TORONTO, ONTARIO--(Marketwire - Feb. 14, 2011) - Galantas Gold Corporation (News - Market indication)(AIM:GAL) has today received an operational update from its wholly owned subsidiary, Omagh Minerals Ltd (OML). OML operates Ireland's only gold mine and is situated near Omagh, County Tyrone, Northern Ireland.
During the fourth quarter of 2010 and the early part of the first quarter 2011, the mine processing plant has been undergoing an upgrade and refurbishment. These changes, combined with extreme local weather conditions have (with wind chill, reached record levels of 26.9 degrees Celsius below freezing point) hampered production. Despite this, 272.6 dry tonnes (505.10 dry tonnes Q4 2009) of concentrate was produced in the fourth quarter 2010, estimated as containing approximately 31.5kgs gold (1012 ounces), 99.3kgs silver (3192 ounces) and 52 tonnes of lead, or a gold equivalent of 1159.03 troy ounces. The production and metal figures are provisional and subject to averaging or umpiring provisions under the concentrate off-take contract with Xstrata Corporation detailed in a press release dated 3rd October 2007. Audited financial results for the year are expected as usual by the end of April 2011.
The mine upgrade is approaching completion. A refurbished, second-line ball mill has been installed, the prime ball mill has had its bearings renewed and both are now operational. A short-head (fine) cone crusher has been installed within a closed-circuit crushing arrangement and a standby generator has been delivered. An intermediate, standard cone crusher has been refurbished and is expected on site in the third week of February. It is expected to be installed during the second week of March. The refurbishment of a jaw crusher (coarse) is also scheduled for the third week of February. The changes will enable greater volumes to be processed and lower grade ore be economically processed.
Downtime during the upgrade was more than expected due to scheduling difficulties and the extreme weather conditions. The plant is now operating at an increased volume of 12 tonnes per hour despite minor teething problems. A targeted increase to 15 tonnes per hour is expected to be achieved after the remaining work has been completed.
Following a successful channel sampling program, a core drilling contract has been arranged. The contractor is expected to mobilise to site on February 28th, 2011. Arrangements are also in discussion regarding the availability of an additional two rigs to expand the drilling program.
Results from the channel sampling program will be published in due course.
This release has been approved by Richard Crew, (General Manager), a qualified person under the meaning of NI 43-101, who is responsible for the technical information in this disclosure.
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 tonnage and metal 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, 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' 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.
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.
