TORONTO, April 13 /CNW/ - Galway Resources Ltd. (TSXV: GWY) is pleased to announce assay results from eight additional drill holes
from its diamond drill exploration program on the Company's California
property in Colombia. Galway's California property, which is not
subject to development restrictions associated with Páramo legislation,
is located adjacent to, along strike southwest of, and at lower
elevations than Ventana's La Bodega/La Mascota project, and 3 km from
Greystar's Angostura project. Galway also owns a previously-reported
360 meter-long fractional land position within Ventana's main La
Mascota mineralized structure (refer to Galway's December 15, 2010 press release). Ventana has been acquired by AUX Canada, a company
owned by Mr. Eike Batista, for in excess of $1.5 billion in cash.
Two of the new holes Galway is reporting, GWY-91 and GWY-89, were
drilled in the Pie de Gallo Zone, with GWY-91 returning 76.0 meters grading 3.3 grams per tonne gold (g/t Au) including 2.0
meters of 46.5 g/t and 8.0 meters of 10.2 g/t Au. This intersection appears to correlate well with 38.5 meters grading 2.5
g/t Au from hole GWY-02, and is located 40 meters below the intersection in
"The continued positive drilling results from the main mineralized
corridor, which is 1.2 kilometers in length, will help for the
preparation of a resource report when sufficient drill density for a
resource estimate is completed," cites Robert Hinchcliffe, President
and CEO of Galway Resources.
Pie de Gallo Zone:
76.0 meters grading 3.3 g/t Au, including 2.0 meters of 46.5 g/t and 8.0
meters of 10.2 g/t Au
38.0 meters grading 1.0 g/t Au including 3.0 meters of 3.1 g/t Au
Galway believes potential for high grade gold as well as lower grade
bulk resources has been demonstrated by the first 95 core holes drilled
to date. Of 72 drill holes that have cut the mineralized corridor,
which Galway has named the El Dorado Zone, 33% have intersections of at least 10 m of 3 g/t Au, and 81% of the holes in the zone have an intercept of at least one
meter of at least 3.0 g/t Au, the average grade of which is 15.9 g/t.
Of interest, given the potential for bulk underground mining, the
average grade of all samples above 0.5 g/t Au is 2.5 g/t. Also
noteworthy, is that 78% of the holes drilled in the mineralized
corridor have returned greater than 10 m of >0.5 g/t, and 35% have returned greater than 30 m of >0.5 g/t. Of all samples above 1.5 g/t Au, the average grade is 7.7 g/t. There are 49 holes or 67% of all holes drilled in the El Dorado Zone
that contain 90 separate intersections of greater than 5 g/t Au, the
average grade of which is 25.6 g/t, and 57 intercepts have been
returned greater than 10 g/t Au, which have an average grade of 45.4
g/t. No upper cutoff grade was applied.
In the latest round of drilling, two holes were drilled in the gap area
to follow up on holes GWY-76 (16.5 m grading 8.1 g/t Au), GWY-87 (99.0
m grading 1.3 g/t Au), and GWY-84 (39.0 m grading 2.1 g/t Au, including
1.5 m of 17.4 g/t Au and 1.5 m of 9.5 g/t Au plus 12.0 m grading 5.0
g/t Au, including 4.5 m of 12.2 g/t Au, which also includes 1.5 m of
28.2 g/t Au, plus 7.5 m grading 5.4 g/t Au and 10.9 g/t Ag, including
1.5 m of 22.9 g/t Au, plus 18.4 m grading 2.3 g/t Au and 10.4 g/t Ag,
including 3.0 meters of 7.7 g/t Au and 32.7 g/t Ag) (refer to Galway's February 9, 2011 and March 1, 2011 press releases). Mineralization encountered in GWY-93 and GWY-88 appear
to correlate well with intercepts reported for GWY-79, GWY-82, GWY-85
and GWY-87 located to the northeast.
Gap Area (between Pie de Gallo and Northeast Zones):
1.0 meter grading 106.0 g/t Au
1.0 meter grading 10.1 g/t Au
2.5 meters grading 4.0 g/t Au
11.0 meters grading 1.8 g/t Au, including 4.0 meters of 3.9 g/t Au
Step out exploration was conducted to the south of the main mineralized
corridor, with 4 drill holes targeting mineralization below small-scale
workings, and west of recent drill successes on neighboring Ventana
ground, where they call these footwall (FW) zones. Multiple narrow
intersections were returned in each hole with strong mineralization
7.0 meters grading 3.0 g/t Au and 132.8 g/t Ag
1.0 meter grading 20.1 g/t Au
19.0 meters grading 0.8 g/t Au
2.0 meters grading 7.6 g/t Au
Drill holes GWY-90 and GWY-94 returned multiple low-grade intersections.
A complete summary of drill hole assay results is provided in Table 1. All maps and sections associated with this press release can be found
on Galway's website at www.galwayresources.com. A 0.5 g/t Au lower cutoff grade was applied in determining all
intervals provided in this news release. No upper cutoff grade was
Drill holes completed in the Pie de Gallo Zone were drilled generally at
25 to 30 meter centers. These holes continue to extend continuity of
mineralization both vertically and laterally along structure in
multiple overlapping lenses typical of the district. Mineralization in
the Pie de Gallo Zone remains open in all directions. Drilling is
continuing with 3 drills targeting gap areas between the San Celestino,
Pie de Gallo and Northeast Zones.
Intercepts reported above and in previously reported drill holes are
hosted by silicified zones, breccias, fracture zones and stockwork,
typical of the district, which includes Greystar Resources' and Ventana
Gold's National Instrument 43-101 compliant resources, Angostura and La
Bodega, respectively. The principal geologic control in the
California-Angostura District is a linear structural corridor that
trends northeast-southwest and dips steeply to the north. Segments of
this zone host the resources reported by both Greystar and Ventana, and
Galway is exploring another segment along the same structural corridor.
The entire corridor may be one continuous mineralized zone through all
three properties. The mineralized Zone identified on Galway's
properties to date is approximately 150-200 meters wide and 1,000
meters long, characterized by hydrothermal alteration and
mineralization within various phases of pervasively altered intrusive
porphyries. Mineralization remains open along strike where untested, at
depth along the entire Zone, and across the width of the structure in
Review by Qualified Person, Quality Control and Reports
In compliance with National Instrument 43-101, Mr. Mike Sutton, P.Geo.
is the Qualified Person responsible for the accuracy of this news
release. All samples are assayed by ALS Chemex in Lima, Peru, after
preparation at the Chemex facility in Bogota, Colombia. All core is
under watch from the drill site to the core processing facility.
Samples are fire assayed with an AA with gravimetric finish. Samples
returning in excess of 3.0 g/t are sent for metallic screens, which may
be pending at the time of this press release and will be updated in the
table on the website as needed. The Company's QA/QC program includes
the regular insertion of blanks and standards into the sample
shipments, as well as instructions for duplication. Standards are
inserted at one per 20 samples. Approximately five percent (5%) of the
pulps and rejects are sent for check assaying at a second lab with the
results averaged and intersections updated when received. True widths
are unknown at this time, except for those shown. Core recovery in the
mineralized zones has averaged over 92%.
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 has
also reported that drilling occurred in 2010 at the GALCA coal project,
which is being managed and funded by Prodeco, the Colombian subsidiary
of Glencore. Efforts are underway to secure access from GALCA property
owners to move the drill rig to the next set of planned drill sites.
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.
SOURCE Galway Resources Ltd.
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Galway Resources Ltd.