TIDMGAL
RNS Number : 0340O
Galantas Gold Corporation
27 January 2023
GALANTAS GOLD ACQUIRES EXPLORATION RIGHTS TO HIGH-POTENTIAL
DISTRICT FEATURING A GOLD-BEARING VOLCANOGENIC MASSIVE SULPHIDE
DEPOSIT IN SCOTLAND
January 27, 2023, TORONTO, CANADA - Galantas Gold Corporation
(TSX-V & AIM: GAL; OTCQX: GALKF) ("Galantas" or the "Company")
is pleased to announce that it has entered into an agreement (the
"Lease Agreement" or the "Agreement") to acquire a 100% interest
and the exclusive rights to explore and develop the Gairloch
Project, a 217 km(2) mineral licence area in Scotland that covers
the Gairloch Schist Belt from the owners of the Gairloch Estate
lands (the "Lessor"). The Company has acquired exploration and
developments rights for an initial payment of GBP347,000 and annual
payments of GBP69,000 beginning in year 6 (see the Lease Agreement
Terms).
Historical Exploration Highlights*:
-- Drill hole GBH39 intersect of 11.29 grams per tonne (g/t)
gold (Au), 2.44 g/t silver (Ag), 0.58% copper (Cu) and 0.19% zinc
(Zn) over 16 metres (80 to 96 metres downhole).
-- Drill hole GBH30 intersect of 3.16 g/t Au, 3.39 g/t Ag, 0.90%
Cu and 0.51% Zn over 18 metres (32.82 to 50.82 metres
downhole).
-- Drill hole GBH68 intersect of 1.5 g/t Au, 16.5 g/t Ag, 5.92%
Cu and 0.54% Zn over 6 metres (261.88 to 267.88 metres
downhole).
-- District-scale potential with an outcrop tested by the
British Geological Survey (BGS) 10 km from historical drilling
returning 4 g/t Au, 1.5% Cu and 2.3% Zn.
-- Elevated levels of cobalt identified in stream sampling and in outcrop up to 410 g/t.
*True widths not known. Historical drill hole data obtained from
logs written by Consolidated Gold Fields Limited in 1979 and 1980,
scanned copies supplied by the British Geological Survey.
Mario Stifano, CEO of Galantas, commented: "We are excited about
this opportunity to secure rights to a highly prospective, 10
km-long gold bearing volcanogenic-massive-sulphide trend that has
had very little exploration since the early 1980s, with
high-priority targets identified.
"We have seen high-grade gold intercepts at shallow depths in
Gairloch's historical drilling records which were obtained from the
British Geological Survey, and are keen to follow up with our own
targeting and drill program with the aim of unlocking the first
substantial volcanogenic massive sulphide (VMS) deposit in
Scotland. The host rocks at Gairloch appear to be geologically
similar to those in the Trans-Hudson Orogen in Manitoba and
Saskatchewan which contain the prolific Flin-Flon and Snow Lake VMS
mining camps. Along with our high-grade gold Omagh Project in
Northern Ireland, Galantas has secured two emerging underexplored
districts with potential to add significant shareholder value."
Gairloch Project Overview
The Gairloch Project is a landholding that covers the Gairloch
Schist Belt, a Paleoproterozic volcanic arc terrane on the
northwest coast of Scotland. The current licence area includes all
mineral rights, other than gold and silver, covering an entire
estate of 217 km(2). An application for an Option to a Lease
Agreement for the gold and silver is pending with Crown Estate
Scotland.
The project hosts the Kerry Road deposit surveyed from 1977 to
1982 by Consolidated Goldfields, and remains underexplored.
Figure 1: Location map of the Gairloch Project within the Loch
Maree Group in Scotland.
Source: 'Petrogenesis of rare-metal pegmatites in high-grade
metamorphic terrances: A case study from the Lewisian Gneiss
Complex of north-west Scotland', June 2016, Precambrian Research
281, by R. Shaw, K.M. Goodenough, N. M.W. Roberts, M.S.A.
Horstwood, S.R. Chenery and A.G. Gunn.
Geology
The Archean Rocks of the United Kingdom are located in northwest
Scotland and represent part of the North Atlantic Craton, also
exposed in Southern Greenland and Labrador in Canada. Within this
area in Scotland lies the Paleoproterozoic Loch Maree Group which
extends over 30 km and is widely believed to have formed within a
juvenile Island arc and/or accretionary tectonic assemblage.
VMS deposits are major sources of zinc, copper, lead, silver and
gold. They often form in clusters in areas of ancient underwater
volcanic activity. Because of their polymetallic content, VMS
deposits are one of the most desirable deposit types for security
against fluctuating prices of different metals.
The Kerry Road deposit is a stratabound, Besshi-style, VMS
gold-copper-zinc deposit exposed at surface. It is one of the
oldest known Besshi deposits, similar in age to Sherridon district
in Manitoba, Canada. Drilling by GreenOre Gold PLC (GreenOre) in
2018 confirmed the presence of mineralization at Kerry Road. Rock
chip sampling conducted by GreenOre in 2018 also identified
elevated levels of cobalt in bedrock.
Exploration
Based on historical reports from Consolidated Goldfields, the
Kerry Road deposit was drill tested in the late 1970s to early
1980s, where 87 drill holes (9,189 metres) were drilled to identify
the deposit, which is reportedly open along strike and at depth.
Work was abandoned in 1982 due to low metal prices at the time.
Other than academic work and national geological surveys,
commercial exploration was not conducted over the region until 2018
when GreenOre obtained the licence. A single short hole was drilled
in 2018 (see Figure 2 below).
Figure 2: Core from hole 18-G-01 drilled by GreenOre Gold Plc
grading 1 g/t Au, 0.9% Cu and 0.6% Zn over 17 metres (19 to 36
metres downhole) including 8 metres at 1.8g/t Au, 1.4% Cu and 0.7%
Zn (22 to 30 metres downhole). Photo and data obtained from
GreenOre.
Figure 3: Main outcrop at Kerry Road deposit grading 4.09 g/t
Au, 6 g/t Ag, 1.58% Cu and 2.27% Zn. Photo and data obtained from
GreenOre.
Figure 4: Second outcrop at Kerry Road deposit with visible
chalcopyrite, 30 metres northwest of main outcrop, grading 2.16 g/t
Au, 14 g/t Ag, 5.23% Cu and 0.30% Zn. Photo and data obtained from
GreenOre.
A number of follow-up targets have also been identified by
Galantas from regional geophysical and geochemical datasets
supplied by the BGS. It has been observed that the main minerals of
interest are chalcopyrite, sphalerite, pyrite and pyrrhotite found
within quartz-carbonate schist. A review of the historical assays
indicates that gold is often associated with higher copper grades.
Recent academic studies, fieldwork and government surveys have
demonstrated the wider potential of the area, which to date has had
no commercial mining of any scale, despite the highly prospective
nature of the geology.
The BGS recorded an outcrop of 4 g/t Au in their MRP146 report
associated with a significant geophysical anomaly approximately 10
km south of the Kerry Road deposit, but the area remains untested.
The G-base stream sediment data collected in the 1970s by the BGS
over the wider area have also shown high occurrences of copper,
zinc and cobalt. Multiple historical geophysical anomalies
identified by the BGS in their regional magnetics and gravity
surveys remain untested. No official resource model has been
completed to date.
Table 1: Drill hole locations for holes GBH39, BGH30, GBH68 and
18-G-01.
Elevation Azimuth (grid
Hole Easting Northing (ft) north) Dip Depth
GBH30 183879 872512 148 223 -45 57.30
-------- --------- ---------- -------------- ---- -------
GBH39 183912 872521 256 223 -53 102.50
-------- --------- ---------- -------------- ---- -------
GBH68 184181 872339 126 229 -74 278.95
-------- --------- ---------- -------------- ---- -------
18-G-01 183807 872534 146 223 -45 55.00
-------- --------- ---------- -------------- ---- -------
Note: Easting and northings digitized from historical map as
historical logs only recorded location on a local grid.
Lease Agreement Terms
The Lease Agreement will continue for 30 years and will be
renewable at the election of Galantas, upon 90 days' prior written
notice and upon the approval of the Lessor, not to be unreasonably
withheld, for a further 20-year period, assuming all conditions of
this Agreement have been met satisfactorily according to the
Lessor, acting reasonably, in respect of the Galantas' conduct and
operations. Galantas may terminate the Agreement with 18 months'
notice.
Galantas will make a payment of GBP347,000 representing payment
for the first five years of the lease. If the exploration phase
continues past the fifth anniversary of the effective date of the
Agreement, Galantas will pay the Lessor GBP69,400 index linked per
lease year for each such lease year following the fifth anniversary
of the effective date, with such payment to be made at the
commencement of each such lease year.
During any mining phase, Galantas will pay the Lessor GBP50,000
index linked per lease year, with such payment to be made at the
commencement of each such lease year. Galantas will grant a 5% net
profits interest royalty (the "NPI"), calculated according to
standard industry terms and practices with the option by the Lessor
to convert the NPI to a 2% net smelter returns royalty (the "NSR"),
calculated according to standard industry terms and practices.
The Company has separately entered into an agreement to acquire
the historical drill and exploration database for (i) a payment of
CAD$420,000 (approximately GBP252,153), to be satisfied through the
issuance of common shares of the Company based on the 5-day volume
weighted average price at the time of signing (subject to the
approval of the TSX Venture Exchange) and (ii) GBP50,000 in
cash.
Qualified Person
The historical technical information in this release has been
reviewed and approved by Gavin Berkenheger (CGeol, EurGeol) who is
considered, by virtue of his education, experience and professional
association, a Qualified Person under the terms of NI 43-101. Mr.
Berkenheger is not considered independent under NI 43-101 as he is
a consultant of Galantas Gold Corporation.
Quality Assurance / Quality Control and Data Verification
Mr. Berkenheger has verified the data disclosed, including
sampling, analytical, and test data underlying the information or
opinions contained in the written disclosure as required by section
3.1 of NI 43-101.
Historical grades reported from the GreenOre database that was
conducted by the company from 2018 to 2021 was overseen by the
author who was a Qualified Person at the time using appropriate
Quality Assurance and Quality Control (QA/QC) protocols with
respect to the insertion of blanks, standards and duplicates into
the sample stream prior to dispatch to ALS Laboratory, which is
consistent with industry best practices.
During GreenOre's drilling, the diamond drill core (HQ Size) was
logged, photographed and marked for sampling. There was
insignificant core loss . A diamond tipped core saw split the core
with one half bagged and tagged for assay and the other returned to
the labeled core box and stored. Sealed and tagged bags were
shipped to ALS Laboratories in Loughrea, County Galway where they
were crushed to 70% less than 2mm, riffle split off 1kg then
pulverize split to better than 85% passing 75 microns (PREP-31B).
Gold fire assay and AAS finish was conducted with a 30g sample
(au-AA25). Multi element analysis was completed by high-grade four
acid ICP-AES (ICP61a). The QP has reviewed the QA/QC in relation to
these drill results and is satisfied that the results as reported
are reliable.
Historical grades reported from the Consolidated Gold Fields
data is thought to be of good quality as the company, which was
listed on the London Stock Exchange and was once a constituent of
the FTSE 100 Index, demonstrated best practices at the time and was
overseen by a qualified person. After appropriate logging of drill
core (BQ size), mineralized sections were split using a manual
splitter initially and later using a diamond core saw. There was
insignificant core loss. Details of the sample preparation and
analysis could not be verified. The laboratory used was the Wheal
Jane Laboratory in Cornwall which was consistent with industry best
practice at the time. Full details of the QA/QC could not be
verified either, but grade data was reviewed, in which select
samples of drill core were re-assayed at three different
laboratories. There were good correlations with the re-check
samples in relation to zinc and copper but some significant
discrepancies were noted in some of the gold re-check samples. It
is not known whether this was due to laboratory error or due to a
"nugget effect" whereby larger grains of gold may be missed or they
may enhance the representative sample used to determine the overall
grade. GreenOre's drill hole which was a re-drill of Consolidated
Gold Fields' hole GBH03 demonstrated similar, in fact enhanced
grades of the historical hole, corroborating the reliability of the
historical data. Only 20% of the historical drill core remains and
this was observed by the author at the British Geological Survey's
core storage in Keyworth, Nottingham. Re-assay of historical core
has not yet been conducted but may be difficult due to the size of
representative core remaining. The QP having reviewed the results
in relation to the historical data is satisfied that the results as
reported are reliable.
Historical Reports
Data relating to Consolidated Gold Fields is held by the British
Geological Survey listed under MEIGA Project number 173:
-- Gairloch Exploration report, December 21, 1977, E. Jones, Consolidated Gold Fields Limited
-- Project Gairloch Technical Report and Work Programme, August
18, 1978, Consolidated Gold Fields Limited
-- AE173 Gairloch Phase 4, 1978, Consolidated Gold Fields Limited
-- Technical Report Phase 2: July 1, 1978 to June 1979, Consolidated Gold Fields Limited
-- Technical Report Phase 3: July 1, 1979 to October 1979, Consolidated Gold Fields Limited
-- The Petrology, Ore Mineralogy, Geochemistry and Paragenesis
of Rocks at Gairloch Site, C.M. Rice, Department of Geology and
Mineralogy, University of Aberdeen
-- Consolidated Gold Fields Limited, Diamond Drill Core Records,
Project Gairloch, DDH No. GBH01 to GBH87
-- Gairloch Project Phase 4, Consolidated Gold Fields Limited
-- Technical Report: July 1,1980 to June 30, 1981, Phase 4a, Consolidated Gold Fields Limited
-- Technical Report: July 1,1981 to May 31, 1982, Phase 4b, Consolidated Gold Fields Limited
Data relating to GreenOre Gold can be found in news releases
dated October 16, 2018 and March 4, 2020 that are posted on its
website at https://greenoregold.com/ .
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.
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 gold production
and resources at the Omagh Project in Northern Ireland.
Enquiries
Galantas Gold Corporation
Mario Stifano: Chief Executive Officer
Email: info@galantas.com
Website: www.galantas.com
Telephone: +44(0)28 8224 1100
Grant Thornton UK LLP (AIM Nomad)
Philip Secrett, Harrison Clarke, George Grainger, Samuel
Littler
Telephone: +44(0)20 7383 5100
SP Angel Corporate Finance LLP (AIM Broker)
David Hignell, Charlie Bouverat (Corporate Finance)
Grant Barker (Sales & Broking)
Telephone: +44(0)20 3470 0470
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 the closing of the transaction and results of exploration
programs at the Gairloch 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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