Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL

Galantas Gold Corporation

August 09, 2016 02:30 ET

Galantas Buys Initial Underground Mining Equipment, Reports Geological Study and Adds New Gold Exploration Targets

TORONTO, ONTARIO--(Marketwired - Aug. 9, 2016) - Galantas Gold Corporation (TSX VENTURE:GAL) (AIM:GAL) ("Galantas") is pleased to announce equipment purchases for its underground gold mine at Omagh, Co.Tyrone, Northern Ireland and the results of a detailed study of near-mine structural geology, which has expanded the exploration potential of the mine locality.

Equipment Purchase

Galantas, (through a subsidiary) is purchasing a drill jumbo and a load-haul-dump machine (scoop) for its Omagh gold-mine. The two units will form part of the initial mining equipment required for up-coming underground development.

The single boom, Sandvik drill jumbo and the 6 tonne capacity, GHH scoop are refurbished, used units. The early acquisition will enable employees, drawn from the local area, to receive comprehensive operator training in advance of the commencement of underground operations. The refurbished units will avoid delays in the delivery of the main operating equipment, which is planned to be supplied new. Anticipated to be supplied on a lease finance basis, the main equipment will be confirmed when project funding is secured. After delivery of the main equipment, the refurbished units will assume a back-up and training role.

Currently being modified to suit Galantas requirements, the refurbished units are expected to be delivered during August 2016. They will be used in the construction of the lower underground portal, which is to be built at the base of the Kearney Open Pit. Preparation works related to construction of the underground portal are well advanced.

Exploration Progress

Detailed geological mapping has recently been completed over the Creevan Burn Shear-zone (CBS), which lies to the south of the Omagh Mine site. Outcropping veins were examined as part of this program and results were reported on 16th September 2015*. Notable grab samples*2 of outcrop showed 24.2 g/t gold (McCrossan vein) and 11.8 g/t gold (close to Discovery vein).

The mapping was carried out in order to aid understanding of the structural relationship between vein systems to the south of the CBS and those lying to the north, within and adjacent to the mine-site. The new mapping, combined with historic and recent drilling data and other geological information, supports a hypothesis that the shear-zone (CBS) is an imbricated system composed of multiple, near parallel, movement planes that dip towards the north.

The implication of this information is that veins, to the south of the CBS and mine-site, may persist and underlie parts of the shear-zone at depths in excess of the current planned mining depth.

Additionally, the new data supports a provisional assessment that the (southern) Sharkey and McCrossan veins are sheared extensions of the Joshua vein system to the north of the shear-zone. The Joshua vein is one of two main vein systems known in detail from drilling on the Omagh mine-site. The latest drilling program, reported 25th January 2016*, included Core 155, on Joshua vein, which returned a 13 metre (true width) intersect with a gold grade of 9.9 g/t, 30.3 g/t silver and 0.6% lead, at an estimated depth of 117.2 metres. If the assessment is confirmed, the McCrossan and Sharkey veins may demonstrate persistence of the Joshua vein south of the CBS (towards the Gormley vein complex).

Discovery of the new, high-grade, Kestrel vein, west of Joshua, indicates potential for similar continuity with Princes and Garry veins south-west of the mine site. The Kestrel vein, is located approximately 70 metres west of Joshua vein. A Kestrel drill-core, reported 25th January 2016*, assayed 35.8 g/t gold, 85.8 g/t silver and 4.9% lead, over a true width of 0.7 metres, at an estimated vertical depth of 42.4 metres.

The structural evaluation, with existing geophysical data also supports a hypothesis that vein systems to the north of the CBS, as identified within and adjacent to the mine-site, may persist at extended depths to the north of the mine-site and may underlie parts of a near parallel shear-zone considered to exist to the north of the mine boundary.

The new exploration target areas, outlined above, add to the already high exploration potential of the Galantas licence area, as detailed in a Pan European Reporting Code compliant and Canadian National Instrument 43-101 Technical Study (4th September 2014), available on www.sedar.com and the website www.galantas.com .

The studies were carried out under the general supervision of R.Phelps C.Eng MIMMM, (President & CEO, Galantas Gold Corporation), the Qualified Person (QP) for the program under NI.43-101 and who is also a "Qualified Person" as defined in the Note for Mining Oil & Gas Companies, June 2009, of the London Stock Exchange and has reviewed the statements herein.

* See the dated report for full data, sampling and analytical methodologies.

*2 Note : Grab samples are taken as indicative prospecting information only, prior to a more detailed program of evaluation.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including geological assessments and equipment operation, for the Omagh Gold project. Forward-looking statements are based on estimates and assumptions made by Galantas in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Galantas believes are appropriate in the circumstances. Many factors could cause Galantas' actual results, the performance or achievements to differ materially from those expressed or implied by the forward looking statements. These factors and others that could affect Galantas's forward-looking statements are discussed in greater detail in the section entitled "Risk Factors" in Galantas' Management Discussion & Analysis of the financial statements of Galantas and elsewhere in documents filed from time to time with the Canadian provincial securities regulators and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Galantas has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law.

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.

Galantas Gold Corporation's Issued and Outstanding Shares total 137,800,830.

Contact Information

  • Galantas Gold Corporation
    L. Jack Gunter P.Eng
    Chairman
    (UK) +44 (0) 2882 241100
    info@galantas.com

    Galantas Gold Corporation
    Roland Phelps C.Eng
    President & CEO
    (UK) +44 (0) 2882 241100
    info@galantas.com
    www.galantas.com

    Grant Thornton UK LLP (Nomad)
    Philip Secrett, Richard Tonthat
    +44 (0) 20 7383 5100

    Whitman Howard Ltd (Broker & Corporate Adviser)
    Nick Lovering
    +44 (0) 20 7659 1234