Galantas Provides Omagh project update
Tuesday, January 11th, 2022
2021 Project Highlights:
A total of 2,200 metres of underground mine development have been completed to date, with rehabilitation of early mine workings ongoing.
Upgrading work on mine electrical reticulation commenced in 2021 and is expected to be completed by the end of Q1 2022. Additional fans and pumps have arrived on site and are being installed.
Refurbishment and procurement of major equipment is now complete.
Development of a secondary egress has commenced and is expected to be completed by the end of Q1 2022.
The process plant is being prepared for installation of new equipment.
Laboratory testing equipment has been procured, with partial commissioning completed in 2021. The laboratory is expected to be fully functional by the end of Q1 2022.
Key operational team members have been recruited to fill safety, mining, milling, and technical services roles. Key positions of the operational management team are now in place with ongoing recruitment of mining and processing employees to meet operational targets.
Underground drilling at the Kearney Vein and surface drilling at the Joshua Vein have commenced for resource expansion and mine planning.
The Company engaged JDS Energy & Mining Inc. for mine planning.
2022 Operational Guidance:
Production is expected to commence at the end of Q1 2022 with 9,000 ounces of gold in concentrate produced at an average head grade of 5.50 grams per tonne (g/t) at an all in sustaining cost (AISC) of US$1,150 per payable ounce for the year ending 2022. In 2023, production is expected to increase to 17,800 ounces at an average grade of 8.0 g/t and an AISC of US$1,350 per payable ounce.
US$4.2 million in growth capex.
The Company is undertaking studies to modernize the processing plant, including the addition of a gravity circuit to support an internally-financed staged expansion of gold production.
The Company plans to continue its 4,000-metre underground drilling program started in 2021 to aggressively drill the Joshua and Kearney veins, and also drill additional highly prospective targets in the second half of 2022.
Mario Stifano, CEO of Galantas, commented: “2021 was a headline year for Galantas as we attracted key management talent and new supportive shareholders, and made significant investments in underground development, mine infrastructure and equipment. Thanks to the hard work of our team on the ground, we are now on the cusp of commencing gold production at Omagh. The opportunity for growth and to create value for our shareholders is tremendous as technical and engineering studies to expand and upgrade the processing plant to support a Phase 2 expansion to 35,000 ounces of gold per annum, are underway – with further phased production growth envisioned to support an aggressive exploration program to grow our high-grade gold resources and unlock the full potential of a newly emerging high-grade gold district.”