Galantas reviews licence options as it narrows losses

Galantas Gold Corporation said it was reviewing its licences and operations as the company released its half year results for Cavanacaw gold mine in Omagh, Northern Ireland.

PROJECT OPTIONS

In its report, the Canadian miner also said it was looking at options of a sale, joint venture or partnership or other options with third parties and alternative financing structures.

FINANCES

Galantas’ net loss for H1 2020 was posted at CA$1,472,456 compared with $1,671,380 for the same period last year.

Cost of sales was $67,075 (H1: $155,508) with cash loss from operating activities at $643,481 (H1 2019: $1,064,481).

Galantas had cash balances of $199,953 (H1 2019: $1,314,113), and the working capital deficit was posted at $7,700,406 (H1 2019: $4,753,840). 

Provisional revenues from concentrate sales totalled US$186,000.

OPERATIONS

In May 2020, the company announced that concentrate processing had restarted and the company carried out maintenance to the processing plant during the milling suspension.

Concentrate production during the three and six months ending 30 June, 2020 totalled 44 tonnes and 92t of concentrate provisionally assessed as grading 86.4 and 98 g/t respectively.

The company has also conducted a probe drilling campaign and detailed mapping of the exposed mineralisation underground.

Results suggests zones of higher width of mineralisation within the Kearney vein, linking adjacent levels.

BLASTING

Some underground work continued during the first half of 2020, and in Q2 Galantas received approval from the PSNI to increase blasting to a commercial level subject to financial matters being agreed.

“However, ore production remains suspended until finance is available to expand the underground operation,” said Galantas in its report.

“The processing plant continued to operate on a limited basis with feedstock for the plant being from low grade stock.”

EARLIER ACTIVITY

In early 2017, underground development began of the decline tunnel, located at the base of the existing open pit with limited production of gold concentrate during Q3 of 2018.

Shipments of gold and silver concentrate began during Q2 of 2019 but Galantas has yet to start commercial production.

The company said that any proceeds were being offset against development.

While waiting for the Police Service of Northern Ireland (PSNI) to approve blasting operations, the company incurred further costs and reduced the number of employees from 46 to 21.