Last checked at 5 Jul 2011 15:00
GALANTAS GOLD CORPORATION
TSXV & AIM : Symbol GAL
GALANTAS REPORTS RECORD SECOND QUARTER 2011 AND FUNDS DRILLING OUT OF CASH-FLOW.
July 5th, 2011: Galantas Gold Corporation (the 'Company') has received a trading update for the second quarter, ending June 30th 2011, from its wholly owned subsidiary, Omagh Minerals Ltd (OML), which operates the only gold mine in Ireland.
The month of June has seen some important production records exceeded since mining production began, as the recent processing plant upgrades show their potential. The highest daily concentrate production (23 wet tonnes), highest weekly concentrate production (111.5 wet tonnes) and highest monthly concentrate production (337.264 wet tonnes) all contributed to a record second quarter (805 wet tonnes). For the first time, one month's production at the Omagh Mine (at 1,204 ounces gold equivalent for June) has exceeded the milestone of 1,000 troy ounces of gold equivalent.
Highlights of comparative production figures are summarized below:
Three Months to June 30 2011 | Three Months to June 30 2010 | Six Months to June 30 2011 | Six Months to June 30 2010 | |
Tonnes Milled | 15,883 | 10,602 | 22,832 | 17,582 |
Average Grade (g/t gold) | 5.39 | 3.19 | 4.97 | 5.90 |
Tonnes per hour | 9.18 | 8.13 | 8.77 | 7.35 |
Concentrate Dry Tonnes | 754 | 325 | 1,036.5 | 919.20 |
Concentrate Gold Grade (g/t) | 103.1 | 128.9 | 102.6 | 116.3 |
Gold Produced kg (troy ozs) | 77.7 (2,500) | 41.88 (1,347) | 106 (3,410) | 107.1 (3,443) |
Concentrate Silver Grade (g/t) | 232.2 | 335.4 | 241.1 | 343.3 |
Silver Produced kg (troy ozs) | 173.8 (5,586) | 109.00 (3,505) | 249.9 (8,034) | 315.6 (10,147) |
Lead Produced (tonnes) | 120.6 | 45.47 | 170.7 | 139.7 |
Gold Equivalent ( troy.ozs) | 2,829 | 1,471 | 3,892 | 3,857 |
The value of sales for the quarter is expected to be more than $3,400,000 US dollars. The production, metal and sales figures are provisional and subject to averaging or umpiring provisions under the concentrate off-take contract with Xstrata Corporation, detailed in a press release dated 3rd October 2007.Detailed unaudited financial results for the quarter are expected in the usual timeframe, at the end of August 2011.
Roland Phelps, President and CEO, Galantas Gold Corporation said, "The turn-around is due to the commitment and dedication of the production and engineering team. Under the guidance of Richard Crew, General Manager, they have delivered an excellent result for the quarter."
Omagh Minerals Ltd (OML), is actively engaged in setting up a local Residents Advisory Committee. Comprised of local residents, a minority of whom work for OML, OML hopes to gain useful insight into upcoming planning applications and it is anticipated that the committee will enable OML to structure applications and activities in a constructive way to minimize impact on neighbours.
OML welcomes the positive suggestion it has received from connected parties as to a possible way through the current deferment of a planning application. OML intends to submit a planning application relating to the establishment of a number of extra passing places on the route to be taken by trucks to be used to carry surplus rock from the mine. OML will be consulting on the location of the additional passing places with the Residents Advisory Committee, Roads Service and others.
The Company is engaged in an active exploration program. A second contractor's drill rig is operating. A new drilling rig (owned by OML) is being commissioned. The initial program of 2000 metres of exploration drilling has been expanded over seven fold to approximately 15,000 metres of drilling, utilizing four rigs. The increased funding cost of the program has been allocated and the cash funds reserved. The drilling fund has not yet been drawn down due to the drilling costs being met from recently improving operating cash flow. Assay results are expected to be regularly announced from September 2011.
The Annual General Meeting of Galantas Gold Corporation was held in Toronto on 21st June 2011 and all resolutions were passed.
The financial component of this disclosure has been reviewed by Leo O' Shaughnessy (Chief Financial Officer) and the production components by Richard Crew (General Manager), qualified persons under the meaning of N.I 43-101. The information is based upon local production and financial data prepared under their supervision.
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 and throughputs; mining operational risk, geological uncertainties; uncertainties in regard to future exploration costs; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of or availability 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.
Enquiries
Galantas Gold Corporation Jack Gunter P.Eng - Chairman Investor Relations ConsultantRoland Phelps C.Eng - President & CEO Courtenay Heading (Maclir Consulting Ltd)Email: info@galantas.com Email : c.heading@Galantas.com Website: www.galantas.com Telephone : (UK) +44 (0) 7624 424 455 Telephone: +44 (0) 2882 241100
Religare Capital Markets Telephone: +44 (0) 20 7444 0800 Nick Harriss/Ben Jeynes
Beaufort International Associates LtdTelephone: +44 (0) 20 7930 8222 Barry Gibb/Saif Janjua (Corporate Finance)
Niall Carrig (Corporate Broking)