Toronto, Ontario: February 25, 2010 – Galway Resources Ltd. (GWY: TSX-V) is pleased to announce that it has received results from 302 additional channel samples from its recently acquired Reina de Oro property in Vetas, Colombia (refer to Galway’s January 26, 2010 press release for details). These are in addition to Galway’s release of its initial 216 channel sample results reported February 17, 2010.
“We consider Galway’s latest results as providing further evidence that Vetas hosts significant high-grade gold mineralization over long intervals, and our exploration program at the mine complements well our other recent efforts just eight kilometers to the northwest at California. Indeed, we are encouraged by our discovery of a 70.1 meter strike length (with a 0.9 meter true width) that has an average grade of 104.8 grams per tonne gold, and that several of the veins appear to be getting richer over longer intervals when compared with prior results,” cites Robert Hinchcliffe, Galway’s President and CEO.
Higher Grades Over Longer Intervals
Grades returned include 1,374.8 grams per tonne (g/t) gold (Au) over a strike length of 5.0 meters (0.8 m true width), and 223.8 g/t Au over a strike length of 25 meters (0.9 m true width). Refer to Table 1 for select results from Galway’s channel sampling program at its El Volcan mine. The 223.8 g/t intercept represents just one of five improvements in grade and strike length that Galway has identified in its latest results when compared with those released on February 17th. Four of the improvements occurred along the Manzanilla vein, while the other improvement occurred in the Corteros Vein. We present our findings for these veins, as well as for Loscas and Tajo Abierto below:
- 223.8 g/t Au over a strike length of 25 meters (9 samples over 0.9m average true width), including 459.0 g/t Au over 11.5 meters. This compares with Galway’s previously reported interval of 48.3 g/t Au over 15 meters.
- 87.9 g/t Au over a strike length of 18.5 meters (6 samples over 0.9m average true width), including 381.5 g/t Au over 1.2 meters. This compares with Galway’s previously reported interval of 24.7 g/t Au over 12.0 meters.
The above two intervals are contained within the longer 70.1 meter intercept that has an average grade of 104.8 g/t Au (3.37 ounces per tonne Au), as noted above.
- 31.4 g/t Au over a strike length of 12.5 meters (6 samples over 1.0m average true width), including 45.0 g/t Au over 5.0 meters. This compares with Galway’s previously reported interval of 24.2 g/t Au over 7.2 meters.
- 17.8 g/t Au over a strike length of 8.0 meters (3 samples over 0.93m average true width). This compares with Galway’s previously reported interval of 14.6 g/t Au over 5.0 meters.
In addition to the improvements in grade and strike lengths noted above, the latest results from the Manzanilla vein also returned the following:
- 67.1 g/t Au over a strike length of 7.5 meters (3 samples over 1.0m average true width), including 94.5 g/t Au over 5 meters, and
- 26.0 g/t Au over a strike length of 30.5 meters (11 samples over 0.8m average true width). Of this 30.5 meter interval, a 1.2 meter portion that graded 183.1 g/t Au was released February 17th, but another 23.5 meter interval that graded 29.8 g/t Au significantly extended the strike length of this high grade vein.
Refer to Figure 1 for a map showing the location of select channel sample results from the Manzanilla vein.
- 7.9 g/t Au over a strike length of 21.5 meters (10 samples over 0.9m average true width), including 20.6 g/t Au over 4.5 meters. This compares with Galway’s previously reported interval of 6.2 g/t Au over 17.0 meters.
Other new results from the Corteros vein returned the following:
- 86.8 g/t Au over a strike length of 10.0 meters (4 samples over 0.9m average true width), including 319.8 g/t Au over 1.2 meters.
- 9.3 g/t Au over a strike length of 14.5 meters (6 samples over 0.8m average true width), including 14.9 g/t Au over 7.5 meters.
Refer to Figure 2 for a map showing the location of select channel sample results from the Corteros vein.
- 1,374.8 g/t Au over a strike length of 5.0 meters (3 samples over 0.8m average true width), including 2,744.9 g/t Au over 1.2 meters, and
- 9.7 g/t Au over a strike length of 22.5 meters (9 samples over 0.96m average true width), including 16.3 g/t Au over 10.5 meters.
Refer to Figure 3 for a map showing the location of select channel sample results from the Loscas vein.
Tajo Abierto Vein
- 8.2 g/t Au over a strike length of 21.0 meters (8 samples over 0.8m average true width), although the strike length extends to 45 meters at a slightly lower grade of 7.7 g/t Au when results from Galway’s February 17th news release are included.
Refer to Figure 4 for a map showing the location of select channel sample results from the Tajo Abierto vein.
Refer to Table 1 for true widths of all the results provided in this news release.
El Volcan Mine
Reina de Oro contains the historic El Volcan gold mine, which is the largest gold producer in the California-Vetas-Surata gold mining districts where Galway is conducting its gold exploration activities. The El Volcan mine consists of two main levels, with eight mineralized quartz veins currently being mined by locals. The channel samples received to date are from four of the eight mineralized structures, all taken from the lower level of the mine. The four veins tested include the Manzanilla, Corteros, Loscas, and Tajo Abierto.
The Company’s aggressive channel sampling program is primarily focused on the 2,000 meters of accessible underground workings. This represents only 40% of the 5,000 meters of historical underground drifting that has occurred as 3,000 meters are currently un-accessible. However, Galway considers this additional 3,000 meters of underground workings as providing the Company with an excellent target for future exploration.
To date, a total of 518 assays have been received. Results from another approximately 300 samples are pending from the aforementioned veins as well as from other veins along the same level. Channel sampling has just commenced in the upper level of the mine. The channel samples were collected across drift backs from four of the eight quartz veins which have been historically mined since the 1950’s. Results only from veins have been returned; assays for the intervening ground where mineralized splays occur are pending. No cut has been applied to assays; further sampling is required in order to ascertain what, if any, cut may be required.
The known vein system comprises eight mineralized structures 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. The veins have been, and currently are being mined from surface to approximately 250 meters below surface. Within this area, and over a 570 meter vein length, approximately 30% of the area has been mined out. The steep nature of the veins (sub-vertical), combined with highly competent wall rocks, is ideal for modern bulk mining methods (longhole mining). There is also potential for open pit mining.
Galway plans an aggressive exploration program of underground and surface sampling, geophysics and drilling to rapidly advance this project. The main focus will be to ascertain in a relatively short timeframe reserves and resources, and to explore vein extensions below the bottom level of the mine where no exploration has occurred. All veins are open along strike (horizontally) and to depth. There are surface indications that additional veining may be discovered to the southeast.
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 were assayed for Metallic Screen test by SGS at its Peru Minerals laboratory in Callao, after preparation at an SGS facility in Medellin, Colombia. The Company’s QA/QC program includes the regular insertion of blanks and standards into the sample shipments. All widths are true widths.
About the Company
Galway Resources is a well capitalized company, primarily focused on the exploration of gold and coal in Colombia. While the core focus of the Company at the moment is gold exploration in Colombia, the Company reported that drilling has commenced at the GALCA coal project in Colombia. The initial 19 hole drill program on the GALCA property is being managed and funded by Prodeco, the Colombian subsidiary of Xstrata.
For more details see the press release dated November 17, 2009.
For further information contact:
Galway Resources Ltd.
President and Director
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.