Galantas Gold Corporation (LON:GAL)(CVE:GAL) is expanding its gold milling capacity at the Omagh mine in Northern Ireland.
The company’s mill is already producing a gold and silver concentrate using a non-toxic, froth-flotation process.
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Extended dayshift working patterns will continue until late in the second quarter when a second milling shift will be added to process the increasing quantities of feed expected to be available. Additional milling shifts will be added in the third quarter.
Current expectations are that the private placing in December 2018 provided sufficient financial resources to bring operations to a monthly cash positive position before the end of 2019.
Target production is 2,000 to 2,500 troy ounces of gold in concentrate per month, a rate likely to be reached in 2020 or 2021. The company considers that further expansion may be possible, targeting 50,000 ounces of gold per year.
The decline and mine development have been designed for long term, large scale production from other veins parallel to the Kearney vein currently being worked.
"This is an exciting time for Galantas,” said chief executive Roland Phelps.
“We have been able to put around half of the December 2018 placing funds to work and the benefits of that are now starting to accrue. We continue to invest in safety and productivity improvements, with the goal of becoming Ireland's premier, ecologically-secure, gold producer. The works have been achieved for costs generally in-line with those anticipated, which is a testament to the professionalism and dedication of the Omagh team."