Galantas GOLD Corporation Provides Update ON Operations and Announces Intitiation of Seeking Strategic Alternatives
GALANTAS GOLD CORPORATION
TSXV & AIM : Symbol GAL
GALANTAS GOLD CORPORATION PROVIDES UPDATE ON OPERATIONS AND ANNOUNCES
INTITIATION OF SEEKING STRATEGIC ALTERNATIVES
October 29, 2019. Galantas Gold Corporation (the “Company”) announces a temporary suspension of
blasting operations at its Omagh gold mine, Northern Ireland. Blasting operations are currently
limited, since all blasting must be supervised by the Police Service of Northern Ireland (the
“Arrangements”). Presently the Arrangements are not sufficient for the desired level of operations.
The Company has been working with the authorities to increase blasting availability to normal levels
for an underground mine. Progress has been made and substantive investment made in accordance
with recommendations, however, the Company is still awaiting final approvals from the authorities in
order to be able to implement its increased blasting protocols . The Company has been waiting for
some time for these approvals and although the Company expects to receive the approvals based on
previous discussions with the relevant authorities , a date for receipt of the required approvals and
therefore the date on which implementation of the increased blasting schedule is not yet known.
The current Arrangements are not sufficient to allow for the expansion of mine operations as
envisaged by the Company’s existing mine plan and until changes are agreed, the present
inefficiencies caused by those Arrangements form an increasing financial burden, which has proved a
significant drain on the financial resources of the Company.
Accordingly, in order to reduce costs, while s ome mine operations will continue at the Omagh gold
mine, consultation with the workforce is underway regarding a reduction in the numbers employed.
In light of the economic impingement on the Company’s operations, the Company is beginning to seek
strategic alternatives including reviewing its licenses and operations; and considering the possibility
of engaging in a joint venture or other options with third parties and alternative financing structures.
The Company expects it will have to raise funds within the next 6 months and will update the market
in due course.
Operational update
Some two kilomet res of underground drivages have been developed, with exposure of the main
Kearney vein on four levels. A fifth level is near the point of intersection. The mine is serviced by a
decline tunnel of 1 in 6 gradient, of dimensions approximately 4.5m by 4.5m. Recent vein intersections
on the 1060 (fourth) level have proven to be strongly mineralized with vein sections some 3 metres
wide and of grade mapped at over 10g/t gold.
The processing plant, which uses non-toxic flotation processing to provide a concentrate, is expected
to continue to operate in the near term and is being fed from underground stock. The mine operates
within regulated environmental constraints and has a zero lost time incident record.
Detailed mapping has been made of the exposed mineralisation underground by in-house personnel.
These studies are more intense than achievable by core-drilling because of the continuity of exposure.
Zones of high grade mineralization have been identified linking adjacent levels. The reasons behind
the emplacement of these zones is considered to now be identified. The implication is that such zones
are expected to continue at depth, with enhanced exploration potential for targeting high grade gold
resources particularly to the north and within the Company’s license area.
Qualified Person
This disclosure has been reviewed by Roland Phelps C.Eng MIMMM (President & CEO, Galantas Gold
Corporation), a qualified person under the meaning of National Instrument 43-101 and AIM rules. The
information is based upon local development data prepared by management under his supervision.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No
596/2014.
SPECIAL NOTE REGARDING FORWARD -LOOKING STATEMENTS: This press release co ntains 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 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, 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 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; reliance for additional funds on equity and/or debt
capital markets; fluctuations in the price of and demand for gold; uncertainties regarding 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
Roland Phelps C.Eng – President & CEO
Email: [email protected] Website: www.galantas.com Telephone: +44 (0) 2882 241100
Grant Thornton UK LLP (Nomad)
Philip Secrett, Harrison Clarke, Richard Tonthat
Telephone: +44(0)20 7383 5100
Whitman Howard Ltd (Broker & Corporate Adviser)
Grant Barker, Nick Lovering
Telephone: +44(0)20 7659 1234