Galway Resources reports 40 feet of high grade mineralization at the Victorio project

    TORONTO, Aug. 15 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) is pleased to
announce more encouraging drilling results from the Victorio
molybdenum-tungsten project located in southern New Mexico. The 12-hole,
25,000 foot, phase 2, infill drilling program was recently completed with six
holes being reported on thus far and the results of two additional holes
provided below. The purpose of the infill drilling program is to upgrade the
resource with the next step being a pre-feasibility study following the
positive results of the recently released Scoping Study.
    "We are very pleased with all of the results we have received thus far,
and what is most exciting is that it has become more apparent that there is
plenty of upside potential to expand the high grade core of the deposit in
addition to the lower grade material in the periphery. The positive results of
our Scoping Study reflect that this deposit is amenable to low cost
underground bulk mining methods and that the project enjoys excellent
infrastructure advantages," cites Robert Hinchcliffe, President and CEO of
Galway Resources.

    Highlights of the Current Drill Results:

    -   Thick Intercepts: The most noteworthy of the results received from
        the two holes is the 200 feet of 0.17% Mo and 0.09% WO(3)
        mineralization in hole GRV-87 and the 35 feet of 0.14% Mo encountered
        in hole GRV-88.

    -   High Grade Intercept: For hole GRV-87, an intercept of 40 feet of
        0.29% Mo and 0.21% WO(3) was encountered, along with 15 feet of 0.21%
        Mo and 0.20% of WO(3).

    Victorio Drill Results
                  Depth in   Depth in   Thickness   -------------------------
    Hole Number   feet From  feet To     in feet    % Mo   % Tungsten -WO(3)
    GRV-87          1545       1575         30       .11         .15
      including     1560       1575         15       .21         .20
                    1630       1650         20       .06         .11
                    1665       1865        200       .17         .09
      including     1705       1745         40       .29         .21
    GRV-88          1670       1700         30       .05         .09
                    1730       1755         25       .03         .15
                    1955       1990         35       .14         .00
                    2015       2030         15       .14         .00
                    2095       2120         25       .10         .11

    (*) The cutoff is US$25/ton combined grade calculated using a price of
        U.S.$15/lb Mo and $8/lb WO(3)

    To see the plan map and cross section, please click on the following

    As reported on February 27, 2008, the highlights of the Scoping Study
completed by SRK Consulting U.S. Inc., which contemplated two different mining
scenarios using an average life of a mine price of $15/lb molybdenum (versus
the current price of $33 per pound) and $8/lb tungsten price (versus the
current price of $13 per pound) include:

    Block Caving Scenario: This scenario is a larger project that considers
producing an average of 9.4 million pounds of molybdenum and 9.0 million
pounds of tungsten annually for 17 years. The preliminary economics suggest an
NPV (discount rate of 6%) of over US$270 million, a pre-tax (unlevered) IRR of
15%, and a required investment of US$442 million.

    Selective Mining Scenario: This is a smaller scale project that offers
higher returns with a pre-tax (unlevered) IRR of 26%, and a NPV of
US$95 million. Under this scenario only a portion of the target resource is
extracted, with an average of 6.2 million pounds of molybdenum and 5 million
pounds of tungsten annually for 10 years. The capital required is estimated to
be US$242 million, the mining methods are a combination of long-hole stoping
with paste backfill and room-and-pillar mining.

    QA/QC Statement

    The Company has implemented a quality assurance and quality control
(QA/QC) program to ensure that a collection and analysis of all drill samples
is conducted in accordance with the best possible practices. Samples are
stored in a secure facility in Deming, New Mexico prior to shipping to the
Chemex lab in Sparks, Nevada. Other QA/QC procedures include the insertion of
blanks and control samples every 20 samples and re-assaying duplicate pulps of
5% of all samples by a certified independent laboratory (SGS Labs). WO(3) is
assayed at the Chemex Vancouver laboratory by two methods: (1) lithium borate
fusion with an XRF finish and (2) lithium borate fusion with an ICP finish.
    The results of the Company's current drilling program have been reviewed,
verified (including sampling, analytical and test data) and compiled by the
Company's geological staff (which includes a "qualified person," Peter Hahn ,
CPG, for the purpose of National Instrument 43-101 Standards of Disclosure for
Mineral Projects, of the Canadian Securities Administrators). Galway is
following the "Best Practices Guidelines" in documenting, reporting, and
conducting exploration activities at Victorio.

    About the Company

    The Company is focused on developing and commercializing the Victorio
project, and exploring for gold and coal in Colombia. The Victorio project has
165,000 feet of historical drilling and Galway has drilled an additional
40,000 feet. The Company has retained John Tumazos to investigate strategic
alternatives to advance this project. The Company also has an exploration
initiative underway in Colombia that is focused on coal and gold exploration.
Management believes that its strategic portfolio of properties offers
investors an interesting exposure to a unique blend of commodities
(molybdenum, gold, tungsten, metallurgical and thermal coal) in varying stages
of development.

    The TSX Venture Exchange has in no way passed upon the merits of the
    proposed transaction and has neither approved nor disapproved the
    contents of this news 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
the completion of transactions, the timing and amount of payments and share
issuances, the completion of financings, the use of proceeds, future
exploration, development and production activities 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 ability to complete
contemplated transactions, payments, share issuances and financings, the use
of proceeds, the time and success of future exploration, development and
production activities 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,

Organization Profile

Galway Resources Ltd.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890