Galantas Gold Corporation (TSXV:GAL)

• The Galantas Gold Mine, complex vein system, Au, Ireland
• No Resources Estimated

New geological information, obtained during the
development of the Cavanacaw Mine, has potential to impact future mine
operations and enhance future exploration activities. Recent underground
mapping and sediment probe sampling has led to the discovery of ‘zones’ of
favourable mineralisation within the complex vein system. The frequency and
predictability of these dilation zones is investigated and explained in the
context of the local geology, herein. Ultimately a better understanding of the
geological controls will influence the mine plan, enable areas of higher gold
accumulation to be targeted, and inform ground support procedures.

The Cavanacaw Mine is located approximately 5
kilometres from Omagh, County Tyrone, Northern Ireland. It is situated on
freehold land owned by Flintridge Resources Ltd. (FLR), or other wholly owned
subsidiaries of Galantas Gold Corporation. Flintridge Resources holds a Mining
License for gold and silver from the Crown Estate Commissioners (CEC) and
Exploration Licenses from CEC and the Department for the Economy Northern
Ireland (DfE), the latter over approximately 439 sq. kms. Additionally, sister
Company, Omagh Minerals Ltd. (OML) holds Exploration Licences in the Republic
Of Ireland, contiguous with its licences in Northern Ireland.

The mine has good access by public road and is
approximately a 1.5 hour drive west of Belfast. The mine is located on rough
agricultural land.

ACA Howe International Ltd (ACA Howe), in an
independent Technical Report On The Omagh Gold Project, Counties Tyrone and
Fermanagh, Northern Ireland - Parker and Pearson August 10th 2012 (Howe 2012) gave the following historical context
and geological description:-

The occurrence of gold in the Sperrin Mountains in
Northern Ireland has been known for centuries but no mining operations have
taken place prior to that at Cavanacaw. Following the discovery of vein gold at
Curraghinalt by Ennex International in the mid 1980’s, Riofinex North Ltd
(Riofinex) commenced exploration of an area of similar rocks located south-west
of Omagh which led to the discovery of the gold bearing Kearney vein structure
and the surrounding swarm of veins at Cavanacaw. The deposit was evaluated by
stripping of overburden and carrying out intensive channel sampling of the
exposed vein and by diamond drilling.

In 1990, the Riofinex project was transferred to Omagh
Minerals (OML) who commissioned metallurgical, mining and environmental
studies. In 1997, European Gold Resources Inc (EGR) acquired Omagh Minerals
(OML) who re-excavated the open cuton the Kearney structure and carried out
selective mining trials at the southern end of the Kearney structure to extract
high grade ore and produce gold bullion and jewellery under the Galantas brand
name.

In 2003, EGR commissioned ACA Howe to prepare a
technical report in compliance with Canadian NI 43-101 and to carry out a
compilation of exploration data over the Lack inlier. The study identified
twenty-four exploration targets. Follow-up on these targets resulted in the
discovery of gold mineralisation at Cornavarrow Burn East, where a shear zone
containing disseminated pyrite and galena included a 1.5m section returning
1.15 g/t gold. European Gold Resources Inc was re-named Galantas Gold
Corporation in 2004. Subsequent to a financing in the spring of 2005, Galantas
initiated mine development by engaging technical staff, updating engineering
design, procuring both mobile plant and processing plant equipment and removing
further overburden. Construction of the ore processing plant commenced in
November 2005 and mining development commenced in early 2006.

The mineral resources on which the Omagh Gold Project
is based are hosted by a system of mineralised veins and shear structures
within which more than a dozen individual deposits have been identified over a
4 sq. kms area. The most intensively studied area is the Kearney Structure,
which has been diamond drill tested over its approximately 850 m length and
shown to persist to at least 300 m below surface. A CIM compliant resource
estimate by ACA Howe in 2008 estimated Measured resources at the Kearney vein
at 78,000 t at 6.35 g.t Au, Indicated resources at 350,000 at 6.74 g/t Au and
Inferred resources at 730,000 t at 9.27 g/t Au.

Open Pit mining at the Kearney vein commenced in 2006.
By May 2012, mining was largely restricted to the northern end of the pit,
mining in other parts having reached its economic limits as dictated by
stripping ratio, by the property boundary and public road to the east, and by
rock stockpiles to the west.

The Cavanacaw deposit lies within the Caledonian
orogeny which extends through Scandinavia, the British Isles, Newfoundland and
the Appalachians. It is hosted by rocks of Neoproterozoic age of the Dalradian
Supergroup, which host similar orogenic vein deposits at Curraghinalt 27 km
northeast and at Cononish in Scotland. The mineralised veins strike either
north-south or northwest-southeast and are steeply dipping. Mineralisation
consists of quartz veins up to (and over) a metre wide with disseminated to
massive auriferous sulphides, predominately pyrite and galena with some
accessory arsenopyrite and chalcopyrite. The quartz veins are commonly
accompanied by clay gouge and by an envelope of sericitised pelites. A large
number of regional targets have been identified by past exploration on
prospecting license OM1/16. Diamond coredrilling was mostly HQ3 (61.1mms) size
and used triple tube core barrels to ensure good recovery. Core handling,
logging and sampling were carried out to best industry standards.

Omagh Minerals Ltd (OML) transferred the exploration
licence to sister company ‘Flintridge Resources Ltd (FLR)’, in September 2017.

Underground mine development began in
2017. The most recent phase of exploration has been facilitated by development
on the Kearney vein system, providing access to a wealth of new geological
data. The additional underground data has revealed a pattern in mineralisation
which has been recently tested through sediment probe drilling. Detailed
geological mapping and sampling of the Kearney vein system has been carried out
by mine staff whilst these operations were underway, with a view to integrating
new data from the resulting underground exposures with the existing geological
model. The existing model is largely derived from borehole data and surface
exposures. The additional underground data has revealed a pattern in
mineralisation which will be presented and tested in this report.