TIDMGAL
RNS Number : 2853G
Galantas Gold Corporation
18 July 2023
GALANTAS GOLD ANNOUNCES RESOURCE UPGRADE AT THE OMAGH GOLD
PROJECT IN NORTHERN IRELAND
JULY 18, 2023, TORONTO, CANADA - Galantas Gold Corporation
(TSX-V & AIM: GAL; OTCQX: GALKF) ("Galantas" or the "Company")
is pleased to announce an updated NI 43-101-compliant Mineral
Resource Estimate for the Company's Omagh Gold Project in Northern
Ireland, effective June 22, 2023 (the "2023 MRE").
The MRE, prepared by Micon International Limited ("Micon"),
includes the main Kearney and Joshua vein systems which have been
updated on the basis of 42 additional drill holes and a complete
review of the previous vein wireframe interpretations.
Highlights of the Omagh Project 2023 MRE include:
-- Increased strike and depth continuity of modelled veins in
the Kearney and Joshua vein systems.
-- The Mineral Resources are the most robust estimate of the
Kearney and Joshua veins demonstrating reasonable prospects for
eventual economic extraction (RPEEE).
-- 53% of Mineral Resources are reported in the Measured and Indicated categories.
-- Total contained gold ounces have increased by 77% from the
previous 2014 estimate (announced on July 28, 2014).
-- Deposit remains open along strike and to depth with downdip
drilling planned on the Joshua Vein under Permitted Development
following a meeting of the Fermanagh and Omagh District Council
(FODC).
Mario Stifano, CEO of Galantas, commented: "This resource update
is the culmination of a tremendous effort by our team at Omagh. The
drill results from our most extensive exploration program since the
2014 resource estimate have increased our confidence in the high
gold grades at the Omagh Project, further confirming its potential
particularly at the Joshua Vein, which we are keen to explore."
Mineral Resource Estimate for the Kearney and Joshua Vein
System
Table 1: Mineral Resources of the Kearney and Joshua vein
system, effective June 22, 2023.
Tonnage Contained Gold
Classification Vein (tonnes) Gold Grade (grams/tonne) (ounces)
Measured Kearney 94,131 6.73 20,371
---------------- ---------- ------------------------- ---------------
Joshua 18,381 6.59 3,897
--------------------------------- ---------- ------------------------- ---------------
Indicated Kearney 402,924 6.50 84,258
---------------- ---------- ------------------------- ---------------
Joshua 247,217 7.39 58,730
--------------------------------- ---------- ------------------------- ---------------
Measured +
Indicated Kearney 497,055 6.54 104,629
---------------- ---------- ------------------------- ---------------
Joshua 265,598 7.33 62,627
--------------------------------- ---------- ------------------------- ---------------
Total Measured
+ Indicated 762,653 6.82 167,256
--------------------------------- ---------- ------------------------- ---------------
Inferred Kearney 402,479 5.33 69,020
---------------- ---------- ------------------------- ---------------
Joshua 283,925 6.21 56,648
--------------------------------- ---------- ------------------------- ---------------
Total Inferred 686,404 5.69 125,668
--------------------------------- ---------- ------------------------- ---------------
Notes:
1. The Mineral Resource Estimate has been prepared in accordance
with National Instrument 43-101 (NI 43-101) Standards of Disclosure
for Mineral Projects.
2. To demonstrate Reasonable Prospects for Eventual Economic
Extraction (RPEEE), underground Mineral Resources were constrained
by Mineable Shape Optimizer (MSO) shapes of 1.2 m minimum stope
width optimized to a cut-off of 2.25 g/t Au to demonstrate
RPEEE.
3. Economic parameters for cut-off grade determination: US$1,800
oz Au price, 92% process recovery, 90% payability, 4% royalty,
US$120 t mining cost, US$30.72 t processing cost, US$13 t general
and administration.
4. Diluted tonnages and grades are reported based on minimum stope widths.
5. Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. There is no certainty that all or
any part of the estimated Mineral Resources will be converted into
Mineral Reserves.
6. Average density values: mineralized veins = 2.98 t/m(3) , waste =2.70 t/m(3) .
7. Grade interpolation by 2D inverse distance cubed (ID(3) )
using a block size of 5 m (X) by 5 m (Y).
8. Grade capping for outliers at 80 g/t Au.
9. Mineral Resource Classification:
a. Measured - within 20 m of channel samples used in the Mineral
Resource estimate or volumes where the average distance to the
nearest drill hole is <30 m and the majority of intercepts are
from recent underground drill holes.
b. Indicated - volumes where the average distance to the nearest drill hole is <30 m.
c. Inferred - all other interpolated blocks inside the vein wireframes.
10. Mineral Resources are inclusive of Mineral Reserves.
Figure 1: Classification of Mineral Resources of Kearney (left)
and Joshua (right) veins.
Note: Block model shows the modelled veins; it has not been
constrained by the MSO shapes.
By definition, a Mineral Resource has reasonable prospects for
eventual economic extraction or RPEEE (CIM Definition Standards,
2014). In accordance with the recommendation of the CIM Estimation
of Mineral Resources and Mineral Reserves Best Practice Guidelines
2016, a Mineable Shape Optimizer (MSO) was used to identify
spatially continuous mineralization within potentially mineable
shapes using reasonable assumptions based on the current operation.
The previous 2014 Mineral Resource Estimate did not take into
account RPEEE as outlined in the CIM 2016 guidelines, and only
considered an economic cut-off on a block-by-block basis.
The 2023 MRE updated Joshua and Kearney Mineral Resources have
been compared with the non-compliant reserve estimate used in the
economic study presented in the technical report titled "Resource
Estimate, Preliminary Economic Assessment & Detailed
Feasibility Study on the Omagh Gold Project, County Tyrone,
Northern Ireland" dated July 26, 2014 (the "2014 PEA"). This is
considered appropriate since the recommendation in 2016 by the CIM
to apply an MSO to demonstrate RPEEE renders a comparison between
the 2014 Mineral Resources unsuitable.
As can be seen from the table below, the 2023 MRE tonnage and
grade is higher than the 2014 PEA estimate, which is expected as
the restrictions for estimating the potential mineable resources in
the 2014 PEA were greater than the high-level MSO that was used to
define the 2023 MRE. However, the table also shows that with the
application of MSO to demonstrate RPEEE, the 2023 MRE is in line
with previous expectations.
Table 2: Comparison of 2023 MRE and 2014 PEA.
Tonnage (tonnes) Gold Grade Contained Gold (ounces)
(grams/tonne)
Vein 2023 2014 %diff 2023 2014 %diff 2023 2014 %diff
------------- ----------- ------ ----- ----- ------ ----------- ----------- ------
Kearney 899,534.00 574,870.00 56% 6.00 5.34 13% 173,649.41 98,592.00 76%
------------- ----------- ------ ----- ----- ------ ----------- ----------- ------
Joshua 549,523.00 370,378.00 48% 6.75 5.60 21% 119,274.36 66,671.00 79%
------------- ----------- ------ ----- ----- ------ ----------- ----------- ------
TOTAL 1,449,057.00 945,248.00 53% 6.29 5.44 16% 292,923.77 165,263.00 77%
------------- ----------- ------ ----- ----- ------ ----------- ----------- ------
Omagh Project Mineral Resource Estimate
The 2023 MRE for the Omagh Project is set out in the table
below. It includes the results of the Mineral Resource Estimate for
the Kearney and Joshua vein systems by Micon, effective June 22,
2023. All other veins were not updated during this process and
therefore remain unchanged from the 2014 PEA.
Table 3: 2023 MRE for the Omagh Project.
Measured Indicated Inferred
---------------
Vein Gold Gold Gold
Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained
(t) (g/t) Gold (oz) (t) (g/t) Gold (oz) (t) (g/t) Gold (oz)
-------- ------- ----------- -------- ------- ----------- -------- ------- -----------
Kearney 94,131 6.73 20,371 402,924 6.50 84,258 402,479 5.33 69,020
-------- ------- ----------- -------- ------- ----------- -------- ------- -----------
Joshua 18,381 6.59 3,897 247,217 7.39 58,730 283,925 6.21 56,648
-------- ------- ----------- -------- ------- ----------- -------- ------- -----------
Kerr 6,848 4.63 1,019 12,061 4.34 1,683 23,398 3.20 2,405
-------- ------- ----------- -------- ------- ----------- -------- ------- -----------
Elkins - - - 68,500 4.24 9,000 20,000 5.84 3,800
-------- ------- ----------- -------- ------- ----------- -------- ------- -----------
Gormleys - - - - - - 75,000 8.78 21,000
-------- ------- ----------- -------- ------- ----------- -------- ------- -----------
Princes - - - - - - 10,000 38.11 13,000
-------- ------- ----------- -------- ------- ----------- -------- ------- -----------
Sammy's - - - - - - 27,000 6.07 5,000
-------- ------- ----------- -------- ------- ----------- -------- ------- -----------
Kearney North - - - - - - 18,000 3.47 2,000
-------- ------- ----------- -------- ------- ----------- -------- ------- -----------
TOTAL 119,360 6.59 25,287 730,702 6.56 153,671 859,802 6.24 172,873
-------- ------- ----------- -------- ------- ----------- -------- ------- -----------
Notes:
1. Updated Mineral Resource Estimate for the Kearney and Joshua
vein was completed by Micon in June 2023.
2. All other veins were not updated during 2023 and therefore
remain unchanged from the 2014 Mineral Resource estimate by
Galantas as stated in the technical report "Resource Estimate,
Preliminary Economic Assessment & Detailed Feasibility Study on
the Omagh Gold Project, County Tyrone, Northern Ireland" dated July
26, 2014 and filed on September 4, 2014.
3. The 2014 MRE has incorporated a different level of rounding
to the current estimate, resulting in the reported contained ounces
for the veins being approximated.
The Company will file a Technical Report supporting this Mineral
Resource Estimate in accordance with NI 43-101 within 45 days of
this announcement.
Update on Exploration
The drilling program continues on site with several targets
identified. Permitted Development rights are being exercised for
surface drilling following a meeting of the Fermanagh and Omagh
District Council (FODC). The program will enable targeted drilling
of existing gaps in the Mineral Resource model on the Joshua Vein
system. Potential for extending the resource down plunge to the
north, in the host lithology favourable to better vein development,
remains to be tested.
Qualified Person
The information in this announcement which relates to the
updated Mineral Resource Estimate for the Omagh Gold Project has
been approved by Mrs. Liz de Klerk, M.Sc., Pr.Sci.Nat., FIMMM who
is a professional registered with the South African Council for
Natural Scientific Professionals (SACNASP) and an independent
consultant to the Company. Mrs. de Klerk is the Senior Geologist
& Managing Director of Micon International Co Limited and has
over 20 continuous years of exploration and mining experience in a
variety of mineral deposit styles. Mrs. de Klerk has sufficient
experience which is relevant to the style of exploration,
mineralization and type of deposit under consideration and to the
activity which she is undertaking to qualify as a Qualified Person
under the terms of NI 43-101. Mrs. de Klerk consents to inclusion
in the announcement of the matters based on this information in the
form and context in which it appears.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
About Galantas Gold Corporation
Galantas Gold Corporation is a Canadian public company that
trades on the TSX Venture Exchange and the London Stock Exchange
AIM market, both under the symbol GAL. It also trades on the OTCQX
Exchange under the symbol GALKF. The Company's strategy is to
create shareholder value by operating and expanding gold production
and resources at the Omagh Project in Northern Ireland, and
exploring the Gairloch Project hosting the Kerry Road gold-bearing
VMS deposit in Scotland.
Enquiries
Galantas Gold Corporation
Mario Stifano: Chief Executive Officer
Email: info@galantas.com
Website: www.galantas.com
Telephone: +44(0)28 8224 1100
Grant Thornton UK LLP (AIM Nomad)
Philip Secrett, Harrison Clarke, George Grainger, Samuel
Littler
Telephone: +44(0)20 7383 5100
SP Angel Corporate Finance LLP (AIM Broker)
David Hignell, Charlie Bouverat (Corporate Finance)
Grant Barker (Sales & Broking)
Telephone: +44(0)20 3470 0470
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities laws,
including without limitation, statements relating to the results of
the 2023 MRE and the nature of such results, the 2023 exploration
program and the details and timing thereof, and the Company's plans
and strategies. Forward-looking statements are based on estimates
and assumptions made by Galantas in light of its experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors that Galantas
believes are appropriate in the circumstances. Many factors could
cause Galantas' actual results, the performance or achievements to
differ materially from those expressed or implied by the forward
looking statements or strategy, including: gold price volatility;
discrepancies between actual and estimated production, actual and
estimated metallurgical recoveries and throughputs; mining
operational risk, geological uncertainties; regulatory
restrictions, including environmental regulatory restrictions and
liability; risks of sovereign involvement; speculative nature of
gold exploration; dilution; competition; loss of or availability of
key employees; additional funding requirements; uncertainties
regarding planning and other permitting issues; and defective title
to mineral claims or property. These factors and others that could
affect Galantas' forward-looking statements are discussed in
greater detail in the section entitled "Risk Factors" in Galantas'
Management Discussion & Analysis of the financial statements of
Galantas and elsewhere in documents filed from time to time with
the Canadian provincial securities regulators and other regulatory
authorities. These factors should be considered carefully, and
persons reviewing this press release should not place undue
reliance on forward-looking statements. Galantas has no intention
and undertakes no obligation to update or revise any
forward-looking statements in this press release, except as
required by law.
Kearney and Joshua Vein Mineral Resource Estimate
APPIX
Geology and Mineralization
The Omagh Gold Project, located in the west of Northern Ireland,
lies within the Caledonian orogenic belt. The principal host rocks
of gold mineralization in the region belong to the Neoproterozoic
age Dalradian Supergroup. They comprise a thick sequence of
metamorphosed biotite to garnet grade clastic marine sediments with
minor volcanic units, deposited in a passive-margin rift basin
during the breakup of the supercontinent of Rodinia.
Mineral exploration during the past 30 years has identified a
number of significant deposits in the Caledonian orogenic belt
including Curraghinalt and Cavanacaw (the Omagh Gold Project) in
Northern Ireland, and Cononish in Scotland. The along-strike
extensions of the Caledonian belt into Scandinavia and North
America are known to host a number of major mineral deposits in a
similar geological environment. These include the Silurian hosted,
shear-zone gold deposit of Kolsvik (Bindal) in Norway, the Upper
Proterozoic, sandstone and porphyry hosted, high-sulphidation,
epithermal gold deposit of Hope Brook in Newfoundland and the
Ridgeway gold deposit in the Upper Proterozoic Slate Belt of South
Carolina.
The Omagh Gold Project mostly overlies rocks of the Upper
Dalradian, part of the Southern Highland Group, exposed in the Lack
Inlier, including the Glengawna Formation and the Mullaghcarn
Formation. The deposit itself is hosted by the Mullaghcarn
Formation that is composed of fine grained clastic meta-sedimentary
rocks (psammites, semi-pelites and chlorite-rich pelites).
The northerly trending Omagh Lineament, one of three major,
parallel, basement lineaments in the region, crosses the eastern
part of the Lack Inlier, in the area underlain by the north
trending Omagh Gold Project vein swarm. The lineament is predicted
to have a zone of influence up to several kilometres wide and
likely has a significant control on the location and orientation of
the mineralized veins, based on the distribution of gold and
arsenic anomalies and the north trending orientation of mineralized
veins in the vicinity of the Lack Inlier.
The Omagh Gold Project vein swarm comprises 17 named vein
structures in an area of about 6 km(2) . The largest of these is
the north to north-northeast trending sub-vertical Kearney vein
system with a strike length of approximately 850 m, and true vein
widths of up to 8.0 m. The maximum vertical extent proved by
drilling is 337 m and it remains open at depth down plunge. Gold
mineralization can be characterized as Palaeozoic orogenic type and
is one of several orogenic structurally controlled, mesothermal
gold bearing quartz and quartz-sulphide veins systems located in
the Caledonian basement rocks.
Mineralization consists of centimetre-to-metre-scale wide quartz
veins with disseminated to massive auriferous sulphides,
predominately pyrite and galena with some accessory arsenopyrite
and chalcopyrite. Quartz veins pinch and swell from stringers to
widths greater than a metre over distances of several metres. The
veins are commonly fringed by varying widths of clay gouge.
Wallrock alteration in the form of sericitization and bleaching may
extend several metres into quartz-feldspar schist host rocks,
depending on the degree of fracturing. The vein systems of the
Omagh Gold Project are structurally controlled complex zone of
quartz-sulphide mineralization and associated alteration, along
which there has clearly been pre- to post-mineralization tectonic
movement, resulting in an irregular lattice-work of mineralized
veins.
A number of potential dilation zones have been identified in the
Kearney and Joshua vein systems in drill core and geological
mapping of underground development drives. Dilation zones have
potential for wider intervals of mineralization and are believed to
be linked on shallow north-dipping planes.
Gold values are closely correlated with sulphide content such
that the tenor of mineralization can be estimated visually in drill
core and during open pit mining. Visible gold has not been reported
in core and the low nugget effect is consistent with this and with
the assumed presence of gold in very fine particle sizes.
Geological Modelling and Grade Interpolation
Since the previous Mineral Resource Estimate in 2014, two
further campaigns of infill drilling have been carried out focusing
on the Kearney and Joshua vein systems in 2015-2016 and 2021-2022.
This included 21 infill underground drill holes in the Kearney
Vein. Density measurements (water immersion method) were performed
on selected drill hole samples giving additional density data that
was used in the updated Mineral Resource estimate.
After updating the Omagh Gold Project drill hole database it was
loaded into Leapfrog Geo. Economic composites were created at 1 g/t
Au to highlight mineralized intersects to be included in the vein
wireframes. Mineralized samples were manually assigned to a vein
based on previous wireframe interpretations, geological mapping and
structural data. The inclusion of internal waste was kept to a
minimum. In total, mineralized intervals were assigned to 22 veins
in the Kearney vein system and 7 veins in the Joshua vein
system.
A separate vein system geological model was created for Kearney
and Joshua. Underground mapping at Kearney gave additional spatial
constraints on the vein hangingwall and footwall surfaces in the
form of polylines. Data from channel samples pre-2011 were not used
in the Mineral Resource Estimate and were only used to guide the
orientation of the vein wireframe models due to the large sample
intervals. The vein systems were modelled with a minimum thickness
of 0.1 m. Pinch outs were manually digitized using polylines and
the vein wireframes were clipped to ensure that they did not extend
significantly beyond the drill data. The clipping boundary was
limited to within 70 m of drill hole data for the largest most
continuous veins and within 50 m for the smaller more discontinuous
veins. These distances were based on the observed vein continuity
from the exploration drilling. Where there was a pinch out at less
than the clipping boundary distance the boundary as set to the
approximate midpoint between the pinch out and the nearest vein
intersection.
Figure 2: West to east cross-section across the Kearney
Vein.
Attempts were made to model the dilation zones as part of the
vein wireframes, but their spatial extents could not be confidently
modelled in between drill holes. It is recognized that the location
of the dilation zones can be predicted but there is not sufficient
data at the required resolution to accurately model them.
The method of interpolation used was 2D inverse distance cubed
(ID(3) ). A 2D method of interpolation was preferred because of the
narrow vein geometry of the ore body. The veins have been sampled
on intervals of varying length which makes compositing for 3D
estimation problematic. Furthermore, the veins will be mined in a
single stope with no mining selectivity across the vein width.
Length-weighted full width vein composites were created for each
mineralized intercept, input assay data was capped at 80 g/t Au and
the true vein width of composites was calculated from the modelled
vein wireframe thickness.
An accumulation variable was calculated, where:
The accumulation was interpolated into the block model using
ID(3) , as was the true vein width. Global inverse distance
utilizing all samples with an isotropic search was used as were
declustering weights for veins with clustered data. The grades were
calculated on a block-by-block basis as follows:
The 2D block models for Kearney and Joshua utilized a block size
of 5 m (X) by 5 m (Y). The full width vein composites were rotated
so that the plane of the modelled vein was approximately parallel
to the XY plane. The Z value was set to a constant value,
projecting the full width vein composites on to the XY plane for 2D
interpolation. After interpolation the projection and rotation were
reversed and the 2D interpolated values were transferred to the 3D
block models for Kearney and Joshua. The 3D block models utilized a
parent block size of 5 m (X) by 1 m (Y) by 5 m (Z) with a minimum
subblock size of 1.25 m (X) by 0.0625 m (Y) by 1.25 m (Z) and was
rotated with an azimuth of 265deg, dip of 5deg, and pitch of
0deg.
An average density value of 2.98 t/m(3) was assigned to
mineralized veins and 2.70 t/m(3) to waste.
In order to assure the quality of the estimate, the block model
was validated using statistical comparison, visual inspection and
swath plot analysis.
Figure 3: 3D Rotated view of the Joshua and Kearney vein block
models.
Classification and Reporting
The Mineral Resource estimate was classified in accordance with
National Instrument 43-101 (NI 43-101) Standards of Disclosure for
Mineral Projects and as defined in the CIM Definition Standards,
2014. Mineral Resources were classified as Measured, Indicated, and
Inferred. The Mineral Resource classification is based on the
following:
-- Measured - within 20 m of closely spaced channel samples used
in the Mineral Resource estimate or volumes where the average
distance to the nearest drill hole is <30 m and the majority of
intercepts are from recent underground drill holes.
-- Indicated - volumes where the average distance to the nearest drill hole is <30 m.
-- Inferred - all other interpolated blocks inside the vein wireframes.
The average distance to the nearest drill hole was calculated
using the 3 closest samples.
By definition, a Mineral Resource has reasonable prospects for
eventual economic extraction or RPEEE (CIM Definition Standards,
2014). The Omagh Gold Project has demonstrated RPEE on the
following basis:
-- More than 2,500 m of ore and waste development drives have
been completed and in July 2022 longhole drilling commenced to open
the first series of stopes at the Kearney vein system.
-- The ore produced from the development and limited stoping has
been used to feed the on site processing plant on a part time
basis. The processing plant which was operational during the open
pit phase of the mine, produces a saleable sulphide rich flotation
concentrate.
-- The operation is fully permitted including an up-to-date
Environmental Impact Assessment (EIA).
In accordance with the recommendation of the CIM Estimation of
Mineral Resources and Mineral Reserves Best Practice Guidelines
2016 a Mineable Shape Optimizer (MSO) was used to identify
spatially continuous mineralization within potentially mineable
shapes using reasonable assumptions based on the current operation
and long term price trends. For the MSO a minimum stope width of
1.2 m optimized to a cut-off of 2.25 g/t Au was used. Economic
parameters for cut-off grade determination include: US$1,800 oz Au
price, 92% process recovery, 90% payability, 4% royalty, US$120 t
mining cost, US$30.72 t processing cost, US$13 t general and
administration.
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