Galantas continues underground blasting in Omagh

The AIM-traded firm said that as it had expected, development of the Kearney vein produced a feed of higher gold grade for the processing plant than the existing feed, which comes from low grade stock.

It said the grade attributable to low grade stock for January and February was estimated at 1.8 grams per tonne and 1.1 grams per tonne of gold, respectively.

The grade of the limited feed produced from underground, based on concentrate production, was estimated at 5.7 grams of gold per tonne, with that material supplementing the low grade material processed during the last week of the first quarter.

Galantas said the total tonnage processed in the first quarter was estimated at 6,262.5 tonnes, for an estimated 258.5 troy ounces of gold within an estimated 87.3 tonnes of concentrate.

Shipments of 96.7 tonnes of concentrate were made in the first quarter, containing an estimated 304.6 troy ounces of gold.

Cash received during the first quarter, under the company's concentrate off-take agreement, totalled $0.58m, including residual payments due from previous out-of-quarter shipments.

The company said cash received was continuing to be credited within the accounts against development costs, until ramp up to full production is complete.

An initial review of the restart of underground operations had demonstrated favourable results, the board said, based on provisional estimates.

“I am pleased with how the restart of mining operations has gone so far,” said president and chief executive officer Roland Phelps.

“When underground feed is processed in the mill the expected increase in concentrate production is demonstrated.

“The company is actively working with third parties to finance an expansion of the business going forward.”

Galantas said environmental monitoring of operations was still demonstrating satisfactory results, within regulatory constraints.

At 1130 BST, shares in Galantas Gold Corporation were up 7.43% at 18.8p.