Galantas mulls solar power plan for Irish gold mine
Galantas Gold Corp. [GAL-TSXV, AIM, GALKF-OTCQX] said it has agreed in principle to a proposal from G&F Phelps Ltd. to develop a solar power facility at the Cavanacaw gold mine at the Omagh project in County Tyrone, Northern Ireland.
G&F Phelps, a Galantas shareholder, controlled by former Galantas CEO Roland Phelps, is expected to provide the majority of capital required for the project, recouping the cost from the power generated.
The two-megawatt facility, with battery storage, is expected to significantly boost power generation on site and provide lower-cost power than existing diesel generation at a significantly lower carbon footprint. The proposal is subject to a detailed cost study, impact assessment and planning permission from regulatory authorities.
Galantas shares were unchanged Wednesday at 14 cents and currently trade in a 52-week range of 35 cents and 11 cents.
The solar power announcement comes after Galantas recently announced the successful completion of its trial stoping program at the Cavanacaw Gold Mine.
“The trial has brought a high level of understanding to the mine development process and helped us conclude that the Cavanacaw Mine can be mined successfully, utilizing a longhole mining method and backfill,’’ said Galantas CEO Mario Stifano. “The trial stoping has provided sufficient information to bring a high level of confidence for a successful stoping program in the future.’’
The company said provisional revenues generated from concentrate sales totalled approximately US$1.1 million in 2023, and approximately US$207,000 in the first quarter of 2024. The net proceeds from the concentrate sales are being offset against development assets, until the mine commences commercial production.
The Omagh project is situated within an 189 square-kilometre licence area, located approximately 1.5 hours drive west of Belfast. The project is also situated west of the town of Omagh, the main administrative centre in County Tyrone. Galantas currently holds five exploration licences, covering an area of 548.9 square kilometres.
Galantas, through a wholly-owned subsidiary, owns the freehold title to over 220 acres of land, upon which the initial open-pit mine, processing plant, tailings facility and water clarification ponds are situated. The mine is now in the development stage with more than 2,000-metres of ore and waste development completed.
Resources in the measured category stand at 138,241 tonnes of 7.25 g/t gold or 32,202 ounces. On top of that is an indicated resource of 679,992 tonnes of grade 6.78 g/t or 147,784 ounces of gold. In addition, the project is estimated to contain 1.37 million tonnes of 7.71 g/t or 341,123 ounces of inferred material.
Vein-hosted gold is found within the Dalradian meta-sedimentary rocks on the project’s primary license area. The steeply dipping quartz veins are orientated north-south and host sulphide minerals, including abundant pyrite and galena.