RNS Number : 8470X
Galantas Gold Corporation
10 January 2022
GALANTAS GOLD PROVIDES CORPORATE UPDATE AND PRODUCTION
January 10, 2022, TORONTO, CANADA - Galantas Gold Corporation
(TSX-V & AIM: GAL; OTCQX: GALKF) ("Galantas" or the "Company")
is pleased to provide a corporate update on development progress
and production guidance at the high-grade Omagh Gold Project in
2021 Project Highlights:
-- A total of 2,200 metres of underground mine development have been completed to date, with rehabilitation of early
mine workings ongoing.
-- Upgrading work on mine electrical reticulation commenced in 2021 and is expected to be completed by the end of Q1
2022. Additional fans and pumps have arrived on site and are being installed.
-- Refurbishment and procurement of major equipment is now complete.
-- Development of a secondary egress has commenced and is expected to be completed by the end of Q1 2022.
-- The process plant is being prepared for installation of new equipment.
-- Laboratory testing equipment has been procured, with partial commissioning completed in 2021. The laboratory is
expected to be fully functional by the end of Q1 2022.
-- Key operational team members have been recruited to fill safety, mining, milling, and technical services roles.
Key positions of the operational management team are now in place with ongoing recruitment of mining and
processing employees to meet operational targets.
-- Underground drilling at the Kearney Vein and surface drilling at the Joshua Vein have commenced for resource
expansion and mine planning.
-- The Company engaged JDS Energy & Mining Inc. for mine planning.
2022 Operational Guidance:
-- Production is expected to commence at the end of Q1 2022 with 9,000 ounces of gold in concentrate produced at an
average head grade of 5.50 grams per tonne (g/t) at an all in sustaining cost (AISC) of US$1,150 per payable
ounce for the year ending 2022. In 2023, production is expected to increase to 17,800 ounces at an average grade
of 8.0 g/t and an AISC of US$1,350 per payable ounce.
-- US$4.2 million in growth capex.
-- The Company is undertaking studies to modernize the processing plant, including the addition of a gravity circuit
to support an internally-financed staged expansion of gold production.
-- The Company plans to continue its 4,000-metre underground drilling program started in 2021 to aggressively drill
the Joshua and Kearney veins, and also drill additional highly prospective targets in the second half of 2022.
Mario Stifano, CEO of Galantas, commented: " 2021 was a headline
year for Galantas as we attracted key management talent and new
supportive shareholders, and made significant investments in
underground development, mine infrastructure and equipment. Thanks
to the hard work of our team on the ground, we are now on the cusp
of commencing gold production at Omagh. The opportunity for growth
and to create value for our shareholders is tremendous as technical
and engineering studies to expand and upgrade the processing plant
to support a Phase 2 expansion to 35,000 ounces of gold per annum,
are underway - with further phased production growth envisioned to
support an aggressive exploration program to grow our high-grade
gold resources and unlock the full potential of a newly emerging
high-grade gold district."
Guidance is based on a number of assumptions and estimates as of
December 31, 2021, including among other things, assumptions about
the timing of completion of mine upgrades and anticipated costs and
expenditures. Production and cost guidance includes current
assumptions on the impact of COVID-19 on operations. Guidance
involves estimates of known and unknown risks, uncertainties and
other factors which may cause the actual results to be materially
This release contains terms or performance measures commonly
used in the mining industry that are not defined under
International Financial Reporting Standards ("IFRS"), including
"all-in sustaining costs" (or "AISC"). Non-IFRS measures do not
have any standardized meaning prescribed under IFRS, and therefore
they may not be comparable to similar measures employed by other
companies. The information and guidance presented is intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
Scientific or technical disclosures in this press release have
been reviewed and approved by Dr Sarah Coulter, who is considered,
by virtue of her education, experience and professional
association, a Qualified Person under the terms of NI 43-101. Dr.
Coulter is not considered independent under NI 43-101 as she is the
Chief Geologist of Galantas Gold Corporation.
Production-related disclosures in this press release have been
reviewed and approved by Brendan Morris, CEng, who is considered,
by virtue of his education, experience and professional
association, a Qualified Person under the terms of NI 43-101. Mr.
Morris is not considered independent under NI 43-101 as he is the
Chief Operating Officer of Galantas Gold Corporation.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
About Galantas Gold Corporation
Galantas Gold Corporation is a Canadian public company that
trades on the TSX-Venture Exchange and the London Stock Exchange
AIM market, both under the symbol GAL. It also trades on the OTCQX
Exchange under the symbol GALKF. The Company's strategy is to
create shareholder value by operating and expanding Northern
Ireland's first gold mine.
Galantas Gold Corporation
Mario Stifano: Chief Executive Officer
Telephone: +44(0)28 8224 1100
Grant Thornton UK LLP (AIM Nomad)
Philip Secrett, Harrison Clarke, George Grainger
Telephone: +44(0)20 7383 5100
Panmure Gordon & Co (AIM Broker & Corporate Adviser)
Nick Lovering, Hugh Rich
Telephone: +44(0)20 7886 2500
Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of applicable securities laws, including the results of
exploration programs, completion of mine rehabilitation and
upgrading work, completion of mine planning and technical and
engineering studies, the Phase 2 expansion, commencement of mine
production, and all statements regarding the 2022 and 2023
production and cost guidance 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 and throughputs; mining
operational risk, geological uncertainties; regulatory
restrictions, including environmental regulatory restrictions and
liability; risks of sovereign involvement; speculative nature of
gold exploration; dilution; competition; loss of or availability of
key employees; additional funding requirements; uncertainties
regarding 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.
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January 10, 2022 02:00 ET (07:00 GMT)
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