Galantas GOLD Announces Resource Upgrade at the Omagh GOLD Project IN Northern Ireland
GALANTAS GOLD ANNOUNCES RESOURCE UPGRADE AT THE OMAGH
GOLD PROJECT IN NORTHERN IRELAND
JULY 18, 2023 , TORONTO, CANADA – Galantas Gold Corporation (TSX -V & AIM: GAL;
OTCQX: GALKF) (“Galantas” or the “Company”) is pleased to announce an updated NI 43-101-
compliant Mineral Resource Estimate for the Company’s Omagh Gold Project in Northern
Ireland, effective June 22, 2023 (the “2023 MRE”).
The MRE, prepared by Mico n International Limited (“Micon”), includes the main Kearney and
Joshua vein systems which have been updated on the basis of 42 additional drill holes and a
complete review of the previous vein wireframe interpretations.
Highlights of the Omagh Project 2023 MRE include:
• Increased strike and depth continuity of modelled veins in the Kearney and Joshua vein
systems.
• The Mineral Resources are the most robust estimate of the Kearney and Joshua veins
demonstrating reasonable prospects for eventual economic extraction (RPEEE).
• 53% of Mineral Resources are reported in the Measured and Indicated categories.
• Total contained gold ounces have increased by 77% from the previous 2014 estimate
(announced on July 28, 2014).
• Deposit remain s open along strike and to depth with downdip drilling planned on the
Joshua Vein under Permitted Development following a meeting of the Fermanagh and
Omagh District Council (FODC).
Mario Stifano, CEO of Galantas, commented: “This resource update is the culmination of a
tremendous effort by our team at Omagh . The drill results from our most extensive exploration
program since the 2014 reso urce estimate have increased our confidence in the high gold
grades at the Omagh Project , further confirming its potential particularly at the Joshua Vein,
which we are keen to explore.”
Mineral Resource Estimate for the Kearney and Joshua Vein System
Table 1: Mineral Resources of the Kearney and Joshua vein system, effective June 22,
2023.
Classification Vein
Tonnage
(tonnes)
Gold Grade
(grams/tonne)
Contained Gold
(ounces)
Measured Kearney 94,131 6.73 20,371
Joshua 18,381 6.59 3,897
Indicated Kearney 402,924 6.50 84,258
Joshua 247,217 7.39 58,730
Measured +
Indicated Kearney 497,055 6.54 104,629
Joshua 265,598 7.33 62,627
Total
Measured +
Indicated 762,653 6.82 167,256
Inferred Kearney 402,479 5.33 69,020
Joshua 283,925 6.21 56,648
Total Inferred 686,404 5.69 125,668
Notes:
1. The Mineral Resource Estimate has been prepared in accordance with National Instrument 43 -
101 (NI 43-101) Standards of Disclosure for Mineral Projects.
2. To demonstrate Reasonable Prospects for Eventual Economic Extraction (RPEEE), underground
Mineral Resources were constrained by Mineable Shape Optimi zer (MSO) shapes of 1.2 m
minimum stope width optimized to a cut-off of 2.25 g/t Au to demonstrate RPEEE.
3. Economic parameters for cut -off grade determination: US$1,800 oz Au price, 92% process
recovery, 90% payability, 4% royalty, US$120 t mining cost, US$30.72 t processing cost, US$13
t general and administration.
4. Diluted tonnages and grades are reported based on minimum stope widths.
5. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
There is no certainty that all or any part of the estimated Mineral Resources will be converted into
Mineral Reserves.
6. Average density values: mineralized veins = 2.98 t/m3, waste =2.70 t/m3.
7. Grade interpolation by 2D inverse distance cubed (ID3) using a block size of 5 m (X) by 5 m (Y).
8. Grade capping for outliers at 80 g/t Au.
9. Mineral Resource Classification:
a. Measured - within 20 m of channel samples used in the Mineral Resource estimate or
volumes where the average distance to the nearest drill hole is <30 m and the majority of
intercepts are from recent underground drill holes.
b. Indicated - volumes where the average distance to the nearest drill hole is <30 m.
c. Inferred - all other interpolated blocks inside the vein wireframes.
10. Mineral Resources are inclusive of Mineral Reserves.
Figure 1: Classification of Mineral Resources of Kearney (left) and Joshua (right) veins.
Note: Block model shows the modelled veins; it has not been constrained by the MSO shapes.
By definition, a Mineral Resource has reasonable prospects for eventual economic extraction or
RPEEE (CIM Definition Standards, 2014). In accordance with the recommendation of the CIM
Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines 2016 , a
Mineable Shape Optimizer (MSO) was used to identify spatially continuous mineralization within
potentially mineable shapes using reasonable assumptions based on the current operation. The
previous 2014 Mineral Resource Estimate did not take into account RPEEE as outlined in the
CIM 2016 guidelines, and only considered an economic cut-off on a block-by-block basis.
The 2023 MRE updated Joshua and Kearney Mineral Resources have been compared with the
non-compliant reserve estimate used in the economic study presented in the technical report
titled “Resource Estimate, Preliminary Economic Assessment & Detailed Feasibility Study on the
Omagh Gold Project, C ounty Tyrone, Northern Ireland” dated July 26, 2014 (the “2014 PEA”) .
This is considered appropriate since the recommendation in 2016 by the CIM to apply an MSO
to demonstrate RPEEE renders a comparison between the 2014 Mineral Resources unsuitable.
As can be seen from the table below, the 2023 MRE tonnage and grade is higher than the 2014
PEA estimate, which is expected as the restrictions for estimating the potential mineable
resources in the 2014 PEA were greater than the high -level MSO that was used to define the
2023 MRE. However, the table also shows that with the application of MSO to dem onstrate
RPEEE, the 2023 MRE is in line with previous expectations.
Table 2: Comparison of 2023 MRE and 2014 PEA.
Tonnage (tonnes) Gold Grade
(grams/tonne)
Contained Gold (ounces)
Vein 2023 2014 %diff 2023 2014 %diff 2023 2014 %diff
Kearney 899,534.00 574,870.00 56% 6.00 5.34 13% 173,649.41 98,592.00 76%
Joshua 549,523.00 370,378.00 48% 6.75 5.60 21% 119,274.36 66,671.00 79%
TOTAL 1,449,057.00 945,248.00 53% 6.29 5.44 16% 292,923.77 165,263.00 77%
Omagh Project Mineral Resource Estimate
The 2023 MRE for the Omagh Project is set out in the table below. It includes the results of the
Mineral Resource Estimate for the Kearney and Joshua vein systems by Micon , effective June
22, 2023. All other veins were not updated during this process and therefore remain unchanged
from the 2014 PEA.
Table 3: 2023 MRE for the Omagh Project.
Measured Indicated Inferred
Vein Tonnage
(t)
Gold
Grade
(g/t)
Contained
Gold (oz)
Tonnage
(t)
Gold
Grade
(g/t)
Contained
Gold (oz)
Tonnage
(t)
Gold
Grade
(g/t)
Contained
Gold (oz)
Kearney 94,131 6.73 20,371 402,924 6.50 84,258 402,479 5.33 69,020
Joshua 18,381 6.59 3,897 247,217 7.39 58,730 283,925 6.21 56,648
Kerr 6,848 4.63 1,019 12,061 4.34 1,683 23,398 3.20 2,405
Elkins - - - 68,500 4.24 9,000 20,000 5.84 3,800
Gormleys - - - - - - 75,000 8.78 21,000
Princes - - - - - - 10,000 38.11 13,000
Sammy's - - - - - - 27,000 6.07 5,000
Kearney North - - - - - - 18,000 3.47 2,000
TOTAL 119,360 6.59 25,287 730,702 6.56 153,671 859,802 6.24 172,873
Notes:
1. Updated Mineral Resource Estimate for the Kearney and Joshua vein was completed by Micon
in June 2023.
2. All other veins were not updated during 2023 and therefore remain unchanged from the 2014
Mineral Resource estimate by Galantas as stated in the technical report “Resource Estimate,
Preliminary Economic Assessment & Detailed Feasibility Study on the Omagh Gold Project,
County Tyrone, Northern Ireland" dated July 26, 2014 and filed on September 4, 2014.
3. The 2014 MRE has incorporated a different level of rounding to the current estimate, resulting in
the reported contained ounces for the veins being approximated.
The Company will file a Technical Report supporting this Mineral Resource Estimate in
accordance with NI 43-101 within 45 days of this announcement.
Update on Exploration
The drilling program continues on site with several targets identified. Permitted Development
rights are being exercised for surface drilling following a meeting of the Fermanagh and Omagh
District Council (FODC). The program will enable targeted drilling of existing gaps in the Mineral
Resource model on the Joshua Vein system. Potential for extending the resource down plunge
to the north, in the host lithology favourable to better vein development, remains to be tested.
Qualified Person
The information in this announcement which relates to the updated Mineral Resource Estimate
for the Omagh Gold Project has been approved by Mrs. Liz de Klerk, M.Sc., Pr.Sci.Nat., FIMMM
who is a professional registered with the South African Council for Natural Scientific
Professionals (SACNASP) and an independent consultant to the Company. Mrs. de Klerk is the
Senior Geologist & Managing Director of Micon International Co Limited and has over 20
continuous years of exploration and mining experience in a variety of mineral deposit styles.
Mrs. de Klerk has sufficient experience which is relevant to the style of exploration, mineralization
and type of deposit under consideration and to the activity which she is undertaking to qualify as
a Qualified Person under the terms of NI 43 -101. Mrs. de Klerk consents t o inclusion in the
announcement of the matters based on this information in the form and context in which it
appears.
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 symb ol 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, and exploring the Gairloch Project hosting the Kerry Road gold -
bearing VMS deposit in Scotland.
Enquiries
Galantas Gold Corporation
Mario Stifano: Chief Executive Officer
Email: [email protected]
Website: www.galantas.com
Telephone: +44(0)28 8224 1100
Grant Thornton UK LLP (AIM Nomad)
Philip Secrett, Harrison Clarke, George Grainger, Samuel Littler
Telephone: +44(0)20 7383 5100
SP Angel Corporate Finance LLP (AIM Broker)
David Hignell, Charlie Bouverat (Corporate Finance)
Grant Barker (Sales & Broking)
Telephone: +44(0)20 3470 0470
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 without limitation, statem ents
relating to the results of the 2023 MRE and the nature of such results, the 2023 exploration program and the details
and timing thereof, and the Company’s plans and strategies . 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 t o 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
and throughputs; mining operational risk, geological uncertainties; regulatory restrictions, including environmental
regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution;
competition; loss of or availability of key employees; additional funding requirements; uncertainties regarding
planning and other permitting issues; and defective title to mineral claims or property. These factors and others that
could affect Galantas’ forward -looking statements are discussed i n 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.
Kearney and Joshua Vein Mineral Resource Estimate
APPENDIX
Geology and Mineralization
The Omagh Gold Project, located in the west of Northern Ireland, lies within the Caledonian
orogenic belt. The principal host rocks of gold minerali zation in the region belong to the
Neoproterozoic age Dalradian Supergroup. They comprise a thick sequence of metamorphosed
biotite to garnet grade clastic marine sediments with minor volcanic units, deposited in a passive-
margin rift basin during the breakup of the supercontinent of Rodinia.
Mineral exploration during the past 30 years has identified a number of significant deposits in
the Caledonian orogenic belt including Curraghinalt and Cavanacaw (the Omagh Gold Project)
in Northern Ireland, and Cononish in Scotland. The along -strike extensions of the Caledonian
belt into Scandinavia and North America are known to host a number of major mineral deposits
in a similar geological environment. These include the Silurian hosted, shear-zone gold deposit
of Kolsvik (Bindal) in Norway, the Upper Proterozoic, sandstone and porphyry hosted, high -
sulphidation, epithermal gold deposit of Hope Brook in Newfoundland and the Ridgeway gold
deposit in the Upper Proterozoic Slate Belt of South Carolina.
The Omagh Gold Project mostly overlies rocks of the Upper Dalradian, part of the Southern
Highland Group, exposed in the Lack Inlier, including the Glengawna Formation and the
Mullaghcarn Formation. The deposit itself is hosted by the Mullaghcarn Formation that is
composed of fine grained clastic meta-sedimentary rocks (psammites, semi-pelites and chlorite-
rich pelites).
The northerly trending Omagh Lineament, one of three major, parallel, basement lineaments in
the region, crosses the eastern part of the Lack Inlier, in the area underlain by the north trending
Omagh Gold Project vein swarm. The lineament is predicted to have a zone of influence up to
several kilometres wide and likely has a significant control on the location and orientation of the
mineralized veins, based on the distribution of gold and arsenic anomalies and the north trending
orientation of mineralized veins in the vicinity of the Lack Inlier.
The Omagh Gold Project vein swarm comprises 17 named vein structures in an area of about 6
km2. The largest of these is the north to north -northeast trending sub -vertical Kearney vein
system with a strike length of approximately 850 m, and true vein widths of up to 8.0 m. The
maximum vertical extent proved by drilling is 337 m and it remains open at depth down plunge.
Gold mineralization can be characteri zed as Palaeozoic orogenic type and is one of several
orogenic structurally controlled, mesothermal gold bearing quartz and quartz -sulphide veins
systems located in the Caledonian basement rocks.
Mineralization consists of centimetre -to-metre-scale wide quartz veins with disseminated to
massive auriferous sulphides, predominately pyrite and galena with some accessory
arsenopyrite and chalcopyrite. Quartz veins pinch and swell from stringers to widths greater than
a metre over distances of several metres. The veins are commonly fringed by varying widths of
clay gouge. Wallrock alteration in the form of sericiti zation and bleaching may extend several
metres into quartz-feldspar schist host rocks, depending on the degree of fracturing. The vein
systems of the Omagh Gold Project are structurally controlled complex zone of quartz-sulphide
mineralization and associated alteration, along which there has clearly been pre - to post -
mineralization tectonic movement, resulting in an irregular lattice-work of mineralized veins.
A number of potential dilation zones have been identified in the Kearney and Joshua vein
systems in drill core and geological mapping of underground development drives. Dilation zones
have potential for wider intervals of mineralization and are believed to be linked on shallow north-
dipping planes.
Gold values are closely correlated with sulphide content such that the tenor of minerali zation
can be estimated visually in drill core and during open pit mining. Visible gold has not been
reported in core and the low nugget effect is consistent with this and with the assumed presence
of gold in very fine particle sizes.
Geological Modelling and Grade Interpolation
Since the previous Mineral Resource Estimate in 2014, two further campaigns of infill drilling
have been carried out focusing on the Kearney and Joshua vein systems in 2015 -2016 and
2021-2022. This included 21 infill underground drill holes in the Kearney Vein. Density
measurements (water immersion method) were performed on selected drill hole samples giving
additional density data that was used in the updated Mineral Resource estimate.
After updating the Omagh Gold Project drill hole database it was loaded into Leapfrog Geo.
Economic composites were created at 1 g/t Au to highlight mineralized intersects to be included
in the vein wireframes. Mineralized samples were manually assigned to a vein based on previous
wireframe interpretations, geological mapping and structural data. The inclusion of internal waste
was kept to a minimum. In total, mineralized intervals were assigned to 22 veins in the Kearney
vein system and 7 veins in the Joshua vein system.
A separate vein system geological model was created for Kearney and Joshua. Underground
mapping at Kearney gave additional spatial constraints on the vein hangingwall and footwall
surfaces in the form of polylines. Data from channel samples pre -2011 were not used in the
Mineral Resource Estimate and were only used to guide the orientation of the vein wireframe
models due to th e large sample intervals. The vein systems were modelled with a minimum
thickness of 0.1 m. Pinch outs were manually digiti zed using polylines and the vein wireframes
were clipped to ensure that they did not extend significantly beyond the drill data. The clipping
boundary was limited to within 70 m of drill hole data for the largest most continuous veins and
within 50 m for the smaller more discontinuous veins. These distances were based on the
observed vein continuity from the exploration drilling. Where there was a pinch out at less than
the clipping boundary distance the boundary as set to the approximate midpoint between the
pinch out and the nearest vein intersection.