Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL

Galantas Gold Corporation

November 28, 2007 10:00 ET

Galantas Reports Improved Production in Third Quarter 2007

TORONTO, ONTARIO--(Marketwire - Nov. 28, 2007) - Galantas (TSX VENTURE:GAL)(AIM:GAL) today reported un-audited third quarter financial results and management discussion and analysis for the third quarter of 2007. The results marked a change from development company reporting to using accounting standards applicable to a production company.

Highlights of the quarterly results are: -

Gold Concentrate sales: Cdn$ 701,868 (up from Cdn$372,051 Quarter 2)

Total Sales including jewellery: Cdn$ 715,080

Cost of concentrate sales: Cdn$ 900,315 (down from $1,140,117 Q2)

Gross Margin Loss (Concentrate): Cdn$ 198,447 (down from Cdn$ 768,066 Q2)

Net Loss: Cdn$ 788,481

Production: 371.8 wet tonnes (231.6t previous quarter)

The concentrate produced in the quarter is calculated to contain, using provisional assays all of which have not yet been agreed with the customer (Falconbridge Ltd), approximately 30.19 kgs (971 troy ounces) of gold, 67.76 kgs (2178 troy ounces) of silver and 26.19 tonnes of lead. The metal quantities are provisional and subject to change.

Difficulties have been encountered in increasing pit ore production to the quantities required by a 24 hour, 7 day week milling operation. This is mainly due to a back-log of pit development required to expose more ore. Accelerated mining of country rock and surface till has taken place over the last two months but has not yet caught up with that required. The mining plan has been adjusted to facilitate 24hour / 5 day week operation in the short term (an increase from the current 24hr / 4 day week). Full 24hr / 7 day week operation is anticipated during the first quarter of 2008. Additional mining arrangements are being put in place with the objective of achieving an interim production target sufficient for 24hr / 5 day week by the end of December.

Mill Shift Supervisors are trained and available for 24 hour, 7 day week production.

Remaining components required for a regrind circuit in the mill are expected to land (by sea from Canada) in Belfast on 28th November. The regrind circuit is expected to enhance the metal grade of concentrates shipped to Falconbridge Ltd and improve payability of the concentrate by a reduction of the fixed cost per tonne part of smelting charges. The components will be assembled as soon as they are on site with the objective of the regrind circuit being commissioned in January, with circuit optimisation during the following quarter.

The milling capacity has been enhanced by the installation of a larger secondary crusher. Depending on ore type, capacity has increased between 10% and 40% approximately, compared to the original design parameters. This capacity increase has partially offset the milling of lower grade ore than originally anticipated. The grade of ore currently being delivered after mining is variable and calculates to between 5 g/t gold and 10 g/t gold. The lower grade is attributed at least in part to dilution during mining. The Kearney vein contains areas that are braided and cause difficulty with selective mining.

The full text of the Management Discussion and Analysis and the Quarterly un-audited Accounts are to be found on www.sedar.com and www.galantas.com.

Galantas Gold Corporation Issued and Outstanding Shares total 175,675,855.

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 such as those referring (but not limited) to production activity or related timetables and estimates or geological interpretations 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
    Roland Phelps
    President & CEO
    +44 (0) 2882 241100
    or
    Galantas Gold Corporation
    Jack Gunter
    Chairman
    +44 (0) 2882 241100
    Email: info@galantas.com
    Website: www.galantas.com
    or
    Blomfield Corporate Finance Ltd
    Nick Harriss
    +44 (0) 20 7512 0191
    or
    Lewis Charles Securities Limited
    Kealan Doyle
    +44 (0) 207 456 9100