Development of Omagh GOLD MINE Advances and Intersects Stringer Vein
GALANTAS GOLD CORPORATION
TSXV – AIM “GAL”
DEVELOPMENT OF OMAGH GOLD MINE ADVANCES AND INTERSECTS STRINGER VEIN
12th July 2017 : Galantas Gold Corporation (the “Company”) is pleased to announce continued
progress by its wholly owned subsidiary engaged in development of an underground gold mine near
Omagh, County Tyrone, Northern Ireland.
Underground development is proceeding well with the development tunnel advanced by
approximately 47 metres from the underground portal. Arrangements regarding blasting appear to
be working efficiently and actions are in hand to increase the blasting frequency.
A narrow stringer vein, an offshoot of the Kearney system, has been intercepted (as expected
following report dated 24th August 2016 of adjacent drill Hole 159). Hole 159 intersected the stringer
vein some 11m south of the tunnel intersection and reported a mineralised intersect of 1 metre
(true width 0.5m) at 5.7 g/t gold and 6.2 g/t silver. Mineralisation, examined by trenching (reported
7th September 2016) and considered the surface expression of the stringer vein, suggested a vein
strike of 325 degrees, with a dip of 85 degrees east. The tunnel intersection shows the
mineralisation over a true width of a minimum of 0.5m with a similar strike and dip. Grade samples
have been taken. This vein has potential to provide a limited quantity of mineralised material for
processing whilst the remainder of development required to access the main Kearney veins is
progressed.
Having reached the first development milestone, the permanent ground support tunnel lining is to
be installed. Recent tests of shotcrete (a form of sprayed concrete), at the site, demonstrated that a
suitable permanent lining can be achieved. Shotcrete will be sprayed over the existing mesh and
rockbolt ground support on a campaign basis until in-cycle shotcreting is possible. The current
shotcreting program and installation of capital infrastructure has been scheduled over the next two
weeks during which time tunnel advance will be restricted.
After the permanent ground support has been installed, it is anticipated that the enhanced blasting
arrangements noted above will accelerate the rate of tunnelling advance.
The mining is being carried out by an in-house crew which is fully trained in safety and operating
procedures. An in-house, mines rescue team has also been trained and equipped. Capital equipment
has been purchased, including fans, pumps, compressor, additional environmental monitoring,
security and safety equipment amongst the items.
Surface stockpiles of rock have been reduced by backfilling of the Kearney open pit, to create an
apron area for the upper part of a ramp which has been formed in the north end of the open pit. The
ramp accesses the lower portal in the base of the open pit and will eventually be contained within a
concrete tunnel, permitting completion of backfilling of the open pit.
Two additional ground-water monitoring boreholes have been drilled and monitoring data collected.
Water make within the tunnel is minimal and water monitoring at the site continues to demonstrate
good compliance within the criteria set down by the regulatory authority.
Roland Phelps, President & CEO, Galantas Gold Corporation, said “I am very pleased with the
progress being made. We have an excellent and skilled team in place delivering results. As a
consequence, I am delighted to announce that arrangements are being put in hand to increase the
rate of progress and with this the hiring of some additional personnel. This will take the number of
persons employed at the operation to around 27. ”
The Omagh Gold Mine has an operational processing plant and tailings facility with an excellent
environmental record. The plant uses a non-toxic, froth flotation process, without the use of cyanide
or mercury and produces a gold concentrate which is exported for smelting. The remaining tailing
sands are clean and free from acid drainage. The plant is on stand-by awaiting mineralised material
from underground development. The underground mine, when fully developed, is expected to
create 130 jobs plus others in service industries associated with the development.
Regulatory
The Company confirms that all resolutions were passed at an Annual General and Special Meeting
which took place on 26th June 2017, details of which may be found on the Company’s website
www.galantas.com .
The samples were taken by geological staff under the supervision of R. Phelps C.Eng MIMMM,
(President & CEO, Galantas Gold Corporation), the Qualified Person (QP) for the program under NI
43-101 and who is also a "Qualified Person" as defined in the Note for Mining Oil & Gas Companies,
June 2009, of the London Stock Exchange. Readers are referred to the disclosure dated 24th August
2016 for complete technical details, including sampling, security, verification and testing regarding
Core H159 and the disclosure dated 7th September 2016 regarding details of the surface trenching.
Mr. Phelps has reviewed the technical detail contained in this release.
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.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No
596/2014.
Enquiries : Galantas Gold Corporation
L. Jack Gunter P.Eng – Chairman, Roland Phelps C.Eng – President & CEO
Email: [email protected] Telephone: (UK) +44 (0) 2882 241100
Website: www.galantas.com
Grant Thornton UK LLP (Nomad)
Philip Secrett, Richard Tonthat: Telephone: +44(0)20 7383 5100
Whitman Howard Ltd (Broker & Corporate Adviser)
Nick Lovering, Grant Barker: Telephone: +44(0)20 7659 1234