Galantas provides operational update

Galantas Gold Corporation has announced that progress at the Omagh Gold Mine and Processing Plant continues to improve. Concentrate production during February 2008 (which includes concentrate held in stock) totaled approximately 150.57 dry tonnes, compared to January 2008 with 128.92 dry tonnes. The production improvement was due to the increased availability of ore from the Omagh open pit.

The pit is now enlarged to make more ore available and the program of stripping of country rock continues. Concentrate production is expected to increase as a consequence of the increased amount of ore available. Pit production is subject to variability in grade, ore width and weather conditions.

Average mill head-grade has been back-calculated from in-house, process control data since November 2007 and is estimated at 6.32(i) grammes per tonne (g/t) gold.

This is an improvement against the estimated average since May 2007 of 6.07(i) g/t gold but is lower than the grade range anticipated previously by selective mining. The estimated average for the year is 6.24(i) g/t gold. Part of the reason for the lower grade is considered to be the lack of availability of enough higher grade ore due to the smaller than planned exposed strike length of the open pit, forcing the mill to accept lower grade material.

Despite adverse weather conditions since November 2007, a revised grade control scheme has produced some improvement. This method incorporates control sampling by geological staff with the previous visual selection method. A change to the ore-mining method is planned but can only be implemented on completion of the program of excavation of country rock. The side stripping of country rock alongside the ore vein before extraction of ore has previously demonstrated that it allows ore to be removed as larger pieces with less dilution. When tested, the blocky nature of the feed produced was problematic at the plant. This has been remedied by the purchase of a used semi-mobile crusher of large gape which is undergoing refurbishment on site.

The major components of the regrind circuit have been installed within the processing plant. It still requires some additional work which is continuing and expected to be complete within 2 weeks. This circuit, coupled with crusher improvements, has led to an increased power requirement from the site based, diesel powered, electrical generators.