REG - Galantas Gold Corp - Corporate Update And Production Guidance

Galantas GoldAnnouncement

10/01/2022 07:05

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RNS Number : 8470X  Galantas Gold Corporation  10 January 2022

 

 

GALANTAS GOLD PROVIDES CORPORATE UPDATE AND PRODUCTION GUIDANCE

 

 

January 10, 2022, TORONTO, CANADA - Galantas Gold Corporation (TSX-V &
AIM: GAL; OTCQX: GALKF) ("Galantas" or the "Company") is pleased to provide a
corporate update on development progress and production guidance at the
high-grade Omagh Gold Project in Northern Ireland.

 

2021 Project Highlights:

 

 * A total of 2,200 metres of underground mine development have been completed to
date, with rehabilitation of early mine workings ongoing.

 * Upgrading work on mine electrical reticulation commenced in 2021 and is
expected to be completed by the end of Q1 2022. Additional fans and pumps have
arrived on site and are being installed.

 * Refurbishment and procurement of major equipment is now complete.

 * Development of a secondary egress has commenced and is expected to be
completed by the end of Q1 2022.

 * The process plant is being prepared for installation of new equipment.

 * Laboratory testing equipment has been procured, with partial commissioning
completed in 2021. The laboratory is expected to be fully functional by the
end of Q1 2022.

 * Key operational team members have been recruited to fill safety, mining,
milling, and technical services roles. Key positions of the operational
management team are now in place with ongoing recruitment of mining and
processing employees to meet operational targets.

 * Underground drilling at the Kearney Vein and surface drilling at the Joshua
Vein have commenced for resource expansion and mine planning.

 * The Company engaged JDS Energy & Mining Inc. for mine planning.

 

2022 Operational Guidance:

 

 * Production is expected to commence at the end of Q1 2022 with 9,000 ounces of
gold in concentrate produced at an average head grade of 5.50 grams per tonne
(g/t) at an all in sustaining cost (AISC) of US$1,150 per payable ounce for
the year ending 2022. In 2023, production is expected to increase to 17,800
ounces at an average grade of 8.0 g/t and an AISC of US$1,350 per payable
ounce.

 * US$4.2 million in growth capex.

 * The Company is undertaking studies to modernize the processing plant,
including the addition of a gravity circuit to support an internally-financed
staged expansion of gold production.

 * The Company plans to continue its 4,000-metre underground drilling program
started in 2021 to aggressively drill the Joshua and Kearney veins, and also
drill additional highly prospective targets in the second half of 2022.

 

Mario Stifano, CEO of Galantas, commented: "2021 was a headline year for
Galantas as we attracted key management talent and new supportive
shareholders, and made significant investments in underground development,
mine infrastructure and equipment. Thanks to the hard work of our team on the
ground, we are now on the cusp of commencing gold production at Omagh. The
opportunity for growth and to create value for our shareholders is tremendous
as technical and engineering studies to expand and upgrade the processing
plant to support a Phase 2 expansion to 35,000 ounces of gold per annum, are
underway - with further phased production growth envisioned to support an
aggressive exploration program to grow our high-grade gold resources and
unlock the full potential of a newly emerging high-grade gold district."

 

Guidance is based on a number of assumptions and estimates as of December 31,
2021, including among other things, assumptions about the timing of completion
of mine upgrades and anticipated costs and expenditures. Production and cost
guidance includes current assumptions on the impact of COVID-19 on operations.
Guidance involves estimates of known and unknown risks, uncertainties and
other factors which may cause the actual results to be materially different.

This release contains terms or performance measures commonly used in the
mining industry that are not defined under International Financial Reporting
Standards ("IFRS"), including "all-in sustaining costs" (or "AISC"). Non-IFRS
measures do not have any standardized meaning prescribed under IFRS, and
therefore they may not be comparable to similar measures employed by other
companies. The information and guidance presented is intended to provide
additional information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with IFRS.

Qualified Person

 

Scientific or technical disclosures in this press release have been reviewed
and approved by Dr Sarah Coulter, who is considered, by virtue of her
education, experience and professional association, a Qualified Person under
the terms of NI 43-101. Dr. Coulter is not considered independent under NI
43-101 as she is the Chief Geologist of Galantas Gold Corporation.

 

Production-related disclosures in this press release have been reviewed and
approved by Brendan Morris, CEng, who is considered, by virtue of his
education, experience and professional association, a Qualified Person under
the terms of NI 43-101. Mr. Morris is not considered independent under NI
43-101 as he is the Chief Operating Officer of Galantas Gold Corporation.

 

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

About Galantas Gold Corporation

 

Galantas Gold Corporation is a Canadian public company that trades on the
TSX-Venture Exchange and the London Stock Exchange AIM market, both under the
symbol GAL. It also trades on the OTCQX Exchange under the symbol GALKF. The
Company's strategy is to create shareholder value by operating and expanding
Northern Ireland's first gold mine.

 

Enquiries

 

Galantas Gold
Corporation
 

Mario Stifano: Chief Executive Officer

Email: info@galantas.com

Website: www.galantas.com

Telephone: +44(0)28 8224 1100

 

Grant Thornton UK LLP (AIM Nomad)

Philip Secrett, Harrison Clarke, George
Grainger
 

Telephone: +44(0)20 7383 5100

 

Panmure Gordon & Co (AIM Broker & Corporate Adviser)

Nick Lovering, Hugh Rich

Telephone: +44(0)20 7886 2500

 

Cautionary Note on Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of
applicable securities laws,  including the results of exploration programs,
completion of mine rehabilitation and upgrading work, completion of mine
planning and technical and engineering studies, the Phase 2 expansion,
commencement of mine production, and all statements regarding the 2022 and
2023 production and cost guidance 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; 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; uncertainties regarding 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.

 

 

 

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