technical Report, July 2014), and funded by part of profits generated from production.
On-vein development on the 1084 (second) level continues with 32 metres of vein drive completed. The main decline development tunnel has reached the 1072 (third) level and a 58 metre cross-cut to intersect the Kearney vein is in progress. The main decline tunnel is now 423 metres in length and the total of all underground drivages exceeds 1136 metres. The decline and mine development have been designed for long term, large scale production. i.e. not only along strike and at depth on Kearney Vein, but from the other parallel veins, such as Joshua Vein. For most of the rest of the year, the increased quantities of processing feed will be sourced from multiple on-vein development headings. Mining between levels (stoping) is expected by or before early 2020.
Ground conditions have notably improved as the mine continues towards deeper levels, a feature ascribed to changes in rock stress conditions influenced, at higher levels, by the open pit excavation. The mine employs a robust ground control procedure using rockbolts, mesh and / or shotcrete to engineered designs. A high safety standard is maintained. Currently, 11 (or more) tunnel faces are routinely drilled, blasted, excavated and supported per week, with zero lost time accidents since the start of underground working.
A simplified plan of the workings is available on the Galantas website.
The company will be presenting at the UK Investor Show, QEII Centre, Westminster, London on 30th March 2019.
Roland Phelps, President & CEO, Galantas Gold Corporation, said, “This is an exciting time for Galantas. We have been able to put around half of the December 2018 placing funds to work and the benefits of that are now starting to accrue. We continue to invest in safety and productivity improvements, with the goal of becoming Ireland’s premier, ecologically-secure, gold producer. The works have been achieved for costs generally in-line with those anticipated, which is a testament to the professionalism and dedication of the Omagh team.”
Galantas Gold Corporation accounts for the December 2018 quarter and the year are expected to be published by the end of April 2019.
Qualified Person
This disclosure has been reviewed by Roland Phelps C.Eng MIMMM (President & CEO, Galantas Gold Corporation), a qualified person under the meaning of National Instrument 43-101 and AIM rules. The information is based upon local development data prepared by management under his supervision. The distances quoted are approximate measurements as of March 10, 2019 and the plan drawing is dated March 14, 2019.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including anticipated production and development projections, for the Omagh Gold project. Forward-looking statements are based on estimates and assumptions made by Galantas in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Galantas believes are appropriate in the circumstances. Many factors could cause Galantas’ actual results, the performance or achievements to differ materially from those expressed or implied by the forward looking statements or strategy, including: gold price volatility; discrepancies between actual and estimated production, actual and estimated metallurgical recoveries and throughputs; mining operational risk, geological uncertainties; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of or availability of key employees; additional funding requirements; uncertainties regarding planning and other permitting issues; and defective title to mineral claims or property. These factors and others that could affect Galantas’s forward-looking statements are discussed in greater detail in the section entitled “Risk Factors” in Galantas’ Management Discussion & Analysis of the financial statements of Galantas and elsewhere in documents filed from time to time with the Canadian provincial securities regulators and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Galantas has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Enquiries:
Galantas Gold Corporation
Jack Gunter P.Eng – Chairman
Roland Phelps C.Eng – President & CEO
Email: info@galantas.com
Website: www.galantas.com
Telephone: +44 (0) 2882 241100
Grant Thornton UK LLP (Nomad)
Philip Secrett, Harrison Clarke, Richard Tonthat.
Telephone: +44(0)20 7383 5100
Whitman Howard Ltd (Broker & Corporate Adviser)
Grant Barker, Nick Lovering
Telephone: +44(0)20 7659 1234