TIDMGAL
RNS Number : 5068W
Galantas Gold Corporation
18 April 2023
GALANTAS GOLD TO COMMENCE DRILLING AT THE 10 KM GAIRLOCH
GOLD-RICH VMS PROJECT
April 18, 2023, TORONTO, CANADA - Galantas Gold Corporation
(TSX-V & AIM: GAL; OTCQX: GALKF) ("Galantas" or the "Company")
is pleased to announce that drilling at the newly acquired Gairloch
Project will commence in the coming weeks. Drill mobilization has
commenced for an initial 800-metre program targeting the Kerry Road
deposit, including testing the depth potential of near surface
mineralization.
Historical Exploration Highlights*:
-- 11.29 grams per tonne (g/t) gold (Au), 0.58% copper (Cu),
2.44 g/t silver (Ag), and 0.19% zinc (Zn) over 16 metres.
-- 3.16 g/t Au, 0.90% Cu, 3.39 g/t Ag and 0.51% Zn over 18 metres.
-- 1.46 g/t Au, 1.86% Cu, 1.65 g/t Ag, and 1.08% Zn over 20 metres.
-- 9.59 g/t Au, 1.17% Cu, 2.58 g/t Ag, and 0.55% Zn over 5.5 metres.
-- 1.5 g/t Au, 5.92% Cu, 16.5 g/t Ag, and 0.54% Zn over 6 metres.
*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.
The drill program aims to target the mineralized outcrops at
Kerry Road, testing the deposit down dip southeastwards as well as
the lateral extension to the northeast and southwest. A deeper hole
(350 metres) is planned to test beneath the Kerry Road deposit as
historical drilling ceased after intercepting the main sulphide
horizon. This stratigraphic hole will provide Galantas with better
understanding of the local geology, as well as test for other
sulphide horizons expected to be found in the area based on the
knowledge of other similar deposits around the world.
Mario Stifano, CEO of Galantas, commented: "We are eager to
kick-off drilling at this underexplored region of Scotland. The
Gairloch Project offers a fantastic opportunity for Galantas to
diversify and build its portfolio having acquired some of the best
exploration ground in the country in a gold-bearing volcanogenic
massive sulphide (VMS) setting with known mineralization over 10 km
and a number of high-priority targets that have yet to be
tested."
Gairloch Project Overview
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. 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.
The Kerry Road deposit was discovered by Consolidated Goldfields
in the 1970s where 87 holes were drilled over 9,189 metres. No
commercial exploration has taken place since then until 2018 when
drilling by GreenOre Gold PLC (GreenOre) confirmed the presence of
mineralization at Kerry Road by intercepting 1.0 g/t gold, 0.9%
copper and 0.6% zinc over 17 metres (see Galantas' news release
dated January 26, 2023). Rock chip sampling conducted by GreenOre
in 2018 also identified elevated levels of cobalt in bedrock.
The Kerry Road deposit lies within the Gairloch Schist Belt, a
Paleoproterozic volcanic arc terrane extending over 25 km. The unit
of interest is a quartz carbonate schist with the main minerals
being chalcopyrite, sphalerite, pyrite and pyrrhotite. Limited
exploration has been conducted over the area in recent years. The
British Geological Survey (BGS) identified an outcrop of 4 g/t Au
in their MRP146 report of the area, associated with a significant
geophysical anomaly approximately 10 km south of the Kerry Road
deposit, yet the area remains untested. This area is one of
multiple targets identified by Galantas for follow-up
exploration.
Galantas has acquired a 100% interest and the exclusive rights
to explore and develop the Gairloch Project, a 217 km(2) mineral
licence area covering the Gairloch Schist Belt.
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/ .
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, and
exploring the Gairloch Project hosting the Kerry Road gold-bearing
VMS deposit in Scotland.
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 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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END
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