Galantas Gold Corp (AIM:GAL, TSX-V:GAL, OTC:GALKF) has continued to intercept high grades from underground drilling at the Kearney Vein of its Omagh project in Northern Ireland.
One hole, which targeted a dilation zone, intersected 31.8 grammes a tonne (g/t) gold and 39.2 g/t silver over 4.4 metres (m), including 69.6 g/t gold and 86.6 g/t silver over 1.4m.
Dilation zones have the potential for higher widths of mineralization and have previously been identified within the Kearney underground development
Another hole intersected 8.9 g/t gold and 36.4 g/t silver over 2.1m, about 25m south of a previously reported intersection of 31.7 g/t gold and 58.5 g/t silver over 7m.
READ: Galantas Gold reports 'some of our best drill results to date' from Omagh project
"The ongoing drilling program has now successfully demonstrated the dilation zone model,” said chief executive Mario Stifano.
“Ongoing development of the underground decline will facilitate deeper drilling and more precise targeting of dilation zones to the south at Kearney, planned later this year.”
“The company is reviewing our mine plan and production guidance for the next 16 months including the timing to advance development to the higher-grade Joshua Vein to provide multiple mine headings as well as underground drill platforms to extend the mineralization to depth and test new targets," he added.
The AIM-traded company also announced the closure of a US$530,000 loan agreement with Ocean Partners UK Ltd that will be used to fund development of the underground mining operations at Omagh and working capital.
READ: Galantas Gold enters new loan agreement with Ocean Partners