Click here to close now.

Welcome!

.NET Authors: Carmen Gonzalez, Elizabeth White, Liz McMillan, Greg O'Connor, Jason Bloomberg

News Feed Item

Galantas Interim Results for the Nine Months Ended 30 September 2012

TORONTO, ONTARIO -- (Marketwire) -- 11/23/12 -- Galantas Gold Corporation (the Company) (TSX VENTURE:GAL)(AIM:GAL) is pleased to announce its interim results for the nine months ended September 30th 2012 and third quarter results for the three months ended September 30th 2012.

Financial Highlights

Highlights of the 2012 third quarter's and first nine months results, which are expressed in Canadian Dollars, are:


----------------------------------------------------------------------------
All figures                                                                 
 denominated in                                                             
 Canadian                 Third Quarter Ended             Nine Months Ended 
 Dollars                         September 30                  September 30 
(CDN$)                              unaudited                     unaudited 
                          2012           2011           2012           2011 
----------------------------------------------------------------------------
Revenue            $   855,813    $ 2,510,985    $ 3,783,939    $ 6,979,698 
----------------------------------------------------------------------------
Cost of Sales      $   792,386    $ 1,247,229    $ 2,806,197    $ 3,621,382 
----------------------------------------------------------------------------
Income before                                                               
 the undernoted    $    63,427    $ 1,263,756    $   977,742    $ 3,358,316 
----------------------------------------------------------------------------
Amortization       $   155,078    $   222,079    $   526,267    $   603,939 
----------------------------------------------------------------------------
General                                                                     
 administrative                                                             
 expenses          $   372,931    $   655,568    $ 1,225,445    $ 1,647,918 
----------------------------------------------------------------------------
Gain on debt                                                                
 extinguishment    $         0    $         0    $  (190,624)   $         0 
----------------------------------------------------------------------------
Foreign                                                                     
 exchange/(gain)                                                            
 loss              $    31,078    $   (59,537)   $    11,969    $   (58,586)
----------------------------------------------------------------------------
Net Income                                                                  
 (Loss) for the                                                             
 period            $  (495,660)   $   445,646    $  (595,315)   $ 1,165,045 
----------------------------------------------------------------------------

Sales revenues for the nine months ended September 30, 2012 amounted to CDN$ 3,783,939 (2011: CDN$ 6,979,698). Sales revenues for the three months ended September 30, 2012 amounted to CDN$ 855,813 (Q3 2011: CDN$ 2,510,985). The reduction in sales revenues in both periods when compared to the corresponding periods of 2011 was due to the lower level of metal produced and shipped during the quarter. The lower production levels were primarily due to the requirement to process lower grade ore from stockpile as a result of difficulties in accessing the lower part of the ore-body in the northern section of the Kearney Open Pit, as a result of the Company being unable to transport surplus rock off-site, following the planning consent being quashed on the grounds of procedural failings by the Planning Service.

Cost of sales for the nine months ended September 30, 2012 amounted to CDN$ 2,806,197 (2011: CDN$ 3,621,382). Cost of sales for the three months ended September 30, 2012 amounted to CDN $ 792,386 (Q3 2011: CDN$ 1,247,229). There was a decrease in various production costs at the Omagh mine during the nine months and third quarter including production wages reflecting the reduced number of personnel arising from the rationalisation programme, oil and fuel costs, repairs and servicing costs and usage of consumables with reductions mainly attributable to the reduced level of mining activity during both periods. There was a non-cash gain of CDN$ 190,624 (2011: CDN$ Nil) during the nine months ended September 30, 2012 following the extinguishment of the Company's convertible debenture debt during the second quarter.

The Net Loss for the nine months ended September 30, 2012, amounted to CDN$ 595,315 (2011: Net Income CDN$ 1,165,045). The cash generated from operating activities after changes in non-cash working capital for the first nine months of 2012 amounted to CDN$ 688,373 (2011: $ 2,777,908). The cash generated from operating activities continued to contribute towards the cost of the exploration drilling programme at the Omagh mine.

The Net Loss for the three months ended September 30, 2012, amounted to CDN$ 495,660 (2011 Q3: Net Income CDN$ 1,165,045). The cash loss from operating activities after changes in non-cash working capital in the third quarter of 2012 amounted to CDN$ (135,088) which compared with cash generated from operations of CDN$ 1,514,081 for the third quarter of 2011.

The Company had cash balances at September 30, 2012 of CDN$ 2,021,513 compared to CDN$ 4,240,081 at December 31, 2011. The working capital deficit at September 30, 2012 amounted to CDN$ 1,672,628 which compared with a deficit of CDN$ 536,142 at December 31, 2011.

Production

Production for the third quarter and first nine months of 2012 are summarised below :-


----------------------------------------------------------------------------
                             Three         Three          Nine          Nine
                         Months to     Months to     Months to     Months to
                      September 30  September 30  September 30  September 30
                              2012          2011          2012          2011
----------------------------------------------------------------------------
Tonnes Milled               11,292        13,707        35,748        36,539
----------------------------------------------------------------------------
Average Grade g/t                                                           
 gold                          1.9          4.34           2.4          4.73
----------------------------------------------------------------------------
Concentrate Dry                                                             
 Tonnes                      226.7           545         849.7         1,582
----------------------------------------------------------------------------
Gold Grade                                                                  
 (concentrate)                95.2          91.2         101.6          98.3
----------------------------------------------------------------------------
Gold Produced (oz)             696         1,597         2,780         5,007
----------------------------------------------------------------------------
Gold Produced (kg)            21.6          49.6          86.4         155.6
----------------------------------------------------------------------------
Silver Grade                 117.3         236.6           238         239.4
----------------------------------------------------------------------------
Silver Produced (oz)           856         4,142         6,498        12,176
----------------------------------------------------------------------------
Silver Produced (kg)          26.6         128.8           202         378.7
----------------------------------------------------------------------------
Lead Produced tonnes          10.1          56.3          58.4           227
----------------------------------------------------------------------------
Gold Equivalent (oz)           722         1,766         2,973         5,658
----------------------------------------------------------------------------

Whilst ore milled during the third quarter of 2012, at 11,292 tonnes, was 18% below ore milled in the third quarter of 2011 both concentrate and metal production in the third quarter were significantly lower than the third quarter of 2011 which was primarily due to the low grade of the ore milled. These low grades are directly attributable to the processing of low grade material which accounted for 80% of ore milled. The high level of low grade material processed was due to the increasing lack of available ore from the Kearney open pit. Mine production during the quarter was mainly from the Kerr vein. Production from Kearney was totally restricted in the third quarter by the surplus rock stockpile on the site which reached capacity levels. This surplus rock was due to commence being transported from the site during the current quarter with the Omagh mine having completed construction of public road improvements at its own cost to comply with the conditions of the recent planning consent. However, following a judicial review brought by a private individual on the grounds of procedural failings by Planning Service, the planning consent has now been quashed. This ongoing limitation has and will result in low grade material continuing to be processed for the immediate future. To generate cash from its operations going forward, the Company has continued to cut costs. Because of adverse impact on current and future production levels it is unlikely that sufficient ore will be available to maintain current employment on the mine site until the underground mine is permitted. This resulted in the mine commencing a redundancy programme during the third quarter to further reduce the workforce.

Mining from the Kerr veins during the quarter was reasonably successful with one of the veins mined (vein no.4) being of high grade. For the short term, Kerr is expected to produce small quantities of high grade material, which will be used to sweeten the grade of material to the processing plant.

During the third quarter the mill was mainly fed with lower grade. Whilst the modifications that were made to the flotation and crushing circuits in 2011 and in the first quarter of 2012 have proven to be successful, some further changes are being completed to increase throughput. Production was hampered during the quarter by the ongoing variations in the metallurgy due to the inconsistent grade of ore being milled and an increased clay content. Planned improvements to the milling circuit, which will result in decreased labour costs, are expected to be completed in November and will contribute towards the Company's objective to achieve positive cash flow from operations for the remainder of the operating year.

The 2012 production figures and metal contents are provisional and subject to averaging or umpiring provisions under the concentrate off - take agreement detailed in a press release dated October 3, 2007. The detailed results and Management Discussion and Analysis (MD&A) are available on www.sedar.com and www.galantas.com and the highlights in this release should be read in conjunction with the detailed results and MD&A. The MD&A provides an analysis of comparisons with previous periods, trends affecting the business and risk factors.

Exploration

The major focus of exploration activities in 2012 has been the successful drilling programme, with 14,016 metres having being drilled since the programme commenced in March 2011 and with significant gold intersects reported.

The drilling program continued into the third quarter of 2012 with the number of drills rigs in operation being reduced to three rigs by the end of the third quarter. During the third quarter 3,177 metres were drilled with fifteen holes targeting the Joshua vein, two holes on the Kearney vein and four holes on the Kerr vein. The main objective of the third quarter drilling programme was to continue to extend the known strike of the Joshua vein to the south, to hone in on areas of the Joshua vein which require further infill drilling to increase the indicated resource category, to complete the long hole drilling programme on the Kearney vein and to explore new targets at the eastern Lagoon and Kerr veins.

Most of the drilling on the Joshua vein during the third quarter has been concentrated on the central and southern regions of the Joshua vein. Earlier, section drawings of logged core and wireframe construction using Micromine, revealed that this portion of the vein dips steeply to the west, in contrast to the northern stretch which dips to the east. A series of new drill hole locations were developed with this model in mind, and recent drilling has continued to intersect the westerly dipping vein between vertical depths of 31 and 104 m. Further drilling will continue to target the vein southwards in the fourth quarter. A review to prioritise new targets within the mine site, and in particular the mapping of the Kerr veins which showed that the veins fan out towards the north, has indicated that there could be a target towards the south of the property. Three holes have been drilled with an additional hole in progress at the end of the quarter and some significant intercepts have been identified at depth.

Further phases of channel sampling continued on the Kearney, Joshua and Kerr veins during the third quarter. Assay results released to date from both the drilling and channel sampling programme have been encouraging with significant gold intersections being identified (see press releases dated September 15, 2011, September 20, 2011, October 4, 2011 and October 20, 2011, November 28, 2011, January 12, 2012 April 5, 2012, June 11, 2012 and September 25, 2012). Assay results from this programme will continue to be announced as and when they are received.

In March 2012 the Company appointed ACA Howe International Ltd (Howe UK) to prepare an Interim Resource for the Omagh Gold Project to Canadian National Instrument NI 43-101 standard. During the third quarter Galantas reported that it had received initial data from ACA Howe related to it's preparation of an NI 43-101 compliant mineral resource estimate and a Preliminary Economic Assessment (see press release dated July 3, 2012).This report, which was based on drilling results and analyses received to June 8, 2012 identified all resources discovered at that date. The Company subsequently filed a complete Technical Report on SEDAR in August 2012. A further updated report is expected to be prepared early in 2013 on completion of the 15,000 metre drilling programme incorporating drilling results and analyses received subsequent to June 2012.

Planning

Planning consent was received from the Planning Services during the third quarter for the application for the construction of a lower portal structure and truncated adit for underground mining on the Kearney vein. Planning consent is still awaited on applications in connection with the drilling of boreholes to determine mineralization at depth on the Kearney and Joshua veins. Discussions with the regulatory authorities continued during the quarter with regards to the underground mine plan and accompanying Environmental Statement which were submitted to the Planning Services during the second quarter.

The detailed results and Management Discussion and Analysis (MD&A) are available on www.sedar.com and www.galantas.com and the highlights in this release should be read in conjunction with the detailed results and MD&A. The MD&A provides an analysis of comparisons with previous periods, trends affecting the business and risk factors.

The financial disclosure has been reviewed by Leo O' Shaughnessy (Chief Financial Officer) and other disclosure by Roland Phelps (President & CEO), qualified persons under the meaning of NI. 43-101. The information is based upon financial and other data prepared under their supervision.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including revenues and cost estimates, for the Omagh Gold project. Forward-looking statements are based on estimates and assumptions made by Galantas in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Galantas believes are appropriate in the circumstances. Many factors could cause Galantas' actual results, the performance or achievements to differ materially from those expressed or implied by the forward looking statements or strategy, including: gold price volatility; discrepancies between actual and estimated production, actual and estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign involvement; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; planning and other permitting issues; and defective title to mineral claims or property. These factors and others that could affect Galantas's forward-looking statements are discussed in greater detail in the section entitled "Risk Factors" in Galantas' Management Discussion & Analysis of the financial statements of Galantas and elsewhere in documents filed from time to time with the Canadian provincial securities regulators and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Galantas has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law.

Galantas Gold Corporation Issued and Outstanding Shares total 256,210,395.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provides a high level technical overview of many cloud services available to mobile app developers, includi...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable older adults to live independent lives while staying connected to loved ones. M2M will continue to gr...
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) application providers dating back to 2004. Cybozu's kintone.com is a leading global BYOA (Build Your O...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
SYS-CON Events announced today that BroadSoft, the leading global provider of Unified Communications and Collaboration (UCC) services to operators worldwide, has been named “Gold Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company’s core communications platform enables the delivery of a range of enterprise and consumer calling...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, and for ARM and x86 devices on several IoT boards. It’s a Trend! This announcement comes just as...
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to offer disruptive APIs to developers.
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in the future, data and analytics will be pervasive, embedded into every workflow, application and infra...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the datacenter.
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.