Galway California samples return 9.2 g/t Au along 130 meters (including 27.3 g/t Au along 20 meters)

    TORONTO, Aug. 11 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) is pleased to
provide analytical results of the Phase I sampling program from its
newly-acquired properties in the central California gold district, located in
northeastern Colombia. These properties are located 1,100 meters southwest of,
and on strike with, Ventana's La Bodega property. Galway's gold team has taken
a total of 1,500 samples (including 952 assayed), and historic data has been
compiled. Data compilation to delineate bulk-mineable drill targets is in

    High-grade gold/silver mineralization, up to 6 meters of 63 grams/tonne
Au and 451 grams/tonne Ag, have been sampled. The Company is pleased to report
the following sample results from the areas known as El Dorado, Machuca and
Pie de Gallo (Figure 1:

    El Dorado: A small underground mine, located along the La Baja fault,
Galway sampling has returned an average of 9.21 g/t Au from 68 chip samples
over 130m of tunnel walls, along multiple stacked mineralized zones. This
includes 20m of 27.32 g/t Au (including 6m of 63.34 g/t Au that includes 86.03
g/t Au over 2.0m). Values across the zones include 26.79 g/t Au over 1.50m and
13.26 g/t Au over 2.40m, within a range of 1.11 to 26.79 g/t Au (7.05 g/t Au
Average) in 15 samples. The main mineralized horizons at El Dorado are
generally 0.5m true width, with subordinate veins commonly splaying off at low
angles. The mineralization is hosted in highly sheared and altered, strongly
silicified granodiorite. As at Pie De Gallo, veining is generally running
east-west and northwest-southeast, and dipping north in two sets at 40º and at
75º. Mineralization remains open in all directions. (Figure 2:

    Machuca: Galway's 43 underground chip samples have returned an average of
3.85 g/t gold over 87m of tunnel walls, along a single grey siliceous vein
with an approximate average true width of 0.4m. Included in these samples are
28m of 5.12 g/t Au including 2m of 34.92 g/t Au. Values across the zones range
from 0.38 to 5.95 g/t Au in 27 samples. Host rocks for the mineralization are
highly sheared and altered, strongly silicified gneiss and intrusive. (Figure

    Pie De Gallo: A 300 meter-long pit, that was mined in ancient times, by
the Spaniards, and was the location of Anaconda Mining Company's exploration
efforts in 1946-47. Galway's surface chip sampling has returned 14.2 g/t Au
over 2.0m, included in a 33.50m SW-NE continuous line of samples that gave
2.84 g/t of gold and 11.74 g/t of silver. This was taken across one of the
zones. Historic sampling by Anaconda identified several areas of high grade
gold mineralization including chip assays such as 15.55 g/t Au over 6.0m plus
8.23 g/t Au over 9.0m, (perpendicular to mineralization that also returned
20.37 g/t Au over 16.0m along it). True widths are currently unknown. These
historical, and currently productive, mine workings contain dark grey
siliceous veins at least up to 4.0m true width on surface hosted in a highly
sheared and altered, silicified intrusive. Anaconda drilled six, shallow core
holes under the pit in 1946-1947. Their assay data is unreliable due to a very
low 20% core recovery. (see Table 1: and Figure 4:
    Sampling was carried out both along the veins and across them. The
sampling along the veins may not be as representative of grade as sampling
across the structures, but it does give an initial indication of the possible
grade continuity, and will aid in defining mineralized shoots of higher grade
for future drilling. All sampling values quoted are continuous chip samples.
Follow-up channel sampling perpendicular to the veins will be immediately
undertaken in order to confirm grades/widths, and to define additional areas.

    Geological Discussion

    Mineralization at Galway's California area principally occurs as a series
of north-northwest-dipping parallel vein zones, breccias and mineralized
faults situated within complexly altered and variably silicified gneiss and
intrusive rocks. Porphyry is common. The alteration, and nature of the
mineralization, as described below, is similar throughout the area. The La
Baja fault follows the river valley through Greystar's Angostura, Ventana's La
Bodega, and the Galway properties, and the structural setting is comparable.
    Alteration in the area is composed of silicification, pyritization,
sericitization, alunite and pyrophyllite and is suggestive of a high
sulfidation mineralizing system. Gold and silver mineralization is associated
with structures which are silicified and contain pyrite in stockworks,
stringers and breccias. These structures, have in places, been reactivated or
sheared by the regional NE trending structure that cuts through the district.
Structural intersections within the area have the potential to contain high
grade shoots similar to those present elsewhere in the district.

    Assay Results

    Galway's sampling intercepts are commonly based on a 0.5 gram/tonne gold
cut-off with no upper cut. A sample location map and a complete listing of
intercepts from the El Dorado, Machuca and Pie de Gallo areas is available.
(Table 2:
    Figure 5 is a southwest to northeast section running from Galway's El
Dorado area through Ventana Gold's La Mascota and La Bodega deposits, and
through to Greystar's Angostura deposit. This section is modified after one
produced by Ventana Gold and shown in their Geologic Discussion (view Ventana
ne_2009.pdf). The section shows that gold grades increase to the southwest
from Angostura through La Mascota. Ventana's drilling to date also shows that
gold mineralization is open to depth, and southwest of holes that returned 57m
of 8.66 g/t Au, and 94.5m of 8.66 g/t Au. (Figure 5:
    Regional soil sediment sampling was initiated to delineate additional
target areas for follow-up on Galway's extensive land position in the
district. Sample results are pending.
    Historical assays cannot be verified, but it is thought that Anaconda
maintained a high quality in their sampling/assaying procedures.

    Review by Qualified Person, Quality Control and Reports

    The Company has implemented a quality assurance and control (QA/QC)
program to ensure sampling and analysis of all exploration work is conducted
in accordance with the best possible practices. The samples are shipped to
GMAS ( or to SGS in Bogota or Medellin.
After prep the samples are sent to SGS's laboratory in El Callao, Peru for
analysis. Other QA/QC includes the insertion of blanks, and the regular
re-assaying of pulps/rejects at an alternate certified lab (ACME & CHEMEX).
Gold analysis is conducted by fire assay using atomic absorption or
gravimetric finish. The laboratory re-assays at least 10% of all samples and
additional checks may be run on anomalous values.
    The content of this news release has been reviewed by Mr. Mike Sutton,
P.Geo., who serves as the Qualified Person in accordance with National
Instrument 43-101. Galway is following the "Best Practices Guidelines" in
documenting, reporting, and conducting exploration activities in Colombia.

    About the Company

    In addition with California, Colombia Gold Trend, Galway Resources has
several other sizeable assets in different stages of Exploration and
development: the large Victorio molybdenum-tungsten project located in
southwestern New Mexico, USA. A separate drilling program will be underway at
our GALCA project over the summer, funded by Prodeco (the Colombian coal
subsidiary of Xstrata). Galway's Management is cognizant of the tough market
conditions and is thus maintaining a balance of adding value to shareholders
while conserving capital.

    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: Some statements in this news release contain
forward-looking information. These statements include, but are not limited to,
statements with respect to future exploration, development and production
activities, future studies and reports, and future expenditures. These
statements address future events and conditions and, as such, involve known
and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by the
statements. Such factors include, among others, the use of proceeds, the
timing and success of future exploration, development and production
activities the timing and completion of future reports and studies, and the
timing and amount of expenditures.

For further information:

For further information: Galway Resources Ltd., Robert Hinchcliffe,
President and Director, 1-800-475-2412,

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