Galway Drills 46.0 g/t Gold and 375.9 g/t Silver Over 2.3m, With 21 Intersects Greater Than 5.0 g/t Gold In 5 New Holes at Ve...
October 06 2011 - 6:30AM
PR Newswire (Canada)
TORONTO, Oct. 6, 2011 /CNW/ - Galway Resources Ltd. is pleased to
announce assay results from an additional five diamond drill holes
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. El Volcan has been operating for over 400
years and is the largest gold mine in the California-Vetas-Surata
gold districts. The focus of Galway's initial exploration efforts
at Vetas is to test for a continuation of mineralization below the
existing 500 meter long by 300 meter wide by 300 meter deep El
Volcan gold mine. Thus far, results confirm that mineralization
extends at least 200 meters below current workings. Discussions are
underway to bring a third drill rig to the project, which would
focus on exploring extensions of known mineralization that remains
open in all directions. "Results from Vetas thus far have exceeded
our expectations. Recent improvements to existing energy
infrastructure, coupled with the addition of a third rig, should
allow for much improved drill productivity. It is management's
belief that both the California and Vetas gold projects have the
potential to host significant gold and silver deposits. With the
addition of a third drill rig, plus the previously announced
addition at California, Galway will have a total of seven rigs
operating in Colombia," 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. All
holes drilled to date host at least one assay in excess of 10 g/t,
and all holes contain multiple mineralized intersects. The new
drilling has returned 21 intersections greater than 5 g/t Au and 13
intersections greater than 10 g/t Au in 5 holes. Highlights from
these five holes are as follows: GWY-V007 -- 10.5 grams per tonne
gold (g/t Au) and 26.5 g/t silver (Ag) over 1.7 meters -- 4.6 g/t
Au and 20.1 g/t Ag over 2.1 meters, including 6.6 g/t Au and 24.4
g/t Ag over 1.1 meters -- 4.9 g/t Au and 15.7 g/t Ag over 1.9
meters, including 7.5 g/t Au over 1.0 meter GWY-V008 -- 17.7 g/t Au
and 16.7 g/t Ag over 1.3 meters -- 10.9 g/t Au and 65.9 g/t Ag over
1.5 meters -- 14.5 g/t Au and 12.3 g/t Ag over 0.7 meters -- 12.2
g/t Au over 0.6 meters -- 7.9 g/t Au and 11.6 g/t Ag over 0.9
meters GWY-V009 -- 11.7 g/t Au and 11.8 g/t Ag over 2.7 meters --
21.5 g/t Au and 82.2 g/t Ag over 0.9 meters -- 4.3 g/t Au and 12.0
g/t Ag over 2.5 meters -- 4.1 g/t Au and 16.8 g/t Ag over 1.3
meters -- 6.8 g/t Au over 1.1 meters GWY-V010 -- 46.0 g/t Au and
375.9 g/t Ag over 2.3 meters, including 89.3 g/t Au over 1.0 meter
-- 25.2 g/t Au and 29.0 g/t Ag over 1.0 meter -- 16.1 g/t Au over
1.2 meters -- 9.9 g/t Au and 86.9 g/t Ag over 1.2 meters -- 5.8 g/t
Au over 1.2 meters GWY-V011 (One 0.7 meter interval is pending) --
42.0 g/t Au over 1.5 meters -- 39.9 g/t Au and 39.3 g/t Ag over 1.4
meters -- 19.3 g/t Au and 57.0 g/t Ag over 1.0 meter -- 9.0 g/t Au
over 1.1 meters -- 5.2 g/t Au and 18.7 g/t Ag over 2.0 meters,
including 7.7 g/t Au and 21.5 g/t Ag over 1.0 meter -- 5.0 g/t Au
and 19.8 g/t Ag over 1.1 meters Vein Strike Lengths Extend Beyond
200 Meters 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
along strike. In the table below are notable gold-bearing
intervals, within the El Volcan mine. This table reveals that in
just 11 holes drilled, Galway has identified a strike length of 100
meters or more in four veins, and in excess of two hundred meters
of strike in two veins. Moreover, gold mineralization has been
identified in excess of 200 meters below the Reina de Oro level,
which is the lowest level of the mine, and only about 30% of the
mine's 300 meters of vertical extent has been depleted. As such,
the company has identified gold and silver mineralization beginning
from surface to a depth of 500 meters, and mineralization remains
open in all directions.
__________________________________________________________________________________________________________________
| | Loscas Vein | Green Vein | Manzanilla Vein | El Burro Vein |
Tajo Abierto Vein | | Hole #
|____________________|____________________|____________________|_____________________|____________________|
| |Interval| Au | Ag |Interval| Au | Ag |Interval| Au | Ag
|Interval| Au | Ag |Interval| Au | Ag | | | (m) |(g/t)|(g/t)| (m)
|(g/t)|(g/t)| (m) |(g/t)|(g/t)| (m) |(g/t)|(g/t) | (m)
|(g/t)|(g/t)|
|________|________|_____|_____|________|_____|_____|________|_____|_____|________|_____|______|________|_____|_____|
|GWY-V001| 0.9 | 3.3 |131.0| | | | 4.9 | 6.1 | 6.6 | 1.5m | 4.7 |
51.6 | 1.0 |13.4 |28.2 |
|________|________|_____|_____|________|_____|_____|________|_____|_____|________|_____|______|________|_____|_____|
|GWY-V002| 0.2 |12.5 |17.1 | | | | 2.1 | 4.7 |28.0 | | | | 9.4 |
9.7 |37.4 |
|________|________|_____|_____|________|_____|_____|________|_____|_____|________|_____|______|________|_____|_____|
|GWY-V003| | | | 1.5 |10.1 |15.2 | 6.7 |21.9 |63.3 | 2.7 |82.5 |
39.1 | | | |
|________|________|_____|_____|________|_____|_____|________|_____|_____|________|_____|______|________|_____|_____|
|GWY-V004| | | | 1.4 | 4.0 | 2.3 | | | | 0.9 | 4.7 | 4.2 | 1.3 |
8.6 |36.9 |
|________|________|_____|_____|________|_____|_____|________|_____|_____|________|_____|______|________|_____|_____|
|GWY-V005| 4.3 |12.7 |60.6 | | | | | | | 1.3 | 6.3 | 6.2 | | | |
|________|________|_____|_____|________|_____|_____|________|_____|_____|________|_____|______|________|_____|_____|
|GWY-V006| 1.1 |138.0|21.3 | | | | 2.1 | 2.5 |16.1 | 1.2 |44.7
|1120.0| | | |
|________|________|_____|_____|________|_____|_____|________|_____|_____|________|_____|______|________|_____|_____|
|GWY-V007| | | | | | | 3.0 | 3.5 |15.1 | 2.1 | 4.6 | 20.1 | 1.7
|10.5 |26.5 |
|________|________|_____|_____|________|_____|_____|________|_____|_____|________|_____|______|________|_____|_____|
|GWY-V008| 0.7 |14.5 |12.3 | | | | 0.9 | 7.9 |11.6 | | | | 2.4 |
9.7 | 9.6 |
|________|________|_____|_____|________|_____|_____|________|_____|_____|________|_____|______|________|_____|_____|
|GWY-V009| 1.1 | 6.8 | 5.7 | 1.3 | 4.1 |16.8 | 1.4 | 2.1 | 4.7 |
2.5 | 4.3 | 12.0 | | | |
|________|________|_____|_____|________|_____|_____|________|_____|_____|________|_____|______|________|_____|_____|
|GWY-V010| 1.0 |25.2 |29.0 | 1.2 | 9.9 |86.9 | 2.3 |46.0 |375.9|
1.2 |16.1 | 8.2 | | | |
|________|________|_____|_____|________|_____|_____|________|_____|_____|________|_____|______|________|_____|_____|
|GWY-V011| 1.1 | 9.0 | 7.8 | | | | 1.4 |39.9 |39.3 | 2.0 | 2.5 |
19.8 | 2.0 | 5.2 |18.7 |
|________|________|_____|_____|________|_____|_____|________|_____|_____|________|_____|______|________|_____|_____|
| Strike | 100 meters | 35 meters | 208 meters | 244 meters | 168
meters |
|________|____________________|____________________|____________________|_____________________|____________________|
Two holes reported, holes GWY-V007 and GWY-V009, are the first from
the second drill rig, drilling in the opposite orientation to the
first drill rig. This drilling is necessary to effectively drill
off veins located too close to the first drill rig. Visible gold
has been seen in 8 of the first 11 holes drilled. 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's website at
www.galwayresources.com. A preliminary NI 43-101 technical report
on Galway's Vetas property, which was prepared by Roscoe Postle
Associates, was filed on SEDAR on August 24, 2011. In the 11 holes
reported to date, 4,381 meters have been drilled from 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,
and as a result of the strong early results, the Company is in
discussions to bring a third rig to the project. 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.
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 61%-92% of down-hole widths. 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 4,381 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. 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 were 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. Galway Resources Ltd. CONTACT: Galway Resources
Ltd.Investor Relations1-800-475-2412www.galwayresources.com
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