Galantas Gold targeting resource upgrade at Omagh

Galantas Gold said in an update on Friday that it was now targeting an updated mineral resource estimate for its Omagh Project in Northern Ireland by the end of the second quarter of the year.

The AIM-traded firm said the update would incorporate an additional 7,800 metres of drilling, with many of the drill holes indicating higher gold grades and thicker widths in dilation zones.

It said it was proceeding with a sustainable mine plan targeted by the end of the second quarter, given the potentially high grade and thicker widths within dilation zones below the current underground development, which would allow it to optimise production.

The initial plan was targeting 10,000 gold ounces per year, with the potential for that to increase to 20,000 annual ounces, followed by staged expansions.

Galantas said it had also completed its first hole targeting the Kerr Vein from underground, and was planning a detailed geotechnical assessment at the Joshua Vein to optimise future access.

“The recruitment and retention of underground mining crews at the Omagh Project has continued to be a challenge due to the consequences of only being able to recruit miners from the UK and Ireland, greatly impacting productivity,” the board added in its statement.

“A core group of experienced miners is now focussed on plans for mine and waste development, prioritising access to the high-grade dilation zones below the current underground workings as the company looks to transition to contract mining with QME Mining Services as a potential manpower, mining and development solution.

“The company will establish a new mine optimisation plan to develop the high-grade dilation zones at depth to maximise productivity.”

At 1416 GMT, shares in Galantas Gold Corporation were up 0.63% at 22.39p.

Reporting by Josh White for Sharecast.com.