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LONDON (Alliance News) - Galantas Gold Corp Friday said it may have not have the required consent to drill one of the recently discovered gold veins at its Omagh Gold Property in Northern Ireland, but said this will not be a problem unless it chooses to progress work on the vein.
Galantas said it discovered two gold veins at the property last month, the high grade Joshua vein and the Kestrel vein, which lie about 70 metres apart from one another.
However, Galantas Friday said it has now been advised that whilst the land covering the Kestrel vein is within land owned by the company and covered by its planning permission, it may not have the necessary approvals to mine the vein.
"The company has now been advised that although the freehold land overlying the Kestrel vein is owned by the company and was covered in its planning permission, mining of the new vein may not be included," said the miner.
"Were commerciality of the vein to be determined, the vein would be worked by underground means, from the neighbouring Joshua vein and for the avoidance of doubt, planning permission would be secured prior," it added.
When the two veins were discovered, Galantas was more upbeat about the unaffected Joshua vein, a high grade discovery that provided the largest accumulation of gold on the Omagh property so far, with a gold grade of 9.9 grams per tonne. It also represents the widest high-grade gold vein drilled on the Omagh property, with a 13 metre width intersect.
The Kestrel vein yielded results of 35.8 grammes of gold per tonne, but importantly, Galantas thought the vein could extend to the north and planned on drilling the vein further - something it may not be able to do following the revelation revealed on Friday.
Galantas shares were untraded Friday afternoon. They last closed at 4.90 pence.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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