Galantas poised to start gold production in N. Ireland
Galantas Gold Corp. [GAL-TSXV, AIM, GALKF-OTCQX] said Wednesday it expects to begin production at its Omagh Gold Project in Northern Ireland by mid-June, 2022.
The company is expecting to produce between 4,500 and 5,500 ounces of gold during the balance of the year.
Galantas shares advanced on the news, rising 3.1% or $0.02 to 66 cents in light trading activity. The shares are currently trading in a 52-week range of 94 cents and 34 cents.
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.
In an update released on Wednesday, the company said it has made significant progress in rehabilitating the underground workings, refurbishing and acquiring critical mining equipment, and installation of electrical water, and ventilation systems.
However, the company said it has faced a tight labour market for experienced underground miners. So, it has focused on hiring and training local trainee miners. The company said the U.K. government has now granted Galantas a Visa Licence. This will allow the company to recruit eligible people who satisfy the labour entry requirements from outside the U.K. and Ireland.
Meanwhile, Galanta has delayed the completion of the secondary egress (exit) and installation of the manway, which is a pre-requisite for the start of production, to mid-May, 2022 to allow for the safe rehabilitation of the ramp access and ore headings at the 1048 level.
The company said it has now resolved these geotechnical matters and hired an experienced contract driller to assist with the start-up of production. Developing drilling and blasting is expected to recommence in the first half of May, 2022.