Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL

Galantas Gold Corporation

November 25, 2010 10:00 ET

Galantas Reports Results for the Three and Nine Months Ended 30 September 2010

TORONTO, ONTARIO--(Marketwire - Nov. 25, 2010) - Galantas Gold Corporation (the Company) (TSX VENTURE:GAL)(AIM:GAL) results for the Three and Nine Months ended September 30th 2010 have been published.

The Net Income for the three months ended September 30, 2010 amounted to $ 156,982 compared to a Net Loss of $ 164,988 for the three months ended September 30, 2009. The Net Income for the nine months ended September 30, 2010 amounted to $ 1,001,368 compared to a Net Loss of $ 689,326 for the nine months ended September 30, 2009. The main reason for the improved results in the nine months of 2010 is the increased production levels achieved during the first quarter together with the high gold prices that prevailed during the period. Production levels in the third quarter of 2010 were below those of the first quarter but above those of the second quarter.

Highlights of the Company's 2010 third quarter's and first nine months results, which are expressed in Canadian Dollars, are: 
                       
   Third Quarter Ended September 30   Nine Months Ended September 30
    2010   2009     2010     2009  
Revenue $ 1,759,978 $ 950,950   $ 5,244,089   $ 3,742,197  
Cost of Sales $ 1,118,807 $ 808,622   $ 3,125,974   $ 2,611,291  
Amortization $ 133,362 $ 397,181   $ 582,376   $ 1,026,620  
Income (loss) before the undernoted $ 507,809 $ (254,853 ) $ 1,535,739   $ 104,286  
General administrative expenses $ 250,566 $ 337,022   $ 698,390   $ 959,271  
Foreign exchange/(gain) loss $ 100,261 $ (426,887 ) $ (164,019 ) $ (165,659 )
Net Income (Loss) for the period $ 156,982 $ (164,988 ) $ 1,001,368   $ (689,326 )
Cash Generated from Operations $ 293,844 $ 265,027   $ 1,591,691   $ 443,362  
                       
         
Highlights of the Company's 2010 third quarter's and first nine months Production are summarized below:
         
  Third Quarter Ended September30 Nine Months Ended September 30
  2010 2009 2010 2009
Tonnes Milled 8,375 8,439 29729  
Gold Head Grade 4.75 g/t 3.64 g/t 4.74 g/t  
Concentrate Tonnes 309.1 367.8 1,226.4 1,509.5
Gold Grade Concentrate g/t 131.9 85.1 119.7  
Gold Produced 40.5kg 31.2kg 147.1kg 139.7kg
Silver Grade Concentrate g/t 298.9 174    
Silver Produced 91.5kg 70.4kg 413.6kg 404.9kg

The production, metal weights and sales figures are provisional and subject to averaging or umpiring provisions under the terms of the concentrate off-take contract with Xstrata Corporation as detailed in a press release dated 3rd October, 2007.

The detailed results and Management Discussion and Analysis (MD&A) are available on www.sedar.com and www.galantas.com and the highlights in this release should be read in conjunction with the detailed results and MD&A. The MD&A provides an analysis of comparisons with previous periods, trends affecting the business and risk factors.

This disclosure has been reviewed by Richard Crew, (General Manager), a qualified person under the meaning of N.I. 43-101, who is responsible for the production related technical information in this disclosure. Leo O'Shaughnessy is responsible for the financial information. The information is based upon local production and financial data prepared under their supervision, though some information is drawn from data prepared before Mr.Crew's tenure commenced. 

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 revenues and cost 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, the performance or achievements to differ materially from those expressed or implied by the forward looking statements or strategy, including: gold price volatility; discrepancies between actual and estimated production, 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 235,650,055.

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

  • Enquiries
    Galantas Gold Corporation
    Jack Gunter P.Eng
    Chairman
    +44 (0) 2882 241100
    or
    Galantas Gold Corporation
    Roland Phelps C.Eng
    President & CEO
    +44 (0) 2882 241100
    info@galantas.com
    www.galantas.com
    or
    Religare Capital Markets
    Nick Harriss
    +44 (0) 20 7444 0800
    or
    Beaufort International Associates Ltd
    Barry Gibb
    +44 (0) 20 7930 8222