REG - Galantas Gold Corp - Galantas Gold to Commence Drilling at Gairloch

Galantas GoldAnnouncement

18/04/2023 07:00

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RNS Number : 5068W  Galantas Gold Corporation  18 April 2023

 

GALANTAS GOLD TO COMMENCE DRILLING AT THE 10 KM GAIRLOCH GOLD-RICH VMS PROJECT

April 18, 2023, TORONTO, CANADA - Galantas Gold Corporation (TSX-V & AIM:
GAL; OTCQX: GALKF) ("Galantas" or the "Company") is pleased to announce that
drilling at the newly acquired Gairloch Project will commence in the coming
weeks. Drill mobilization has commenced for an initial 800-metre program
targeting the Kerry Road deposit, including testing the depth potential of
near surface mineralization.

Historical Exploration Highlights*:

 

·    11.29 grams per tonne (g/t) gold (Au), 0.58% copper (Cu), 2.44 g/t
silver (Ag), and 0.19% zinc (Zn) over 16 metres.

·    3.16 g/t Au, 0.90% Cu, 3.39 g/t Ag and 0.51% Zn over 18 metres.

·    1.46 g/t Au, 1.86% Cu, 1.65 g/t Ag, and 1.08% Zn over 20 metres.

·    9.59 g/t Au, 1.17% Cu, 2.58 g/t Ag, and 0.55% Zn over 5.5 metres.

·    1.5 g/t Au, 5.92% Cu, 16.5 g/t Ag, and 0.54% Zn over 6 metres.

 

*True widths not known. Historical drill hole data obtained from logs written
by Consolidated Gold Fields Limited in 1979 and 1980, scanned copies supplied
by the British Geological Survey.

The drill program aims to target the mineralized outcrops at Kerry Road,
testing the deposit down dip southeastwards as well as the lateral extension
to the northeast and southwest. A deeper hole (~350 metres) is planned to test
beneath the Kerry Road deposit as historical drilling ceased after
intercepting the main sulphide horizon. This stratigraphic hole will provide
Galantas with better understanding of the local geology, as well as test for
other sulphide horizons expected to be found in the area based on the
knowledge of other similar deposits around the world.

Mario Stifano, CEO of Galantas, commented: "We are eager to kick-off drilling
at this underexplored region of Scotland. The Gairloch Project offers a
fantastic opportunity for Galantas to diversify and build its portfolio having
acquired some of the best exploration ground in the country in a gold-bearing
volcanogenic massive sulphide (VMS) setting with known mineralization over 10
km and a number of high-priority targets that have yet to be tested."

Gairloch Project Overview

The Kerry Road deposit is a stratabound, Besshi-style, VMS gold-copper-zinc
deposit exposed at surface. It is one of the oldest known Besshi deposits. The
host rocks at Gairloch appear to be geologically similar to those in the
Trans-Hudson Orogen in Manitoba and Saskatchewan which contain the prolific
Flin-Flon and Snow Lake VMS mining camps.

 

The Kerry Road deposit was discovered by Consolidated Goldfields in the 1970s
where 87 holes were drilled over 9,189 metres. No commercial exploration has
taken place since then until 2018 when drilling by GreenOre Gold PLC
(GreenOre) confirmed the presence of mineralization at Kerry Road by
intercepting 1.0 g/t gold, 0.9% copper and 0.6% zinc over 17 metres (see
Galantas' news release dated January 26, 2023). Rock chip sampling conducted
by GreenOre in 2018 also identified elevated levels of cobalt in bedrock.

 

The Kerry Road deposit lies within the Gairloch Schist Belt, a Paleoproterozic
volcanic arc terrane extending over 25 km. The unit of interest is a quartz
carbonate schist with the main minerals being chalcopyrite, sphalerite, pyrite
and pyrrhotite. Limited exploration has been conducted over the area in recent
years. The British Geological Survey (BGS) identified an outcrop of 4 g/t Au
in their MRP146 report of the area, associated with a significant geophysical
anomaly approximately 10 km south of the Kerry Road deposit, yet the area
remains untested. This area is one of multiple targets identified by Galantas
for follow-up exploration.

 

Galantas has acquired a 100% interest and the exclusive rights to explore and
develop the Gairloch Project, a 217 km² mineral licence area covering the
Gairloch Schist Belt.

 

Qualified Person

 

The historical technical information in this release has been reviewed and
approved by Gavin Berkenheger (CGeol, EurGeol) who is considered, by virtue of
his education, experience and professional association, a Qualified Person
under the terms of NI 43-101. Mr. Berkenheger is not considered independent
under NI 43-101 as he is a consultant of Galantas Gold Corporation.

 

Quality Assurance / Quality Control and Data Verification

 

Mr. Berkenheger has verified the data disclosed, including sampling,
analytical, and test data underlying the information or opinions contained in
the written disclosure as required by section 3.1 of NI 43-101.

 

Historical grades reported from the GreenOre database that was conducted by
the company from 2018 to 2021 was overseen by the author who was a Qualified
Person at the time using appropriate Quality Assurance and Quality Control
(QA/QC) protocols with respect to the insertion of blanks, standards and
duplicates into the sample stream prior to dispatch to ALS Laboratory, which
is consistent with industry best practices.

 

During GreenOre's drilling, the diamond drill core (HQ Size) was logged,
photographed and marked for sampling. There was insignificant core loss. A
diamond tipped core saw split the core with one half bagged and tagged for
assay and the other returned to the labeled core box and stored. Sealed and
tagged bags were shipped to ALS Laboratories in Loughrea, County Galway where
they were crushed to 70% less than 2mm, riffle split off 1kg then pulverize
split to better than 85% passing 75 microns (PREP-31B). Gold fire assay and
AAS finish was conducted with a 30g sample (au-AA25). Multi element analysis
was completed by high-grade four acid ICP-AES (ICP61a). The QP has reviewed
the QA/QC in relation to these drill results and is satisfied that the results
as reported are reliable.

 

Historical grades reported from the Consolidated Gold Fields data is thought
to be of good quality as the company, which was listed on the London Stock
Exchange and was once a constituent of the FTSE 100 Index, demonstrated best
practices at the time and was overseen by a qualified person. After
appropriate logging of drill core (BQ size), mineralized sections were split
using a manual splitter initially and later using a diamond core saw. There
was insignificant core loss. Details of the sample preparation and analysis
could not be verified. The laboratory used was the Wheal Jane Laboratory in
Cornwall which was consistent with industry best practice at the time. Full
details of the QA/QC could not be verified either, but grade data was
reviewed, in which select samples of drill core were re-assayed at three
different laboratories. There were good correlations with the re-check samples
in relation to zinc and copper but some significant discrepancies were noted
in some of the gold re-check samples. It is not known whether this was due to
laboratory error or due to a "nugget effect" whereby larger grains of gold may
be missed or they may enhance the representative sample used to determine the
overall grade. GreenOre's drill hole which was a re-drill of Consolidated Gold
Fields' hole GBH03 demonstrated similar, in fact enhanced grades of the
historical hole, corroborating the reliability of the historical data. Only
20% of the historical drill core remains and this was observed by the author
at the British Geological Survey's core storage in Keyworth, Nottingham.
Re-assay of historical core has not yet been conducted but may be difficult
due to the size of representative core remaining. The QP having reviewed the
results in relation to the historical data is satisfied that the results as
reported are reliable.

 

Historical Reports

 

Data relating to Consolidated Gold Fields is held by the British Geological
Survey listed under MEIGA Project number 173:

·    Gairloch Exploration report, December 21, 1977, E. Jones,
Consolidated Gold Fields Limited

·    Project Gairloch Technical Report and Work Programme, August 18,
1978, Consolidated Gold Fields Limited

·    AE173 Gairloch Phase 4, 1978, Consolidated Gold Fields Limited

·    Technical Report Phase 2: July 1, 1978 to June 1979, Consolidated
Gold Fields Limited

·    Technical Report Phase 3: July 1, 1979 to October 1979, Consolidated
Gold Fields Limited

·    The Petrology, Ore Mineralogy, Geochemistry and Paragenesis of Rocks
at Gairloch Site, C.M. Rice, Department of Geology and Mineralogy, University
of Aberdeen

·    Consolidated Gold Fields Limited, Diamond Drill Core Records, Project
Gairloch, DDH No. GBH01 to GBH87

·    Gairloch Project Phase 4, Consolidated Gold Fields Limited

·    Technical Report: July 1,1980 to June 30, 1981, Phase 4a,
Consolidated Gold Fields Limited

·    Technical Report: July 1,1981 to May 31, 1982, Phase 4b, Consolidated
Gold Fields Limited

 

Data relating to GreenOre Gold can be found in news releases dated October 16,
2018 and March 4, 2020 that are posted on its website at
https://greenoregold.com/ (https://greenoregold.com/) .

 

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
gold production and resources at the Omagh Project in Northern Ireland, and
exploring the Gairloch Project hosting the Kerry Road gold-bearing VMS deposit
in Scotland.

 

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, Samuel Littler

Telephone: +44(0)20 7383 5100

 

SP Angel Corporate Finance LLP (AIM Broker)

David Hignell, Charlie Bouverat (Corporate Finance)

Grant Barker (Sales & Broking)

Telephone: +44(0)20 3470 0470

 

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 results of exploration programs
at the Gairloch 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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