JOHANNESBURG (miningweekly.com) – Following disappointing results for the third quarter ended September 30, dual-listed miner Galantas Gold Corporation on Friday said its future viability depended on the consolidated results of its wholly-owned subsidiary Cavanacaw Corporation, which holds 100% in Galantas’ Omagh Minerals and Flintridge Resources.

Galantas recorded a C$452 756 net loss for the three months, compared with the net loss of C$257 214 incurred in the comparative period of 2016.

Further, the cash loss from operating activities before changes in noncash working capital for the third quarter amounted to C$296 961.

“Our going concern assumption is dependent on the ability of Galantas to secure sufficient financing to fund ongoing operational activity and the development of the underground mine at the Omagh project, as well as obtaining consent for an underground mine, which is subject to a judicial review process,” the company said in a statement.

Although it had already reported a positive outcome to the judicial review into the planning consent for underground development at the Omagh mine, Galantas reported that it had received notice of an application, by a third party, to the Court of Appeal regarding the grant of planning permission at the mine.

Production and sales of concentrate await the mining of feed from underground.

Meanwhile, cost of sales, which includes production costs, and inventory movement, for the third quarter amounted to C$38 915 and C$213 936. Production costs were mainly in connection with ongoing care, maintenance and restoration costs at the Omagh mine site. Costs related to underground mine development were capitalised.

“Our strategy is to expand the continuing development of the underground mine as soon as additional finance is available and look for further expansion of gold resources on the property, which has many undrilled targets,” Galantas noted.

The phased development arrangement, in terms of mine access dimensions, is expected to allow for rapid expansion of production as additional capital becomes available.

The mill has now been recommissioned in anticipation of a restarting of concentrate shipments, subject to suitable financing. A budget of £2-million, excluding lease finance for the first phase of underground mining has been estimated.

Underground development continued to progress during the third quarter with underground development now totaling over 119 m.