TIDMGAL
GALANTAS GOLD CORPORATION
TSX Venture Exchange: GAL
London Stock Exchange AIM: GAL
TRADING UPDATE : GALANTAS REPORTS CONTINUED PROGRESS AT OMAGH GOLD-MINE
12th March 2009 : Galantas Gold Corporation (the Company) has received
provisional results for the fourth quarter of 2008 from its wholly owned
subsidiary Omagh Minerals Limited (OML). OML operates the only gold mine in
Ireland and produces a concentrate containing gold, silver and lead.
The last quarter of 2008 (ending December 31st) saw production of an estimated
434.4 wet tonnes (405.7 dry tonnes) of concentrate. Metals content of the
quarter's shipments are expected to total 1371.6 ounces of gold (42.66 kgs),
3695.1 ounces of silver (114.93 kgs) and 50.19 tonnes of lead. Production for
the last quarter of 2008, when compared with the last quarter of 2007, saw an
increase of 21.7% in terms of (dry) concentrate output, a 46.9% increase in gold
output, 67.8% increase in silver output and a 96% increase in lead output.
In January and February 2009 concentrate production was estimated at 133.77 wet
tonnes (125.18 dry tonnes) and 185.13 wet tonnes (175.45 dry tonnes)
respectively.
The production figures and metal contents are provisional and subject to
averaging or umpiring provisions under the concentrate off-take contract with
Xstrata Corporation detailed in a press release dated 3rd October 2007.
As of early February, the road contractor has completed the current phase of
surplus rock removal and removed his equipment. OML continues to have a good
relationship with the contractor who has improved the standard of several of the
access roads to the mine at his own cost. The impact of the equipment removal
will negatively effect costs but this is moderated by the increased amount of
plant now available on site.
A decision was made not to purchase three Bell trucks brought in for hire /
potential purchase. Due to downward pressure on equipment prices, more
competitive arrangements have been organised which make available additional
Volvo trucks. An 85 tonne excavator, believed currently the largest available
in Ireland, is on hire. In addition to increased loading capacity, this
excavator is able to dig most virgin rock without pre ripping (a function
previously undertaken by the road contractor's bull-dozer). Active consideration
is being given to the up-rating and addition of some items of mobile pit
equipment, if financing proves available, as two near-term, existing leasing
commitments expire shortly (March and May 2009 respectively).
Surface stripping and preparation during the fourth quarter of 2008 has extended
the length of the open pit to its permitted maximum under planning controls.
Manpower on site has been increased to 39 with the additional labour directed to
working extra equipment in the pit. Re-routing of power lines prior to
development of phase 2 extraction is in progress and it is expected that this
work will be completed within the required time frame.
Process plant operating hours have been increased to 128 hours per week,
organised as a five day week with one Saturday shift. The shift pattern has been
modified to allow for greater labour flexibility. During the first week of
January the process plant ball mill was re-lined.
The average monthly price of gold expressed in British Pounds Sterling has
continued to remain strong with a record average of over GBP640 per troy ounce in
February 2009, due to the weakness of Sterling and the strong price of gold in
US Dollars.
The Company has changed Auditors to McCarney Greenwood LLP, Chartered
Accountants.
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 information in this disclosure. The information is based upon local
production and financial data prepared by management under his supervision.
Galantas Gold Corporation Issued and Outstanding Shares total 190,100,055.
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.
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 cost 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, performance or achievements to differ materially from
those expressed or implied by the forward looking statements, including: gold
price volatility; discrepancies between actual and estimated production, between
actual and estimated reserves, and between 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; 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.
Enquiries:
Galantas Gold Corporation
Jack Gunter P.Eng - Chairman
Roland Phelps C.Eng - President and CEO
Email : info@galantas.com
Website : www.galantas.com
Telephone : +44 (0) 2882 241100
Blomfield Corporate Finance Limited
Nick Harriss
Telephone : +44 (0) 207 489 4500
Lewis Charles Securities Limited
Kealan Doyle & Nicholas Nicolaides
Telephone : +44 (0) 207 456 9100
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