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Galantas Gold Corporation (the Company) (TSX
VENTURE:GAL - News; AIM:GAL) results
for the Three and Nine Months ended September 30th 2010 have been published.
The Net Income for the three months
ended September 30, 2010 amounted to $ 156,982 compared to a Net Loss of $
164,988 for the three months ended September 30, 2009. The Net Income for the
nine months ended September 30, 2010 amounted to $ 1,001,368 compared to a
Net Loss of $ 689,326 for the nine months ended September 30, 2009. The main
reason for the improved results in the nine months of 2010 is the increased
production levels achieved during the first quarter together with the high
gold prices that prevailed during the period. Production levels in the third
quarter of 2010 were below those of the first quarter but above those of the
second quarter.
Highlights of the Company's 2010 third quarter's and first nine months
results, which are expressed in Canadian Dollars, are:
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Third Quarter Ended Nine Months Ended
September 30 September 30
2010 2009 2010 2009
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Revenue $ 1,759,978 $ 950,950 $ 5,244,089 $ 3,742,197
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Cost of Sales $ 1,118,807 $ 808,622 $ 3,125,974 $ 2,611,291
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Amortization $ 133,362 $ 397,181 $ 582,376 $ 1,026,620
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Income (loss) before the
undernoted $ 507,809 $ (254,853) $ 1,535,739 $ 104,286
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General administrative
expenses $ 250,566 $ 337,022 $ 698,390 $ 959,271
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Foreign exchange/(gain)
loss $ 100,261 $ (426,887) $ (164,019) $ (165,659)
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Net Income (Loss) for the
period $ 156,982 $ (164,988) $ 1,001,368 $ (689,326)
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Cash Generated from
Operations $ 293,844 $ 265,027 $ 1,591,691 $ 443,362
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Highlights of the Company's 2010 third quarter's and first nine months
Production are summarized below:
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Third Quarter Ended Nine Months Ended
September30 September 30
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2010 2009 2010 2009
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Tonnes Milled 8,375 8,439 29729
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Gold Head Grade 4.75 g/t 3.64 g/t 4.74 g/t
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Concentrate Tonnes 309.1 367.8 1,226.4 1,509.5
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Gold Grade Concentrate g/t 131.9 85.1 119.7
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Gold Produced 40.5kg 31.2kg 147.1kg 139.7kg
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Silver Grade Concentrate g/t 298.9 174
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Silver Produced 91.5kg 70.4kg 413.6kg 404.9kg
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The production, metal weights and sales
figures are provisional and subject to averaging or umpiring provisions under
the terms of the concentrate off-take contract with Xstrata Corporation as
detailed in a press release dated 3rd October, 2007.
The detailed results and Management
Discussion and Analysis (MD&A) are available on www.sedar.com
and www.galantas.com and the highlights in this release should be read in
conjunction with the detailed results and MD&A. The MD&A provides an
analysis of comparisons with previous periods, trends affecting the business
and risk factors.
This disclosure has been reviewed by
Richard Crew, (General Manager), a qualified person under the meaning of N.I.
43-101, who is responsible for the production related technical information
in this disclosure. Leo O'Shaughnessy is responsible for the financial
information. The information is based upon local production and financial
data prepared under their supervision, though some information is drawn from
data prepared before Mr.Crew's tenure commenced.
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 revenues and cost
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, 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; 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; planning and other
permitting issues; 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 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.
Galantas Gold Corporation Issued and Outstanding
Shares total 235,650,055.
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.
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