Galantas Gold Corp (LON:GAL) has posted a net loss for the three months ended June 30 of C$700,510, marginally wider than the C$511,876 loss booked in 2017.
The net loss for the six months ended June 30 amounted to C$1.2mln, also marginally wider on the corresponding number for 2017.
The cash loss from operating activities before changes in non-cash working capital for the six months to June amounted to C$762,340.
The company had cash balances of $732,603 at June 30.
During the second quarter, Galantas announced that its operating subsidiary, Flintridge Resources Ltd. had signed a concentrate pre-payment agreement and a loan facility agreement for US$1.6 mln with Ocean Partners UK Ltd., together with an increased, on-demand loan facility of £600,000 with G&F Phelps Ltd.
Meanwhile, production of flotation concentrate at the Omagh mine from development ore restarted in the third quarter of 2018.
The granting of planning consent in 2015 for an underground operation at the Omagh site, now subject to the result of a judicial review appeal, permits the continuation and expansion of gold mining, following the exhaustion of accessible resources available to the previous open pit operation.
The underground mine, which is in active development, will utilize the same processing methods and the processing plant has received a partial upgrade. The strategy is to establish the underground mine and look for further expansion of gold resources on the property, which has many undrilled targets.
Underground development of a decline tunnel, located at the base of the existing open pit, commenced in the first quarter 2017. After overcoming initial difficulties, tunnelling continued through 2017 and continues in 2018.
A detailed plan is being implemented to accelerate progress in line with the planning consent. The main decline tunnel descends at a slope of 1 in 7, from near the base of the former Kearney open pit.
A horizontal west to east access tunnel driven from the decline tunnel intersected the north/south Kearney vein during June at approximately a right angle and has exposed the vein as approximately 2.8 metres wide at that point.
The vein intersection is located some 15 metres below the base of the Kearney open-pit. A horizontal development tunnel is planned, to be driven on vein, at this level, in both directions, beneath a safety pillar. This work will initially provide limited feed to the mill in the third quarter.
The decline tunnel is to be extended in depth, along with construction of a second means of egress. The decline will provide access to lower levels and permit stoping between the first two horizontal levels in late 2018 or early 2019.
Stoping operations are expected to provide an enhanced supply of mill feed. The underground development, using drill and blast techniques, is being carried out by an in-house crew which is fully trained in safety and operating procedures. An in-house, mines rescue team has also been trained and equipped.