Galantas Gold Corporation

TSX VENTURE : GAL
AIM : GAL


Galantas Gold Corporation

January 08, 2013 09:00 ET

Galantas Drills 2.4 Metres High Grade Gold on Joshua Vein

TORONTO, ONTARIO--(Marketwire - Jan. 8, 2013) - Galantas Gold Corporation (TSX VENTURE:GAL)(AIM:GAL) (the 'Company'), the AIM and TSXV quoted gold producer and explorer with a 100% interest in Ireland's only operating gold mine, has received core drilling results from its Omagh Gold Property, near Omagh, County Tyrone, Northern Ireland.

Ten cores were drilled on the Joshua vein. The results, which are tabulated below, include a high-grade intersection of 23.6 g/t (grammes per tonne) gold with 38 g/t silver, over a true width of 2.4 metres, at a vertical depth of 51.4 metres and which included a 0.8m section reported at 64 g/t gold.

The cores reported 13 significant mineralised intersects. Intersects above cut-off grade (*as assessed within the Howe Technical Report detailed below), average a true width of 1.1m, 12.6 g/t gold, 25.6 g/t silver and 1.5% lead. Vertical depths range from 50 metres to 91 metres. The average sample grade (width weighted) of all intersects (including those below cut-off) was 8.6 g/t gold at average true width of 0.8m.

The Joshua vein is, so far, known to extend over 836 metres along strike. The southern-most of the Joshua cores so far reported appear to confirm two vein structures. Good gold accumulation (width and grade) has been discovered within 80m of the southern freehold property boundary (cores 12-122 and 12-134). Three cores reported herein (12-131, 12-140 and 12-136), show a reduction of width and gold grade near to the freehold boundary, below cut-off grade.

The current geological model indicates a high gold accumulation to occur along an approximate 325 metre southern strike length. To the north lies an approximate 90 metre strike length of apparently lower gold accumulation. Further north, the vein system is similar to the south in that it is comprised of two vein structures. Two shallow drill holes situated near the northern freehold boundary appeared to indicate a vein thinning in that area. However, the latest results have shown improved grades and widths in this part of the vein system, with core 12-95 reporting 7.40 g/t gold over a true width of 1m at a vertical depth of 91.4m. A second shallower intercept was reported in the same core, giving 7.0 g/t gold over 0.6m true width at a depth of 73.3m. An earlier reported core (11-101A, 11th June 2012), some 30m to the south, reported 7.5 g/t gold over 1.5m true width at 65 m vertical depth and 5.4 g/t gold over 0.9m true width at 74.7m vertical depth. Other cores previously reported (11-88 and 11-91, 5th April 2012) extend improved grades south-wards.

A total of 2,336.9 metres has been core drilled during the fourth quarter of 2012. This brings the total number of metres drilled, since the beginning of the 15,000 metre program, to 16,346.9m and completes that phase on target. Drilling continues using the company's own CS14 core drilling rig, manned by in-house drillers. Up to a further 1600 metres of drilling are planned in the short-term, extending the program to 18,000 metres, following up the high gold intersect reported today. When the remaining results are received, the company expects to arrange an independent re-assessment of resources to Canadian National Instrument 43-101 standard. The re-assessment will be timed to enable the follow up cores to be included. The majority of the program has targeted potential measured and indicated categories of resource, since active discussions with a major lender has shown that these categories are necessary to meet the lender's requirements.

The samples were taken by geological staff under the supervision of R. Phelps C.Eng MIMMM, (President & CEO, Galantas Gold Corporation), the Qualified Person 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. Sampling methodology, security & verification followed standard procedures previously detailed on April 5th 2006 and the samples were analysed (gold by fire assay and other metals by ICP-ORE) at OMAC Laboratory Ltd (an independent, ISO 17025 laboratory) of Galway, Ireland. The core drilling methodology was that as described on 15th September 2011.

Mr. Phelps commented, "The latest excellent drilling results include the best result so far on Joshua Vein - possibly the best on the whole Galantas Northern Ireland gold license - so far. Further assays will be reported when received and are expected over the next 8-10 weeks."

*The Technical Report on the Omagh Gold Project, Counties Tyrone and Fermanagh, Northern Ireland by ACA Howe International Ltd (UK) is available on the Company's website at http://www.galantas.com/operations/ and at www.sedar.com.

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 drilling intersections and analyses, 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, including: gold price volatility; discrepancies between actual and estimated production, actual and estimated metal grades and geologically interpreted widths, actual and estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; planning and other permitting issues; and defective title to mineral claims or property. 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.

Galantas Gold Corporation Issued and Outstanding Shares total 256,210,395.

RESULTS TABLES

SOUTH
JOSHUA
Hole number Easting Northing Azimuth Intersect
Width
(m)

Dip
at
intersect
Estimated
TRUE
width (m)
Intersect
Vertical
depth
(m)
Gold/Au
g/t
Silver/Ag
g/t
Lead/Pb
%
Core
loss

%
OM-DD-12-134 239714.9 370638.1 275 3.9 52.4 2.4 51.4 23.6 38 2.2 4
Including 0.8 64
OM-DD-12-131 239624.0 370606.0 90 1.4 51.2 0.9 62.7 1 0 0 7
and 0.9 51.4 0.6 70.1 1.7 7.9 0.3 9
OM-DD-12-140 239720.4 370579.9 275 0.4 46.6 0.3 29.8 4.6 11.4 0 1
OM-DD-12-136 239719.1 370555.0 275 1.6 53.3 0.9 28.7 2 2.7 0.1 44
and 0.5 56.1 0.3 62.8 2.3 28.8 0 12
CENTRAL
JOSHUA
Hole number Easting Northing Azimuth Intersect
Width
(m)
Dip
at
intersect
Estimated
TRUE
width (m)
Intersect
Vertical
depth
(m)
Gold/Au
g/t
Silver/Ag
g/t
Lead/Pb
%
Core
loss

%
OM-DD-12-141 239624.6 370820.0 90 1.2 47.1 0.8 49.9 6.9 25.1 1.8 6
NORTH
JOSHUA
Hole number Easting Northing Azimuth Intersect
Width
(m)
Dip
at intersect
Estimated
TRUE
width (m)
Intersect
Vertical
depth
(m)
Gold/Au
g/t
Silver/Ag
g/t
Lead/Pb
%
Core
loss

%
OM-DD-12-95 239710.0 371184.0 265 0.9 47.4 0.6 73.3 7 5 0 0
and 1.5 48.3 1 91.4 7.4 10.6 0.6 0
OM-DD-12-138 239642.7 371132.0 274 0.6 46.2 0.4 13.8 1.9 6.6 0 0
OM-DD-12-132 239696.3 370950.0 272 1.6 54.6 1 61.9 3.2 1.2 0 29
OM-DD-12-135 239697.2 370950.0 272 1.8 72 0.6 90.6 1.3 3.1 0.1 20
OM-DD-12-129 239711.8 370915.0 270 1.4 46.6 1 55.4 8.6 48 2.8 9

NOTE: All figures have been rounded to one decimal place. Intersect depth is a maximum estimate to the top of the intersect.

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

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

    Charles Stanley Securities (Nominated Adviser)
    Mark Taylor
    +44 (0)20 7149 6000

    Investor Relations
    Courtenay Heading (Maclir Consulting Ltd)
    (UK) +44 (0) 7624 424 455
    c.heading@Galantas.com