Galantas Gold Corp (LON:GAL,CVE:GAL) said its processing plant at the Omagh mine in County Tyrone, Northern Ireland was operational and is awaiting ore.
Production at the site, a former producer, is suspended as the firm awaits the outcome of a judicial review in September this year concerning the planning consent for an underground operation granted last year.
"Work continues at a low level at the mine, satisfying conditions precedent to the underground planning permit, progressing restoration and some advance works related to underground development," Roland Phelps, chief executive, told investors.
The three months to end March saw sales revenue of C$28,073 (2015: C$1,123 mainly due to jewellery. The net loss was C$373,345 against a loss last year of C$414,099.
The firm ended the period with cash of C$568,284 against C$380,764 a year earlier.
In exploration during the first quarter, 1,298 metres were drilled, bringing the total number of metres for the programme to 3,602m.
And excitingly, in January, the firm identified the largest accumulation of gold discovered so far, with a 13 metre intersection at the Joshua vein showing gold grades of 9.9 g/t (grams per tonne), 30.3 g/t silver and 0.6% lead, at an estimated vertical depth of 117.2 metres.
Also the firm found new high grade vein called 'Kestrel' in an under-explored area of the formerly producing property.