8th October 2008 - Galantas Gold Corporation (TSXV � GAL, AIM � GAL) (The Company) today received provisional results for the third quarter from its wholly owned subsidiary Omagh Minerals Ltd (OML). OML operate the only gold mine in Ireland and produce a concentrate containing gold, silver and lead. Most of the concentrate is sold to Xstrata Corporation with some sent for separate processing as feedstock for the Galantas(TM) brand of 18ct certified Irish gold jewellery.
The third quarter (2008) has shown an increase in output. Total concentrate production was 536.95 wet tonnes (503.66 dry tonnes). Anticipated metal content of the quarter�s shipments are expected to total 1781 ounces of gold (55.4 kgs), 3401 ounces of silver (105.77kgs) and 42.81 tonnes of lead. September�s production was 230.38 wet tonnes and contained the highest output week (of 4.5 processing days) of 58.5 tonnes. July�s production was 195.13 wet tonnes and August 108.97 wet tonnes. These production figures and metals contents are provisional and subject to averaging or umpiring provisions under the concentrate off-take contract detailed in a press release dated 3rd October 2007.
The increase in estimated gold production for the quarter, which is approximately 83% higher than the same quarter of 2007, has led to an improved financial position within the main operating subsidiary (OML). This will be detailed in the consolidated quarterly accounts to be published in the usual timeframe (end of November 2008).
The removal of surplus country rock by a road contractor, at no cost, has permitted OML to focus its efforts, during the quarter, on the removal of till (deposits of glacial origin) to expand the open pit and expose more ore. This stage of pit development is expected to be completed during the fourth quarter. The increased length of the exposed ore vein already exposed has created space for additional equipment to operate. To facilitate a rapid increase in ore production, a 52 tonne, large capacity excavator and three, 40 tonne, articulated dump-trucks have been mobilised. The extra equipment is being rented on a three month trial, with 75% of the rental fees being available as a deposit to a potential purchase. This arrangement gives the opportunity to trial the use of Bell trucks, for which other operators report lower fuel consumption.
Management expect that the increase in fleet capacity (of approximately 70%), coupled with anticipated road fill removal, provides sufficient mining capacity to meet the ore production requirements as published in a press release dated 18th July 2008, for the fourth quarter of 2008.
The mill continues to operate satisfactorily, with the best 24 hour period (in September) producing 19.2 tonnes (wet) of concentrate.
This disclosure has been reviewed by Roland Phelps C.Eng MIMMM, President & CEO of Galantas Gold Corporation, a qualified person under the meaning of N.I 43-101, who is responsible for the information in this disclosure. The information is based upon local production and financial data prepared by management under his supervision.
Galantas Gold Corporation Issued and Outstanding Shares total 175,675,855.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.
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 cost and production 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, performance or achievements to differ materially from those expressed or implied by the forward looking statements, including: gold price volatility; discrepancies between actual and estimated production, between actual and estimated reserves, and between actual and estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; 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 for the year ended December 31, 2007 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.