Galantas Gold Corporation

Galantas Gold Corporation

October 06, 2014 09:00 ET

Galantas Identifies New High Grade Gold Targets Near to Omagh Mine Site

TORONTO, ONTARIO--(Marketwired - Oct. 6, 2014) - Galantas Gold Corporation (the 'Company') (TSX VENTURE:GAL) (AIM:GAL), the AIM and TSXV quoted gold producer and explorer with a 100% interest in Ireland's only gold mine, has received notable prospecting samples on its Omagh license.

The presence of strong gold anomalies found near to the southern boundary of the recently operating Omagh Gold Mine site has instigated a detailed investigation of new and a re-evaluation of existing targets.

Initial exploration carried out by RioFinex thirty years ago uncovered visible vein outcrops ('Discovery' and 'Sharkey') in the banks of a neighbouring burn. Attention and resources were then diverted towards drilling the Kearney vein, following its discovery in the late 1980's. Recent resource modelling and underground mine planning activities prompted a re-investigation of the burn veins during August and September 2014, whilst water levels were unusually low. Two in-situ quartz veins were identified 18 m west (Sample 57) and 35 m west (Sample 61) of the Rio 'Discovery vein'; grab samples of quartz containing pyrite and galena measured 13.5 g/t and 0.4 g/t gold, respectively. A completely isolated zone of sulphide rich clay gouge was uncovered 70 m east of 'Discovery', two samples were collected and analysed, yielding 23.6 and 9 g/t gold (Samples 56 and 59).

In addition to these outcrops, several high grade boulders (float) were discovered over 40 metres from the Rio 'Sharkey vein', including those analysed at 30.4 g/t, 34.4 g/t, 39.4 and 44.3 g/t gold. These boulders are comparatively large in size and are likely to be derived from a local source.

The Lack shear zone is considered to lie south of the main veins, Joshua and Kearney, at a strike of 80° and to dip north. There is evidence for intense shearing and deformation in the burn exposures. The hypothesis that the main veins have been dextrally offset within this zone is being investigated, as exploration continues to determine if substantial extensions to the Kearney and Joshua systems can be traced south of the shear.

The samples are detailed at the end of this release.

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-MS and ICP-AES) at ALS Geochemistry Laboratories of Galway, Ireland, considered compliant with all requirements of International Standards ISO 17025:2005. Grab samples are removed from outcrop (bedrock) or float (loose boulders) as indicative prospecting information prior to a more detailed program of evaluation.

Mr. Phelps commented, "This is a very exciting development and further supports the already strong potential for important additional gold mineralisation close to the Omagh gold mine. The Company recently completed a robust economic study and increased resource assessment based upon a successful drilling program. We look forward to a determination of our underground planning permit in the near term."

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 grab samples and geological interpretations, 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.

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 Issued and Outstanding Shares total 76,697,156.

Summary table displaying important sample information and principal assay results.

All numbers have been rounded to one decimal place.*Sample labels have been abbreviated, they are all prefixed by 'OML-14-OM1-'. **o/c is outcrop

Survey information is provided by hand-held GPS and is likely to contain some positional error.

Sample* Easting Northing Type Description Au (ppm) Ag (ppm) Pb
56 240485 370196 o/c** Clast of galena and pyrite (10 cm) w/n quartz vein; zone of shear & gouge 60 cm wide. 23.6 25.1 7.4
57 240410 370160 o/c 10cm wide in-situ quartz vein (strike 300°), post brecciation. Visible sulphides. Vein offset ~10cm. 13.5 9.8 0.1
58 240415 370164 o/c 6 m along strike from sample 57: altered zone ~30cm wide, mica schist w/quartz lenses associated with pyrite, chlorite and fine sulphides. Feldspar overprint. 0.3 0.2 0
59 240498 370190 o/c Highly weathered zone of clay gouge, green/grey with stringers of dark grey/black sulphides. Loose material w/n bank . (same exposure as sample 56). 9 18.6 0.5
60 240421 370171 Float ~50 cm quartz boulder wit seams of galena, arsenopyrite and pyrite, not brecciated. 8.8 2.5 0.2
61 240392 370160 o/c In-situ vein ~1m wide, vuggy qtz w/sulphides, visible pyrite and galena. 0.4 0.4 0
62 239345 370072 Float Angular clast (25cm) of brecciated quartz with visible sulphides. 39.4 13.7 0.5
63 239609 370064 Float Large (65 cmx51 cmx19 cm) angular brecciated quartz boulder. Disseminations of pyrite & chalcopyrite. 30.4 20.2 0.9
64 239663 370130 Float Angular brecciated quartz boulder (~40x30x10cm). Fine sulphides Heavy Fe staining on surfaces. Within northern bank. 8.2 19.3 1.9
65 239543 370057 o/c Sharkey vein outcrop 1.48 m wide, striking N-S, steeply dipping. Minor dextral offset. Clay gouge with quartz breccia within schist. 2.9 2 0.1
66 239587 370051 Float Shear gouge. Large cobble of brecciated quartz (20x20x11cm) with visible pyrite & galena. 2.1 1.8 0
67 239609 370056 Float Shear gouge. Small boulder (27x29x10cm), quartz breccia. 6.8 35.8 5.8
68 239609 370056 Float Shear gouge. Large cobble size of quartz breccia with sulphide bands (10-15% S). 1.5 1.1 0
80 239606 370066 Float Quartz breccia boulder in stream bed: 33 x26 x16 cm . 34.4 26.2 0.6
81 239615 370074 Float Sulphide rich cobble 20x20x10cm, heavy Fe staining. Found in river bank till/rock head. Outcrop on northern side shows shearing w/heavy Fe staining. 44.3 49.6 4.5
82 239615 370074 o/c Chloritic schist with vuggy quartz within shear. 0.1 0.2 0

Contact Information

  • Galantas Gold Corporation
    L. Jack Gunter P.Eng
    (UK) +44 (0) 2882 241100

    Galantas Gold Corporation
    Roland Phelps C.Eng
    President & CEO
    (UK) +44 (0) 2882 241100

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