REG - Galantas Gold Corp - Updated MRE at Andacollo and Notice of Meeting
05/05/2026 07:00
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RNS Number : 9118C Galantas Gold Corporation 05 May 2026
GALANTAS GOLD ANNOUNCES UPDATED MINERAL RESOURCE ESTIMATE AT ANDACOLLO PROJECT
AND PROVIDES NOTICE OF MEETING AND RECORD DATE FOR THE SPECIAL MEETING TO
APPROVE ITS ACQUISITION
TORONTO, ONTARIO - May 5, 2026 - Galantas Gold Corporation ("Galantas" or the
"Company") (TSX-V: GAL | AIM: GAL) is pleased to announce that it has filed a
technical report (the "Andacollo Technical Report") containing an updated
mineral resource estimate for the Andacollo Oro Gold Project (the "Andacollo
Project"). The Andacollo Technical Report titled "Mineral Resource Estimate
Update, Andacollo Oro Gold Project, Coquimbo Region, Chile", with an effective
date of February 1, 2026, was prepared by Ryan Wilson, P.Geo., Matthew
Halliday, P.Geo., David Frost, FAusIMM, and Ghislain Prévost, P.Eng. of DRA
Americas Inc. ("DRA"), in accordance with National Instrument 43-101 Standards
of Disclosure for Mineral Projects ("NI 43-101"). A copy of the Andacollo
Technical Report is available on the Company's profile on SEDAR+ at
www.sedarplus.ca (http://www.sedarplus.ca) and on the Company's website at
https://galantas.com/projects/technical-reports/
(https://galantas.com/projects/technical-reports/) .
In addition, Galantas announces that it has filed the required notice setting
the record and meeting dates in respect of the special meeting of shareholders
(the "Meeting") to consider the previously announced transaction to acquire
all of the issued and outstanding shares of Sol de Oro Mining Ltd. ("Sol")
from Robert Sedgemore, which indirectly holds a 100% interest in the Andacollo
Project (the "Transaction"). The record date for determination of shareholders
eligible to vote at the Meeting is set as May 12, 2026, and the Meeting will
be convened on Monday, June 15, 2026.
The management information circular in respect of the Meeting (the "Circular")
is expected to be mailed and filed following the record date. Further details
relating to the Transaction and the Meeting, including the location of the
Meeting and manner of voting, will be contained in the Circular.
Shareholders are cautioned that the Andacollo Project is not currently owned
by the Company and Galantas' interest in the Andacollo Project remains subject
to completion of the Transaction. Galantas has received conditional approval
from the TSX Venture Exchange (the "TSXV") with respect to the completion of
the Transaction, which requires Galantas to submit certain customary documents
and information to the TSXV prior to completing the Transaction, including,
among other things, evidence of disinterested shareholder approval in
accordance with the policies of the TSXV. The Transaction is expected to be
completed in June 2026, subject to receipt of all required approvals.
Highlights of the Andacollo Technical Report
· The current pit-constrained Mineral Resource Estimate update
comprises an Indicated Mineral Resource of 102.4 million tonnes (Mt) at 0.45
grams/tonne (g/t) gold (Au) containing 1.47 million ounces (Moz) Au and an
Inferred mineral resource of 347.9 Mt at 0.41 g/t Au containing 4.54 Moz Au.
· Additional and significant gold mineralization identified by DRA
is contained within the Andacollo Project property boundary and could be
accessed with a potential land access agreement from the adjacent property
controlled by Teck Resources Limited ("Teck").
· The Andacollo Project is a brownfield, past-producing open pit
heap leach gold operation with approximately 1.12 Moz Au of historical gold
production.
· Existing site infrastructure and local environmental approvals
provide a strong platform for future engineering, permitting, and
restart-readiness studies.
· Open-pit optimization sensitivity analysis indicates large,
optimized pit shells with relatively low stripping ratios across a range of
gold price assumptions. This sensitivity analysis is not additive to the
current mineral resource estimate and does not represent an economic analysis
or production scenario.
Mario Stifano, Chief Executive Officer of Galantas, commented:
"The updated Mineral Resource Estimate is an important milestone for Galantas
and confirms Andacollo as a substantial brownfield gold project with scale, a
long operating history, and meaningful exploration and development upside. The
large and robust resource under multiple gold price scenarios provides for a
long-life asset while also demonstrating potential to significantly expand
future production scenarios. There is significant exploration potential to
expand the gold resource and for the discovery of significant copper resources
at Andacollo, including potential extensions of adjacent porphyry copper
mineralization."
Mineral Resource Estimate Update
The updated Mineral Resource Estimate presented in the Andacollo Technical
Report is summarized below.
Resource Classification Material Tonnes (Mt) Au (g/t) Contained Au (Moz)
Measured Oxide - - -
Measured Mixed - - -
Total Measured Oxide + Mixed - - -
Indicated Oxide 17.6 0.53 0.30
Indicated Mixed 84.8 0.43 1.17
Total Indicated Oxide + Mixed 102.4 0.45 1.47
Inferred Oxide 51.4 0.38 0.63
Inferred Mixed 296.5 0.41 3.91
Total Inferred Oxide + Mixed 347.9 0.41 4.54
Notes:
1. The mineral resource estimate has been estimated using the CIM
Definition Standards for Mineral Resources and Mineral Reserves in accordance
with NI 43-101.
2. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
3. Inferred mineral resources are exclusive of Measured and Indicated
mineral resources.
4. In-pit mineral resources are constrained by Pseudoflow optimized
pit shells using HxGn MinePlan™ 3D.
5. Pit shells were developed using pit slopes of 50 degrees, a gold
price of US$3,800/oz, mining costs of US$5.67/t for both mineralization and
waste, US$4.82/t for in-pit dumps, processing costs of US$7.40/t milled,
G&A costs of US$0.47/t milled, process recovery of 75.0%, transportation
costs of US$0.84/t, discount rate of 8%, and an assumed production rate of
5.475 Mt per annum.
6. In-pit estimates are reported in-situ at a marginal cut-off grade
of 0.08 g/t Au.
7. Resource estimations were interpolated using Inverse Distance
Weighting squared ("IDW2"); average densities for oxide and mixed mineral
types were applied for tonnage calculation purposes.
8. The effective date of the mineral resource estimate is February 1,
2026.
9. The independent qualified person for the mineral resource estimate,
as defined by NI 43-101, is Matthew Halliday, P.Geo., of DRA Americas Inc.
10. The Qualified Person is not aware of any metallurgical, environmental,
permitting, legal, title, taxation, socio-economic, marketing, political, or
other risk factors that might materially affect the estimate of mineral
resources.
11. Figures have been rounded to an appropriate level for the reporting of
mineral resources and may not compute exactly as shown.
Open-Pit Optimization Sensitivity - Not Additional Mineral Resources
DRA completed an open-pit optimization sensitivity analysis to evaluate how
the optimized pit shell responds to different gold prices and related cut-off
grades (COG). The analysis demonstrates that the mineralized system remains
substantial under lower gold price assumptions. This analysis is not additive
to the current MRE update and is provided only to illustrate the effect of
gold price and COG assumptions on optimized pit shell geometry.
Gold Price COG Indicated Gold In Situ Inferred Gold In Situ Waste Stripping ratio
$/oz g/t Tonnes (Mt) Au (g/t) Ounces (Moz) Tonnes (Mt) Au (g/t) Ounces (MOz) Tonnes (Mt)
1,500 0.205 26.4 0.83 0.70 60.8 0.81 1.58 85.0 0.97
2,000 0.154 47.8 0.65 1.00 115.3 0.64 2.37 153.1 0.94
2,500 0.123 71.2 0.56 1.28 186.0 0.54 3.23 267.3 1.04
3,000 0.102 83.9 0.51 1.38 253.0 0.46 3.74 316.4 0.94
3,200 0.096 90.4 0.48 1.40 290.8 0.44 4.11 354.4 0.93
3,500 0.088 98.6 0.46 1.46 329.3 0.41 4.34 378.5 0.88
3,800* 0.081 102.4 0.45 1.47 347.9 0.41 4.54 412.5 0.92
* Selected gold price for reporting the current MRE update.
Figures may not compute exactly as shown due to rounding.
The sensitivity analysis indicates that the Andacollo Project maintains a
large, optimized pit shell across a range of gold price assumptions, with
relatively low stripping ratios. These results are preliminary in nature, and
are not indicative of the mineral resources contained at the Andacollo
Project. The sensitivity analysis should not be interpreted as an economic
analysis or production scenario.
Project Overview
The Andacollo Project is located in the Coquimbo Region of Chile,
approximately 55 kilometres southeast of La Serena and immediately adjacent to
the town of Andacollo. The Andacollo Project comprises approximately 1,213
hectares of exploitation mining concessions and encompasses the former
Andacollo open pit gold mining operations, including historical pits, heap
leach pads, processing facilities, waste rock storage areas, and associated
infrastructure.
Figure 1: Existing brownfield infrastructure at the Andacollo Project,
Coquimbo Region, Chile
Galantas has entered into a definitive share purchase agreement to acquire the
Andacollo Project through the acquisition of Sol. Until completion of the
Transaction, the Andacollo Project remains subject to the previously announced
closing conditions, including minority shareholder approval, regulatory
approvals and final acceptance of the TSXV. Shareholders are cautioned that
the Andacollo Project is not currently owned by the Company and Galantas'
interest in the Andacollo Project remains subject to completion of the
Transaction.
The Andacollo Project is a past-producing open-pit heap leach gold operation.
Historical mining commenced in the mid-1990s and continued through multiple
operating cycles, with a combined historical production of approximately 1.12
Moz Au 1 . The operation historically utilized conventional open pit mining,
three-stage crushing, heap leaching, and a conventional
adsorption-desorption-recovery circuit.
As a brownfield asset, the Andacollo Project benefits from existing site
infrastructure, including historical open pits, heap leach pads, water and
power infrastructure, access roads, and processing facilities. The Andacollo
Project also benefits from proximity to the town of Andacollo and to regional
mining services, labour, suppliers, and infrastructure in La Serena and
Coquimbo. Existing infrastructure may reduce future restart capital
requirements compared with a greenfield development scenario, subject to
further engineering, cost estimation, and technical studies.
Significantly, the Andacollo Project benefits from existing RCA (Resolución
de Calificación Ambiental No. 151/2014) environmental approvals authorizing
restart of mining and processing activities. The Andacollo Project has the
required environmental approval in place for the proposed restart activities,
subject to the completion of remaining technical and sectoral approvals.
The combination of scale, historical production, existing infrastructure, and
open-pit geometry provides Galantas with a strong technical foundation to
advance the Andacollo Project through the next phase of engineering,
metallurgical, and restart-readiness studies.
Geology and Exploration Potential
Gold mineralization at the Andacollo Project is hosted primarily by the
Quebrada Marquesa Formation and is generally described as gold-bearing
manto-style mineralization related to a proximal porphyry copper-gold system.
Mineralization is interpreted to have formed through migration of hydrothermal
fluids from the adjacent Carmen de Andacollo porphyry system along favourable
structures and permeable volcanic units.
The updated geological interpretation completed by Galantas and DRA improves
continuity within the mineralized domains and supports future exploration
potential. Several well-defined exploration targets remain open on the
property, particularly near and beneath currently identified mineralized zones
and historical pits.
There is significant exploration potential at the Andacollo Project,
including:
· Extension of known manto mineralization along strike and down-dip.
· Further exploration of recognized high-grade zones, including
angle-drilling of vertical and near-vertical structures.
· Exploration for porphyry copper mineralization (hypogene and
supergene-enriched) extending onto the Andacollo Project from the adjacent
Teck mine.
Metallurgy and Processing
Historical metallurgical testwork and operating data indicate that the
Andacollo Project mineralization is amenable to heap leach cyanidation. Column
leach and bottle roll tests indicated optimal crushing at approximately 3/8
inch, with historical recoveries generally in the range of 65% to 75%,
depending on ore type, grade, crush size, and leach exposure time. Historical
operational data also suggest that extending leach cycle duration may improve
gold recovery.
DRA recommends additional metallurgical testwork, particularly for
higher-grade vein material and future ore sources, to support geometallurgical
modelling, recovery forecasting, reagent consumption estimates, and future
flowsheet development.
Future Plans
Galantas intends to advance the Andacollo Project through a phased work
program focused on resource confidence, exploration upside, metallurgical
testing, engineering, and restart-readiness studies. DRA has recommended Phase
1 work including infill and confirmatory drilling, exploration drilling,
metallurgical testing, preparation of a Preliminary Economic Assessment (PEA),
and continued review and compilation of the historical database. Galantas is
also assessing whether the gold remaining in historic heaps on the property
may represent an opportunity for early production.
Qualified Person Statement
The scientific and technical information in this news release has been
reviewed and approved by Ryan Wilson, P.Geo., of DRA Americas Inc., an
independent qualified person for the purposes of NI 43-101.
About Galantas Gold Corporation
Galantas Gold Corporation is a publicly traded gold company focused on the
acquisition, development, and advancement of gold and copper assets in stable
mining jurisdictions. The Company is currently advancing the Indiana Project
in Chile and has entered into a definitive share purchase agreement to acquire
the Andacollo Project through the acquisition of Sol, subject to applicable
approvals and closing conditions. Galantas' strategy is to build long-term
shareholder value through disciplined capital allocation, technically rigorous
project evaluation, and responsible development of high-quality mineral
assets.
Enquiries
Galantas Gold Corporation
Mario Stifano, Chief Executive Officer
Email: info@galantas.com
Website: www.galantas.com
Telephone: +1 416-848-7744
Grant Thornton UK LLP (AIM Nomad)
Philip Secrett, Harrison Clarke, Elliot Peters
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
ON BEHALF OF THE BOARD OF DIRECTORS
Mario Stifano
Chief Executive Officer and Director
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements and forward-looking
information within the meaning of applicable Canadian securities laws and the
United States Private Securities Litigation Reform Act of 1995.
Forward-looking information includes, but is not limited to, statements
regarding the completion of Transaction and the acquisition of the Andacollo
Project; the timing and outcome of the Meeting; the receipt of minority
shareholder approval, regulatory approvals and final acceptance of the TSXV;
the Company's expectations, plans, objectives, and future activities with
respect to the Andacollo Project; the potential restart of operations; the
potential timing, scope, and results of future exploration, drilling,
metallurgical testing, engineering studies, and technical studies; the
potential preparation of a Preliminary Economic Assessment; the potential
benefits of existing infrastructure; the potential impact of the current
property boundary; the potential to obtain additional land access, pursue
future synergies or collaboration with neighbouring property holders, or
complete commercial arrangements; the potential economic extraction of mineral
resources; and the Company's development and financing plans.
Forward-looking information is based on the opinions, estimates, assumptions,
and expectations of management and the qualified persons as of the date of
this news release. Such assumptions include, but are not limited to,
assumptions regarding completion of the Transaction and the Andacollo Project,
receipt of required shareholder, regulatory and TSX Venture Exchange
approvals, future gold prices, exchange rates, regulatory approvals,
permitting, access to capital, technical study results, metallurgical
performance, operating and capital costs, infrastructure condition, contractor
availability, property access, commercial arrangements with neighbouring
property holders and the Company's ability to execute its plans.
Forward-looking information is subject to known and unknown risks,
uncertainties, and other factors that may cause actual results to differ
materially from those expressed or implied by such forward-looking
information.
Readers are cautioned not to place undue reliance on forward-looking
information. The Company does not undertake to update any forward-looking
information except as required by applicable securities laws.
Cautionary Note Regarding Mineral Resources
Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Inferred Mineral Resources are considered too speculative
geologically to have economic considerations applied to them that would enable
them to be categorized as mineral reserves. There is no certainty that all or
any part of the mineral resources will be converted into mineral reserves.
Cautionary Note Regarding Historical Production, Existing Infrastructure and
Production Decisions
Historical production and historical operating performance are not necessarily
indicative of future production, recovery, costs, or economic results.
Existing infrastructure may require refurbishment, repair, replacement, or
further technical assessment before any restart of operations.
No mineral reserves have been estimated for the Andacollo Project. The Company
has not made a production decision, and any restart decision will require
further technical, engineering, environmental, regulatory, economic, and
financing work.
Neither TSXV nor its Regulation Services Provider, as that term is defined in
the policies of the TSXV, accepts responsibility for the adequacy or accuracy
of this news release.
The Company is admitted to trading on AIM and, accordingly, further disclosure
may be found on the Company's profile on the London Stock Exchange website.
The information contained in 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, which forms part of UK law by virtue of
the European Union (Withdrawal) Act 2018. This information is disclosed in
accordance with the Company's obligations under Article 17 of UK MAR. Upon
publication of this announcement, this inside information is now considered to
be in the public domain.
1 As compiled from historical site production data records; previously
reported in Geoinvest (2021), CMID SPA, Andacollo Oro, Chile Technical Report
Prepared by Geoinvest on behalf of CMID; Mineras Mina Andacollo Oro Project,
Andacollo, Coquimbo Region, Chile, NI 43-101 Technical Report, Effective Date
August 23, 2021.
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