Galantas focuses on increasing resource at Cavanacaw

Galantas Gold Corporation recorded no revenue during Q2 2021 as the company focused on drilling to increase resource at the Cavanacaw mine in Omagh, Northern Ireland.

FINANCES

In its unaudited financial results for Q2 2021, the Canadian miner recorded nil revenue (Q2 2020: nil).

Concentrate sales provisional revenues of US$218,000 for Q2 2021 (Q2 2020: $nil) are being offset against development assets until the mine starts commercial production.

Net losses were recorded at $2,888,568 (Q2 2020: $792,141) and the cash inflow from operating activities amounted to $144,806 (Q2 2020: $294,582).

Galantas said that the difference in the net loss was mainly due to stock based compensation and warrant issue costs from financing activities.

The company had a cash balance of $6,142,477 (Q2 2020: $199,953) with working capital surplus of $4,505,905 (Q2 2020: deficit of $7,700,406). 

During the second quarter of 2021, Galantas also closed a private placement of £4.7 million to increase gold production and expand exploration.

EXPLORATION

During July 2021, Galantas began an initial 4,000 metre Phase 1 drill programme targeting the Joshua vein from surface and the Kearney vein from underground drilling. 

The company added it continued to invest in safety-related training and infrastructure and had recorded zero lost time accident rate since the start of underground operations.

MINE DEVELOPMENT

Galantas added its new management and operation teams continued its detailed review of mine plans and production profile.

“The company has made great strides in advancing the Omagh project with the commencement of drilling to increase the confidence of resources for mine planning while also looking to expand known resources,” said chief executive Mario Stifano.

“Operationally, the company has secured critical new mining equipment to support mining activities while strengthening site management and operations team as we commence a phased restart of operations.”