Galantas Gold Corporation (LON:GAL) shares pushed higher on Monday on news it has now reached the main gold vein in development works underground at its Omagh gold mine in Northern Ireland.
The main tunnel that Galantas has dug descends at a slope with a gradient of 1-in-7 from near the base of the former open pit.
From this a horizontal west to east access tunnel has intersected the north-south Kearney vein at approximately a right angle and has exposed the vein to be approximately 2.8 metres wide.
Channel samples are being taken to confirm the grade of mineralisation.
An earlier exploration borehole within 20 metres of the vein intersection returned grades of 22.53 grams per tonne gold on a true width of 2.4 metres.
The vein intersection is located some 15 metres below the base of the Kearney open-pit.
Development tunnel planned
A horizontal development tunnel is planned to be driven on vein, at this level, in both directions, beneath a safety, or Crown, pillar. It is anticipated that this will provide limited feed to the mill early in the July-September quarter of this year.
It’s now anticipated that stoping from the first two horizontal levels will commence late in 2018 or early in 2019. Stoping operations are expected to provide an enhanced supply of mill feed.
"I am delighted that we have reached this important milestone,” said Roland Phelps, President & chief executive of Galantas Gold Corporation.
“The team has overcome many obstacles to achieve this outcome and the success is due to their professionalism, enthusiasm and focused hard work. On behalf of shareholders and directors, I thank them for their excellent efforts and look forward to continued future success."
In early morning trading, Galantas Gold shares were 12.5% higher at 6.75p.
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