REG - Galantas Gold Corp - UPDATE ON THE OMAGH GOLD PROJECT

Galantas GoldAnnouncement

24/02/2023 07:00

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RNS Number : 9196Q  Galantas Gold Corporation  24 February 2023

 

GALANTAS GOLD PROVIDES UPDATE ON THE OMAGH GOLD PROJECT

February 24, 2023, TORONTO, CANADA - Galantas Gold Corporation (TSX-V &
AIM: GAL; OTCQX: GALKF) ("Galantas" or the "Company") is providing an update
on the Omagh Project in Northern Ireland.

The Company is targeting an updated NI 43-101-compliant mineral resource
estimate by the end of Q2 2023 to incorporate an additional 7,800 metres of
drilling with many of the drill holes indicating higher gold grades and
thicker widths in dilation zones. Internal modelling indicates that the grades
and widths of mineralization increase within the dilation zones at the Kearney
and Joshua veins. At Kearney, examples of drill holes that fall within
dilation zones are drill hole FR-DD-22-UG-181 at a vertical depth of 150
metres that intersected 7 metres (estimated 3.3 metres true thickness) of 31.7
grams per tonne (g/t) gold, and drill hole FR-DD-22-UG-186 at a vertical depth
of 143 metres that intersected 4.4 metres (estimated 3.0 metres true
thickness) of 31.8 g/t gold (see Galantas' press releases dated March 21, 2022
and August 4, 2022).

Given the potentially high grade and thicker widths within dilation zones
below the current underground development, the Company is proceeding with a
sustainable mine plan targeted by the end of Q2 2023 that will allow the
Company to develop at these lower levels in order to optimize production. The
mine plan will determine the suitability of targeting initially 10,000 gold
ounces a year, with the potential for this to increase to 20,000 ounces a
year, followed by staged expansions. The plan is expected to include
development options for mining at the lower levels of the Kearney Vein and to
the north and south extensions of the vein's existing workings.

The Company has also completed its first hole targeting the Kerr Vein from
underground, approximately 200 metres north of the known surface exposure and
approximately 200 metres south of a historic base-of-till gold anomaly. Quartz
veinlets associated with the sulphide minerals, pyrite and galena, have been
recorded in the core within the target zone supporting management's view that
Kerr may extend northwards between the high-grade Joshua and Kearney veins.
Historical Pionjar drilling (base-of-till sampling) by RioFinex in the 1980s
identified 8 g/t gold between the Kearney and Joshua veins, approximately 100
metres north of the development drift. The Company intends to drill additional
underground holes at Kerr from the crosscut development.

At the Joshua Vein, a detailed geotechnical assessment is planned to identify
the optimal location for the raisebore hole which will be used as a secondary
egress. Management is also reviewing the location for a portal at Joshua to
optimize access to the north and south extensions for future production.

The recruitment and retention of underground mining crews at the Omagh Project
has continued to be a challenge due to the consequences of only being able to
recruit miners from the UK and Ireland, greatly impacting productivity. A core
group of experienced miners is now focused on plans for mine and waste
development, prioritizing access to the high-grade dilation zones below the
current underground workings as the Company looks to transition to contract
mining with Q.M.E. Mining Services (NI) Ltd. as a potential manpower, mining
and development solution. The Company will establish a new mine optimization
plan to develop to the high-grade dilation zones at depth to maximize
productivity.

Qualified Persons

 

Scientific and technical disclosures relating to exploration 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 and development disclosures in this press release have been
reviewed and approved by Brendan Morris, 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.

 

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.

 

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.

 

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 the outcome of exploration and
development plans, operations and prospects of the Company. 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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