Galantas Gold Regulatory News (GAL)

1 May 2008 07:01

Galantas Gold Corporation01 May 2008 GALANTAS GOLD CORPORATION TSX Venture Exchange: GAL London Stock Exchange AIM: GAL Trading Statement Dated: 01 May 2008 Galantas Gold Corporation ("Galantas" or the "Company") has announced auditedresults for the year ending 2007. Total Revenue for the year was C$654,142 and produced a net Loss of C$2,165,656after tax. Shipments of gold concentrate were reduced in the fourth quarterdue to a shortage of ore and a scheme was put in place to make more oreaccessible. Cash flow in the quarter was also reduced by the shipment of threecontainers of gold concentrate to a specialist refiner for the production ofcertified Irish gold jewellery metal. The results for the full year are summarised as follows :- Gold Concentrate Sales* : C$ 619,434 Total Sales : C$ 654,142 Cost of Concentrate Sales : C$ 862,709 Gross Margin Loss **(concentrate) C$(243,275) Production : 376.8 (wet tonnes) *Concentrate sales do not include four containers sent for separate goldprocessing to jewellery metal. **Reflects higher amortization costs The concentrate produced in the quarter is calculated to contain, usingprovisional assays all of which have not yet been agreed with the customer,approximately 29.6 kgs (950.8 troy ounces) of gold, 69.0 kgs(2,219.0 troyounces) of silver and 27.4 tonnes of lead. The metal quantities are provisionaland subject to change. A number of measures to enhance profitability, described in an OperationalUpdate of 31st March 2008, have been put in place. These are designed toincrease the amount of ore available from the open pit, reduce the dilution ofore with adjacent barren country rock, improve mill handling / crushing andincrease the grade of gold concentrate shipped. Results demonstrated to date in April give management cautious optimism that themeasures described are showing signs of success in the achievement of theirdesigned objectives, although it will require the results of a full quarterbefore a proper appraisal can be made. The results to date in April indicate that sufficient ore has been available forparts of the month to run the process plant for prolonged periods at betweenapproximately 8 and 9 tonnes per hour. The gold grade of ore fed to the mill hasimproved and is estimated at between 8 and 9 grammes per tonne (g/t) of gold***.Concentrate grades are currently on an increasing trend, with recent shipmentsestimated to contain gold between 100 and 110 g/t gold***. The greatest hurdleto maintaining the rate of improvement is considered to be in the area of pitdevelopment and this continues to receive management focus. **\* The results are the product of back calculation and include the use ofestimates that, of their nature, contain uncertainties. The full text of the Management Discussion and Analysis and the Annual Accountsare to be found on www.sedar.com and www.galantas.com . The estimation of tonnage, feed grade and concentrate grade has been carried outunder the supervision of Mr. Nicholas Hardie C.Eng FIMMM, General Manager, whois a qualified person for the purposes of this disclosure. The financial datahas been reviewed by Mr. Brent Routledge CA, Chief Financial Officer, who is aqualified person for the purposes of this disclosure. Galantas Gold Corporation Issued and Outstanding Shares total 175,675,855. The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of the contents of this news release. This press release includes certain "Forward-Looking Statements" within themeaning of the US Private Securities Reform Act of 1995. Other than statementsof historical fact, all statements such as those referring (but not limited) toproduction activity or estimates of performance are "Forward-Looking Statements"that involve such various known and unknown risks, uncertainties and otherfactors. There can be no assurance that such statements will prove accurate.Results and future events could differ materially from those anticipated in suchstatements. Readers of this press release are cautioned not to place unduereliance on these "Forward-Looking Statements". Enquiries: Galantas Gold Corporation Jack Gunter P.Eng - Chairman Roland Phelps C.Eng - President and CEO Email : info@galantas.com Website : www.galantas.com Telephone : +44 (0) 2882 241100 Blomfield Corporate Finance Limited Nick Harriss Telephone : +44 (0) 207 512 0191 Lewis Charles Securities Limited Kealan Doyle Telephone : +44 (0) 207 456 9100 This information is provided by RNS The company news service from the London Stock Exchange