Galway Resources Announces Start of Drilling and Exploration Update
at its Vetas Gold Project in Colombia
Toronto, Ontario:
April 8, 2011 - Galway Resources Ltd. (GWY: TSX-V) is pleased to announce
that underground diamond drilling has commenced at its Vetas
gold project, with a second drill rig scheduled to arrive in May. The El Volcan mine is located within the Reina de Oro
property, which is 8 kilometers southeast of Galway's California gold
project, and has been the site of gold mining since the 1590's. It is the
largest mine in the California-Vetas gold mining
district and has not benefitted from modern exploration and no drilling has
previously occurred.
The underground sampling program focused on the two main levels of the
mine, the Reina de Oro Level (formerly known as the Lower Level; refer to Figure 1), and the Tajo Abierto
Level (formerly known as the Upper Level; refer to Figure 2). Galway's initial drilling campaign is designed
to focus on vein depth and strike extensions below the Reina de Oro Level.
The sampling program has identified the following mineralized veins:
Reina de Oro Level
Vein
|
Average Gold
Sample Grade
(g/t Au)
|
Average Silver
Sample Grade
(g/t Au)
|
Average
Width
(m)
|
Total
Strike
(m)
|
Corteros Vein
|
17.0
|
66.1
|
0.99
|
98.9
|
Loscas Vein
|
80.7
|
48.2
|
0.95
|
124.9
|
including
|
250.9
|
75.5
|
1.00
|
33.0
|
which includes
|
2,744.9
|
488.0
|
0.90
|
2.4
|
Manzanilla Vein
|
49.5
|
99.7
|
.99
|
219.2
|
including
|
91.0
|
168.7
|
1.10
|
81.7
|
which includes
|
905.6
|
829.4
|
0.98
|
5.0
|
Chocolatua Vein
|
4.8
|
4.5
|
1.04
|
56.4
|
Tajo Abierto
Vein
|
7.3
|
25.6
|
1.03
|
115.3
|
Total Reina Level
|
37.9
|
60.8
|
0.99
|
614.7
|
Tajo Abierto Level
Vein
|
Average Gold Sample Grade
(g/t Au)
|
Average Silver Sample Grade
(g/t Au)
|
Average Width
(m)
|
Total
Strike
(m)
|
Manzanilla Vein
|
24.8
|
47.6
|
1.17
|
202.6
|
including
|
211.5
|
295.7
|
0.9
|
9.0
|
Burro Vein
|
6.1
|
5.6
|
1.20
|
13.1
|
Tajo Abierto
Vein
|
19.1
|
26.5
|
1.20
|
137.0
|
Hueso Duro Vein
|
15.8
|
15.8
|
0.99
|
103.0
|
Ancha
Vein-Lower
|
26.1
|
23.4
|
1.35
|
72.5
|
Ancha
Vein-Upper
|
20.9
|
33.6
|
1.10
|
34.8
|
Total Tajo Level
|
21.5
|
31.9
|
1.17
|
563.0
|
The high-grade nature of the veining is indicated by the average sampled
grade for both levels is 29.4 g/t gold plus 45.9 g/t silver over a total of
614.7 meters of veining, together with an additional 172 meters of veining
that has already been mined.
Sampling Overview
The geophysical and soil surveys have identified numerous coincident
anomalous linear zones with similar characteristics to, and away from, the
current known workings that could represent additional veining. Of
particular interest is the possibility of gold-rich porphyry style
mineralization, with associated copper-molybdenum. As well, veins trending
perpendicular to the strike of the mine's main veins is indicated, with
this perpendicular trend similar in orientation to other nearby mines. For
a Mobile Metal Ion (MMI) soil survey response ratio map, which clearly
shows a set of perpendicular trending targets, as well as other targets
outside the main Vetas mine block, please refer
to Figure 3.
The El Volcan mine contains favourably
steep-dipping veining in competent host rocks that could be successfully
mined using modern bulk-tonnage longhole mining
methods. Rapid development of resources is possible using channel sampling
and drilling results. The existing multiple vein structures provide an
excellent opportunity to build a robust gold resource as they are open in
all directions, and their proximity to one another, coupled with very
competent host rocks and the fact that the mine has already been developed
should allow for rapid, comparatively low cost development of a larger
scale operation.
Underground Sampling and Mapping
Starting in January 2010 Galway has had a geological team conducting an
exploration campaign on the Vetas Gold Project.
The campaign commenced with the mapping and sampling of the drifts at the
El Volcan mine on the two main work
levels---Reina de Oro and Tajo Abierto. A total
of 7,345 meters of drifts were mapped and 3,769 chip channel samples were
taken from vein, wall rock and stockwork
mineralization between vein sets. The mine covers an area of 500 meters x
300 meters with a vertical extent of 300 meters. The mine hosts nine
different epithermal veins and numerous subordinate splay veins, which have
been exploited semi-continuously since the Spanish Colony era and
continuously for the past 60 years for high grade gold and silver.
During mapping of the drifts, it was noted that sulphide
mineralization (pyrite) was significantly more prevalent on the Reina de
Oro Level than on the Tajo Abierto Level. Surface
mapping has shown the sulphide mineralization to
be almost absent in the veining. Sampling also generally shows stronger
grades with depth.
Surface Sampling and Mapping
In addition to tunnel sampling, a surface line cutting and geological
mapping program was conducted. The cut lines were also utilized for a MMI
survey and an IP/MAG survey. A total of 40.3 line kilometers of grid has
been cut (20 lines at 100 meter intervals), mapped and sampled. A total of
215 samples were taken. Gold results range from 0.05 g/t to 25.3 g/t with
silver results ranging from 0.01 g/t to 109.0 g/t. In addition to the gold
and silver, Vetas surface sampling returned
anomalous results for base metals, with up to 0.13% molybdenum and up to
0.14 % copper.
The main NE-SW trend of the mine mineralization was located and mapped on
surface. In addition, a number of NW-SE perpendicular trends were also
identified. Numerous intrusive lithologies were
mapped.
MMI Soil Survey
The geology grid was also used in a Mobile Metal Ion (MMI) soil
geochemistry study. All 20 lines were sampled at 25 meter centers,
comprising a total of 1,598 samples.
The MMI response ratios over the mine trend generates a NE-SW anomaly
having a continuous strike length of 500 meters that is coincident with the
mineralized structures mapped on surface and within the tunnels
underground. In addition, there are also three strong gold anomalies to the
West, North and to the Northwest of the main mine (these are evident in Figure 3). Low to moderate response ratios are associated
with a NW-SE direction that is parallel to a secondary cross structural
vein system. Silver and gold MMI response ratios are strongly related.
Response ratios of ~10 for gold outlines the broader mineralized
structures, while a response ratio above 50 coincides with the high-grade
tunnels mapped in the underground. Furthermore, there are a number of
weaker gold anomalies throughout the property that will require geological
follow up. The follow up will consists of hand trenching and detailed
mapping.
The MMI study has also revealed a copper-molybdenum-silver anomaly to the
south of the workings that may be related to a buried porphyry system.
There are a number of high copper response ratios throughout the property
that are related to intrusive lithologies that
were mapped during the field season. These areas will require hand
trenching and detailed mapping as was recommended above for the gold
anomalies.
IP/MAG Geophysical Surveys
In January 2011, Galway retained KTTM Geophysics of Medellin, Colombia to
complete an Induced Polarization (IP) and Ground Magnetic (MAG) survey over
the geology grid on the Vetas Project.
Results show that the main mine trend has strong chargeability anomalies at
moderate depths below surface (starting at ~30 meters). These chargeability
anomalies are coincident with the high MMI gold response ratios and surface
structures mapped over the main mine trend. In addition, there are a number
of other chargeability anomalies outboard of the main trend that are also
fairly deep on the IP profiles (30 to 60 meters). These chargeability
anomalies are either associated with gold MMI anomalies
and veining/faulting on surface, or with intrusive lithologies and stronger base metal (Cu-Mo) MMI signatures.
Increasing pyrite mineralization with depth (noted above) may be the reason
for stronger chargeability noted deep on the IP profiles.
Future surface drilling should focus on deeper targets in favor of shallow
targets based on the deeper chargeability anomalies seen in the IP survey.
Drilling will begin with a 5,000 meter underground diamond drill program,
testing the mineralization open below the high-grade Reina de Oro Level.
Vetas Spin-Out
After consulting with our attorneys and financial advisors, Galway's Board
of Directors has decided to not proceed with the Vetas
spin-out at this time as it does not want to dilute the Company's asset
base to one key gold exploration project from two currently. However,
Galway may revisit the spinout option at a later date.
Supervision, Qualified Person and Quality Control
The Vetas Project is under the supervision of
Project Manager Alex Cruz, of Quito Ecuador. In compliance with National
Instrument 43-101, Mr. Mike Sutton, P.Geo., and Mr. Dale Schultz, P.Geo.
(Manitoba and Saskatchewan) of Buscore Consulting
Limited (www.buscore.net) are the Qualified Persons responsible for the
accuracy of this news release. Samples from the Vetas
Project are sent to the ALS-Chemex preparation
facility in Bogota, Colombia for processing and are analyzed in the ALS-Chemex laboratory in Lima, Peru (ISO 9001:2000
certified). Surface rock samples were analyzed by methods Au-AA23 and ME
ICP41. Underground samples were analyzed by methods Au-AA23 and Ag AA46. If
a sample yields more than 10 g/t Au, a screen metallic Au SCR 21 is used.
The quality control protocols that are in place consist of the insertion of
one blank at least every 20 samples, a field or lab duplicate every 20
samples, and one of 3 different certified reference standard material for
every 20 rock samples.
MMI soils samples were sent to SGS Group (ISO 19011 certified) preparation
facility in Medellin, Colombia for processing and are analyzed in SGS's
laboratory in Lima, Peru.
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.
For further information contact:
Galway Resources Ltd.
Investor Relations
1-800-475-2412
www.galwayresources.com
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.
|