Welcome!

News Feed Item

Galantas Increases Gold Resources and Shows Strong Economics at Omagh Gold Mine

TORONTO, ONTARIO -- (Marketwired) -- 07/28/14 -- Galantas Gold Corporation (the Company) (TSX VENTURE:GAL)(AIM:GAL) is pleased to announce a revised estimate of gold resources, economic study, planning and environmental update on its wholly owned, Omagh Gold Mine in Northern Ireland.

RESOURCE REVIEW

The revised estimate of resources is written in compliance with the Pan European Reporting Code (PERC), Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards and Canadian National Instrument (NI) 43-101.

----------------------------------------------------------------------------
                     RESOURCE ESTIMATE : GALANTAS 2014              
                              CUT-OFF 2 g/t Au                  Increase    
------------------------------------------------------------      over      
    RESOURCE        TONNES         GRADE          Au Ozs        GAL 2013    
    CATEGORY                      (Au g/t)                       report     
----------------------------------------------------------------------------
    MEASURED       138,241          7.24          32,202           55%      
----------------------------------------------------------------------------
   INDICATED       679,992          6.78         147,784          21.4%     
----------------------------------------------------------------------------
    INFERRED      1,373,879         7.71         341,123          15.4%     
----------------------------------------------------------------------------
  Minerals Resources that are not Mineral Reserves do not have demonstrated 
                             economic viability.                            

Overall there has been a 19% increase in resources since the Galantas 2013 Resource Report (reported 12th June 2013) and a 60% increase in resources since the 2012 Resource Report by ACA Howe International Ltd (reported 3rd July 2012). The increases since 2012 largely relate to the Kearney and Joshua veins, since this is where the drilling program has been concentrated. The drilling program was mainly designed to focus on increasing the quantity of Measured and Indicated resources on these two veins, to support potential bank funding opportunities for the financing of production. The resource estimate for each vein is tabulated below.

----------------------------------------------------------------------------
                  RESOURCE ESTIMATE BY VEIN : GALANTAS 2014                 
----------------------------------------------------------------------------
                        MEASURED                        INDICATED           
----------------------------------------------------------------------------
                TONNES     GRADE   Contained    Tonnes     GRADE   Contained
                        Au (g/t)     Au (oz)            Au (g/t)     Au (oz)
----------------------------------------------------------------------------
KEARNEY         76,936      7.48      18,490   383,220      6.66      82,055
----------------------------------------------------------------------------
JOSHUA          54,457      7.25      12,693   216,211      7.92      55,046
----------------------------------------------------------------------------
KERR             6,848      4.63       1,019    12,061      4.34       1,683
----------------------------------------------------------------------------
ELKINS                                          68,500      4.24       9,000
----------------------------------------------------------------------------
GORMLEYS                                                                    
----------------------------------------------------------------------------
PRINCES                                                                     
----------------------------------------------------------------------------
SAMMY'S                                                                     
----------------------------------------------------------------------------
KEARNEY NORTH                                                               
----------------------------------------------------------------------------
TOTAL          138,241      7.25      32,202   679,992      6.78     147,784
----------------------------------------------------------------------------

-----------------------------------------------
   RESOURCE ESTIMATE BY VEIN : GALANTAS 2014   
-----------------------------------------------
                          INFERRED             
-----------------------------------------------
                   Tonnes     GRADE   Contained
                           Au (g/t)     Au (oz)
-----------------------------------------------
KEARNEY           909,277      6.61     193,330
-----------------------------------------------
JOSHUA            291,204     10.74     100,588
-----------------------------------------------
KERR               23,398       3.2       2,405
-----------------------------------------------
ELKINS             20,000      5.84       3,800
-----------------------------------------------
GORMLEYS           75,000      8.78      21,000
-----------------------------------------------
PRINCES            10,000     38.11      13,000
-----------------------------------------------
SAMMY'S            27,000      6.07       5,000
-----------------------------------------------
KEARNEY                                        
 NORTH             18,000      3.47       2,000
-----------------------------------------------
TOTAL           1,373,879      7.71     341,123
-----------------------------------------------

The resources are calculated at a cut-off grade of 2 g/t gold (Au), numbers are rounded, gold grades are capped at 75 g/t gold and a minimum mining width of 0.9m has been applied.

Measured and Indicated resources on Kearney vein have increased to 100,545 ounces of gold (2014) from 69,000 ounces (2012). Measured and Indicated resources on Joshua vein have increased to 67,739 ounces of gold (2014) from 15,800 ounces (2012). The Kearney and Joshua veins are the early targets of underground mining. Combined Measured and Indicated resource category on these two veins are estimated at 168,284 ounces of gold, with 293,918 ounces of gold in the Inferred resource category. Both vein systems are open at depth.

REGULATORY CONTEXT

The economic study includes use of Measured and Indicated resources with a restricted portion of Inferred resources, estimated for two veins (Joshua and Kearney veins). The Inferred resources (which have lower statistical support than Measured or Indicated Resources) are contiguous with Measured or Indicated resources and / or lie within scheduled mining areas. The use of Inferred resources, in a restricted qualifying manner, is permitted by the PERC code in regard to economic studies but is excluded within NI 43-101, except within a "Preliminary Economic Assessment (PEA)". In compliance with the disclosure requirements of NI 43-101, it has been determined that the economic study including associated inferred resources is deemed a Preliminary Economic Assessment. PERC is an approved code is respect of NI 43-101. As part of PERC requirements, a comparative study (Feasibility) is included in the detailed technical report which does not include Inferred resources and also includes studies on sensitivity to gold price.

In compliance with NI 43-101 2.3.3(a) "the preliminary economic assessment is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the preliminary economic assessment will be realized."

RESULTS OF THE ECONOMIC STUDY

The total of scheduled Measured and Indicated ounces utilised within the mining study is 104,627 ounces. The Inferred resources scheduled in the economic study are estimated at 60,635 ounces. Total Inferred resource estimated on the Joshua and Kearney orebodies is 293,918 ounces of gold. The amount of Inferred resources included in the economic estimate amounts to 20.6% of the total Inferred resources estimated on these veins. Were Inferred resources excluded within the mining plan, approximately 1 year would be removed from the estimate of mine life and annual output would be reduced.

----------------------------------------------------------------------------
LOM Capital                                                                 
 Expenditure              Year 1          Year 2        Year 3        Year 4
----------------------------------------------------------------------------
Capital Excluding                                                           
 Leasable                                                                   
 Equipment         GBP 1,679,432   GBP 4,149,604   GBP 422,355   GBP 390,534
----------------------------------------------------------------------------
Capital Leasable                                                            
 Equipment         GBP 1,273,469   GBP 1,334,177         GBP 0         GBP 0
----------------------------------------------------------------------------
Contingency 15%      GBP 442,935     GBP 822,567    GBP 63,353    GBP 58,580
----------------------------------------------------------------------------
Working                                                                     
 Capital(i)        GBP 1,000,000           GBP 0         GBP 0         GBP 0
----------------------------------------------------------------------------
GRAND TOTAL                                                                 
 (UKGBP)           GBP 4,395,836   GBP 6,306,349   GBP 485,708   GBP 449,115
----------------------------------------------------------------------------
CDN$ TOTAL (1.83                                                            
 CDN/GBP)             $8,053,325     $11,553,294      $889,819      $822,756
----------------------------------------------------------------------------

----------------------------------------------------------
LOM Capital                                               
 Expenditure           Year 5      Year 6              LOM
----------------------------------------------------------
Capital Excluding                                         
 Leasable                                                 
 Equipment              GBP 0       GBP 0    GBP 6,641,926
----------------------------------------------------------
Capital Leasable                                          
 Equipment              GBP 0       GBP 0    GBP 2,607,646
----------------------------------------------------------
Contingency 15%         GBP 0       GBP 0    GBP 1,387,436
----------------------------------------------------------
Working                                                   
 Capital(i)             GBP 0       GBP 0    GBP 1,000,000
----------------------------------------------------------
GRAND TOTAL                                               
 (UKGBP)                GBP 0       GBP 0   GBP 11,637,007
----------------------------------------------------------
CDN$ TOTAL (1.83                                          
 CDN/GBP)                  $0          $0      $21,320,102
----------------------------------------------------------
                  LIFE OF MINE CAPITAL EXPENDITURE SUMMARY                  
(i)Working Capital includes payment delay for concentrate, VAT pre-payment  
and 10% contingency                                                         
                                                                            
----------------------------------------------------------------------------
Gold Price GBP                                                              
 750/oz                  Year 1         Year 2         Year 3         Year 4
----------------------------------------------------------------------------
Operating Costs   GBP 5,693,338 GBP 10,430,904 GBP 11,964,071 GBP 11,261,136
----------------------------------------------------------------------------
Revenue           GBP 5,354,810 GBP 15,597,318 GBP 20,264,230 GBP 19,238,279
----------------------------------------------------------------------------
Cash flow (UKGBP)  -GBP 338,528  GBP 5,166,414  GBP 8,300,158  GBP 7,977,143
Cash flow                                                                   
 (1.83CDN/GBP)       -$620,312     $9,467,531    $15,210,123    $14,616,519
----------------------------------------------------------------------------

-----------------------------------------------------------------
Gold Price GBP                                                   
 750/oz                    Year 5          Year 6             LOM
-----------------------------------------------------------------
Operating Costs    GBP 10,830,431   GBP 8,459,001  GBP 58,638,882
-----------------------------------------------------------------
Revenue            GBP 19,774,130  GBP 11,741,821  GBP 91,970,588
-----------------------------------------------------------------
Cash flow (UKGBP)   GBP 8,943,699   GBP 3,282,820  GBP 33,331,706
Cash flow                                                        
 (1.83CDN/GBP)        $16,388,344      $6,015,374     $61,074,685
-----------------------------------------------------------------
     OPERATING CASH FLOW AT AN AVERAGE GOLD PRICE OF UKGBP 750 PER OUNCE    

At a gold price of UKGBP 750 / ounce (USD$1260 at $1.68/UKGBP), the pre-tax operating surplus after capital expenditure estimates an Internal Rate of Return of 72% and, at an 8% discount rate, a net present value of approximately UKGBP 14.5m (CDN$26.6m) and a cash cost of production of UKGBP 394 per ounce (USD$662 at $1.68/UKGBP). The study scheduled approximately 36% of the combined resources identified on the Kearney and Joshua veins.

The Technical Report (Galantas 2014) was prepared by the Galantas Gold Corporation Geological and Mining Team under the supervision of R. Phelps C.Eng MIMMM (President & CEO, Galantas Gold Corporation), a Qualified Person for the purposes of NI 43-101 and the AIM Rules, who has reviewed and approved this release. The Company intends to file the complete Technical Report on SEDAR within 45 days of this release, as required by NI 43-101.

PLANNING UPDATE

The permitting process for the underground mine has been detailed and exhaustive but has now reached the final stage. The Company is advised that the final consultation response (from Natural Heritage, Northern Ireland Environment Agency) has been received and is positive. The Company understands a timeline within three months is possible for a final determination but the timing of such is not in the Company's hands.

POSITIVE ENVIRONMENTAL COMPLIANCE UPDATE

The Company has received confirmation from the Northern Ireland Environment Agency that 2013 marked another year of strict environmental compliance with regulatory standards for out-flow water from the Omagh Gold-Mine.

COMMENT

Roland Phelps, President & CEO, Galantas Gold Corporation, commented, "Our detailed geological, mining and economic studies demonstrate the excellent potential of an underground mine at Omagh. With planning permits approaching the final stage of determination, we are looking forward to building a sound business that will provide local jobs within a safe environment. We haven't yet found the limits of most of the veins we have discovered. Taking operations underground allows production from a substantial gold resource that we expect will continue to reveal itself, by underground drilling, as much larger than we have already demonstrated. We are expecting to build the underground operations to an initial target of around 32,000 ounces per year, based on what we already know, increasing as additional resources are identified. Our ownership of an existing processing plant, tailings facility and land package is a considerable advantage in terms of minimising the capital required and we expect to make full use of these assets."

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 resource estimates, economic estimates and technical studies, 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 geological interpretation, 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, including: gold price volatility; discrepancies between actual and estimated production, actual and estimated metal grades and geologically interpreted widths, actual and estimated metallurgical recoveries; actual and estimated costs; mining operational risk; regulatory and permitting restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; 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.

Galantas Gold Corporation Issued and Outstanding Shares total 76,697,156.

Contacts:
Galantas Gold Corporation
L. Jack Gunter P.Eng
Chairman
+44 (0) 2882 241100

Galantas Gold Corporation
Roland Phelps C.Eng
President & CEO
+44 (0) 2882 241100
[email protected]
www.galantas.com

Charles Stanley Securities (AIM Nominated Adviser)
Mark Taylor
+44 (0)20 7149 6000

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.