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Galantas Gold Corp - Mineral Resource Review

GALANTAS GOLD CORPORATION TSX Venture Exchange: GAL London Stock Exchange AIM: GAL 12th June 2008 GALANTAS OUTLINES RESOURCES REVIEW FOR OMAGH GOLD MINE, NORTHERN IRELAND Galantas Gold Corporation, which has a 100% interest in Ireland's only gold mine, reports receipt of a detailed, independent, mineral resource review. The operational open pit mine is situated near Omagh, County Tyrone, Northern Ireland and is engaged in increasing mine ore production to a target of 1400 tonnes per week. The mine produces a flotation concentrate containing gold, silver and lead, which is exported and sold to a Canadian smelter. The report of the mineral resource review on the Omagh property has been prepared by independent consultants, ACA Howe International Ltd (Howe). The report, entitled Technical Report on the Omagh Gold Project is dated 28th May 2008 and will be published on www.sedar.com and www.galantas.com . Authors are G. White FGS MAusIMM, J. Bennett C.Eng MIMMM and N. Holloway C.Eng MIMMM. The resource review updates resource estimates for the Kearney deposit and the other named veins. These are classified in accordance with CIM (Canadian Institute of Mining, Metallurgy and Petroleum) Definition Standards on Minerals Resources and Minerals Reserves, adopted by CIM Council on December 11, 2005. The report was commissioned to be prepared in compliance with Canadian National Instrument 43-101. The reporting has been conservatively applied and there are some significant differences with the JORC (Australian Joint Ore Reserve Committee) code (1995) previously used to calculate resources. For instance, although the Elkins mineralised structure has been found to be co-incident with an IP (Induced Polarisation) geophysical anomaly for the portion of its length that has been drill tested, the portion of the anomaly that has not been drill tested has been excluded from resource calculation. The potential Elkins extension is included within a table of Resource Extension Targets. Previously the extension was calculated within the JORC resource model. The CIM / NI.43-101 resources as summarised in the report are as follows : Measured Indicated Inferred Gold(Au) grade Tonnage Grade Tonnage Grade Tonnage ozs g/t gold (t) ozs g/t gold (t) ozs g/t gold (t) Kearney 16000 6.35 78000 76000 6.74 350000 218000 9.27 730000 Elkins 12000 3.3 113000 3600 3.82 29000 Kerr 7800 4.03 60000 Joshua 20400 3.96 160000 Gormley 24300 6.57 115000 Garry 1600 1.27 40000 Prince's 12500 38.93 10000 Sammy's 4100 4.26 30000 Kearney Nth 3500 1.97 55000 Total ozs 16000 88000 295800 Two new vein discoveries are reported upon, named as McCombs vein and Eastern Lagoon vein, though no estimate of resources have been included for these discoveries. The report contains estimates of potential tonnage and grade of some of the available targets and classifies these by Resource Extension or Exploration. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define mineral resources in these areas. It is uncertain if further exploration will result in the targets being delineated as mineral resource. The exploration potential does not represent a mineral resource, does not have demonstrated economic viability and is disclosed in accordance with NI 43-101 Rules and Policies, Section 2.3, disclosed as potential quantity and grade, expressed as ranges, of a potential mineral deposit that is to be the target of future exploration. The report states, 'However, the disclosed potential quantity and grade has been determined on the basis of reasonable extrapolation from known and defined resources and/or favourable geochemical/geophysical signatures and float/surface sampling, the results of which make these areas highly prospective'. Table of Exploration Potential* Target Name Potential Tonnes Potential Grade Range Range (t) (g/t Gold) RESOURCE EXTENSION TARGETS Low high Low High Kearney 400,000 600,000 4.5 9.0 Elkins 200,000 400,000 2.0 4.0 Joshua's 190,000 380,000 2.0 4.0 Kerr 180,000 360,000 2.0 4.0 Gormley 230,000 460,000 3.3 6.5 Sammy's 30,000 60,000 2.1 4.2 Prince's 20,000 40,000 19 38 Garry's 80,000 160,000 0.7 1.3 Total 1,330,000 2,460,000 EXPLORATION TARGETS Peter's 4,000 13,000 4.5 9.0 '63 gram' 33,000 101,000 4.5 9.0 North of Sammy's 135,000 810,000 4.5 9.0 Barn/East Cousins Cornavarrow 60,000 360,000 4.5 9.0 Burn East Corlea Burn 60,000 360,000 4.5 9.0 Legphressy 60,000 360,000 4.5 9.0 Cousins 48,000 145,000 4.5 9.0 Total 400,000 2,149,000 TOTAL 1,730,000 4,609,000 EXPLORATION POTENTIAL * The report comments upon mining operations as follows :- 'It is the opinion of Howe that Galantas are operating the open pit in a proper way, with suitably sized equipment. With proper sequencing of waste mining and the additional capacity afforded by the proposed road contractor, Galantas have sufficient loading and hauling capacity on site to supply the plant with ore to meet the mine schedule. Future extensions to the Kearney pit are being planned in a proper manner to ensure the continuation of mining at the site and Target ore grades are being achieved at present.' The report notes, 'Galantas has recently come to an arrangement with a local road building contractor for the supply to the contractor of waste rock from the Omagh mine. The contractor will dig and remove up to 0.5 M bcms of material, with his own fleet and at his own cost, over the next few years. This additional capacity will allow the increased rates of waste stripping to be carried out without any additional fleet acquisitions by Galantas.' The report contains details of the target schedule, which is reported as '200 tonnes per day at the process plant on a 7 day week basis'. The technical information referred to was verified by the author of the report by a combination of first-hand verification, observations, data collection, from observations from a total of six site visits to the project undertaken between July 2006 and September 2007 in order to collect date and review drilling activities, information and data received from Galantas and third party sources (listed in the report), which are assumed to be correct but which are not independently verified although Howe is not aware of any information in those documents that is incorrect. The author carried out checks during site visits and confirmed best practise logging and processing, witnessed core cutting and sampling, verified channel sampling locations and reviewed internal reports relating to the discovery of new exploration areas. This disclosure has been authorised by G.White FGS MAusIMM, (Senior Geologist - Resources) of ACA Howe International Ltd, who is a Qualified Person for this purpose. Galantas Gold Corporation Issued and Outstanding Shares total 175,675,855. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release. This press release includes certain 'Forward-Looking Statements' within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements such as those referring (but not limited) to production activity or estimates of performance or quantities of resources are 'Forward-Looking Statements' that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these 'Forward-Looking Statements'. As this release summarises a detailed technical report, it may not contain all items that may be relevant to an individual reader and therefore readers are advised not to rely upon this release as a complete summary of the report and to read the whole report as filed. Enquiries: Galantas Gold Corporation Jack Gunter P.Eng - Chairman Roland Phelps C.Eng - President and CEO Email : [email protected] Website : www.galantas.com Telephone : +44 (0) 2882 241100 Blomfield Corporate Finance Limited Nick Harriss Telephone : +44 (0) 207 489 4500 Lewis Charles Securities Limited Kealan Doyle Telephone : +44 (0) 207 456 9100 -END-

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Full interview: Galantas Gold temporarily suspends blasting at Omagh mine

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on 29/10/19