Galantas Gold Corporation

Galantas Gold Corporation

April 20, 2007 10:00 ET

Galantas Announces Progress Towards Production and Commencement of Concentrate Payments From Falconbridge

TORONTO, ONTARIO--(CCNMatthews - April 20, 2007) - Galantas Gold Corporation (the Company) (TSX VENTURE:GAL)(AIM:GAL), which has a 100% interest in Ireland's only gold mine, today announced continued progress towards full production at its Omagh Mine.

The processing plant has been producing concentrate during the first quarter of 2007 on a slow and irregular basis (as anticipated in press release dated January 8th 2007). Initial training of operating personnel is complete to enable staffing the plant for 96 hours per week. Plant improvements have been made, the latest of these in the week ending 14th April 2007. Initial testing of the modifications indicate that the flotation part of plant is operating as expected but the comminution section remains below expectation. Further changes are underway. GBM Minerals Engineering Consultants have been engaged to work with the project team.

Most of the on-site environmental and production testing laboratory has been commissioned. In accordance with Canadian securities regulations, drill core assays will continue to be measured by an independent laboratory.

Three containers with a total of 60 (wet) tonnes of concentrate have been shipped to Falconbridge Ltd (a subsidiary of Xstrata plc) and payments from Falconbridge under the contract announced on February 14th 2007 have commenced. A fourth container of concentrate has been produced to be used to supply gold to the jewellery marketing subsidiary of Galantas.

Discussions are well advanced with Goldsmiths Group plc with a view to Galantas branded, certified Irish gold, 18 carat jewellery being available within certain UK stores. The Goldsmiths Group is a high-quality jewellery retailer, which owns the Mappin & Webb chain amongst a total of 187 prestige jewellery stores.

Definition drilling continues on the Kearney vein. A second drill rig has been mobilized and has resumed operations on the Elkins discovery. A number of mineralized intersections are pending sampling and assaying. Drill hole and interpretive geological plans for the Elkins discovery have been prepared and will be posted on the company's website and on Maurice Lavigne P.Geo is the qualified person responsible for the interpretation and drill hole and anomaly plan.

To see a drilling cross section and an exploration plan of the Omagh Mine click here:

A small quantity of cloudy water, resulting from insufficiently settled pumped water, was mistakenly discharged from the site on 27th January 2007, through a temporary settling arrangement. The water contained a small quantity of fine natural silt in suspension. No process water was involved. Although no environmental damage was done, the Company has reported to the regulating agency. Internal controls have been reviewed and strengthened.

The date for the Annual General Meeting has been fixed as June 15th 2007, in Toronto at a venue to be determined. The record date of notice is May 11th 2007, which is also the record date for voting.

Galantas Gold Corporation Issued and Outstanding Shares total 167,535,855.

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 specific drilling, production or construction activity or geological interpretations 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
    Galantas Gold Corporation
    Roland Phelps C.Eng
    President & CEO
    ARM Corporate Finance Limited
    Nick Harriss
    +44 (0) 207 512 0191
    Lewis Charles Securities Limited
    Kealan Doyle
    +44 (0) 207 456 9100