Galantas Gold Corporation (LON:GAL) has reached a formal agreement with the Police Service of Northern Ireland (PSNI) which can allow blasting to take place at the Omagh gold mine.
The company, in a statement, said the agreement creates the potential for a materially improved economic arrangement for an expansion of underground blasting, which is necessary if the Omagh mine is to achieve full commercial production.
“The agreement is the result of detailed cooperation between Galantas & PSNI and I am pleased that the new arrangements, in which the company has heavily invested, have been formalized in this way,” said Roland Phelps, Galantas chief executive.
“The previous arrangements, under which the company made around two kilometres of underground development, constrained the company’s ability to expand underground production.
“The new arrangements are designed to permit underground blasting to be expanded to achieve commercial production levels. The company is actively working with third parties on the financing arrangements required to recommence and expand blasting underground.”
Galantas noted that underground maintenance activities continue along with the processing of low grade stockpile material, and routine environmental monitoring continues to demonstrate compliance with regulatory consents.