CAUTIONARY NOTICE : FORWARD LOOKING STATEMENTS

The information in this website contains forward looking statements, including statements about anticipated operating and financial performance. Such statements are no guarantees of future performance which is subject to risks and uncertainties only some of which are within the Company’s control, and any or all of which could cause the Company’s performance to be materially different from what directors may believe. Given the uncertainties associated with forward looking statements, readers are cautioned not to place undue reliance on them. The Company does not undertake to update any forward looking statements contained herein.

COPYRIGHT : Other than as specifically noted, all content of this website is the exclusive copyright of Galantas Gold Corporation and may not be reproduced in whole or in part without written consent.

OVERVIEW – STRATEGY - DESCRIPTION OF BUSINESS

Galantas Gold Corporation is a producing mineral resource issuer and the first to acquire planning consent to mine gold in Ireland. The Company’s wholly owned Ontario holding company, Cavanacaw Corporation, owns all of the shares of two Northern Ireland companies – Omagh Minerals Limited (OML), owner of prospecting and mining rights, planning consent plus land, buildings and equipment; and Galantas Irish Gold Limited (GIG), a marketing company that sells the Company’s gold production as certified Irish gold jewellery.

The Company’s strategy to increase shareholder value is to:

• Increase the production of the open pit mine and processing plant on its Kearney deposit,
• Continue to explore and develop extensions to the Kearney and nearby known deposits so as to expand minable reserves and increase gold production in stages,
• Explore its 653 square kilometre prospecting licences (OM1/03,OM2/07,OM3/07), focus on the more than 50 gold targets identified to date, and
• Promote and expand on a commercial basis the Galantas®Irish gold jewellery business now that certified Irish gold from the mine has become available.



Omagh Minerals Ltd Licence Areas

 

Detailed Description of Operation and Environmental Best Practice

Omagh Minerals Ltd owns the freehold title to 182 acres on land upon which the initial open pit mine, processing plant, tailings facility and water clarification ponds are situated.



Aerial Photo Copyright Gordon Dunn

Environmental protection is an important operating criteria for the mine. Development, health, safety and environment impact are continually controlled to comply with strict regulations. This ensures that the impact on the environment is minimized, monitored and held below fixed parameters. There is routine monitoring of water, dust, and noise.

Omagh Minerals Ltd (OML) is committed to using environmental best practice. Operating methods are selected for maximum cost effectiveness and minimum  environmental risk.

The ore, containing gold, silver, lead, iron and sulphur, is mined from steeply dipping veins within a small open pit. The Kearney vein is currently being mined. The ore and barren country rock is mined separately, without the need for blasting, by ripping with powerful hydraulic excavators and bull-dozers.



Planning consent for blasting has been obtained but this is not currently required. The ore is taken to the processing plant, which is close to the open pit, by dump truck. It is crushed by a three stage crushing system (two stage for the smaller pieces) and ground with water in a ball mill to a fine sand (approximately 50% of which is less than 75 micron in size). Some of the ground material is treated by gravity methods but the majority of the material, mixed with water and a small amount of foaming & flotation agents, is passed to froth flotation tanks. Here the mixture is agitated and air pushed into the mixture. The metallic minerals have a preference for air rather than water and attach themselves to bubbles. Rising to a froth, the foam is taken from the top of the cell, cleaned further by a repeat process, the water squeezed out and the resultant concentrate packed into bulk bags for shipment and sale to a smelter. The washed, fine sand that is left behind is very clean and is routinely tested several times a day to ensure process efficiency remains high and that minimal metals are left behind.  Independent laboratory tests show that the clean tailings sand produced by the process is environmentally safe for the future



OML management have identified potential uses for the clean tailings sand. These uses include the protection of pipes and conduit being laid in trenches during construction, a filler for bitumen based products, admixture for plaster based products or for the manufacture of soils in combination with other materials on site.



 

 

 

 

 

 

 

 

OML is mandated to backfill the open pit produced after mining is complete. Mining of clean, barren country-rock creates an increase in volume of that material by virtue of the pore spaces created. The amount of increase of volume varies between 30% and 40%. OML considers it has planning consent and is obliged to dispose of the surplus rock from the site under restoration arrangements. OML has entered into an arrangement whereby a local road construction contractor can mine and truck the surplus rock in order to use this for a local road improvement project. The volume of rock subject to the arrangement was up to approximately 0.5 M bcms (see press release dated 12th June 2008), although the amount required has been subsequently reduced to less than half and is now completed (see Press Release 12th March 2009). The contractor has advised OML that the rock has passed official road laboratory testing and consists of shale / siltstone  under the relevant BGS definitions. It was an assistance to mine production as OML does not have the cost of mining and disposing of the material. It also ensures that the road fill is locally derived, minimizing trucking distances and reducing road traffic loading by spreading demand over a larger road network. The road contractor is engaged in a program of public road improvements to carry the local traffic load.

The major mobile plant operated by OML at the open pit comprises of a bull-dozer, 46tonne, 29 tonne and 14 tonne hydraulic excavators, two 25 tonne, articulated, dump trucks and three 40 tonne, articulated, dump trucks. Subsidiary plant includes a roller compactor, loader /excavator combination unit, boom lift utility vehicle, pumps and generators. The list excludes hired plant

Some concentrate is set aside from that sold to the smelter for separate processing in a specialist facility. The certified Irish gold produced by the specialist facility becomes feed-stock for the Galantas Irish gold jewellery business

Authorised for website uploading by R.Phelps C.Eng MIMMM, who is a Qualified Person for this purpose.27th March 2009.