The geology of the property includes upper Dalradian medasediments which are known to host a number of gold-bearing structures. Significant gold deposits have been found in similar geological settings in Ireland and Scotland, and the strike extensions of the Dalradian belt into North America and Scandinavia host several important gold mines.

It was a combination of the favourable Dalradian rocks and news of a gold discovery in the nearby Sperrin Mountains that convinced Rio Tinto Finance and Exploration Plc. (Riofinex) to originally acquire the Omagh property in 1985. Over the next five years, Riofinex spent C$5.5 million (2.7 million) completing geological prospecting, stream sediment geochemistry, soil geochemistry, a geophysical survey, and a 4,000-metre trenching program and 12,820-metre diamond-drilling program. The exploration identified a number of mineralized structures within fracture zones in Dalradian felsic schists.

Since acquiring the property, Galantas Gold Corp and their predecessors, Omagh Minerals have focused most of their exploration efforts on the main Cavanacaw (Kearney) gold deposit by completing an additional 42 diamond drill holes and extensive overburden stripping and bulk sampling. Limited work has been carried out to define the extent of fifteen other identified mineralized structures on the mining license.

ACA Howe evaluated the Kearney deposits utilizing a cut-off grade of 1.0 gram per tonne gold and a cut off width of 0.5 metres, meaning that any drill or trench intersection, no matter what the grade, was excluded from the calculation if it was less than 0.5 metres wide. Using the above cut offs, a proven and probable reserve in the Omagh deposit of 367,310 tonnes grading 7.52 grams per tonne gold over a width of 4.43 metres has been calculated within the area that is being proposed as an open pit mine operation. A further indicated resource of 1,183,680 tonnes at a grade of 7.02 grams per tonne over a width of 4.43 metres has been estimated from the base of the proposed pit to a depth of 137 metres while the structure remains open at depth. Data derived from limited trenching and diamond drilling partly define additional indicated resources of 328,820 tonnes grading 6.72 grams per tonne. The Kearney structure remains open at depth.

Resources and Reserves

Kearney Ore body
Proven/Probable Ore Reserve	367,310 tonnes at 7.52 g/t for 88,827 ounces of gold
Indicated Resources	1, 183, 830 tonnes at 7.02 g/t for 267,150 ounces of gold
Other Deposits
Indicated Resource	328,820 tonnes at 6.72 g/t for 71,041 ounce of gold
Inferred Resource	135,500 tonnes at 4.68 g/t for 20,399 ounces of gold

(Source: ACA Howe International Limited, July 2003 Geological Report and Exploration Potential)

A recent bulk sample (January 2004) of the permitted open pit area consisted of 150 tonnes of ore extracted from the Kearney starter pit in 2001/2 using selective mining techniques. To date 100 tonnes of ore have been processed in two independent metallurgical laboratories. Analytical results for the 100 tonnes processed so far are as follows:

Sample	Weight	Gold		Silver
	Tonnes	g/t Au	oz/t Au	g/t Ag	oz/t Ag
1	26.0	66.35	2.13	57.40	1.84
2	25.6	50.90	1.77	38.00	1.22
3	25.0	40.80	1.31	32.80	1.05
4	24.6	50.70	1.63	74.30	2.38
Total	101.3	53.41	1.71	50.52	1.62

These results indicate that it is possible to mine the Kearney deposit at a head grade markedly higher that the approximately 7.5g/t gold estimated in the 1995 reserve statement. A restatement of the ore reserves at Kearney is being commissioned.