28th Jul 2014 13:23
LONDON (Alliance News) - Galantas Gold Corp Monday released a gold resources, economic study, planning and environmental update on its Omagh gold mine in Northern Ireland, showing a 19% increase in resources since its 2013 resource report.
The gold mining company said inferred resources at the site have increased 15.4% to 341,123 ounces, indicated resources have gone up 21.4% to 147,784 ounces and measured resources jumped 55% to 32,202 ounces.
The company said its increases are largely based on the Kearney and Joshua veins at the site, where drilling exploration has been focused in recent years.
The most recent drilling programme on site was carried out to update these resources so the company can achieve potential bank funding opportunities for the financing of production at the Omagh gold mine.
Measured and indicated resources at the Kearney vein have increased to 100,545 ounces, from 69,000 ounces in 2012, and measured and indicated resources at the Joshua vein have increased to 67,739 ounces, from 15,800 ounces.
Galantas Gold said that its economic study of the Omagh site has shown that at a gold price of USD1,260 per ounce, it will see an internal rate of return at 72% and net present value of roughly GBP14.5 million with a cost of production at GBP394 per ounce.
The company said it has now reached the final stages of permitting for production at the underground mine and it has received a positive final consultation response. It said it could receive final determination for the site within three months.
Galantas Gold shares were up 19.7% to 4.49 pence, putting it in the top three AIM All-Share risers on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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