Galantas Gold Corporation

Galantas Gold Corporation

July 06, 2009 10:00 ET

Galantas Increases Gold Production 65% in Second Quarter 2009 Over Q2 2008

TORONTO, ONTARIO--(Marketwire - July 6, 2009) - Galantas Gold Corporation (the Company) (TSX VENTURE:GAL)(AIM:GAL) has received provisional production tonnages for the second quarter (April-June) 2009 (Q2) from its wholly owned subsidiary Omagh Minerals Limited (OML). OML operates the only gold mine in Ireland and produces a concentrate containing gold, silver and lead.

April's production was 125.5 wet tonnes of concentrate and was affected by a breakdown in the first half of the month. May saw 264.3 wet tonnes of concentrate produced, with June's production measuring 311 wet tonnes (two consecutive monthly records), a total of 701 wet tonnes for the quarter (661 dry tonnes). Metal contents remain to be fully assessed, though it is anticipated that shipments for the second quarter contained approximately 1977 troy ounces of gold, 5972 troy ozs of silver and 90.4 tonnes of lead. The production and metal figures are provisional and subject to averaging or umpiring provisions under the concentrate off-take contract with Xstrata Corporation detailed in a press release dated 3rd October 2007.

The quarter's output showed an approximate 65% increase in gold,  114% increase in silver and 185% increase in lead compared to the second quarter of 2008 and an approximately 30.8% increase in gold, 24.8% increase in silver and 114% increase in lead output compared to the first quarter of 2009. Processing plant throughput for Q2 2009 increased approximately 64% from Q2 2008.

The increases in output are due in part to improvements in productivity brought about by increased capability of pit equipment and to enhanced lead and silver grades within the open pit. Increased sales of concentrate have improved cash availability although the Company still suffers from a shortage of working capital. The unaudited financial results for the quarter will be published in the usual timeframe by the end of August 2009.

An overhaul of OML's Volvo EC460 excavator is complete and has moved top-soil from part of the area of a second gold vein, the Kerr Vein. A smaller unit (OML's Volvo EC140) will continue the task of removing peat and till. The Kerr Vein is offset by approximately 250 metres to the west from the Kearney Vein, which is the main focus of operations. The Kerr Vein pit is planned to later be incorporated into the paste cell tailings storage arrangement.

A program to explore OML's 653 square kilometre license area will shortly recommence. The program had earlier been put on hold to prioritise grade control within the open pit but management is now sufficiently confident of performance to recommence.

The Annual and Special Meeting of shareholders of Galantas Gold Corporation was held on Monday 15th June 2009 at The Board Of Trade, Toronto, Canada. All resolutions (as outlined in the proxy circular to shareholders) were carried.

This disclosure has been reviewed by Nicholas Hardie C.Eng FIMMM, (General Manager), a qualified person under the meaning of N.I 43-101, who is responsible for the technical information in this disclosure.  The information is based upon local production and financial data prepared by management under his supervision.

Galantas Gold Corporation Issued and Outstanding Shares total 190,100,055.

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 cost and production estimates, 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, 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, between actual and estimated reserves, and between 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; 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 the 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 news release.

Contact Information

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


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


    Blomfield Corporate Finance Limited
    Nick Harriss
    +44 (0) 207 489 4500


    Lewis Charles Securities Limited
    Kealan Doyle & Nicholas Nicolaides
    +44 (0) 207 456 9100