Galantas Gold Corporation
TSX VENTURE : GAL
AIM : GAL

Galantas Gold Corporation

April 21, 2011 09:00 ET

Galantas Reports Results for Kerr Vein Channel Samples: Average Gold Grade of 10.39 g/t Over 0.46 Metres Width Including 34.59 g/t Over 0.7 Metres and 37.85 g/t Over 0.3 Metres

TORONTO, ONTARIO--(Marketwire - April 21, 2011) -Galantas Gold Corporation (TSX VENTURE:GAL)(AIM:GAL) reports assay results for channel sampling at its wholly owned producing gold mine near Omagh, County Tyrone, Northern Ireland.

Detailed sampling was carried out on mineralised veins within the Kerr deposit, already permitted for open pit mining, and being prepared for full production. The Kerr deposit lies 250 metres west of the Kearney open pit which is the current source of ore for the processing plant. Five distinct sub-parallel veins are exposed in a stripped area measuring approximately 170 metres by 80 metres. A total of 363 metres of mineralised veins are thus exposed. Channel sampling has been carried out on 65 metres of the veins, 28 metres of detailed sampling in the northern end of the stripped area, plus mining control sampling on 37 metres of exposure at the southern end.

Northern Samples
-Weighted average of all 28 samples: 10.39 g/t over 0.46 metres of width
-Best intercepts:34.59 g/t gold over 0.7 metres of vein width
37.85 g/t over 0.3 metres of vein width

Channels of 5cm x 5cm were cut and surveyed at 1 m intervals perpendicular to the vein using a circular saw. Rock material was collected with the aid of an air chisel at 10 cm lengths within the channels. The samples, with an average weight of 850g, were bagged and labelled and dispatched by courier. Subject to the above, sampling methodology, security and data verification followed standard protocols as previously detailed on April 5, 2006. The samples were analysed (gold by fire assay and other metals by ICP-ORE) at OMAC Laboratories Ltd., an independent certified ISO 17025 laboratory located in Galway, Ireland. Gold (Au), silver (Ag) and lead (Pb) assays are reported in the table following.

ChannelGrid ReferenceWidth
(m)
Au
(ppm)
Ag
(ppm)
Pb
(%)
1239920.05370664.540.713.86
2239920.26370664.080.516.01
3239919.86370663.150.79.21
4239920.02370662.150.734.59180.01
5239920.37370661.200.225.5610
6239906.91370661.390.42.88
7239907.38370660.500.45.24
8239907.77370659.660.68.65
9239908.12370658.600.66.26
10239908.17370657.400.78.765.71
11239908.60370656.50.46.159.25
12239908.99370655.600.38.66.66
13239909.20370654.490.38.027.66
14239908.60370653.210.36.114.33
15239908.59370652.130.34.9770.29
16239908.92370651.190.56.414.20.14
17239909.28370650.230.510.4390.11
18239909.70370649.330.410.12130.21
19239908.17370648.810.73.712.570.03
20239908.79370647.810.88.7660.01
21239908.98370646.830.511.6612.40.14
22239909.40370645.890.337.85320.02
23239910.00370645.080.59.625.6
24239910.51370644.250.41.31
25239910.92370643.290.61.64
26239911.40370642.470.25.34
27239911.93370641.540.37.333.33
28239912.41370640.630.36.842

In addition to the channel samples, six grab samples were collected from the Kerr veins in order to assess clay gouge, un-oxidised ore and oxidised ore (this being a surface exposure). Results were as follows:

Sample TypeGrid ReferenceWidth
(m)
Au
(ppm)
Ag
(ppm)
Pb
(%)
Vein quartz with clay gouge239912.79370639.750.111.44190.02
Black clay gouge239913.55370637.17N/A3.436<.01
Vein quartz with black clay gouge239964.22370672.05N/A9.449<.01
Vein quartz with oxidised wallrock239963.27370670.27N/A21.1217<.01
Vein quartz with wallrock239963.60370667.53N/A4.23<5<.01
Sulphide pod (pyrite/galena) in vein quartz239984.71370617.87N/A40616.55
Southern Samples
-Weighted average over 37m of vein: 11.73 g/t over 0.6 metres of vein width
-Best intercepts:25.47 g/t over 0.6 metres of vein width
24.37 g/t over 0.6 metres of vein width

Sampling was carried out so as to approximate actual open pit mining conditions. 37 channels 0.6 metres in length were marked out at 1m spacing perpendicular to strike of vein material. Start and finish points of each 'channel' were marked using spray paint and channels cut using the ripping tooth of the EC290Blc excavator. The resultant V-shaped channels were between 0.1 and 0.15m deep, 0.2m wide at the top and 0.1m wide at the base. Samples were taken at 0.2m intervals across the 0.6m long channels. Rock, including material loosened by the ripping tooth was collected from the base of the channel. This material was described, bagged, weighed, and logged. The samples represent ~ 0.2m of vein material proper and ~ 0.2m either side of this, giving a total of 0.6m, which is the width of the mining bucket of the Volvo EC290BLC excavator used for the exercise. Material from the edges of the channels was excluded from analysis but retained on site.

Samples were analysed at Omac Laboratories Limited by fire assay for gold and ICP-ORE base metal assay for a suite of elements.

Details of the samples and results for gold (Au), silver (Ag) and lead (Pb) are tabulated as follows:

BlockSampleEastingNorthingWidth
(m)
Strike
(m)
Au
(ppm)
Ag
(ppm)
Pb
(%)
A1239969.70370517.160.254.32<50.21
2239970.18370517.620.2550.1449.000.49
3239970.67370518.090.2521.96174.000.18
B1239965.90370520.350.251.38<50.02
2239966.26370520.830.2519.4413.000.35
3239966.62370521.300.255.03<50.32
C1239962.37370524.110.250.73<5<.01
2239962.81370524.510.254.81<50.02
3239963.25370524.910.255.86<50.01
D1239960.12370528.510.252.78<50.01
2239960.71370528.860.255.768.000.03
3239961.29370529.210.253.04<50.01
E1239986.55370545.090.255.10<50.15
2239987.02370545.190.2535.6325.000.57
3239987.5370545.290.254.04<50.43
F1239986.11370550.510.2428.4527.002.14
2239986.70370550.460.2425.6944.002.04
3239987.3370550.420.2418.9748.003.27
G1239983.02370559.570.230.14<50.09
2239983.52370559.670.235.83<50.09
3239984.02370559.770.2310.789.000.16
H1239985.56370561.50.255.5721.00<.01
2239986.07370561.730.2512.2451<.01
3239986.58370561.960.253.8910<.01

Quote by Roland Phelps, President & CEO:

"We are encouraged that details of sampling from the Kerr Veins show robust ore grades within shallow parts of the Kerr Deposit, which appear commercially very attractive."

This release has been approved by L.J. Gunter P.Eng., Director, a qualified person under the meaning of N.I 43‐101, who is responsible for the technical information in this disclosure.

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 channel sampling, drilling, exploration program estimates and commercial assumptions, 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: contractor performance, deliveries, drilling rate, 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' 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.

Contact Information

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

    Galantas Gold Corporation
    Roland Phelps C.Eng
    President & CEO
    +44 (0) 2882 241100
    info@galantas.com
    www.galantas.com

    Religare Capital Markets
    Nick Harriss/Ben Jeynes
    +44 (0) 20 7444 0800

    Beaufort International Associates Ltd
    Barry Gibb/Saif Janjua
    (Corporate Finance)
    +44 (0) 20 7930 8222

    Beaufort International Associates Ltd
    Niall Carrig
    (Corporate Broker)