TIDMGAL
RNS Number : 7642K
Galantas Gold Corporation
12 July 2017
GALANTAS GOLD CORPORATION
TSXV - AIM "GAL"
DEVELOPMENT OF OMAGH GOLD MINE ADVANCES AND INTERSECTS STRINGER
VEIN
12(th) July 2017 : Galantas Gold Corporation (the "Company") is
pleased to announce continued progress by its wholly owned
subsidiary engaged in development of an underground gold mine near
Omagh, County Tyrone, Northern Ireland.
Underground development is proceeding well with the development
tunnel advanced by approximately 47 metres from the underground
portal. Arrangements regarding blasting appear to be working
efficiently and actions are in hand to increase the blasting
frequency.
A narrow stringer vein, an offshoot of the Kearney system, has
been intercepted (as expected following report dated 24(th) August
2016 of adjacent drill Hole 159). Hole 159 intersected the stringer
vein some 11m south of the tunnel intersection and reported a
mineralised intersect of 1 metre (true width 0.5m) at 5.7 g/t gold
and 6.2 g/t silver. Mineralisation, examined by trenching (reported
7(th) September 2016) and considered the surface expression of the
stringer vein, suggested a vein strike of 325 degrees, with a dip
of 85 degrees east. The tunnel intersection shows the
mineralisation over a true width of a minimum of 0.5m with a
similar strike and dip. Grade samples have been taken. This vein
has potential to provide a limited quantity of mineralised material
for processing whilst the remainder of development required to
access the main Kearney veins is progressed.
Having reached the first development milestone, the permanent
ground support tunnel lining is to be installed. Recent tests of
shotcrete (a form of sprayed concrete), at the site, demonstrated
that a suitable permanent lining can be achieved. Shotcrete will be
sprayed over the existing mesh and rockbolt ground support on a
campaign basis until in-cycle shotcreting is possible. The current
shotcreting program and installation of capital infrastructure has
been scheduled over the next two weeks during which time tunnel
advance will be restricted.
After the permanent ground support has been installed, it is
anticipated that the enhanced blasting arrangements noted above
will accelerate the rate of tunnelling advance.
The mining is being carried out by an in-house crew which is
fully trained in safety and operating procedures. An in-house,
mines rescue team has also been trained and equipped. Capital
equipment has been purchased, including fans, pumps, compressor,
additional environmental monitoring, security and safety equipment
amongst the items.
Surface stockpiles of rock have been reduced by backfilling of
the Kearney open pit, to create an apron area for the upper part of
a ramp which has been formed in the north end of the open pit. The
ramp accesses the lower portal in the base of the open pit and will
eventually be contained within a concrete tunnel, permitting
completion of backfilling of the open pit.
Two additional ground-water monitoring boreholes have been
drilled and monitoring data collected. Water make within the tunnel
is minimal and water monitoring at the site continues to
demonstrate good compliance within the criteria set down by the
regulatory authority.
Roland Phelps, President & CEO, Galantas Gold Corporation,
said "I am very pleased with the progress being made. We have an
excellent and skilled team in place delivering results. As a
consequence, I am delighted to announce that arrangements are being
put in hand to increase the rate of progress and with this the
hiring of some additional personnel. This will take the number of
persons employed at the operation to around 27. "
The Omagh Gold Mine has an operational processing plant and
tailings facility with an excellent environmental record. The plant
uses a non-toxic, froth flotation process, without the use of
cyanide or mercury and produces a gold concentrate which is
exported for smelting. The remaining tailing sands are clean and
free from acid drainage. The plant is on stand-by awaiting
mineralised material from underground development. The underground
mine, when fully developed, is expected to create 130 jobs plus
others in service industries associated with the development.
Regulatory
The Company confirms that all resolutions were passed at an
Annual General and Special Meeting which took place on 26(th) June
2017, details of which may be found on the Company's website
www.galantas.com .
The samples were taken by geological staff under the supervision
of R. Phelps C.Eng MIMMM, (President & CEO, Galantas Gold
Corporation), the Qualified Person (QP) for the program under NI
43-101 and who is also a "Qualified Person" as defined in the Note
for Mining Oil & Gas Companies, June 2009, of the London Stock
Exchange. Readers are referred to the disclosure dated 24(th)
August 2016 for complete technical details, including sampling,
security, verification and testing regarding Core H159 and the
disclosure dated 7(th) September 2016 regarding details of the
surface trenching. Mr. Phelps has reviewed the technical detail
contained in this release.
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.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Enquiries : Galantas Gold Corporation
L. Jack Gunter P.Eng - Chairman, Roland Phelps C.Eng - President
& CEO
Email: info@galantas.com Telephone: (UK) +44 (0) 2882 241100
Website: www.galantas.com
Grant Thornton UK LLP (Nomad)
Philip Secrett, Richard Tonthat: Telephone: +44(0)20 7383
5100
Whitman Howard Ltd (Broker & Corporate Adviser)
Nick Lovering, Grant Barker: Telephone: +44(0)20 7659 1234
This information is provided by RNS
The company news service from the London Stock Exchange
END
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