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
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, sha...
"We do one of the best file systems in the world. We learned how to deal with Big Data many years ago and we implemented this knowledge into our software," explained Jakub Ratajczak, Business Development Manager at MooseFS, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, will outline ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and...
You want to start your DevOps journey but where do you begin? Do you say DevOps loudly 5 times while looking in the mirror and it suddenly appears? Do you hire someone? Do you upskill your existing team? Here are some tips to help support your DevOps transformation. Conor Delanbanque has been involved with building & scaling teams in the DevOps space globally. He is the Head of DevOps Practice at MThree Consulting, a global technology consultancy. Conor founded the Future of DevOps Thought Leade...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
An edge gateway is an essential piece of infrastructure for large scale cloud-based services. In his session at 17th Cloud Expo, Mikey Cohen, Manager, Edge Gateway at Netflix, detailed the purpose, benefits and use cases for an edge gateway to provide security, traffic management and cloud cross region resiliency. He discussed how a gateway can be used to enhance continuous deployment and help testing of new service versions and get service insights and more. Philosophical and architectural ap...
By 2021, 500 million sensors are set to be deployed worldwide, nearly 40x as many as exist today. In order to scale fast and keep pace with industry growth, the team at Unacast turned to the public cloud to build the world's largest location data platform with optimal scalability, minimal DevOps, and maximum flexibility. Drawing from his experience with the Google Cloud Platform, VP of Engineering Andreas Heim will speak to the architecture of Unacast's platform and developer-focused processes.
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
"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.
Serveless Architectures brings the ability to independently scale, deploy and heal based on workloads and move away from monolithic designs. From the front-end, middle-ware and back-end layers, serverless workloads potentially have a larger security risk surface due to the many moving pieces. This talk will focus on key areas to consider for securing end to end, from dev to prod. We will discuss patterns for end to end TLS, session management, scaling to absorb attacks and mitigation techniques.
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
The vast majority of businesses now use cloud services, yet many still struggle with realizing the full potential of their IT investments. In particular, small and medium-sized businesses (SMBs) lack the internal IT staff and expertise to fully move to and manage workloads in public cloud environments. Speaker Todd Schwartz will help session attendees better navigate the complex cloud market and maximize their technical investments. The SkyKick co-founder and co-CEO will share the biggest challe...