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Galantas Gold frustrated by blasting issues at Omagh

Snapshot

  • Owns open-pit gold mine near Omagh, Northern Ireland.
  • Underground mine development work is underway
  • Exploration started to boost mine's resources
mine

Quick facts: Galantas Gold Corp

Price: 1.625 GBX

AIM:GAL
Market: AIM
Market Cap: £5.25 m
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Development continues on or better than target ... the potential for an expansion of the Omagh gold resource remains very high.

Roland Phelps, chief executive

How it's doing

In November, Galantas Gold Corp (LON:GAL) warned that blasting restrictions at the Omagh mine in Northern Ireland are having a significant impact on its operations and financial situation.

The miner wants to increase the amount of blasting it can undertake, but any blasting needs to supervised by the Police Service of Northern Ireland.

Mining has been suspended while talks with the police continue and though Galantas says progress is being made there is no indication yet when the required approvals will be granted and blasting can resume.

To reduce costs Galantas has started to scale back operations at the Omagh gold mine with consultations underway over staffing levels though the processing plant will operate using underground stock.

Galantas is also reviewing its strategic alternatives including licences and operations and setting up a joint venture, a partnership or alternative financing structures.

Some funds will have to be raised within the next six months if the current situation continues.

The AIM and Canada-listed group posted a loss of C$718,000 in the three months to September with cash of C$1.36mln at the end of the period.

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Inflexion points

  • Has now hit Kearney vein on the fourth level
  • Galantas has a production target of 30,000oz in concentrate a year
  • The processing plant uses a non-toxic flotation process
  • Resolution of talks with PSNI over blasting at Omagh mine

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Full interview: Galantas Gold temporarily suspends blasting at Omagh mine

Galantas Gold Corporation's (LON:GAL) Roland Phelps tells Proactive London's Andrew Scott they've temporarily suspended blasting operations at their Omagh gold mine, Northern Ireland. Phelps says blasting operations are currently limited, since all blasting must be supervised by the Police...

on 29/10/19

2 min read