Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL

Galantas Gold Corporation

January 08, 2007 10:00 ET

First Gold Concentrate From Galantas Production Trial

TORONTO, ONTARIO--(CCNMatthews - Jan. 8, 2007) - Galantas Gold Corporation (the Company)(TSX VENTURE:GAL)(AIM:GAL) announces that it has produced the first production trial flotation concentrate at its gold mine near Omagh, County Tyrone. Galantas has a 100% interest in Ireland's only gold mine.

Highlights

- First Trial Gold Flotation Concentrate

- Lining to Paste Cell Complete

- Lining to polishing pond complete

Mine Construction Progress

The first trial run of production of flotation concentrate was on 22nd December, just prior to the Christmas shutdown. Minor adjustments have been made as a result of the trial and the Company is pleased to report that first concentrate has been produced.

Some works remain to be completed in the plant and some parts remain to be fully tested. At least the first three months of operation are expected to be irregular and slow as unforeseen difficulties are resolved.

The lining contractor has completed lining of the first paste cell and the polishing pond. Final pipework is being placed.

Trading Update

The Company will not have sales of concentrate (the primary anticipated source of revenue for the mine) in the financial year ending 2006. Concentrate sales are anticipated in the first quarter of 2007.

Video of the first concentrate trials will be uploaded to the Company's website at www.galantas.com.

Roland Phelps, President & Chief Executive Officer said, "I congratulate the whole team at Omagh for achieving the first trial production gold flotation concentrate. There is still more to do and I have confidence that the team will continue to solve the difficulties ahead as they have done during the build. This is a considerable achievement for a modestly capitalised company and is a milestone for what I hope will be an important business for Ireland."

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