Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL

Galantas Gold Corporation

May 25, 2006 07:00 ET

Galantas Makes Strategic Land Acquisition

TORONTO, ONTARIO and LONDON, UNITED KINGDOM--(CCNMatthews - May 25, 2006) - Galantas Gold Corporation (TSX VENTURE:GAL)(AIM:GAL) announces an expansion of land holdings at its Omagh Gold Mine through the purchase of adjacent property. This strategic acquisition is part of the Company's plan for growth as the land contains gold mineralisation lying within 1 kilometre of the Kearney pit and processing plant currently being readied for production.

The gold mineralisation was discovered by Rio Tinto in the late 1980's through reconnaissance drilling of a 140 metre long geochemical anomaly. Five holes intersected gold mineralisation of a style similar to that found in Kearney. An Induced polarisation anomaly coinciding with the mineralisation extends a further 500 metres along strike.

The historical Rio Tinto drill data is encouraging but suffered from core loss due to the friable nature of the vein material. Galantas has started a drill program in order to verify the results and expand the scope of the Rio Tinto drilling. Core will be of HQ size with triple tubes so as to maximise recovery. The Competent Person responsible for the program is M.J.(Moe) Lavigne P.Geo.

The purchase price of Pounds Sterling 367,000 (CDN$ 769,607) includes two valuable potential building sites within 6.12 hectares (15.12 acres) of land. The property adjoins land already owned by the company and has access to a public highway. With Stamp Duty Land Tax and Registration Charge, the total cost amounts to Pounds Sterling 378,510 (CDN$ 793,744). The price reflects buoyant property values in Northern Ireland, important to the underlying asset value of the 167 acres of land already owned by the Company. The purchase includes only surface rights as rights to gold and silver are already held by the Company through its 189 sq km Crown License.

Galantas Gold Corporation is building Ireland's first gold mine. The corporate aim is to increase the resource base on the property through exploration and mine development, to expand mine production in stages, and to add value by marketing and selling certified Galantas ™ Irish gold jewellery.

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 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
    Executive Chairman
    +44 (0) 2882 241100
    or
    Galantas Gold Corporation
    Roland Phelps C.Eng
    President & CEO
    +44 (0) 2882 241100
    or
    Galantas Gold Corporation
    Moe Lavigne P.Geo
    Vice President
    +44 (0) 2882 241100
    info@galantas.com
    www.galantas.com
    or
    Bishopsgate Communications Ltd.
    Nick Rome
    +44 (0) 207 430 1600
    or
    Bishopsgate Communications Ltd.
    Dominic Barretto
    +44 (0) 207 430 1600
    or
    ARM Corporate Finance Limited
    Nick Harriss
    +44 (0) 20 7512 0191
    or
    Lewis Charles Securities Limited
    David Scott
    +44 (0) 20 7065 1150