Galantas Gold Corporation has today received a Technical Report regarding development of its Omagh gold property. The report will be filed on www.sedar.com. It is compiled by members of its executive team, L.J.Gunter, R.Phelps & M.Lavigne who are qualified for the purposes of N.I.43-101. Additional material was supplied by S.Higgins.
 
The summary of the Technical Report reads as follows :-

“Omagh Minerals Ltd, a wholly owned subsidiary of Galantas Gold Corporation, holds a precious metals license issued by the Crown, covering 189 sq kilometres in Co.Tyrone, N.Ireland. An assessment of the mineral reserves and resources was carried out by ACA Howe International Ltd, filed in a Technical Report no 851a dated July 21,2003 (The Howe Report). The calculation of reserves and resources was carried out by Howe to the standards of the Australasian Joint Ore Reserves Committee (JORC).

Within the Howe report, consideration was given to the construction of an open pit mine, a 70,000 tonnes per year flotation plant, cyanidation plant, tailings dam and other infrastructure.

This report revises the Howe infrastructure by considering the economics of sale of gold in flotation concentrate, avoiding the capital, operating and monitoring costs of cyanidation. Additionally, the reduced capital cost and environmental improvement of a change to encapsulated paste tailings disposal has received comprehensive consideration. The change to paste tailings disposal has been approved by the planning authority, subject to the specification of detailed construction and operating procedures.

The size of the plant being implemented is 52,500 tonnes per year. A small gravity plant is designed within the flotation plant to recover free gold, with the majority of gold reporting with sulphide to the flotation concentrate. Sulphide concentrate will be sold direct to smelters, two of whom have offered terms.

The Howe Report concluded from selective mining / bulk sample trials (14-22) that “it seems possible to mine the Kearney Deposit at a grade significantly higher than that suggested by the Ore Reserve Statement which was prepared in 1995 by ACA Howe International”. An increase in cut-off grade from 1g/t to 3g/t applied by Howe to a portion of the ore reserve resulted in a grade of 12.4g/t gold. The average grade of channel samples in the area of selective mining was approximately 15g/t gold. The selective mining returned an average mining head grade 53.41 g/t gold. The trial however employed a degree of selectivity that is not considered achievable in routine production. For the purposes of grade sensitivity, mill feed grades of a high of 20g/t and low  of 11 g/t gold are considered.

The milling arrangement, in particular the size of flotation cells, has been designed for a sulphide feed grading 20g/t gold.

At a gold feed grading 20g/t and a gold price of £280.66, excluding depreciation and associated sales of free gold, a cash flow surplus of £4,318,914 is generated in each of the first three years of 24/7 operation - a total of  £12,956,741 (see section 10.5 of the Technical Report).
At a gold feed of 11g/t and a gold price of £280.66, excluding depreciation and associated sales of free gold, a cash flow surplus of £1,593,852 is generated in each of the first three years of 24/7 operation - a total of  £4,781,557 (see section 10.5 of the Technical Report).”

The revenues, costs and cash flows have been calculated based upon quotations and current best estimates available to the authors. The estimates include details of a smelter contract currently available for this project. There is no guarantee that these assumptions or the contract will be valid when production commences. Readers are encouraged to read the whole of the report rather than relying on the summary.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release. This press release includes certain “Forward-Looking Statements” within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are “Forward-Looking Statements” that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these “Forward-Looking Statements”.

For further information, please contact:
Jack Gunter -- Executive Chairman
Roland Phelps -- President & CEO
Moe Lavigne -- Vice President
Telephone: +44 (0) 2882 241100
Email: info@galantas.com Website: www.galantas.com