GALANTAS GOLD CORPORATION
TSXV & AIM : Symbol GAL
GREEN LIGHT FOR OMAGH GOLD MINE ADIT
12th September 2012 : Galantas Gold Corporation (the “Company”) is pleased to announce that the Planning Service, Department of the Environment Northern Ireland (“DOENI”) has granted consent for the construction of a lower portal and truncated tunnel structure, to be built during phased restoration of the Kearney open pit at the Company’s wholly owned, operating, Omagh gold mine.
Construction of a tunnel during the backfilling process will keep open the opportunity to efficiently access gold resources that exist at depth below the open pit and speed development of an underground mine that is currently under-going permitting procedures. The Company notes the recent strong expressions of support it has received from key politicians adjoined to the planning process, from across the community. This support is likely to accelerate planning matters.
Development of the lower northern section of the Kearney Open pit is restricted by surplus rock stock-piles on the site. Excess surplus rock, which is tested free from deleterious constituents, was due to leave the site in accordance with a recent planning consent and the company has completed construction of public road improvements at its own cost to enable this. The planning consent related to the export of rock is the subject of judicial review proceedings between Planning Service and a private individual, on the grounds of procedural failings by Planning Service. The Company has been made aware that the Planning Service has decided not to defend itself in these proceedings and the likely effect is that the current consent for export of rock may be quashed and will be required to be re-determined.
As a result, without the planned Kearney ore, it is unlikely that sufficient ore from lower grade sources (that currently sustain the mill) will be available to maintain full employment on the mine site until the underground mine is permitted.
Having done what it can to postpone some redundancies, the Company regrettably will have to reduce the workforce. The Company continues to work with Planning Service towards a resolution.
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 cost 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 256,210,395.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Galantas Gold Corporation
Charles Stanley Securities (Nominated Adviser)
Telephone +44 (0)20 7149 6000