Galantas Gold Corporation

Galantas Gold Corporation

October 19, 2010 09:00 ET

Galantas Reports Results of Mining of Kerr Vein

TORONTO, ONTARIO--(Marketwire - Oct. 19, 2010) - Galantas Gold Corporation (TSX VENTURE:GAL)(AIM:GAL) has received the results of the first mining of the Kerr Veins from its wholly owned subsidiary, Omagh Minerals Ltd (OML). OML owns and operates Ireland's only gold mine near Omagh, County Tyrone.

Results of initial surface sampling and mining/metallurgical tests have been received for the Kerr Veins. These veins are now being stripped and mined. Three parallel veins striking N-S have been exposed over a strike length of 150 metres, and are, open both north and south along strike and to depth. The steeply dipping veins occur over a width of 40 metres and vary in thickness between 10 and 25 cm. The veins contain quartz and sulphide mineralisation typical of gold ore in the adjacent Kearney Deposit located 250 metres to the east. Provisional interpretation is that the Kerr Veins, which are permitted for open pit mining, form the southern extension of the Joshua Veins, located between 100 and 200 metres to the west of Kerr, and known to occur over a strike length of at least 600 metres.

Four 2-kg grab samples of undiluted vein material taken over a thickness of approximately 20 centimetres and an 8-metre strike length of the westernmost Kerr vein returned the following results:

Sample number Gold (g/t) Silver (g/t) Lead (%) Remarks
OM-KR-10/08-3-A 66.16 54.0 0.66 sulphide
OM-KR-10/08-3-B 59.59 49.0 3.00      "
OM-KR-10/08-3-D 5.35 <5 0.06 vein quartz
OM-KR-10/08-3-E 5.20 13.0 0.03 clay gouge

A 133-tonne bulk sample was mined from two of the Kerr veins and the material was processed in the Company's plant on the site. Feed grades of the ore presented to the plant were: 6.13 g/t Gold, 12.53 g/t Silver and 0.44% Lead. Gold recovery was approximately 79%. As a result of the trial, certain operating changes have been identified which are expected to improve recovery with this material which was partially oxidized.

From the 133-tonne bulk sample processed, 4.06 tonnes of dry concentrate were recovered. Analyses of the concentrate, obtained in the Company's on-site laboratory, showed that it contained 158.35 g/t gold, 267 g/t silver and 8.53% lead. Method used was Fire Assay / AA Finish. Laboratory results are routinely checked with umpire results with a high degree of success and verification samples were also checked by OMAC Laboratories Ltd of Loughrea, Co. Galway, Republic of Ireland (OMAC). OMAC carries accreditation under ISI17025 by the Irish National Accreditation Board. The concentrate grades reported are provisional and subject to averaging or umpiring provisions under the concentrate off-take agreement with Xstrata Corporation as detailed in a press release dated 3rd October, 2007.

In parallel with the mining of the bulk sample, five 20 kg grade control samples from the mineralised material were taken with an excavator so as to approximate run-of-mine diluted grade. The samples contained an average of 5.90 g/t gold, (Gold content of the 5 samples in g/t was 2.68, 3.65, 4.62, 15.53, 3.01). Analysis was by OMAC. The samples were analysed by Fire Assay with an AA finish.

Production ore from Kerr is now being produced and blended with ore from the Kearney open pit.

The sampling and in-house testing programme was carried out under the supervision of Richard Crew (General Manager), 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 ore grade and width, concentrate content, and recovery 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

  • Galantas Gold Corporation
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    +44 (0) 2882 241100
    Galantas Gold Corporation
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    President & CEO
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