GALANTAS GOLD CORPORATION
TSXV and AIM: Stock Symbol - "GAL"
TRADING UPDATE : SECOND VEIN (KERR VEIN) EXPOSED FOR MINING
January 19th, 2010 : Galantas Gold Corporation (the Company) has received
provisional production statistics for the fourth quarter (October through
December) of 2009 from its wholly owned subsidiary, Omagh Minerals Limited
(OML). OML operates the only gold mine in Ireland producing and selling a
flotation concentrate containing gold, silver and lead.
October's shipments were 181.3 wet tonnes of concentrate. November saw 185.3
wet tonnes shipped, with 157 tonnes shipped in December - for a total of 523.6
wet tonnes in the quarter. Production (dry tonnes) in the fourth quarter at
504.7 tonnes was 24 % higher than in the fourth quarter of 2008 and 37 % higher
than in the third quarter of 2009.
While definitive estimates of the metal content of the concentrate awaits
receipt of final and agreed assays, it is anticipated that shipments in the
fourth quarter contained approximately 48.8 kg (1,570 troy ounces) of gold,
100.6 kg (3,235 troy ounces) of silver and 61.3 tonnes of lead. The total of
invoiced provisional concentrate sales for the period is estimated at US$
1,266,000. 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 financial results for the quarter and audited results
for 2009 are expected to be published in the usual timeframe by the end of
April, 2010.
Mining and other earth moving equipment was diverted in the first part of
October and in the last operating week of December to till stripping to extend
the operating length of the Kearney open pit. The Kerr Vein was partially
exposed in December, readying it for mining in January, 2010, when overburden
stripping will continue. A shortage of working capital prevented these
activities being carried out independently of routine production. Backfilling of
the southernmost section of the Kearney pit, which has been worked to its
permitted base, continued in the quarter. The recent Christmas shut down was
utilised to replace and rotate worn ball mill lining using parts held in stock
from the full reline at Christmas 2008. Heavy snow caused re-supply and
operational difficulties on start up but the site is now operating normally.
The number of employees on the mine averaged 43 during the period.
The Omagh site suffered heavy rainfall, more than double the average, during the
period. There was some soil cover washed away from the sound protection berm,
and OML is working with the N.I. Environmental Protection Agency to ensure that
there are no adverse environmental consequences. Tailings cells and site
drainage infrastructure proved adequate to cope with the adverse conditions.
Consented polishing pond outflow is expected to routine test within normal
permitted limits.
This disclosure has been reviewed by Nicholas Hardie C. Eng, FIMM, (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.
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 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 ini 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 pres release, except as
required by law.
Galantas Gold Corporation Issued and Outstanding Shares total 190,100,055.
Neither TSX Venture Exchange not 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.
Enquiries
Galantas Gold Corporation
Jack Gunter P.Eng - Chairman
Roland Phelps C.Eng - President & CEO
Email: info@galantas.com
Website: www.galantas.com
Telephone: +44 (0) 2882 241100
Blomfield Corporate Finance Ltd
Telephone: +44 (0) 20 7444 0800 Nick Harriss
Beaufort International Associates Ltd
Telephone: +44 (0) 20 7930 8222 Tanvier Malik