Galantas Gold Corporation

Galantas Gold Corporation

May 01, 2008 02:00 ET

Galantas Gold Corporation Has Announced Audited Results for the Year Ending 2007

TORONTO, ONTARIO--(Marketwire - May 1, 2008) - Galantas Gold Corporation (TSX VENTURE:GAL)(AIM:GAL) -

Total Revenue for the year was C$654,142 and produced a net Loss of C$2,165,656 after tax. Shipments of gold concentrate were reduced in the fourth quarter due to a shortage of ore and a scheme was put in place to make more ore accessible. Cash flow in the quarter was also reduced by the shipment of three containers of gold concentrate to a specialist refiner for the production of certified Irish gold jewellery metal.

The results for the full year are summarised as follows :-

Gold Concentrate Sales(i) : C$ 619,434

Total Sales : C$ 654,142

Cost of Concentrate Sales : C$862,709

Gross Margin Loss (ii)(concentrate) C$(243,275)

Production : 376.8 (wet tonnes)

(i) Concentrate sales do not include four containers sent for separate gold
processing to jewellery metal.

(ii)Reflects higher amortization costs

The concentrate produced in the quarter is calculated to contain, using provisional assays all of which have not yet been agreed with the customer, approximately 29.6 kgs (950.8 troy ounces) of gold, 69.0 kgs(2,219.0 troy ounces) of silver and 27.4 tonnes of lead. The metal quantities are provisional and subject to change.

A number of measures to enhance profitability, described in an Operational Update of 31st March 2008, have been put in place. These are designed to increase the amount of ore available from the open pit, reduce the dilution of ore with adjacent barren country rock, improve mill handling / crushing and increase the grade of gold concentrate shipped.

Results demonstrated to date in April give management cautious optimism that the measures described are showing signs of success in the achievement of their designed objectives, although it will require the results of a full quarter before a proper appraisal can be made.

The results to date in April indicate that sufficient ore has been available for parts of the month to run the process plant for prolonged periods at between approximately 8 and 9 tonnes per hour. The gold grade of ore fed to the mill has improved and is estimated at between 8 and 9 grammes per tonne (g/t) of gold(iii). Concentrate grades are currently on an increasing trend, with recent shipments estimated to contain gold between 100 and 110 g/t gold(iii). The greatest hurdle to maintaining the rate of improvement is considered to be in the area of pit development and this continues to receive management focus.

(iii) The results are the product of back calculation and include the use of estimates that, of their nature, contain uncertainties.

The full text of the Management Discussion and Analysis and the Annual Accounts are to be found on and

The estimation of tonnage, feed grade and concentrate grade has been carried out under the supervision of Mr. Nicholas Hardie C.Eng FIMMM, General Manager, who is a qualified person for the purposes of this disclosure. The financial data has been reviewed by Mr. Brent Routledge CA, Chief Financial Officer, who is a qualified person for the purposes of this disclosure.

Galantas Gold Corporation Issued and Outstanding Shares total 175,675,855.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements such as those referring (but not limited) to production activity or estimates of performance are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements".

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

Contact Information

  • Galantas Gold Corporation
    Jack Gunter P.Eng
    +44 (0) 2882 241100
    Galantas Gold Corporation
    Roland Phelps C.Eng
    President and CEO
    +44 (0) 2882 241100
    Blomfield Corporate Finance Limited
    Nick Harriss
    +44 (0) 207 512 0191
    Lewis Charles Securities Limited
    Kealan Doyle
    +44 (0) 207 456 9100