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.

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
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
"We focus on SAP workloads because they are among the most powerful but somewhat challenging workloads out there to take into public cloud," explained Swen Conrad, CEO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"As we've gone out into the public cloud we've seen that over time we may have lost a few things - we've lost control, we've given up cost to a certain extent, and then security, flexibility," explained Steve Conner, VP of Sales at Cloudistics,in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy," said Roger Strukhoff, Conference Chair. "DX World Expo has organized these issues along 10 tracks with more than 150 of the world's top speakers coming to Istanbul to help change the world."
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Peak 10 is a hybrid infrastructure provider across the nation. We are in the thick of things when it comes to hybrid IT," explained , Chief Technology Officer at Peak 10, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I think DevOps is now a rambunctious teenager – it’s starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are still a relatively small software house and we are focusing on certain industries like FinTech, med tech, energy and utilities. We help our customers with their digital transformation," noted Piotr Stawinski, Founder and CEO of EARP Integration, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, discussed new ways of thinking and the approaches needed to address the emerging challenges of security i...
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.