Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL

Galantas Gold Corporation

January 22, 2007 10:00 ET

Galantas Omagh Mine: Ore Reserve and Resource Estimate

TORONTO, ONTARIO--(CCNMatthews - Jan. 22, 2007) - Galantas Gold Corporation
(TSX VENTURE:GAL)(AIM:GAL) -

As a result of a review by the Ontario Securities Commission, the Company is issuing the following press release to clarify disclosure of the reserves and resources on its exploration and mining project at Omagh in Northern Ireland.

The current position is as articulated in 2005 by independent consultants, ACA Howe International Ltd., in a report dated December 2005 entitled "Technical Report of the Gold Mining and Exploration Interests of The Omagh Gold Project of Galantas Gold Corporation in Counties Tyrone and Fermanagh, Northern Ireland", (the Howe Report), authored by qualified persons John Langlands C.Eng FGS FIMMM and Julian Bennett C.Eng MIMMM, filed on March 1, 2006 as Appendix 2 of a Technical Report entitled "An Update of Mining, Processing Methodology, Tailings Disposal and Costs of the Omagh Gold Project, with additional information relating to metal prices, construction progress and an appendix containing a report by ACA Howe (Competent Persons Report)", authored by R.Phelps C.Eng MIMMM, Lionel J. Gunter P.Eng FIMMM and Maurice J. Lavigne P.Geo on www.sedar.com . The estimate contained in the Howe Report was carried out to the standards of the Joint Committee of the Australasian Institute of Mining and Metallurgy and the Australian Mining Industry Council code (JORC). A reconciliation to the mineral resource and mineral reserve categories as set out in National Instrument 43-101 was included with the Howe Report.

On the Kearney Deposit, which is the current focus of mine development, the Company has: (i) proven ore reserves of 181,480 tonnes at a grade of 7.36 grams per tonnes of gold plus (ii) probable ore reserves of 185,830 tonnes at a grade of 7.68 grams per tonne of gold; plus (iii) an indicated resource of 1,183,680 tonnes at a grade of 7.02 grams per tonne of gold, as tabulated below:



---------------------------------
Proven Grade Grams
Ore (g/t Au) of Au
Reserve
(Tonnes)
---------------------------------
181,480 7.36 1,336,487
---------------------------------
Probable Grade Grams
Ore (g/t Au) of Au
Reserve
(Tonnes)
---------------------------------
185,830 7.68 1,427,249
---------------------------------
Indicated Grade Grams
Resource (g/t Au) of Au
(Tonnes)
---------------------------------
1,183,680 7.02 8,309,434
---------------------------------


All of the above reserves and resources have been calculated using a cut-off grade of 1.0 gram per tonne gold and a cut-off width of 0.5 metres. The proven and probable reserves are contained within the open pit, the "Kearney Pit", currently being developed. The indicated resource extends from the bottom of the Kearney Pit at 37 metres vertical depth to a vertical depth of 137 metres. The deposit remains open below this depth.

Additional to the reserves and resources on the Kearney Deposit, the Howe Report confirmed indicated and inferred resources in other structures within the Company's mining licence, summarized as follows at a cut-off grade of 1.0 gram per tonne gold and a cut-off width of 0.5 metres:



----------------------------------------------------------------------
----------------------------------------------------------------------
Indicated Grade Grams of Au Inferred Grade Grams
Resource (g/t Au) Resource (g/t Au) Au
(Tonnes) (Tonnes)
----------------------------------------------------------------------
328,820 6.72 2,208,530 135,500 4.68 634,643
----------------------------------------------------------------------
----------------------------------------------------------------------


These estimates of mineral reserves and resources were originally made by ACA Howe Ltd. in 1995 and reviewed in the 2005 report and Company management considers them to be current. Additional studies made in the period between 2003 and the present, which utilized different cut-off grades from those used in the Howe Report, will be incorporated in forthcoming studies. The Company is in the midst of exploration and development involving diamond drilling, results of which will lead to a new estimate of reserves and resources. This new estimate, and accompanying NI 43-101 technical report, has been commissioned and is expected by the end of the third quarter of 2007.

It is pointed out that the reports entitled "An Update of Mining, Processing Methodology, Tailings Disposal and Costs of the Omagh Gold Project, with additional information relating to metal prices, construction progress and an appendix containing a report by ACA Howe (Competent Persons Report)" and "An Update of Mining Processing Methodology, Tailings Disposal and Costs of the Omagh Gold Project" filed on March 29, 2006 and December 28, 2005, respectively, were prepared in connection with the listing of the Company's securities on London's AIM market and may not be compliant with NI 43-101 in all respects. However, the Company believes that the information contained in such reports is helpful additional disclosure for the Canadian public and so has made the reports available on www.sedar.com.

Mr. L.J. Gunter (P.Eng - Ontario) Chairman the Company is the qualified person who has reviewed the technical information contained in this release on behalf of the Company.

Issued and Outstanding Shares total 157,851,855.

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 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
    Email: info@galantas.com
    Website: www.galantas.com
    or
    ARM Corporate Finance Limited
    Nick Harriss
    +44 (0) 20 7512 0191
    or
    Lewis Charles Securities Limited
    David Scott
    +44 (0) 20 7065 1150