Elko, Nevada: February 1, 2008 - Galway Resources Ltd. (GWY: TSX-V) is pleased to provide a corporate update. The Company's principal focus has been on advancing three U.S. based projects (with over 300,000 feet of historical drilling) and assessing exploration opportunities in Colombia. During 2007, two new N.I. 43-101 resource estimates were announced and subsequently upgraded with data from our own drilling programs for the Victorio molybdenum-tungsten project and the Indians Springs tungsten project. More recently we announced the receipt of two coal concessions in Colombia South America and the submittal of new gold concession applications.
"In just under two years advancing our US based projects (Galway has drilled over 85,000 feet on the 3 projects) and developing an exciting exploration campaign in Colombia we are pleased with the progress that we have made in the past year. We remain optimistic with commodity prices remaining strong, particularly with molybdenum and tungsten trading at $33 and $12 per pound, respectively," states Robert Hinchcliffe, President & CEO of Galway Resources.
Victorio Molybdenum Tungsten Project---Scoping Study Due Out Next Few Weeks
The Scoping Study for this project is expected to be finished over the next few weeks and is assessing using different low cost underground bulk mining methods, and the potential to mine the higher grade core in the early years. This project with 165,000 feet of historical drilling (from 65 holes) is currently being drilled for the second time as part of a 20-hole 40,000 foot drilling program. During 2007, an updated 43-101 resource was released incorporating the data from our first drilling program. The Scoping Study will examine the economic impact of designing a mine plan oriented around a 60 million ton target mining reserve, versus the option of targeting the larger 100 million ton resource. This report will be released in the middle of February 2008. This project is 100% owned by Galway Resources.
Victorio 2007 Resource Model Run with $15 Mo and $8 WO 3 |
Geologic Resource-N.I. 43-101 Compliant |
Contained Metal in Pounds |
Category |
$ Cutoff |
Tons(Millions) |
Mo % |
WO 3 % |
Molybdenum |
Tungsten (WO 3) |
Indicated |
25 |
67 |
0.10 |
0.10 |
132,000,000 |
134,000,000 |
Inferred |
25 |
42 |
0.09 |
0.09 |
74,000,000 |
76,000,000 |
Indicated |
35 |
41 |
0.12 |
0.12 |
100,000,000 |
98,000,000 |
Inferred |
35 |
22 |
0.12 |
0.11 |
51,000,000 |
46,000,000 |
Update on the Indian Springs Tungsten Project
Indian Springs is a project that was worked on by a few of the majors, with a total of 65,000 amount of drilling done during the seventies and eighties. Galway recently completed its second drilling campaign to upgrade the resource estimate and provide material for metallurgical testing, with Galway drilling 17,000 feet over the course of its two drilling programs. A large metallurgical sample batch will be sent to SGS Lakefield's labs over the next few weeks. The Company hopes to make some improvements on the metallurgical front and will then advance the project to the Scoping Study level. During 2007, an updated 43-101 resource was released incorporating the data from our first drilling program. The open-pittable Indian Springs project was acquired just under two years ago and is 100% owned by Galway Resources.
Indian Springs 2007 Resource Model—N.I. 43-101 Compliant |
Category |
Tons (millions) |
%WO 3 (Tungsten) Grade |
Pounds of Tungsten |
Indicated |
10.8 |
0.17 |
37,000,000 |
Inferred |
8.2 |
0.17 |
25,000,000 |
* A cut-off grade of 0.10% WO3 was used for this resource estimate.
Latest on the new Colombian Exploration Initiative Announced in December 2007
Over two years ago, Galway began to assess and evaluate various coal and gold alternatives given the country's vast history for both of these commodities. With such an apparent trend towards high quality coal in a world where energy prices are reaching all time highs, coal deposits can be explored for and developed in a time period much quicker than for other commodities, on a relative basis. This approach has been successful and thus far the Company has been awarded two coal concessions that are directly adjacent to well recognized coal deposits.
The Company has also been actively assessing privately held mining concessions for gold exploration. Galway Resources has also submitted several mining concessions for gold properties. Colombia is host to several recently discovered world class gold deposits, and the country ranks at the top in terms of cumulative historical gold production for Latin America.
Update on the Lone Mountain Copper Zinc Project
Management has decided to relinquish ownership of this project. The corporate strategy for the US based projects is to find properties with ample historical data that demonstrate significant upside potential to be developed into profitable mines. This was evident at Lone Mountain after compilation of a large volume of historic data demonstrating the presence of high grade polymetallic skarn mineralization peripheral to the quartz monzonite porphyry. The drill target of a moderate tonnage of high grade skarn was well conceived, efficiently and adequately tested with 7 holes totaling 15,000 feet. A summary of the results can be reviewed at:
http://www.galwayresources.com/i/pdf/2008-01-31_LMT.pdf
Even though high-grade copper and zinc mineralization were intersected in the drilling, additional exploration expenditures are not justified in our view. In short, it is management's view that the Company's capital can more effectively be deployed with the other initiatives currently underway.
New Options
The Company has allocated 320,000 stock options at a price of $0.50 to certain employees, directors, and officers for a period of 5 years.
About the Company
The company is well capitalized with just under $10 million in the treasury. Management is focused on advancing two U.S. based exploration projects and exploring for coal and gold in Colombia. The US projects are favorably located and have over 250,000 feet of historical drilling, plus the 50,000 feet of additional drilling carried out by Galway in the past eighteen months. Management believes that its strategic portfolio of properties offers investors an interesting exposure to a unique blend of commodities (molybdenum, tungsten, thermal and metallurgical coal, and gold).
For further information contact:
Galway Resources Ltd.
Robert Hinchcliffe
President and Director
1-800-475-2412
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.