Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL

Galantas Gold Corporation

December 06, 2006 09:00 ET

Galantas Reports Component Commissioning at Omagh Gold Project

TORONTO, ONTARIO--(CCNMatthews - Dec. 6, 2006) - Galantas Gold Corporation (the Company)(TSX VENTURE:GAL)(AIM:GAL), which is developing Ireland's only gold mine at Omagh, Co.Tyrone, announces progress in building its processing plant and associated infrastructure. It also releases additional exploration results.

Highlights

- Liner being installed on first paste cell.

- Plant components being commissioned.

- First flotation concentrate trials expected in December.

- Weighted average 17.49 g/t gold calculated for a 262 m segment channel sampled on the 850m long Kearney vein.

- Jewellery negotiations with a UK retail chain underway.

Mine Construction Progress

In addition to the items previously reported as complete (22nd September 2006), berm walls have been finished for the recirculation - polishing pond and the first paste cell. Liner and drainage mat have arrived on site. Two 3-4 days periods of dry weather are required to fit the lining to both of the structures. Delays occurred due to the insolvency of a previous lining contractor and failure to ship on time from the Spanish factory. Lining of the first paste cell commenced Monday 27th November 2006, continues and is subject to weather conditions. When complete, the paste cell will also temporarily act as a water storage and recirculation facility, permitting limited testing of the process plant, until the recirculation - polishing pond is lined.

Production generators and emergency generator are operational. Commissioning of individual items of equipment has commenced with primary crusher, conveyors, flotation cells and ball mill having been dry tested. The secondary crusher is being re-installed following modifications.

Management is focused on initial flotation plant trials (and the resulting sales of concentrate) during December but cautions that further delays due to start-up difficulties are possible.

Efforts to foresee start-up problems and ameliorate them have been made and an internal metallurgical audit assisted by independent professionals (GBM Minerals Engineering Consultants Ltd.) has been carried out in advance of commissioning and production. The study concluded that, "The process selected is in accordance with the results of test work and would be expected to produce satisfactory results technically but there are mechanical and electrical concerns regarding the capability of the facility to maintain a high degree of operating time". This is primarily due to lack of spare capacity, particularly of pumps. Management notes the concerns and considers that this situation is manageable with the addition of extra standby units and a budget is under development.

Results of Exploration

Further to a progress report released on September 22nd, detailed channel sampling at the southern end of the 850 metre long Kearney vein continued. The purpose is to obtain an estimate in that area which will be mined first, of the mill head grade that can be sustained in keeping with the selective mining method that will be practised.

A further 119 channel samples were taken at intervals along a 149 metre strike length. This segment is separated by 83 metres from a 30 metre channel sampled southern extension of the vein, results reported on April 5th and July 11th. Both sets of results were combined and, using a grade cut-off of 3.0 grammes gold per tonne and a width cut-off of 0.3 metres, a weighted average gold content, undiluted, calculated at 17.49 g/t plus silver at 51.53 g/t. The approximately 83 metre gap referred to represents the area of the mining trial carried out in 2000/2001 when 101.4 tonnes selectively mined returned 53.41 g/t gold and 50.53 g/t silver. (Mining Trial Reference : ACA Howe Report 851a filed October 30th 2003 on www.sedar.com).

The samples were taken by independent geologists under the supervision of M.J. Lavigne P.Geo, (Vice President, Galantas Gold Corp), the Qualified Person for the program. 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, certified CCRMP & ISO 17025 laboratory) in Galway, Ireland.

Analytical results and their compilation remain pending for the diamond drill cores sampling the Elkin Vein and mining areas of the Kearney. The programme continues with one drill operating.

Jewellery Negotiations :

Negotiations have been held and are continuing with a major premium retail jewellery chain in the UK. The existing jewellery range has been freshened with new designs in anticipation of availability of new supplies of certified Irish gold in the early part of 2007.

Issued and Outstanding Shares total 157,851,855

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 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
    or
    Galantas Gold Corporation
    Roland Phelps C.Eng
    President & CEO
    +44 (0) 2882 241100
    or
    Galantas Gold Corporation
    Moe Lavigne P.Geo
    Vice President
    +44 (0) 2882 241100
    Email: info@galantas.com
    Website: www.galantas.com
    or
    Bishopsgate Communications Ltd.
    Dominic Barretto
    +44 (0) 207 562 3350
    or
    Bishopsgate Communications Ltd.
    Nick Rome
    +44 (0) 207 562 3350
    Website: www.bishopsgatecommunications.com
    or
    ARM Corporate Finance Limited
    Nick Harriss
    +44 (0) 20 7512 0191
    or
    Lewis Charles Securities Limited
    David Scott
    +44 (0) 20 7065 1150