Galantas Gold continues production amid Omagh difficulties

Gold explorer and producer Galantas Gold Corporation updated the market on operations at its Omagh gold mine in Northern Ireland on Thursday, reporting that concentrate production had continued, operating from stockpiled material.

The AIM-traded firm said production for the fourth quarter was estimated at 153.46 tonnes of concentrate.

It said the provisional estimate of gold content of concentrate produced for the quarter was 497.62 troy ounces, or approximately 16 kilograms, with the gold content estimate subject to further testing.

Shipments in the quarter totalled 172.36 tonnes, with 15.65 tonnes remaining in stock at the close of the quarter.

On October 29, Galantas announced a temporary suspension of blasting operations at its Omagh mine, with blasting remaining on hold.

“All blasting must be supervised by the Police Service of Northern Ireland,” the board explained in its statement.

“The current arrangements are not sufficient for the desired level of operations.

“Until changes to the arrangements are formalised, the company will be unable to implement an increased blasting protocol.”

Galantas said it was continuing to be in positive discussions with police, although the date when those matters would be concluded was not yet known.

In order to reduce costs, the numbers employed at the operation had been reduced to 21 from 46, with the majority of the reduction taking place on 15 November.

Some mine operations were ongoing at Omagh, on a single shift.

“A probe drilling campaign has recently been carried out using existing retained personnel and equipment,” Galantas added.

“The results of the campaign, combined with detailed mapping of the exposed mineralisation underground suggests zones of higher width of mineralisation within the vein, linking adjacent levels.

“This supports an implication that such zonal mineralisation may continue at depth, with enhanced exploration potential for targeting gold resources particularly to the north and within the company's license area.”

Probe drilling did not provide samples suitable for use in mineral resource estimates, but could provide “strong” indications where mineralisation was concentrated, and was of “significantly” less cost than core drilling.

Additionally, further to its announcement on 22 November, the company confirmed that it had appointed Whitman Howard to advise on strategic alternatives available to it, which could include a sale, joint venture, partnership or other options.

At 1127 GMT, shares in Galantas Gold Corporation were up 1.96% at 1.3p.