GALANTAS GOLD CORPORATION
TSX Venture Exchange: GAL
London Stock Exchange AIM: GAL
GALANTAS INCREASES GOLD PRODUCTION 65% IN SECOND QUARTER 2009 OVER Q2 2008.
6th July 2009 : Galantas Gold Corporation (the Company) has received provisional
production tonnages for the second quarter (April-June) 2009 (Q2) from its
wholly owned subsidiary Omagh Minerals Limited (OML). OML operates the only gold
mine in Ireland and produces a concentrate containing gold, silver and lead.
April's production was 125.5 wet tonnes of concentrate and was affected by a
breakdown in the first half of the month. May saw 264.3 wet tonnes of
concentrate produced, with June's production measuring 311 wet tonnes (two
consecutive monthly records), a total of 701 wet tonnes for the quarter (661 dry
tonnes). Metal contents remain to be fully assessed, though it is anticipated
that shipments for the second quarter contained approximately 1977 troy ounces
of gold, 5972 troy ozs of silver and 90.4 tonnes of lead. 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.
The quarter's output showed an approximate 65% increase in gold, 114% increase
in silver and 185% increase in lead compared to the second quarter of 2008 and
an approximately 30.8% increase in gold, 24.8% increase in silver and 114%
increase in lead output compared to the first quarter of 2009. Processing plant
throughput for Q2 2009 increased approximately 64% from Q2 2008.
The increases in output are due in part to improvements in productivity brought
about by increased capability of pit equipment and to enhanced lead and silver
grades within the open pit. Increased sales of concentrate have improved cash
availability although the Company still suffers from a shortage of working
capital. The unaudited financial results for the quarter will be published in
the usual timeframe by the end of August 2009.
An overhaul of OML's Volvo EC460 excavator is complete and has moved top-soil
from part of the area of a second gold vein, the Kerr Vein. A smaller unit
(OML's Volvo EC140) will continue the task of removing peat and till. The Kerr
Vein is offset by approximately 250 metres to the west from the Kearney Vein,
which is the main focus of operations. The Kerr Vein pit is planned to later be
incorporated into the paste cell tailings storage arrangement.
A program to explore OML's 653 square kilometre license area will shortly
recommence. The program had earlier been put on hold to prioritise grade control
within the open pit but management is now sufficiently confident of performance
to recommence.
The Annual and Special Meeting of shareholders of Galantas Gold Corporation was
held on Monday 15th June 2009 at The Board Of Trade, Toronto, Canada. All
resolutions (as outlined in the proxy circular to shareholders) were carried.
This disclosure has been reviewed by Nicholas Hardie C.Eng FIMMM, (General
Manager), a qualified person under the meaning of N.I 43-101, who is responsible
for the technical 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 190,100,055.
Neither the 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 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 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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