Galantas Gold Corporation said it expected to start production at the end of Q1 2022 at its gold mine in Cavanacaw, Omagh, Northern Ireland.
GUIDANCE
The Canadian company is targeting 9,000 ounces of gold in concentrate produced at an average head grade of 5.50 g/t at an all in sustaining cost (AISC) of US$1,150 per payable ounce for the year ending 2022.
During 2023, Galantas anticipates to increase to 17,800 ounces at an average grade of 8.0 g/t and an AISC of $1,350 per payable ounce.
The company has set $4.2 million in growth capital expenditure.
Chief executive Mario Stifano said that the company had started technical and engineering studies to expand and upgrade the processing plant to support a Phase 2 expansion to 35,000 ounces of gold per annum.
He added that there was a “tremendous” opportunity for growth and to create value for shareholders.
PROGRAMME
The company plans to continue its 4,000-metre underground drilling programme started in 2021 to drill aggressively the Joshua and Kearney veins.
It will also drill additional highly prospective targets during the second half of 2022.
CURRENT OPERATIONS
Galantas has to date completed 2,200 metres of underground mine development and continues to rehabilitate early mine workings.
It expects to complete upgrading mine electrical reticulation by the end of Q1 2022.
Galantas has completed refurbishment and procurement of major equipment and is installing additional fans and pumps.
The company has started developing a secondary egress due for completion by the end of Q1 2022.
The laboratory is expected to be fully functional by the end of Q1 2022.
WORKFORCE
Key operational team members have been recruited for safety, mining, milling, and technical services roles and key positions of the operational management team are in place.
Galantas has engaged JDS Energy & Mining Inc. for mine planning and is recruiting mining and processing employees to meet operational targets.