Elko, Nevada: February 20, 2008 – Galway Resources Ltd. (GWY: TSX-V) is pleased to announce results from its 15-hole 7,000 foot drilling program which was completed in December, 2007 to upgrade the resource estimate and for metallurgical testing. In total, Galway has drilled 16,000 feet to compliment the 62,000 feet of historical drilling at the Indian Springs property (Elko County, Nevada).
“I am quite pleased with the results of the 2007 drilling program. Our work continues to verify the professional work done by others in the past and it’s quite exciting to see the high-grade intercepts we’ve encountered. The program has been successful in collecting more than adequate material for the on-going metallurgical test work,” states Marshall Himes, COO of Galway Resources.
Highlights of the three drill results include:
- Thick Intercepts: Hole ISC07-136 had several notable intercepts, more specifically 55 feet of 0.21% of tungsten (WO3), and hole ISC07-129 encountered 56 feet of 0.18% WO3.
- High Grade: Hole ISC07-138 intercepted 48 feet of mineralization with an average grade of 0.35% WO3, while hole ISC07-136 had two separate 6 foot intervals grading 0.87% WO3, and 0.68% WO3, in addition to other high grade zones outlined in the table below.
Hole ID (core) From
ISC07-136 24 37.5 13.5 0.17 74.0 99.0 25.0 0.20 including 87.0 99.0 12.0 0.29 109.0 117.5 8.5 0.23 156.0 175.0 19.0 0.31 including 156.0 168.7 12.7 0.41 233.0 251.0 18.0 0.21 including 233.0 240.0 7.0 0.32 335.5 374.0 38.5 0.16 403.5 409.7 6.2 0.68 481.0 536.3 55.3 0.21 including 481.0 493.0 12.0 0.35 550.0 556.0 6.0 0.87 ISC07-129 333.0 355.0 22.0 0.18 384.0 400.0 16.0 0.20 407.0 463.0 56.0 0.18 ISC07-138 116.0 164.0 48.0 0.35
To see the plan map and cross section for these holes, please click on the following links:
Galway announced on May 1, 2007 the first NI 43-101 resource estimate for the Indian Springs project prepared by SRK Consulting (U.S.) Inc. The resource estimate was based on 62,000 feet of drill data (299) holes and approximately 2,500 trench samples carried out by Utah International (which was later acquired by BHP Billiton). The new resource estimate also included the results from Galway’s 2006 drilling program which consisted of 20 holes (8,000 feet) of reverse circulation drilling and 3 core holes (1,000 feet).
Category Tons (millions) %WO3 (Tungsten) Grade Pounds of Tungsten Indicated 10.8 0.171 37,000,000 Inferred 8.2 0.167 25,000,000
* A cut-off grade of 0.10% WO3 was used for this resource estimate.
Current Tungsten Pricing
During the eighties and nineties tungsten pricing remained depressed, with prices trading between US$2.50 to $3.00 per pound. A significant decrease in exports from China, coupled with consistent strong global demand for tungsten, has served as the impetus for prices to rise sharply at the end of 2004. Since October of 2005, tungsten prices have remained above US$12.50 per pound, and the current price is $12.50 per pound.
“With tungsten pricing remaining around $12.50 per pound due to solid market fundamentals for the global tungsten market, the implied metal value for this deposit demonstrates its vast potential as an open pit deposit,” states Robert Hinchcliffe, President of Galway Resources.
The Company has implemented a quality assurance and quality control (QA/QC) program to ensure collection and analysis of all drill samples is conducted in accordance with the best possible practices. Samples are stored in a secured area in Montello prior to transfer to lab personnel for shipping to the Chemex sample preparation facility in Elko, Nevada. Other QA/QC procedures include the insertion of blanks and control samples every 100 feet, and re-assaying duplicate pulps of 5% of all samples and 10% of samples assaying greater than 0.1% WO3. All duplicate samples are re-assayed at both Chemex and at a certified independent laboratory (SGS). WO3 is assayed at both ALS Chemex and SGS laboratory by lithium borate fusion with an XRF 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. Andy Johnson, Project Manager, responsible for activities at Indian Springs, and Peter Hahn, Galway’s Qualified Person have reviewed the technical content of this news release in accordance with 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 Indian Springs.
About the Company
The company is well capitalized with $9 million in the treasury and is focused on developing two U.S. based exploration projects that are favorably located and have over 250,000 feet of historical drilling. More recently, a Colombian Exploration initiative focused on coal and gold exploration, that has been developing over the past two years, was announced. Management believes that its strategic portfolio of properties offers investors an interesting exposure to a unique blend of commodities (molybdenum, tungsten, metallurgical and thermal coal, and gold).
For further information contact:
Galway Resources Ltd.
President and Director
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.