Galantas Gold expecting progress to accelerate at Omagh mine

Galantas Gold Corp (LON:GAL) said ‘good’ progress was made in its latest quarter in its bid to bring the Omagh gold mine back into life in Northern Ireland, and where underground development is expected to begin soon.

However, production at the site is currently suspended, and the planning consent given in 2015 is subject to a judicial review, which has been heard, but the result is not yet known.

Nevertheless, last year the firm decided to press ahead with initial works, which have now started, following a private placing, which brought in around $2.44mln.

The mill has now been re-commissioned and a budget of £2mln, excluding lease finance, for the first phase of underground mining, has been estimated.

Galantas says it’s in advanced stage of negotiation with a provider of lease finance, which will provide funding for additional mine equipment.

Portal works were completed in mid-April this year and the underground development will continue in order to access ore beneath a crown pillar retained in the base of the open pit, though is subject to the ongoing arrangements with the Police Service of Northern Ireland (PSNI), the firm said.

The net loss for the three months to March 31 was  C$684,234, up from a loss of C$373, 345 in the same period last year, while sales revenue from jewelry was $ 2,734, down from  C$28,073 last year.

The firm has cash as of March 31 at C$2.31mln, up from around C$568,000 at the same time last year.

“Good progress has been made this quarter with the focus being on developing an underground mine at Omagh. I expect the rate of progress to accelerate as we go forward,” said Roland Phelps, president and chief executive of Galantas Gold said today.

Story by ProactiveInvestors