TORONTO,
July 19, 2013 /CNW/ - Galway Gold
Inc. (TSX-V: GLW) ("Galway Gold" or the "Company") announces
that it has terminated the option agreement on the Coloro property
in Vetas, Colombia. The Company
conducted extensive surface sampling and geophysical programs and
drilled 1,232 meters with no significant results identified. For
example, the best intersections in the two Coloro holes, GLW-V069
and GLW-072, included 1.5 meters of 0.36 grams per tonne gold (g/t
Au) and 1.4 m of 0.12 g/t Au. Similarly, the best surface sample
results included 0.4 m of 2.58 g/t Au and 2.0 m of 0.96 g/t Au. As
reported on January 22, 2013, 45% of
the Coloro concession will be affected by Colombia's new Santurban Natural Park. The
Reina de Oro concession, home of the El Volcan Mine and where over
45,000 meters of drilling has occurred, is not affected by the
Natural Park.
Galway Gold will no longer make a cash payment
of $715,000 and issue 300,000 shares
due in January, 2014, along with other obligations with respect to
the contract with Sociedad Ordinaria de Minas Coloro S.O.M.
Galway's directors believe that with the limited exploration
potential and the loss of almost half of the concession to the
Natural Park that fulfilling these obligations and continuing with
the Coloro option will not benefit the Company or its
shareholders.
Reina de Oro-El
Volcan Mine
As reported on June 4, 2013, the
Phase 1 drill program was completed at the end of April, which
comprised 89 drill holes and over 46,000 meters. The drill rigs
remain on site and at the optimum time, drilling can recommence at
will. Currently, the Company is analyzing all relevant data in an
effort to maximize efficiency for the Phase 2 drill program.
Additional drilling will commence once the review is completed and
findings are interpreted and incorporated into a revised model of
the zones. Future drilling will focus on further delineating and
expanding the mineralized envelope beyond defined limits.
The El Volcan mine is a high grade, narrow vein
mine with over 2,000 meters of accessible underground workings. El
Volcan, which has been in operation for over 400 years and is still
operating today, is the largest mine in the Vetas-California-Surata
region of Colombia. The Phase 1
geological data and assay results confirm the company's belief that
there exists potential for a high grade commercial discovery.
Galway Resources began drilling the Reina de Oro
concession at Vetas in April 2011,
with the focus to test for a continuation of mineralization below
the El Volcan mine, strike and lateral extensions to the mine, as
well as to evaluate 6 surface geochemical/geophysical anomalies
that have been identified. Results from over 40,000 meters, or 78
diamond drill holes have been released, 60 of which were drilled
from underground targeting the El Volcan structure, while the
balance (except for the two drilled at Coloro) were surface holes
targeting the intrusive exhibiting stockwork veining along its
western border with CB Gold Inc.
As reported on March 21,
2013, the number of veins doubled to 16 from the 8
previously established veins. The Company has also more than
doubled the depth at which gold mineralization was originally
identified below the main (Reina de Oro) level to 710 meters, or
900 meters below surface. All 16 veins at El Volcan are open in
every direction. In the 60 underground drill holes reported to
date, Galway has intersected 5 g/t Au or more 266 times, 20 g/t Au
or more 82 times, 50 g/t Au or more 35 times, 100 g/t Au or more 16
times and 1,000 g/t or more two times.
Highlights of underground drilling results released from El
Volcan:
- 1,082.6 g/t Au and 718.0 g/t silver (Ag) over 1.21 m, plus 77.1
g/t Au and 51.3 g/t Ag over 1.13 m, plus 95.6 g/t Au over 1.26 m,
plus 17.8 g/t Au and 77.7 g/t Ag over 2.34 m from GWY-V021
- 1,034.3 g/t Au and 300.0 g/t Ag over 0.91 m, plus 27.4 g/t Au
over 3.38 m, including 49.4 g/t Au over 1.16 m from GWY-V027
- 679.6 g/t Au and 164.0 g/t Ag over 1.16 m from GWY-V026
- 203.4 g/t Au and 1,311.0 g/t Ag over 1.25 m from GWY-V029
- 157.4 g/t Au over 4.15 m, including 470.2 g/t Au over 1.33 m
from GWY-V036
- 143.7 g/t Au over 1.17 m from GWY-V059
- 82.5 g/t Au and 39.1 g/t Ag over 2.66 m, including 202.0 g/t Au
and 53.5 g/t Ag over 1.07 m, plus 21.9 g/t Au and 63.0 g/t Ag over
6.7 m, including 69.1 g/t Au and 81.6 g/t Ag over 1.5 m from
GWY-V003
- 78.2 g/t Au over 3.16 m, including 248.3 g/t Au and 38.0 g/t Ag
over 0.96 m from GWY-V016
- 34.3 g/t Au and 83.0 g/t Ag over 6.44 m, including 98.8 g/t Au
and 154.0 g/t Ag over 1.30 m, plus 18.9 g/t Au over 11.81 m,
including 52.9 g/t Au over 1.32 m in GWY-V049
- 15.3 g/t Au and 36.5 g/t Ag over 11.44 m, including 112.3 g/t
Au and 34.2 g/t Ag over 0.92 m from GWY-V012
- 8.9 g/t Au and 17.3 g/t Ag over 17.00 m, including 19.7 g/t Au
and 22.0 g/t Ag over 1.18 m, 17.7 g/t Au and 49.9 g/t Ag over 4.81
m, and 27.2 g/t Au over 1.05 m from GWY-V056
- 40.4 g/t Au over 3.47 m, including 84.9 g/t Au over 1.16 m,
plus 104.4 g/t Au over 1.20 m, plus 41.9 g/t Au over 1.04 m from
GWY-V015
- 27.2 g/t Au and 10.8 g/t Ag over 4.36m, including 92.4 g/t Au
and 22.0 g/t Ag over 0.94m from GWY-V078
Highlights from the 16 surface drill holes that targeted the
stockwork intrusive along its western border with CB Gold
include:
- 26.0 g/t Au and 26.9 g/t Ag over 4.19 m, including 105.0 g/t Au
and 76.6 g/t Ag over 1.00 m, plus 29.2 g/t Au over 1.34 m in
GWY-V061
- 45.9 g/t Au over 1.04 m in GWY-V054
- 17.4 g/t Au over 1.38 m, including 45.2 g/t Au over 0.51 m,
plus 4.0 g/t Au over 12.38 m, including 7.8 g/t Au over 1.58 m,
12.0 g/t Au over 0.97 m, and 8.32 g/t Au over 2.30 m in
GWY-V028
Notes: a 2.0 g/t Au lower cutoff grade was
applied to all underground drill holes; a 0.5 g/t Au lower cutoff
grade was applied to all surface drill holes; no upper cutoff grade
was applied; true widths for assays reported to date for
underground holes at Vetas are 18% to 98% of downhole widths; true
widths for assays reported to date for surface holes at Vetas are
unknown. A complete list of results can be found on the Galway Gold
website.
Mineralization
For the surface geology along the western border of the Reina de
Oro concession, mineralization is hosted by veins and stockwork
zones in gneiss and a quartz diorite with potassic alteration
(secondary biotite and K feldspar). The mineralization also
includes zones of high-grade gold-silver veins (La Araña, Piedra
Colorada and El Coco, among others).
Gold mineralization at the El Volcan mine
contains favorable steeply dipping quartz veins in competent host
rocks. The geometry of the veins and the wallrock competency may
allow adoption of a lower cost underground mining method like long
hole stoping. The known vein system comprises 16 different
epithermal veins and numerous subordinate splay veins 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. Grey
chalcedonic quartz, colloform banded texture, vuggs and drussy
quartz, with fine pyrite crystals are typical. Classic low
sulfidation vein textures are common.
Rapid evaluation of the Vetas Project is
possible using channel sampling from the 2,000 meters of accessible
underground workings, and from drill results. Existing multiple
vein structures that are in close proximity to one another and open
in all directions provide an excellent opportunity to build a gold
resource. A total of 7,345 meters of drifts were mapped and 3,769
chip and 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 ranging up to 300
meters. Drilling is testing multiple veins at 25-50 meter centers.
Of the 2 drill holes completed on Coloro (GLW-V069 and GLW-V072),
along the eastern strike extension of the El Volcan Mine, the best
assay results were 1.5 m of 0.36 g/t Au, and 1.4 m of 0.12 g/t Au.
Of the surface sampling, assays of 0.4 m of 2.58g/t Au and 2.0 m of
0.96 g/t Au were the highest values received.
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 Acme Labs preparation facility in Medellin, Colombia, for processing and are
analyzed at Acme Labs laboratory in Vancouver, Canada. There is no relationship
between the assay laboratory and Galway Gold. Surface rock samples
are analyzed for Au by a 30g fire assay and AAS finish method (code
G601) plus a multi-element suite with an aqua regia digestion and
ICP-MS finish (code 1F04). Underground samples are analyzed by G601
and 1F04 methods and over limits of Ag >100ppm and Cu-Pb-Zn
>1% by an ore grade determination with an aqua regia digestion
and analysis by ICP-ES (Code 7AR2). If strong mineralization or
visible gold is observed, then a screen metallic assay for Au (code
G615) is used. Acme Labs is an ISO 9001:2008 qualified assayer that
performs and makes available internal assaying controls. Quality
control protocols by Galway Gold that are in place consist of the
insertion of one blank at least every 20 samples, a reject
duplicate every 20 samples, and one of three different certified
reference standard material for every 20 rock samples. Core
recovery in the mineralized zones has averaged over 90%. Quarter
coring of some select samples will take place. Assays reported in
this press release may have screen and quarter core assays pending
and will be updated in the table on the website as needed.
A technical report on the Vetas Project is filed
on SEDAR (the "Technical Report"). The effective date of the
report is November 13, 2012 and the
Qualified Persons in charge were James G.
Lavigne, M.Sc., P.Geo and Elizabeth
Elder McMonnies, P. Geo., from RPA Consulting. Galway filed
a preliminary NI 43-101 technical report prepared by Roscoe Postle Associates on August 24, 2011.
About Galway Gold
Galway Gold is a well capitalized mineral exploration company with
$16.3 million (March 31, 2013). Through its wholly owned
Colombian subsidiary, Galway Gold holds an option to acquire a 100%
interest in the Reina de Oro gold concession, home of the El Volcan
Mine, in the Vetas gold district of Colombia. Galway Gold's Vetas project was spun
out to existing shareholders of Galway Resources after it was
acquired by AUX on December 20, 2012
for total cash consideration of approximately Cdn$340 million. Galway Gold began trading on
January 21, 2013.
Neither the TSX-V nor its regulation
services provider (as that term is defined in the policies of the
TSX-V) accepts responsibility for the adequacy or accuracy of this
release.
Forward Looking Statements:
Certain statements contained in this release
containing words like "believe", "intend", "may", "will", "expect",
"would" and other similar expressions, are forward-looking
statements that involve a number of risks and uncertainties.
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties. Such information
contained herein represents management's best judgment as of the
date hereof based on information currently available. Galway Gold
does not assume the obligation to update any forward-looking
statement, except as required by law.
SOURCE Galway Gold Inc
