Galway intersects 138 g/t Au over 1.1M, 44.7 g/t Au and 1,120 g/t Ag over 1.2M, 26.8 g/t Au over 1.9M, and 7.5 g/t Au over 7.6 M at Vetas
TORONTO, Aug. 22, 2011 /CNW/ --
TORONTO, Aug. 22, 2011 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) is pleased to announce assay results from an additional three diamond
drill holes and the completion of results from two others at its Vetas
gold project, host of the El Volcan gold mine, located 8 kilometers
southeast of the Company's California gold project in northeastern
Colombia. The multiple veins targeted in the current drill program
have, in just six holes, returned 26 gold assays of 5 g/t or more, 16
assays of 10 g/t or more, 10 assays of 25 g/t or more and 5 assays of
50 g/t or more. The focus of Galway's initial exploration efforts at
Vetas is to test for a continuation of mineralization below the
existing 500 meter by 300 meter El Volcan mine, which has been
operating for over 400 years and is the largest gold mine in the
California-Vetas-Surata gold districts.
'The early drill program at Vetas has been far more successful than
originally contemplated. When Galway first looked at the resource
potential of the deposit, the Company expected the first six holes to
yield 12 separate intersections of over 5 g/t gold. Instead, the drill
program has returned 19 such intersections, with several intersections
containing more than one sample of over 5 g/t or more. The Company also
believed that it would identify new veins, which is exactly what
happened in the first six holes drilled. Also important is that the
Vetas drill program has now intersected mineralization 200 meters
vertically below the lowest level of the El Volcan mine, nearly double
the 105 meter depth previously identified,' cites Robert Hinchcliffe,
President and CEO of Galway Resources.
On June 22, 2011, Galway released the first-ever drill results from its Vetas project in
Colombia. Included were results from the first three holes, but a
complete set of drill results were available only for GWY-V001;
portions of GWY-V002 and GWY-V003 were pending. As such, below is a
complete set of result highlights from the first six holes drilled at
Vetas, with new results denoted in bold and previous results
italicized. Of note are the strong results received for GWY-V006 and
GWY-V003, although all holes host at least one assay in excess of 10
g/t, and all holes contain multiple mineralized intersects.
GWY-V001
-- 13.4 grams per tonne gold (g/t Au) and 28.2 g/t silver (Ag)
over 1.0 meter
-- 6.1 g/t Au and 6.6 g/t Ag over 4.9 meters
-- 4.7 g/t Au and 51.6 g/t Ag over 1.5 meters
-- 4.0 g/t Au and 11.6 g/t Ag over 1.5 meters
GWY-V002
-- 9.7 g/t Au and 37.4 g/t Ag over 9.4 meters, including 15.5 g/t
Au and 25.6 g/t Ag over 4.6 meters
-- 9.2 g/t Au and 31.1 g/t Ag over 2.6 meters, including 49.8 g/t
Au and 113.0 g/t Ag over 0.3 meters
-- 8.6 g/t Au and 13.5 g/t Ag over 2.3 meters
-- 12.5 g/t Au and 17.1 g/t Ag over 0.6 meters
-- 4.7 g/t Au and 28.0 g/t Ag over 2.1 meters, including 6.6 g/t
Au and 43.7 g/t Ag over 1.2 meters
GWY-V003
-- 82.5 g/t Au and 39.1 g/t Ag over 2.7 meters, including 202.0
g/t Au and 53.5 g/t Ag over 1.1 meters
-- 21.9 g/t Au and 63.0 g/t Ag over 6.7 meters, including 69.1 g/t
Au and 81.6 g/t Ag over 1.5 meters
-- 7.5 g/t Au and 4.8 g/t Ag over 7.6 meters, including 25.1 g/t
Au over 1.5 meters
-- 9.7 g/t Au and 12.9 g/t Ag over 1.2 meters
-- 5.3 g/t Au and 23.3 g/t Ag over 1.5 meters
GWY-V004
-- 30.7 g/t Au and 17.1 g/t Ag over 0.7 meters
-- 8.6 g/t Au and 36.9 g/t Ag over 1.3 meters
GWY-V005 (One 0.7 meter interval is pending)
-- 26.8 g/t Au and 132.8 g/t Ag over 1.9 meters, including 50.3
g/t Au and 251.0 g/t Ag over 1.0 meter
-- 6.3 g/t Au over 1.3 meters
GWY-V006 (Additional assays for GWY-V006 are pending)
-- 138.0 g/t Au and 21.3 g/t Ag over 1.1 meters
-- 44.7 g/t Au and 1,120.0 g/t Ag over 1.2 meters
-- 64.4 g/t Au and 110.0 g/t Ag over 0.7 meters
-- 12.7 g/t Au and 16.1 g/t Ag over 1.1 meters
Note: true widths are 76%-92% of down-hole widths, except for GWY-V006,
which is 61%.
Of note in the results provided above is that, in the first six holes
ever drilled at Vetas, Galway has received a large number of high grade
assays, as follows:
-- 5 g/t Au or more, 26 times -- 25 g/t Au or more, 10 times
-- 10 g/t Au or more, 16 times -- 50 g/t Au or more, 5 times
Note: provided in the bullets are the number of samples in which assays
equaled or exceeded the specified grade. Several intersects contain
multiple samples above that grade.
Also of note in the results provided above is that one of the main
structures in the El Volcan mine, the Corteros Vein, was not targeted
by the first rig that drilled the first six holes. This occurred
because the rig is collared in front of this structure. As such, the
Corteros Vein, as well as many other structures, is being targeted by
the second drill rig that began with GWY-V007. Thus, drill results to
date exclude any information from the Corteros Vein.
A review of Figures 1-6, which contains a plan view and cross sections of the drill holes and
veins they intersected below the El Volcan mine, reveals good
continuity of vein structures both down dip and along strike. For
example, the intersections of 21.9 g/t Au and 63.0 g/t Ag over 6.7 meters in hole GWY-V003 appears to align well with 6.1 g/t Au and 6.6 g/t Ag over 4.9 meters in hole GWY-V001 along the Manzanilla vein at 28 meters apart
(diagonally down dip and along strike). An intersection of 9.7 g/t Au and 37.4 g/t Ag over 9.4 meters in hole GWY-V002, 13.4 g/t Au and 28.2 g/t Ag over 1.0 meter in hole
GWY-V001, and 8.6 g/t Au and 36.9 g/t Ag over 1.3 meters in GWY-V004
are all along the Tajo Abierto vein, covering 45 meters of strike.
Similarly, the intersections of 138.0 g/t Au and 21.3 g/t Ag over 1.1 meters in GWY-V006, 26.8 g/t Au and 132.8 g/t Ag over 1.9 meters (including 50.3 g/t Au and 251.0 g/t Ag over 1.0 meter) in GWY-V005,
3.34 g/t Au and 131.0 g/t Ag over 0.9 meters in GWY-V001, 12.5 g/t Au
and 17.1 g/t Ag over 0.6 meters in GWY-V002, and 30.7 g/t Au and 17.1 g/t Ag over 0.7 meters in GWY-V004 are all along the Loscas vein, covering 20 meters of
strike. The El Burro vein has been extended southwest by 37 meters with
hole GWY-V003 returning 82.5 g/t Au and 39.1 g/t Ag over 2.7 meters (including 202.0 g/t Au and 53.5 g/t Ag over 1.1 meters) in hole
GWY-V003 from 4.7 g/t Au and 51.5 g/t Ag over 1.5 meters in GWY-V001.
New veins have been identified in the first six holes drilled. Among the
new results received, new veins have been identified in all holes
GWY-V003 through GWY-V006, highlights of which are as follows:
-- 7.5 g/t Au and 4.8 g/t Ag over 7.6 meters (including 25.1 g/t
Au over 1.5 meters) in GWY-V003,
-- 9.7 g/t Au and 12.9 g/t Ag over 1.2 meters in hole GWY-V003,
-- 30.7 g/t Au and 17.1 g/t Ag over 0.7 meters in GWY-V004,
-- 6.3 g/t Au and 6.2 g/t Ag over 1.3 meters in hole GWY-V005,
-- 44.7 g/t Au and 1,120.0 g/t Ag over 1.2 meters in GWY-V006,
-- 64.4 g/t Au and 110.0 g/t Ag over 0.7 meters in GWY-V006, and
-- 6.9 g/t Au and 12.3 g/t Ag over 2.2 meters (including 12.7 g/t
Au and 16.1 g/t Ag over 1.1 meters) in GWY-V006.
Visible gold has been seen in 5 of the first 6 holes drilled, and from 4
of the 6 main veins intersected to date, plus in one new vein that
returned 7.5 g/t Au over 7.6 meters, including 25.1 g/t Au over 1.5 meters in GWY-V003. Pictures of visible
gold from Galway's Vetas and California projects can be viewed in the photo gallery. A map, cross sections and a detailed table of assay results can be
viewed on the Company website at www.galwayresources.com. A preliminary NI 43-101 technical report on Galway's Vetas property,
which was prepared by Roscoe Postle Associates, will be filed on SEDAR
on August 24, 2011.
With results provided herein, 2,193 meters of drilling has been reported
on the first phase of Galway's 10,000 meter, or 25-hole drill program
that began in April 2011. Drilling is continuing with two diamond drill
rigs. The next phase of exploration will continue to delineate a
resource and will test for lateral extensions beyond the current limits
of the existing mine.
On April 8, 2011, Galway announced results from a comprehensive exploration campaign at
Vetas. The campaign entailed extensive underground and surface sampling
and mapping, Mobile Metal Ion (MMI) soil surveys and Induced
Polarization (IP) and Ground Magnetic (MAG) geophysical surveys, with
the geophysical surveys conducted by KTTM Geophysics of Medellin,
Colombia. Refer to the press release issued on that date for details.
Mineralization
Ore at the El Volcan mine contains favorable steeply-dipping quartz
veins in competent host rocks that could be successfully mined using
modern bulk-tonnage longhole mining methods. The known vein system
comprises nine different epithermal veins and numerous subordinate
splay veins trending NNE and dipping sub-vertically to the NW. The main
quartz veins, together with splay veins, are spatially associated with
shear zones hosted in porphyry and metamorphic gneiss, much like the
California gold district. Visible gold in the sampling almost
invariably indicates higher gold and silver assay grades. Galway's
geologists are impressed and surprised by the widths of mineralization
attained in the first tier of drill holes relative to the narrower
veining seen in the mine workings above, and by the classic low
sulfidation vein textures seen. Grey chalcedonic quartz, colloform
banded texture, vuggs and drussy quartz, with fine pyrite crystals are
typical. The mineralization has been intersected up to 200 meters below
the bottom level. True widths are 76%-92% of down-hole widths, except
for GWY-V006, which is 61%.
Rapid development of resources is possible using channel sampling from
the 2,000 meters of accessible underground workings, and from drill
results. Existing multiple vein structures that are in close proximity
to one another and open in all directions provide an excellent
opportunity to build a robust gold resource. A total of 7,345 meters of
drifts were mapped and 3,769 chip and channel samples were taken from
vein, wall rock and stockwork mineralization between vein sets. To
date, Galway has received results from 2,193 meters of drilling at
Vetas. The mine covers an area of 500 meters x 300 meters with a
vertical extent of 300 meters.
The El Volcan mine has been the site of gold mining since the 1590's and
is the largest mine in the California-Vetas-Surata gold mining
districts. The focus of Galway's exploration efforts at Vetas is
within, below, and extensions both along strike and laterally from the
El Volcan mine. This mine is contained within the Reina de Oro
concession, which is not subject to development restrictions associated
with Páramo legislation.
Granting of Incentive Stock Options
Galway also reports that it has awarded 550,000 incentive stock options
exercisable at $1.45 per common share to officers, directors, employees
and consultants of the Company and expiring on August 22, 2016. This
grant of options is in compliance with the terms of the Company's Stock
Option Plan and remains subject to acceptance by the TSX Venture
Exchange.
Supervision, Qualified Person and Quality Control
The Vetas Project is under the supervision of Project Manager Alex Cruz,
of Quito Ecuador. In compliance with National Instrument 43-101, Mr.
Mike Sutton, P.Geo., and Mr. Dale Schultz, P.Geo. (Manitoba and
Saskatchewan) of Buscore Consulting Limited (www.buscore.net) are the Qualified Persons responsible for the accuracy of this news
release. Samples from the Vetas Project are sent to the ALS Chemex
preparation facility in Bogota, Colombia for processing and are
analyzed in the ALS Chemex laboratory in Lima, Peru (ISO 9001:2000
certified). Surface rock samples were analyzed by methods Au-AA25 and
ME ICP41. Underground samples were analyzed by methods Au-AA25 and
ME-MS41. If a value of greater that 100 g/t Ag is returned for ME-MS41,
then an over limit method of Ag AA46 is used. If strong mineralization
or visible gold is observed, then a screen metallic (Au SCR 21) is
used. Quality control protocols that are in place consist of the
insertion of one blank at least every 20 samples, a reject duplicate
every 20 samples, and one of three different certified reference
standard material for every 20 rock samples. Core recovery in the
mineralized zones has averaged over 90%. Quarter coring of some select
samples will take place. Assays reported in this press release may have
screen, and quarter core assays pending and will be updated in the
table on the website as needed. MMI soil samples were sent to SGS Group
(ISO 19011 certified) preparation facility in Medellin, Colombia for
processing and are analyzed in SGS's laboratory in Lima, Peru.
About The Company
Galway Resources is a well-capitalized company, primarily focused on the
exploration of gold and coal in Colombia. The core focus of the Company
is gold exploration in northeast Colombia, with drill programs
occurring at the California and Vetas gold projects. The Company also
has the Victorio molybdenum-tungsten project, with excellent
infrastructure, in southwestern New Mexico. A positive scoping study
was completed by SRK in 2008. The recent surge in tungsten pricing,
coupled with a steady molybdenum price, has prompted management to
reassess strategic alternatives to advance the Victorio project.
Neither the TSX Venture Exchange nor its regulation services provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements:
Forward-Looking Statements: Statements in this release that are
forward-looking statements are subject to various risks and
uncertainties concerning the specific factors disclosed under the
heading 'Risk Factors' and elsewhere in the Company's periodic filings
with Canadian Securities Regulators. Such information contained herein
represents management's best judgment as of the date hereof based on
information currently available. The Company does not assume the
obligation to update any forward-looking statement.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/22/c5206.html
Galway Resources Ltd.
Investor Relations
1-800-475-2412
www.galwayresources.com