Gold price slips as traders weigh outlook for Fed interest rate cuts
Bullion traded near $2,626 an ounce in thin trading after closing 1.1% higher on Friday.
Galantas Gold (TSX, LON: GAL) said on Wednesday it expects to re-start commercial operations at the past producing Omagh gold mine in Northern Ireland in June.
The Canada-headquartered junior said it had made significant progress in rehabilitating the underground workings, refurbishing, acquiring critical mining equipment, and installing electrical, water and ventilation systems.
Galantas, however, delayed completion of the secondary egress and installation of the manway, which is a prerequisite for the start of production, to mid-May. It said it needed the extra time for the safe rehabilitation of the ramp access and ore headings.
Omagh’s underground development was paused in 2017 until local police (PSNI) were able to increase availability of anti-terrorism cover.
Blasting activities were halted again in the late 2019 mainly because of limitations imposed by the PSNI. Ore production was then suspended in 2020 due to insufficient funds and the impact of the global pandemic.
Initial production is expected at 4,500 to 5,500 ounces for the balance of the year and to jump to 17,800 ounces of gold in concentrate in 2023, the company said in January.
A second phase development of the mine would target annual production of 35,000 ounces of gold a year.
