GALANTAS GOLD CORPORATION
MANAGEMENT DISCUSSION AND ANALYSIS
Six months ending June 30, 2008
29 August 2008
This document constitutes management's discussion and analysis (MD&A) of the
financial and operational results of Galantas Gold Corporation (the company) for
the six months ended June 30, 2008. This MD&A is to be read in conjunction with
the unaudited financial statements for the same period. The MD&A does not form
part of these unaudited financial statements. The Company prepares and files
its financial statements in accordance with Canadian Generally Accepted
Accounting Principles (GAAP). The currency referred to in this document is the
Canadian dollar. The MD&A is prepared in conformance with National Instrument
51-102F1 and was approved by the Company's Audit Committee on August 28, 2008.
This MD&A is dated August 28, 2008.
FORWARD LOOKING STATEMENTS
The information in the MD&A contains forward looking statements, including
statements about anticipated operating and financial performance. Such
statements are not guarantees of future performance which is subject to risks
and uncertainties only some of which are within the Company's control, and any
or all of which could cause the Company's performance to be materially different
from what directors may believe. Given the uncertainties associated with
forward looking statements, readers are cautioned not to place undue reliance on
them. The Company does not undertake to update any forward looking statements
contained herein.
OVERVIEW - STRATEGY - DESCRIPTION OF BUSINESS
Galantas Gold Corporation is a producing mineral resource issuer and the first
to acquire planning consent to mine gold in Ireland. The Company's wholly owned
Ontario holding company, Cavanacaw Corporation, owns all of the shares of two
Northern Ireland companies - Omagh Minerals Limited, owner of prospecting and
mining rights, planning consent plus land, buildings and equipment; and Galantas
Irish Gold Limited, owner of rights to work, market and sell the Company's gold
production as certified Irish gold jewellery.
The Company's strategy to increase shareholder value is to:
· Increase the production of the open pit mine and processing plant on its
Kearney deposit,
· Continue to explore and develop extensions to the Kearney and nearby known
deposits so as to expand minable reserves and increase gold production in
stages,
· Explore its 3 prospecting licences which aggregate 653 square kilometre,
focusing on the more than 50 gold targets identified to date, and
· Promote and expand on a commercial basis the Galantas®Irish gold jewellery
business now that certified Irish gold from the mine has become available.
Reserves and Resources
References
1. May 2008 : ACA Howe International Ltd. " Technical Report on the Omagh
Gold Project, Counties Tyrone and Fermanagh, Northern Ireland (The Updated Howe
Report)
Ore reserves and mineral resources lie within eight veins in a 5 square
kilometre area at the eastern end of the Company's original prospecting licence
which encompasses a 20 by 6 kilometre fault-bounded inlier of Precambrian
"Dalradian" rocks and younger rocks underlain by Dalradian rocks. The deposits
sub-outcrop beneath a few meters of glacial and recent overburden and are open
to depth and usually along the strike. The steeply dipping Kearney deposit,
focus of the initial mine, is some 850 meters long. It has been drilled with 75
diamond drill holes. Below the average 3 meters of overburden , a 359 meters
long section at the southern end of the deposit had been 88% stripped and
channel sampled in detail in the late 1980's by Rio Tinto (212 meters) and in
1991 by Omagh Minerals Limited (103 meters).
A Press Release dated 12th June 2008 gave detail of a Resource and Exploration
review and contained the following disclosure :-
"The report of the mineral resource review on the Omagh property has been
prepared by independent consultants, ACA Howe International Ltd (Howe). The
report, entitled Technical Report on the Omagh Gold Project is dated 28th May
2008 and will be published on www.sedar.com and www.galantas.com . Authors are
G. White FGS MAusIMM, J. Bennett C.Eng MIMMM and N. Holloway C.Eng MIMMM.
The resource review updates resource estimates for the Kearney deposit and the
other named veins. These are classified in accordance with CIM (Canadian
Institute of Mining, Metallurgy and Petroleum) Definition Standards on Minerals
Resources and Minerals Reserves, adopted by CIM Council on December 11, 2005.
The report was commissioned to be prepared in compliance with Canadian National
Instrument 43-101.
The reporting has been conservatively applied and there are some significant
differences with the JORC (Australian Joint Ore Reserve Committee) code (1995)
previously used to calculate resources. For instance, although the Elkins
mineralised structure has been found to be co-incident with an IP (Induced
Polarisation) geophysical anomaly for the portion of its length that has been
drill tested, the portion of the anomaly that has not been drill tested has been
excluded from resource calculation. The potential Elkins extension is included
within a table of Resource Extension Targets. Previously the extension was
calculated within the JORC resource model.
The CIM / NI.43-101 resources as summarised in the report are as follows :
Measured Indicated Inferred
Gold (Au) Grade Tonnage Grade Tonnage Grade Tonnage
Ozs g/t gold (t) ozs g/t gold (t) ozs g/t gold (t)
Kearney 16000 6.35 78000 76000 6.74 350000 218000 9.27 730000
Elkins 12000 3.3 113000 3,600 3.82 29000
Kerr 7800 4.03 60000
Joshua 20400 3.96 160000
Gormley 24300 6.57 115000
Garry 1600 1.27 40000
Prince's 12500 38.93 10000
Sammy's 4100 4.26 30000
Kearney Nth 3500 1.97 55000
Total ozs 16000 88000 295800
Two new vein discoveries are reported upon, named as McCombs vein and Eastern
Lagoon vein, though no estimate of resources have been included for these
discoveries.
The report contains estimates of potential tonnage and grade of some of the
available targets and classifies these by Resource Extension or Exploration. The
potential quantity and grade is conceptual in nature and there has been
insufficient exploration to define mineral resources in these areas. It is
uncertain if further exploration will result in the targets being delineated as
mineral resource. The exploration potential does not represent a mineral
resource, does not have demonstrated economic viability and is disclosed in
accordance with NI 43-101 Rules and Policies, Section 2.3, disclosed as
potential quantity and grade, expressed as ranges, of a potential mineral
deposit that is to be the target of future exploration. The report states,
"However, the disclosed potential quantity and grade has been determined on the
basis of reasonable extrapolation from known and defined resources and/or
favourable geochemical/geophysical signatures and float/surface sampling, the
results of which make these areas highly prospective".
Table of Exploration Potential* (The updated Howe Report)
Target Name Potential Tonnes Potential Grade Range
Range (t) (g/t Gold)
RESOURCE EXTENSION TARGETS
Low High Low High
Kearney 400,000 600,000 4.5 9.0
Elkins 200,000 400,000 2.0 4.0
Joshua's 190,000 380,000 2.0 4.0
Kerr 180,000 360,000 2.0 4.0
Gormley 230,000 460,000 3.3 6.5
Sammy's 30,000 60,000 2.1 4.2
Prince's 20,000 40,000 19 38
Garry's 80,000 160,000 0.7 1.3
Total 1,330,000 2,460,000
EXPLORATION TARGETS
Peter's 4,000 13,000 4.5 9.0
"63 gram" 33,000 101,000 4.5 9.0
North of 135,000 810,000 4.5 9.0
Sammy's
Barn / East
Cousins
Cornavarrow 60,000 360,000 4.5 9.0
Burn East
Corlea Burn 60,000 360,000 4.5 9.0
Legphressy 60,000 360,000 4.5 9.0
Cousins 48,000 145,000 4.5 9.0
Total 400,000 2,149,000
TOTAL 1,730,000 4,609,000
EXPLORATION
POTENTIAL *
Initial Mining Project
The project embraces an open pit mine capable of supplying ore to a crushing-
grinding-froth flotation plant. The plant is designed to produce a gold and
silver rich sulphide flotation concentrate for sale to a commercial smelter.
The plant was commissioned as stated in a press release dated June 26, 2007.
Further improvements in terms of production quantity have been made since the
end of the last quarter and concentrate quality has also been improved.
Inconsistencies in terms of production quantity and quality have been reduced
and now reflect the variable nature of the orebody.
Galantas Irish Gold Limited
Generally adverse market conditions within the jewellery trade have impacted the
ability to expand distribution. Additional retailers have expressed interest to
retail Galantas jewellery later in the year. Internet based advertising has been
tested and is being assessed.
Management and Staff
Overall management is exercised by one Executive Director along with a General
Manager who is in charge of operations in Omagh where the mine, plant and
administration employs 35 people.
Key Performance Driver
The key performance driver is the achievement of production and cash flow from
profitably mining the deposits at Omagh.
1.2 OVERALL PERFORMANCE
Ramp up challenges in the early stages of production have been mitigated but
maintaining a consistent ore supply continues to be a challenge. The pit
continues to be the main focus of management attention. A detailed pit
development plan is being executed vigorously. An arrangement has been entered
into for the production of road fill rock from the mine, which is expected to
assist with pit development and reduce mining costs. Partial Ball Mill re-lining
was necessary mid-way in the quarter and this was carried out during the
installation of increased crushing capacity. Production has become more stable
and ore supply shortages are currently reducing in the third quarter.
During the quarter a total of 390.0 dry tonnes of concentrate was
produced yielding an estimated 1,198 ounces of gold, 2,793 ounces
of silver and 31.686 tonnes of lead. These figures are
preliminary at this point in time as final assay results with
Xstrata have not been exchanged. Year to date production,
through July 17, was 829.4 tonnes of concentrate shipped.
Exploration
Exploration activity slowed in the second quarter with the shift
in focus to developing the pit. The second and third quarter has
seen the development of a detailed exploration database and the
acquisition and assessment of Tellus data. Tellus was a recent,
regional exploration program funded by the UK government. The
third quarter has seen the carrying out of field work programs in
each of the three license areas, following up Tellus and
previously known data.
1.3 SECOND QUARTER FINANCIAL RESULTS
Revenue Recognition and Expenses
Recognition of revenue from the sale of concentrate and jewellery
amounted to $650,565 for the second quarter. During the
quarter management focused heavily on shipments to Xstrata to
continue the cash flow. However, it is anticipated that there
will be shipments to the specialist processing plant in the third
quarter to supply certified Irish gold. Additional shipments
are expected as replenishment stock will be required for
anticipated re-ordering by retailers.
With costs no longer capitalized but instead fully expensed as
incurred the company reported a loss of $712,273 for the quarter.
Though this was higher than planned it was anticipated due to the
continuing shortage of ore from the pit which is being actively
addressed. Costs were higher than plan reflecting due to stock
based compensation and amortization charges. The loss for the
comparative period last year at $135,118 is reflective of the
operation not being in production hence most costs were
capitalized.
At June 30, 2008, total assets were $20,761,477, up $111,596 from
the first quarter mainly due to inventory of concentrate and
finished jewellery. Property, Plant & Equipment dropped
reflecting the amortization and depreciation of this asset.
Cash at the end of the quarter was $113,195 (March 31, 2008 -
$219,829). This decrease is more or less a factor of timing and
management expects this number to fluctuate quarter to quarter as
financial obligations come due. Accounts receivable totaled
$562,290 and is largely unchanged from the first quarter end at
$521,823. Inventory at $1,752,846 is up as concentrate shipments
have improved as well as an increased supply of jewellery for
replenishment orders. The non-cash item of future income tax
credit of $1,602,917 remains unchanged from year end.
Liabilities at $6,016,736 were up over the prior quarter from
$4,767,792 largely due to continued debt financing secured from
a related party and deferred revenue. The debt financing will
be retired within terms and suppliers are appraised of the
company's cash position and are being paid as funds are generated
from operations. Deferred revenue of $603,017 reflects the
shipments from April through to June and should continue to
increase quarter over quarter as shipments increase. This does
not negatively affect the company's cash position but is merely a
timing issue.
Expenses
Cost of operations was $579,048 compared to $135,716 in the prior
year due primarily to the current period costs no longer
capitalized whereas in the prior period the company was still in
the development stage. Cost of sales remains higher than revenue
due to the fixed nature of those costs in the near term.
· Operating expenses increased substantially to $261,396
compared to $30,387 as the mill entered into production mid year
2007 while costs this year are no longer deferred. The largest
increase derived from wages of $217,696, and professional &
consultancy fees of $11,926.
· The foreign exchange loss of $21,583 is an increase from the
prior period gain of $57,669 and reflects the effect of floating
currencies, significantly the recent strength of the Canadian
dollar.
· Stock based compensation at $117,656 reflects management's
decision to reward key staff based on company performance over
the long term as well as $113,655 in stock options granted in
previous years that vested during the quarter.
· Bank charges and interest for the quarter were $83,714
compared to $2,022 the year before and are expected to remain at
this level until the debt, which was acquired for plant &
equipment and working capital, is retired.
1.4 RESULTS OF OPERATIONS
The Company's core business is gold mining with the majority of
its revenue derived mainly from the sale of gold, silver, lead
concentrates and small amounts of gold jewellery. Production
has shown signs of further improvement during the second quarter
with a total of 18 containers shipped compared to 17 containers
shipped in the first quarter of 2008. In terms of dry tonnage
shipped the second quarter was 390.0 tonnes compared to the first
quarter of 330.4 tonnes. Mine cash inflows for the quarter were
£391,275 and when compared against cash expenses of approximately
£531,000 are moving favourably towards cash breakeven.
Management expects this to improve within the third quarter and
achieve the desired breakeven point well before the end of the
fiscal year.
1.5 SUMMARY OF QUARTERLY RESULTS
Revenues and net financial results in Canadian dollars for the
second quarter of 2008 and for the seven preceding quarters are
summarized:
Quarter Ended Total Revenue Net Profit (Loss) Net Profit (Loss) per
share & per share
diluted
June 30, 2008 650,565 (712,273) 0.00
March 31, 2008 621,787 (1,145,919) (0.01)
December 31, 2007 (63,505) (1,070,540) 0.00
September 30, 2007 715,080 (788,481) 0.00
June 30, 2007 1,212 (135,118) 0.00
March 31, 2007 1,355 (171,517) 0.00
December 31, 2006 15,363 188,323 0.00
September 30, 2006 15,673 (238,654) 0.00
There were 18 shipments during the quarter to Falconbridge with
no shipments going to the specialty refiner for the production of
Galantas Irish Gold. Management directed all shipments to the
Xstrata refinery in the second quarter but anticipates directing
shipments to the specialty refiner in the latter period of the
third quarter and into the fourth quarter.
1.6 LIQUIDITY
As at June 30, 2008 the Company's working capital was in a
deficit of $3,347,515 which compared with a deficit of $2,457,154
at end of the prior quarter. As anticipated, this deficit is
expected to persist throughout the 2008 but gradually to reduce
as cash from operations, both from the sale of concentrates and
jewellery, increases in the third and fourth quarters. Ore
supply continues to be a challenge with management focusing
heavily on the development of the pit which is making slow but
steady progress. Additional working capital may be required in
the short term.
To date the company has been able to draw upon additional cash
resources as loans from the President of the company for working
capital and finance of plant and equipment.
1.7 CAPITAL RESOURCES
As at June 30th, 2008, the Company had capital requirements to
repay, under existing agreements with Barclays Lease Finance
three financing facilities of $109,526, $98,861 and $261,329
totaling $469,716.
A term loan of $349,989 (£250,000) for working capital use at an
interest rate of 7.50% was taken from Allied Irish Banks in May
2007, it is repayable over 3 years at a monthly payment of
$16,637 (£7,743).
Welsh Gold plc., a company controlled the President, and the
President personally is due $1,901,994. A portion of the loan,
$544,981 (£268,050) is secured with a second charge against the
land in Omagh. The entire loan bears interest at base rate plus
2%. $794,376 is due over a period of 3 years. At June 30, 2008,
interest of $71,619 was accrued and included in accounts payable
and accrued liabilities.
The Company also obtained a loan facility from G&F Phelps, a
company controlled by a director of the Company, in the amount of
$836,709 (£412,060) for the financing of mining equipment. The
term loan is for a period of 4.25 years at 4.04% flat with
monthly interest payments of $17,464 and is secured by all
equipment owned by the Company's wholly-owned subsidiary Omagh
Minerals.
The company has no further commitments other than an employment
contract with its 1 executive director.
1.8 OFF-BALANCE SHEET ARRANGEMENTS
The Company has no off-balance sheet transactions.
1.9 RELATED PARTY TRANSACTIONS
The Company was charged $18,623 (June 30, 2007 - $6,691) for
accounting and corporate secretarial services by companies
associated to the corporate secretary of the Company. Accounts
payable include $40,095 (June 30, 2007 - $17,938) owing to these
companies. The services provided are ongoing and include book-
keeping for the Canadian companies
Directors fees of $9,000 (June 30, 2007 - $18,500) were paid or
accrued during the three months ended June 30, 2008.
SHARE CAPITAL
The Company is authorized to issue in series an unlimited number
of common and preference shares. At the end of June 2008, a
total of 175,675,855 shares had been issued.
As of June 30, 2008, a total of 24,404,000 warrants were
outstanding with expiry dates and exercise price noted in the
following table:
Number of Warrants Exercise Price ($) Expiry Date
14,000,000 0.32 July 26, 2008
1,300,000 0.25 July 26, 2008
5,284,000 0.45 September 2, 2008
3,820,000 0.32 September 4, 2008
STOCK BASED COMPENSATION
On February 20, 2008, 250,000 stock options were granted to an
employee of the Company to purchase common shares at a price of
$0.16 per share until February 20, 2013. The options vest one-
third upon grant, one-third at the first anniversary and one-
third on the second anniversary of grant. The fair value
attributed to these options was $32,250 and will be expensed on
the statement of loss and credited to the contributed surplus as
they vest. Included in the stock based compensation for the 3
and 6 months ended June 30, 2008 is $4,001 and $17,440
respectively to the vested portion of these stock options.
As at the end of June 30, 2008, 9,400,000 options were
outstanding, as follows:
Exercisable Options Number of Options Exercise Price (4) Expiry Date
250,000 250,000 0.26 July 31, 2008
200,000 200,000 0.10 May 13, 2010
500,000 500,000 0.26 June 14, 2011
333,333 500,000 0.23 June 15, 2012
2,566,667 7,700,000 0.14 December 24, 2012
83,333 250,000 0.16 February 20, 2013
OTHER MD&A REQUIREMENTS
Additional costs for the quarter with prior year comparison are
detailed as follows:
Expense Account June 2008 June 2007
Accounting & corporate 13,569 7,803
Bank charges & interest 83,714 2,022
Foreign exchange loss 21,583 (57,669)
Legal & audit 14,339 14,172
Operating expenses 261,396 30,387
Shareholder communication 38,614 65,633
Stock based compensation 117,656 48,355
Transfer agent 9,786 10,071
General Office 12,238 15,079
The increase in bank charges & interest reflects the increase in
debt to finance the operations needs for capital equipment and
working capital. Management expects these amounts to level off as
cash from operations improves with production.
The variance in the foreign exchange compared to the prior year
reflects the nature of dealing in foreign currency. The company
is paid in US dollars for the sale of concentrate to Xstrata
(Falconbridge) and primarily conducts its business in pounds
sterling. The large increase also is indicative of the increase
in operating activity, giving rise to greater impact of foreign
currency fluctuations.
Operating expenses are primarily represented by wages, insurance,
travel, consultancy, advertising and professional fees. The
increase in largely due to the expensing of all costs compared to
the prior year where costs where largely capitalized.
Stock based compensation reflects the granting of 250,000 share
options on February 20, 2008 and the vesting of options granted
in previous years in the amount of $113,655.
The other expenses show a decline in spending as management is
focusing very heavily on production related items and requires
less professional services.
Changes in Accounting Policies Including Initial Adoption
Effective January 1, 2008, the Company adopted the new
recommendations of the CICA Handbook Section 3031, Inventories.
The "revised inventories" section brings the CICA standard in
line with International Financial Reporting Standards and allows
for the upward revaluation of inventory that was previously
written down to net realizable value due to a change in
circumstances. The adoption of this standard had no impact on
the Company's financial results.
TRENDS AFFECTING THE COMPANY'S BUSINESS
Gold prices have declined from a peak in March. Measured in £
sterling the decrease is approximately 8%, though the price is
still approximately 34% above its sterling price a year ago.
Sterling has weakened against the US$.
Difficulties in the Western credit markets have impacted on all
companies entering into banking credit arrangements and these may
affect the ability of the company to raise funds for capital
expenditure.
In Northern Ireland, the widely acknowledged political agreement
has consolidated the positive financial effects of peace and
stability in the province.
RISKS AND UNCERTAINTIES
Galantas operates in a sector - early stage mineral production
and exploration - which carries inherent risks only some of which
are within management's ability to reduce or remove. The main
sector risk is always metal price. The Company's other business,
high value Irish gold jewellery, is dependent upon the mine
consistently being able to supply reliable certified Irish gold.
The Company has assessed the risks surrounding its business. It
has concluded that most if not all of the risks are standard to
the industry and none of them so profound as to inhibit pursuit
of the Company's strategy. The main risks identified and
considered are:
1.Ore Reserves Tonnage and grade of ore may be lower than
anticipated. The Kearney deposit along strike and to depth has
been proven within the confines of the initial open pit and
indicated well beyond. Nevertheless, the ore is variable in
detail and it has proved difficult to mine at a consistent grade
and supply the plant with sufficient ore regularly and although
the issue is being addressed, this may persist into the future.
2.Mineral Processing Generally the plant performs in line
with the prior technical guidance. Alterations and modifications
to equipment and operating practices have been made and have
resulted in improvements in comminution and concentrate quality.
However, there is no certainity that the improvements will
persist and were these not to do so there would be a risk to cash
flow and budget.
3.Environmental The project was subject to one of Ireland's
lengthiest public enquiries whereat its design and operating
fundamentals were challenged and defended to the satisfaction of
the independent assessors and industry experts representing
regulators and the Company. In operation, the facilities are
subject to self monitoring and monitoring by regulators. The
company has been advised that its defence regarding a minor
incident in 2007 (in which no harm was caused) has been accepted
without condition.
4.Permitting The Company has permission to carry out its
activities. Overall consents were granted in 2000 after an
exhaustive public inquiry and fulfillment of more than 30 pre-
conditions which attached to the provisional consent granted in
1995. Remaining consents required - building regulations,
archaeological supervision of excavation which is mandatory
throughout Ireland, compliance with IPPC regulations - relate to
operating procedures and are being addressed with the relevant
authorities routinely. Nevertheless, as in all jurisdictions,
regulatory provisions are subject to change and the Company may
be faced with additional constraints in the future.
5.Title The Company owns the land in secure freehold on
which the project is located. Precious metal licences and mining
licences have been granted to the Company by the Crown Estate and
renewed as required since the mid - 1990's when initially
granted. Licences and Leases are subject in the usual way to
minimum performance requirements which are set at a level so as
not to inhibit development. There is a dialogue ongoing with the
Northern Ireland Development of Enterprise Trade and Industry
(DETI) concerning a licence to extract base metals which occur
with the gold and silver in the quartz-sulphide veins and which
may be recovered as a by-product of gold and silver. The licence
if applicable may require a fee payable to owners of surface
rights. In the case of the Company's planned mine, since the
owner is the Company itself, it is thought unlikely that there
will be a material impact.
6.Political Northern Ireland has achieved a stable political
status conducive to business as is evidenced by the relatively
large amounts of inward investment that the province has enjoyed
over the past decade. The mine is well removed from areas of
potential urban disturbance.
7.Financial The risk is that additional funds, if required,
may not be available. In spite of recent private placements, the
Company still may not have sufficient capital to enable the
Kearney mine to be brought to full production. The delay in
bringing the production up to capacity has resulted in a cash
shortage. Management continues to actively pursue additional
working capital and has implemented an aggressive ore extraction
program. Until such funds are secured and the mine produces at
an increased capacity there is the uncertainty of continued
operation.
8.Revenue The Company has contracted sale of its concentrate
to Falconbridge. While the payment terms are specific, there is
risk that unit income may fall short of forecast. This could be
due to a number of factors including failure of the concentrate
to be within the specification contracted as regards both value
elements and penalty elements and failure to produce concentrate
of consistent quantity.
9.Currency Fluctuations/Bullion Price Most of the costs to
the company are incurred in British Pounds Sterling. Gold price
expressed in Sterling is within approximately 15% of 5 year highs
and may stay such or remain on trend. There is risk that this
trend may reverse and reduce Sterling income. Inflation is
widely viewed as a threat in the United Kingdom and elsewhere and
this is cause for concern. Results are published in Canadian
dollars and there is therefore a currency risk. The Company's
policy is to not sell forward its bullion.
10.Construction and Development Most construction costs have
been incurred and are therefore known and reflected in the
accounts. Future development risk is attached to development of
the orebody, such as till stripping, where quantities are only
estimated and subject to adverse variance.
11.Personnel Notwithstanding the relatively small scale of
the Kearney mine, a level of expertise is required in the mine,
plant and ancillary activities including geology and accounting.
With the world experiencing a high level of minerals industry
activity, the Company foresees difficulties in recruiting
additional qualified people. The general shortage of skilled
people may well prevail for some time to come and the risk is
that costs, operations, future expansion and indeed excellence
may be impacted negatively.
This disclosure has been authorised by R. Phelps C.Eng MIMMM
(President & CEO), who is a Qualified Person for this purpose.
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:
statements relating to the estimated reserves and resources at
the Omagh Gold project; anticipated results of drilling programs,
feasibility studies or other analyses; and 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; impact of any hedging
activities, including margin limits and margin calls;
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.
Enquiries:
Galantas Gold Corporation
Jack Gunter P.Eng - Chairman
Roland Phelps C.Eng - President and CEO
Email : info@galantas.com
Website : www.galantas.com
Telephone : +44 (0) 2882 241100
Blomfield Corporate Finance Limited
Nick Harriss
Telephone : +44 (0) 207 489 4500
Lewis Charles Securities Limited
Kealan Doyle & Nicholas Nicolaides
Telephone : +44 (0) 207 456 9100
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