Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL

Galantas Gold Corporation

September 16, 2009 09:00 ET

Galantas Discovers New Gold Exploration Targets in Northern Ireland

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2009) - Galantas Gold Corporation (TSX VENTURE:GAL)(AIM:GAL) (the Company) has received a report from its wholly owned subsidiary, Omagh Minerals Ltd (OML), regarding exploration work carried out over the last 18 months on its three license areas in Counties Tyrone and Fermanagh, Northern Ireland. OML operates an open pit gold mine near Omagh, County Tyrone, Northern Ireland. OML acquired information from the Geological Survey of Northern Ireland (GSNI) which was gathered as part of the Tellus Project. Tellus was a government funded regional exploration program that recently covered the whole of Northern Ireland. When combined with a detailed analysis of historical exploration work by the Company and others, the Tellus data has proven to be a useful tool to delineate targets for exploration.

In this phase of the wider exploration program an additional qualified geochemist, experienced in prospecting, has been engaged on a temporary basis. He has helped with the collection of 468 soil and 260 rock samples and the program continues. The wider exploration program, which is early stage, is designed to discover targets worthy of being added to the already located, drill-ready targets identified and reported upon on by ACA Howe (press release 12th June 2008) and to test coincident targets from previous third party prospecting and Tellus data. In parallel with this prospecting work, in conjunction with the GSNI, work is underway to improve knowledge of structural geology that controls mineralisation which will aid target delineation.

A summary of the report is detailed below. The locations are coded for commercial confidentiality because they are at an early stage.

License OM 1/03.

A1 Recent prospecting [0]on a stream containing historical anomalous sediment values has revealed a boulder train over 425m of stream bed with 8 float sample values over 0.5 g/t Gold and peak values of 20.7 g/t Gold (0.7 g/t silver) and 79.6 g/t Silver (0.6g/t Gold).

(Float is defined as loose weathered material considered to be relatively close to its point of formation and with which there is uncertainty of the location of the source bedrock.)

B1 Additional prospecting on a stream found to be highly anomalous for gold historically has revealed outcropping anomalous quartz veins over 100m of stream bed, associated with a shear structure, with peak values from grab samples at 3.5 g/t Gold and 12 g/t Silver over 50cm.

C1 Outcrop samples were taken in a tributary of a stream containing historical gold bearing sediments, from a shear structure showing elevated gold levels (40ppb Gold). Anomalous float, sampled at 23 g/t gold was found downstream in a lithology suggesting a different source for the float to that of the shear structure.

D1 Outcrop Sampling has revealed a previously unknown structure in a stream bed grading 2.7 g/t Gold and 6.4 g/t Silver over 30cm showing there is potential in the area around the immediate mine site for as yet undiscovered structures.

E1 A soil grid to infill on the Tellus data for the less previously explored part of the inlier identified two new localities with anomalous gold and base metal values, and preliminary follow up at the first of these localities has already revealed anomalous Gold in float (13ppb Gold).

F1 An outcropping shear structure was grab sampled and found to contain anomalous Au peaking at 1g/t Gold and 2 g/t Silver.

License OM 2/08

A2 An area for soil sampling was defined by OML to infill a prospective area of the Tellus data soil grid. Anomalous Gold and base metals in soil were identified and these coincide with 3 known areas of outcropping anomalous gold mineralisation. Follow up work at the peak gold value locality has confirmed the presence of sulphide in quartz veins for which analyses are pending.

B2 An area for soil sampling was defined by OML to infill a prospective area of the Tellus data soil grid. Anomalous Gold and base metals in soil were identified and these coincide with highly anomalous historic stream sediment samples, and anomalous Silver, Copper, Lead and Zinc structures previously defined by OML deep overburden sampling.

C2 A previously discovered structure was followed up on with outcrop sampling, returning up to 0.63 g/t Gold. A detailed soil grid revealed pathfinder elements associated with the outcrop which are anomalous over a wider area and appear to follow the trend of both a 16km long fault structure which passes through the area and a previously unrecognised geophysical anomaly, believed to represent a major thrust. Values peak where the two structures intersect and this area will be the focus of future work. A regional grid around the area is now under way to assess the extent of this trend and identify areas of more intensive mineralisation.

D2 A well defined Tellus soil anomaly, which is supported by historic gold bearing stream sediment samples, has been identified. A soil sampling grid has been designed and is currently being progressed.

License OM 3/08

A3 A detailed analysis is currently underway on a Tellus Gold anomaly in soils and streams that covers 60km² in the southern part of the license area.

The exploration programme is under the supervision of the Company's geological staff, who work under the general direction of L. J. Gunter, P. Eng (Ontario), Chairman - Galantas Gold Corporation, the Qualified Person for the programme. Sampling methodology, security and data verification followed standard protocols as previously detailed on April 5, 2006. The samples were analysed (gold by fire assay and other metals by ICP-ORE) at OMAC Laboratories Ltd., an independent certified CCRMP & ISO 17025 laboratory located in Galway, Ireland.

British Geological Survey Report :

A report entitled "Gold potential of the Dalradian rocks of north-west Northern Ireland: Prospectivity analysis using Tellus data", has been recently published by the British Geological Survey / UK Natural Environment Research Council (NERC) and is available at http://nora.nerc.ac.uk/7857/1/OR08039.pdf . Readers are advised that the document does not meet the requirements of Canadian National Instrument 43-101 and the Company has not verified the technical information in the report. It has been prepared with the co-operation of the Company and includes information on the Company's license areas.

Galantas Gold Corporation Issued and Outstanding Shares total 190,100,055.

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.

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 cost and production estimates, 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, 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, between actual and estimated reserves, and between actual and estimated metallurgical recoveries; mining operational risk; regulatory 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; 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.

Contact Information

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

    or

    Galantas Gold Corporation
    Roland Phelps C.Eng
    President & CEO
    +44 (0) 2882 241100
    Email: info@galantas.com
    Website: www.galantas.com

    or

    Blomfield Corporate Finance Ltd
    Nick Harriss
    +44 (0) 20 7512 0191

    or

    Lewis Charles Securities Limited.
    +44 (0) 20 7456 9100