This trading statement from Galantas gives us the first insight into the impact of the mill refurbishment upon
mill output. After visiting the mine this past weekend, I have the definite impression that we should see further significant improvement upon these numbers.
Tuesday 5th July 2011
GALANTAS REPORTS RECORD SECOND QUARTER 2011 AND FUNDS DRILLING OUT OF CASH-FLOW
July 5th, 2011: Galantas Gold Corporation (the ‘Company’) has received a trading update for the second quarter, ending June 30th 2011, from its wholly owned subsidiary, Omagh Minerals Ltd (OML), which operates the only gold mine in Ireland.
The month of June has seen some important production records exceeded since mining production began, as the recent processing plant upgrades show their potential. The highest daily concentrate production (23 wet tonnes), highest weekly concentrate production (111.5 wet tonnes) and highest monthly concentrate production (337.264 wet tonnes) all contributed to a record second quarter (805 wet tonnes). For the first time, one month’s production at the Omagh Mine (at 1,204 ounces gold equivalent for June) has exceeded the milestone of 1,000 troy ounces of gold equivalent.
Highlights of comparative production figures are summarized below:
Three Months to June 30 2011
Three Months to June 30
2010
Six Months to June 30 2011
Six Months to June 30 2010
Tonnes Milled
15,883
10,602
22,832
17,582
Average Grade (g/t gold)
5.39
3.19
4.97
5.90
Tonnes per hour
9.18
8.13
8.77
7.35
Concentrate Dry Tonnes
754
325
1,036.5
919.20
Concentrate Gold Grade (g/t)
103.1
128.9
102.6
116.3
Gold Produced kg (troy ozs)
77.7 (2,500)
41.88 (1,347)
106 (3,410)
107.1 (3,443)
Concentrate Silver Grade (g/t)
232.2
335.4
241.1
343.3
Silver Produced kg (troy ozs)
173.8 (5,586)
109.00 (3,505)
249.9 (8,034)
315.6 (10,147)
Lead Produced (tonnes)
120.6
45.47
170.7
139.7
Gold Equivalent ( troy.ozs)
2,829
1,471
3,892
3,857
The value of sales for the quarter is expected to be more than $3,400,000 US dollars. The production, metal and sales figures 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. Detailed unaudited financial results for the quarter are expected in the usual timeframe, at the end of August 2011
Roland Phelps, President and CEO, Galantas Gold Corporation said, “The turn-around is due to the commitment and dedication of the production and engineering team. Under the guidance of Richard Crew, General Manager, they have delivered an excellent result for the quarter.”
Omagh Minerals Ltd (OML), is actively engaged in setting up a local Residents Advisory Committee. Comprised of local residents, a minority of whom work for OML, OML hopes to gain useful insight into upcoming planning applications and it is anticipated that the committee will enable OML to structure applications and activities in a constructive way to minimize impact on neighbours.
OML welcomes the positive suggestion it has received from connected parties as to a possible way through the current deferment of a planning application. OML intends to submit a planning application relating to the establishment of a number of extra passing places on the route to be taken by trucks to be used to carry surplus rock from the mine. OML will be consulting on the location of the additional passing places with the Residents Advisory Committee, Roads Service and others.
The Company is engaged in an active exploration program. A second contractor’s drill rig is operating. A new drilling rig (owned by OML) is being commissioned. The initial program of 2000 metres of exploration drilling has been expanded over seven fold to approximately 15,000 metres of drilling, utilizing four rigs. The increased funding cost of the program has been allocated and the cash funds reserved. The drilling fund has not yet been drawn down due to the drilling costs being met from recently improving operating cash flow. Assay results are expected to be regularly announced from September 2011.
The Annual General Meeting of Galantas Gold Corporation was held in Toronto on 21st June 2011 and all resolutions were passed.
The financial component of this disclosure has been reviewed by Leo O’ Shaughnessy (Chief Financial Officer) and the production components by Richard Crew (General Manager), qualified persons under the meaning of N.I 43-101. The information is based upon local production and financial data prepared under their supervision. |
