January 19th, 2010 : Galantas Gold Corporation (the Company) has received provisional production statistics for the fourth quarter (October through December) of 2009 from its wholly owned subsidiary, Omagh Minerals Limited (OML). OML operates the only gold mine in Ireland producing and selling a flotation concentrate containing gold, silver and lead.
October’s shipments were 181.3 wet tonnes of concentrate. November saw 185.3 wet tonnes shipped, with 157 tonnes shipped in December – for a total of 523.6 wet tonnes in the quarter. Production (dry tonnes) in the fourth quarter at 504.7 tonnes was 24 % higher than in the fourth quarter of 2008 and 37 % higher than in the third quarter of 2009.
While definitive estimates of the metal content of the concentrate awaits receipt of final and agreed assays, it is anticipated that shipments in the fourth quarter contained approximately 48.8 kg (1,570 troy ounces) of gold, 100.6 kg (3,235 troy ounces) of silver and 61.3 tonnes of lead. The total of invoiced provisional concentrate sales for the period is estimated at US$ 1,266,000. The production, metal weights and sales figures are provisional and subject to averaging or umpiring provisions under the terms of the concentrate off-take contract with Xstrata Corporation as detailed in a press release dated 3rd October, 2007. The financial results for the quarter and audited results for 2009 are expected to be published in the usual timeframe by the end of April, 2010.
Mining and other earth moving equipment was diverted in the first part of October and in the last operating week of December to till stripping to extend the operating length of the Kearney open pit. The Kerr Vein was partially exposed in December, readying it for mining in January, 2010, when overburden stripping will continue. A shortage of working capital prevented these activities being carried out independently of routine production. Backfilling of the southernmost section of the Kearney pit, which has been worked to its permitted base, continued in the quarter. The recent Christmas shut down was utilised to replace and rotate worn ball mill lining using parts held in stock from the full reline at Christmas 2008. Heavy snow caused re-supply and operational difficulties on start up but the site is now operating normally.
The number of employees on the mine averaged 43 during the period.
The Omagh site suffered heavy rainfall, more than double the average, during the period. There was some soil cover washed away from the sound protection berm, and OML is working with the N.I. Environmental Protection Agency to ensure that there are no adverse environmental consequences. Tailings cells and site drainage infrastructure proved adequate to cope with the adverse conditions. Consented polishing pond outflow is expected to routine test within normal permitted limits.
This disclosure has been reviewed by Nicholas Hardie C.Eng FIMMM, (General Manager), a qualified person under the meaning of N.I 43-101, who is responsible for the production related technical information in this disclosure. Leo O’Shaughnessy is responsible for the financial information. The information is based upon local production and financial data prepared under their supervision.
SPECIAL NOTE REGARDING 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 revenues and production estimates, for the Omagh Gold 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; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; planning and other permitting issues; and defective title to mineral claims or property. These factors and others that could affect Galantas’s 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.
Galantas Gold Corporation Issued and Outstanding Shares total 190,100,055.
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