Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL

Galantas Gold Corporation

November 27, 2009 11:38 ET

Galantas Third Quarter 2009 Update

TORONTO, ONTARIO--(Marketwire - Nov. 27, 2009) - Galantas Gold Corporation (the Company) (TSX VENTURE:GAL)(AIM:GAL), which has a 100% interest in an operating, open-pit, gold mine near Omagh, Northern Ireland, today announced its unaudited financial results for the third quarter, ending September 30th 2009. Highlights of the results are tabulated below. They should be read in conjunction with the full Unaudited Accounts, including notes and the corresponding Management Discussion and Analysis available on www.sedar.com and www.galantas.com.

HIGHLIGHTS
CDN$
Third Quarter
2009
Year to Date
2009
Third Quarter
2008
Year to Date
2008
Sales$ 950,950      $ 3,742,197$ 1,175,104$ 2,447,456
Mine Cost of Sales excluding Financing charges etc$ 968,154      $ 3,086,265$ 845,116 $ 2,560,765
Financing, interest  & other cash costs$ 144,656       $ 378,229$ 140,175 $ 431,887
Profit/(Loss) before amortization,  foreign exchange and non-cash costs$ (161,860)       $ 277,703 $ 189,813 ($ 545,196)
Amortization, depreciation, and non cash costs$ 430,015        $ 1,132,688   $ 466,379 $ 1,412,168
Foreign Exchange (Gain) $ (426,887)$(165,659)$ (389,736)$ (212,342)
Net Profit/(Loss)$ (164,988) $ (689,326) $ 113,170 $ (1,745,022)
  1. CONCENTRATE PRODUCTION

July's production was 184 wet tonnes. August saw 98 wet tonnes produced, with September's production measuring 102 wet tonnes, a total of 384 wet tonnes for the quarter (367.8 dry tonnes). October's production (first month quarter 4) has improved, with 210 wet tonnes (196 dry tonnes) in the month.

The metal content of the concentrate remains to be fully assessed, though it is anticipated that shipments for the third quarter contained approximately 31.25 kgs (1004.7 troy ounces) of gold, 70.36 kgs (2262 troy ozs) of silver and 35.3 tonnes of lead. The production and metal figures are provisional and subject to averaging or umpiring provisions under the concentrate off-take contract with Xstrata Corporation detailed in a press release dated 3rd October 2007.

  1. PIT OPERATION

Production equipment was diverted to the movement of till and peat during August, September and the first half of October to expand the operating length of the Kearney open pit by the stripping of overburden. A shortage of working capital prevented this being carried out independently of production. Approximately 120,000 cubic metres (loose) of overburden was moved into sound berms to the east of the Kearney vein and into a backfilling area in the south of the Kearney open pit. The restricted pit production zone during the third quarter reduced the opportunity to blend lower grades from the southern-most part of the pit with higher grades from the north. The addition of a hired bull-dozer for ripping and an extra hired truck increased productivity to partially offset the use of production equipment on the till strip. Total articulated truck movements in the third quarter of 2009 increased by 46% compared to the second quarter of 2009, due in part to shorter truck runs required on the movement of till. The quantity of mill feed was maintained at the same level as the previous quarter but grade dropped to approximately 3.64 g/t gold compared to the blended feed of the previous quarter at 6.1 g/t gold. Gold recovery in the third quarter dropped to approximately 90% from 93% in the second quarter due to the lower grade of ore.

This disclosure has been reviewed by Nicholas Hardie C.Eng FIMMM, (General Manager), a qualified person under the meaning of N.I 43-101, who is responsible for the technical information in this disclosure and by Leo O'Shaughnessy (Chief Financial Officer), who is responsible for the financial information in this disclosure. The information is based upon local production and financial data prepared by management under their supervision.

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.

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) 207 444 0800
    or
    Beaufort International Associates Ltd
    Tanvier Malik
    +44 (0) 20 7930 8222