Galantas GOLD Acquires Exploration Rights to High- Potential District Featuring a GOLD-Bearing Volcanogenic Massive Sulphide Deposit IN Scotland
GALANTAS GOLD ACQUIRES EXPLORATION RIGHTS TO HIGH-
POTENTIAL DISTRICT FEATURING A GOLD-BEARING VOLCANOGENIC
MASSIVE SULPHIDE DEPOSIT IN SCOTLAND
January 26, 2023, TORONTO, CANADA – Galantas Gold Corporation (TSX -V & AIM: GAL;
OTCQX: GALKF) (“Galantas” or the “Company”) is pleased to announce that it has entered into
an agreement (the “Lease Agreement” or the “Agreement”) to acquire a 100% interest and the
exclusive rights to explore and develop the Gairloch Project, a 217 km² mineral licence area in
Scotland that covers the Gairloch Schist Belt from the owners of the Gairloch Estate lands (the
“Lessor”). The Company has acquired exploration and developments rights for an initial payment
of £347,000 and annual payments of £69,000 beginning in year 6 (see the Lease Agreement
Terms).
Historical Exploration Highlights*:
• Drill hole GBH39 intersect of 11.29 grams per tonne (g/t) gold (Au), 2. 44 g/t silver (Ag),
0.58% copper (Cu) and 0.19% zinc (Zn) over 16 metres (80 to 96 metres downhole).
• Drill hole GBH30 intersect of 3.16 g/t Au, 3.39 g/t Ag, 0.90% Cu and 0.51% Zn over 18
metres (32.82 to 50.82 metres downhole).
• Drill hole GBH68 intersect of 1.5 g/t Au, 16.5 g/t Ag , 5.92% Cu and 0. 54% Zn over 6
metres (261.88 to 267.88 metres downhole).
• District-scale potential with an outcrop tested by the British Geological Survey (BGS) 10
km from historical drilling returning 4 g/t Au, 1.5% Cu and 2.3% Zn.
• Elevated levels of cobalt identified in stream sampling and in outcrop up to 410 g/t.
*True widths not known. Historical drill hole data obtained from logs written by Consolidated Gold Fields Limited in
1979 and 1980, scanned copies supplied by the British Geological Survey.
Mario Stifano, CEO of Galantas, commented: “ We are excited about this opportunity to secure
rights to a highly prospective, 10 km-long gold bearing volcanogenic-massive-sulphide trend that
has had very little exploration since the early 1980s, with high-priority targets identified.
“We have seen high-grade gold intercepts at shallow depths in Gairloch’s historical drilling
records which were obtained from the British Geological Survey, and are keen to follow up with
our own targeting and drill program with the aim of unlocking the first substantial volcanogenic
massive sulphide ( VMS) deposit in Scotland. The host rocks at Gairloch appear to be
geologically similar to those in the Trans-Hudson Orogen in Manitoba and Saskatchewan which
contain the prolific Flin-Flon and Snow Lake VMS mining camps. Along with our high-grade gold
Omagh Project in Northern Ireland, Galantas has secured two emerging underexplored districts
with potential to add significant shareholder value.”
Gairloch Project Overview
The Gairloch Project is a landholding that covers the Gairloch Schist Belt , a Paleoproterozic
volcanic arc terrane on the northwest coast of Scotland . The current licence area includes all
mineral rights, other than gold and silver, covering an entire estate of 217 km ². An application
for an Option to a Lease Agreement for the gold and silver is pending with Crown Estate
Scotland.
The project hosts the Kerry Road deposit surveyed from 1977 to 1982 by Consolidated
Goldfields, and remains underexplored.
Figure 1: Location map of the Gairloch Project within the Loch Maree Group in Scotland.
Source: ‘Petrogenesis of rare-metal pegmatites in high-grade metamorphic terrances: A case study from
the Lewisian Gneiss Complex of north -west Scotland', June 2016, Precambrian Research 281, by R.
Shaw, K.M. Goodenough, N. M.W. Roberts, M.S.A. Horstwood, S.R. Chenery and A.G. Gunn.
Geology
The Archean Rocks of the United Kingdom are located in northwest Scotland and represent part
of the North Atlantic Craton, also exposed in Southern Greenland and Labrador in Canada.
Within this area in Scotland lies the Paleoproterozoic Loch Maree Group which extends over 30
km and is widely believed to have formed within a juvenile Island arc and/or accretionary tectonic
assemblage.
VMS deposits are major sources of zinc, copper, lead, silver and gold. They often form in clusters
in areas of ancient unde rwater volcanic activity. Because of their polymetallic content, VMS
deposits are one of the most desirable deposit types for security against fluctuating prices of
different metals.
The Kerry Road deposit is a stratabound, Besshi-style, VMS gold-copper-zinc deposit exposed
at surface. It is one of the oldest known Besshi deposits, similar in age to Sherridon district in
Manitoba, Canada. Drilling by GreenOre Gold PLC (GreenOre) in 2018 confirmed the presence
of minerali zation at Kerry Road. Rock chip sampling conducted by GreenOre in 2018 also
identified elevated levels of cobalt in bedrock.
Exploration
Based on historical reports from Consolidated Goldfields, the Kerry Road deposit was drill tested
in the late 1970s to early 1980s, where 87 drill holes (9,189 metr es) were drilled to identify the
deposit, which is reportedly open along strike and at depth. Work was abandoned in 1982 due
to low metal prices at the time. Othe r than academic work and national geological surveys,
commercial exploration was not conducted over the region until 2018 when GreenOre obtained
the licence. A single short hole was drilled in 2018 (see Figure 2 below).
Figure 2: Core from hole 18-G-01 drilled by GreenOre Gold Plc grading 1 g/t Au, 0.9% Cu
and 0.6% Zn over 17 metres (19 to 36 metres downhole) including 8 metres at 1.8g/t Au,
1.4% Cu and 0.7% Zn (22 to 30 metres downhole). Photo and data obtained from
GreenOre.
Figure 3: Main outcrop at Kerry Road deposit grading 4.09 g/t Au, 6 g/t Ag, 1.58% Cu and
2.27% Zn. Photo and data obtained from GreenOre.
Figure 4: Second outcrop at Kerry Road deposit with visible chalcopyrite, 30 metres
northwest of main outcrop, grading 2.16 g/t Au, 14 g/t Ag, 5.23% Cu and 0.30% Zn. Photo
and data obtained from GreenOre.
A number of follow-up targets have also been identified by Galantas from regional geophysical
and geochemical datasets supplied by the BGS. It has been observed that the main minerals of
interest are chalcopyrite, sphalerite, pyrite and pyrrhotite found within quartz -carbonate schist.
A review of the historical assays indicates that g old is often associated with higher copper
grades. Recent academic studies, fieldwork and government surveys have demonstrated the
wider potential of the area, which to date has had no co mmercial mining of any scale, despite
the highly prospective nature of the geology.
The BGS recorded an outcrop of 4 g/t Au in their MRP146 report associated with a significant
geophysical anomaly approximately 10 km south of the Kerry Road deposit, but the area remains
untested. The G-base stream sediment data collected in the 1970s by the BGS over the wider
area have also shown high occurrences of copper, zinc and cobalt . Multiple historical
geophysical anomalies identified by the BGS in their regional magnetics and gravity surveys
remain untested. No official resource model has been completed to date.
Table 1: Drill hole locations for holes GBH39, BGH30, GBH68 and 18-G-01.
Hole Easting Northing
Elevation
(ft)
Azimuth (grid
north) Dip Depth
GBH30 183879 872512 148 223 -45 57.30
GBH39 183912 872521 256 223 -53 102.50
GBH68 184181 872339 126 229 -74 278.95
18-G-01 183807 872534 146 223 -45 55.00
Note: Easting and northings digitized from historical map as historical logs only recorded location on a
local grid.
Lease Agreement Terms
The Lease Agreement will continue for 30 years and will be renewable at the election of
Galantas, upon 90 days’ prior written notice and upon the approval of the Lessor, not to be
unreasonably withheld, for a further 20 -year period, assuming all conditions of this Agreement
have b een met satisfactorily according to the Lessor, acting reasonably, in respect of the
Galantas’ conduct and operations. Galantas may terminate the Agreement with 18 months ’
notice.
Galantas will make a payment of £347,000 representing payment for the first five years of the
lease. If the exploration phase continues past the fifth anniversary of the effective date of the
Agreement, Galantas will pay the Lessor £69,400 index linked per lease year for each such
lease year following the fifth anniversary of the effective date, with such payment to be made at
the commencement of each such lease year.
During any mining phase, Galantas will pay the Lessor £50,000 index linked per lease year, with
such payment to be made at the commencement of each such lease year. Galantas will grant a
5% net profits interest royalty (the “NPI”), calculated according to standard industry terms and
practices with the option by the Lessor to convert the NPI to a 2% n et smelter returns royalty
(the “NSR”), calculated according to standard industry terms and practices.
The Company has separately entered into an agreement to acquire the historical drill and
exploration database for (i) a payment of CAD$420,000 (approximately £252,153) , to be
satisfied through the issuance of common shares of the Company based on the 5-day volume
weighted average price at the time of signing (subject to the approval of the TSX Venture
Exchange) and (ii) £50,000 in cash.
Qualified Person
The historical technical information in this release has been reviewed and approved by Gavin
Berkenheger (CGeol, EurGeol) who is considered, by virtue of his education, experience and
professional association, a Qualified Person under the terms of NI 43 -101. Mr. Berkenheger is
not considered independent under NI 43-101 as he is a consultant of Galantas Gold Corporation.
Quality Assurance / Quality Control and Data Verification
Mr. Berkenheger has verified the data disclosed, including sampling, analytical, and test data
underlying the information or opinions contained in the written disclosure as required by section
3.1 of NI 43-101.
Historical grades reported from the GreenOre database that was conducted by the company
from 2018 to 2021 was overseen by the author who was a Qualified Person at the time using
appropriate Quality Assurance and Quality Control (QA/QC) protocols with respect to the
insertion of blanks, standards and duplicates into the sample stream prior to dispa tch to ALS
Laboratory, which is consistent with industry best practices.
During GreenOre’s drilling, the diamond drill core (HQ Size) was log ged, photographed and
marked for sampling. There was insignificant core loss. A diamond tipped core saw split the core
with one half bagged and tagged for assay and the other returned to the labeled core box and
stored. Sealed and tagged bags were shipped to ALS Laboratories in Loughrea, County Galway
where they were crushed to 70% less than 2mm, riffle split off 1kg then pulverize split to better
than 85% passing 75 microns (PREP-31B). Gold fire assay and AAS finish was conducted with
a 30g sample (au-AA25). Multi element analysis was completed by high -grade four acid ICP -
AES (ICP61a). The QP has reviewed the QA/QC in relation to these drill results and is satisfied
that the results as reported are reliable.
Historical grades reported from the Consolidated Gold Fields data is thought to be of good quality
as the company, which was listed on the London Stock Exchange and was once a constituent
of the FTSE 100 Index, demonstrated best practices at the time and was overseen by a qualified
person. After appropriate logging of drill core (BQ size), mineralized sections were split using a
manual splitter initially and later using a diamond core saw. There was insignificant core loss.
Details of the sample preparation and analy sis could not be verified. The laboratory used was
the Wheal Jane Laboratory in Cornwall which was consistent with industry best practice at the
time. Full details of the QA/QC could not be verified either, but grade data was reviewed , in
which select samp les of drill core were re -assayed at three different laboratories. There were
good correlations with the re-check samples in relation to zinc and copper but some significant
discrepancies were noted in some of the gold re-check samples. It is not known whether this
was due to laboratory error or due to a “nugget effect” whereby larger grains of gold may be
missed or they may enhance the representative sample used to determine the overall grade.
GreenOre’s drill hole which was a re-drill of Consolidated Gold Fields’ hole GBH03 demonstrated
similar, in fact enhanced grades of the historical hole, corroborating the reliability of the historical
data. Only 20% of the historic al drill core remains and this was observed by the author at the
British Geological Survey’s core storage in Keyworth, Nottingham. Re -assay of historic al core
has not yet been conducted but may be difficult due to the size of representative core remaining.
The QP having reviewed the results in relation to the historical data is satisfied that the results
as reported are reliable.
Historical Reports
Data relating to Consolidated Gold Fields is held by the British Geological Survey listed under
MEIGA Project number 173:
• Gairloch Exploration report, December 21, 1977, E. Jones, Consolidated Gold Fields
Limited
• Project Gairloch Technical Report and Work Programme, August 18, 1978,
Consolidated Gold Fields Limited
• AE173 Gairloch Phase 4, 1978, Consolidated Gold Fields Limited
• Technical Report Phase 2: July 1, 1978 to June 1979, Consolidated Gold Fields Limited
• Technical Report Phase 3: July 1, 1979 to October 1979, Consolidated Gold Fields
Limited
• The Petrology, Ore Mineralogy, Geochemistry and Paragenesis of Rocks at Gairloch
Site, C.M. Rice, Department of Geology and Mineralogy, University of Aberdeen
• Consolidated Gold Fields Limited, Diamond Drill Core Records, Project Gairloch, DDH
No. GBH01 to GBH87
• Gairloch Project Phase 4, Consolidated Gold Fields Limited
• Technical Report: July 1,1980 to June 30, 1981, Phase 4a, Consolidated Gold Fields
Limited
• Technical Report: July 1,1981 to May 31, 1982, Phase 4b, Consolidated Gold Fields
Limited
Data relating to GreenOre Gold can be found in news releases dated October 16, 2018 and
March 4, 2020 that are posted on its website at https://greenoregold.com/.
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.
The information contained within this announcement is deemed to constitute inside information
as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No.
596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. The information is disclosed in accordance with the Company's obligations under
Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.
About Galantas Gold Corporation
Galantas Gold Corporation is a Canadian public company that trades on the TSX Venture
Exchange and the London Stock Exchange AIM market, both under the symbol GAL. It also
trades on the OTCQX Exchange under the symbol GALKF. The Company's strategy is to create
shareholder value by operating and expanding gold production and resources at the Omagh
Project in Northern Ireland.
Enquiries
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