Galway discovers 3 new high grade gold zones at Vetas; 26.0 g/t over 4.2 m from surface; 34.3 g/t over 6.4 m and 18.9 g/t over
October 06 2012 - 10:57AM
PR Newswire (Canada)
TORONTO, Oct. 9, 2012 /CNW/ - Galway Resources Ltd. is pleased to
announce assay results from 17 underground diamond drill holes and
11 surface drill holes at its Vetas gold-silver project, host of
the El Volcan gold-silver mine that has been in operation for over
400 years and is the largest mine in the Vetas-California-Surata
gold region of Colombia. The focus of Galway's exploration efforts
at Vetas is to test for a continuation of mineralization below the
El Volcan mine, strike and lateral extensions to the mine as well
as to test the 6 surface anomalies that have been identified.
Galway also has an ongoing exploration program at its California
project, located 8 km northwest of Vetas. On September 12, 2012,
Galway announced initial resource estimates for California prepared
by SRK Consulting, Inc., which contained indicated gold resources
of 424,385 ounces grading 5.5 g/t plus inferred gold resources of
666,470 ounces grading 5.4 g/t. Three New High Grade Zones
Discovered: -- New surface discovery returned26.0 grams per tonne
gold (g/t Au) over 4.19 meters (m), 29.2 g/t Au over 1.34 m, and
14.5 g/t Au and 572.0 g/t silver (Ag) over 0.98 min drill hole 61,
located 200 m from hole 28 and 150 meters northeast of CB Gold's
recent discovery -- 8 separate intersections greater than 6.6 g/t
Au, including two new veins that assayed 34.3 g/t Auand 83.0 g/t
Agover 6.44 m,plus18.9 g/t Au over 11.81 mfrom underground hole 49
-- 7.3 g/t Au over 1.33 m, located 180 m west of Corteros, which
was the western-most vein known to exist when drilling began, and
140 m west of La Virgen 2 "The initial corporate goal was to
delineate resources of 1,000,000 ounces from each of our California
and Vetas projects at a combined grade of 10 g/t Au. The California
goal has been achieved - at a higher grade than initially expected.
The California resource is open to expansion from newly-discovered
extensions at Machuca and Santa Catalina, within the fractions and
at depth. For Vetas, the initial goal was to drill off an area of
500 m along strike by 500 m depth below the mine workings. Using an
average horizontal mining width of 1.5 m, a grade of 15 g/t, and
with a 25% success ratio over the mines' 8 veins would give
1,000,000 ounces. The actual average horizontal mining width has
been exceeded, the success ratio has been exceeded, the depth has
been exceeded, and the number of veins present is greater than the
8 originally thought to exist," cites Robert Hinchcliffe, President
and CEO of Galway Resources. New underground drill result
highlights Au Ag Hole ID From To Interval Vein Name, (Meters)
(Meters) (Meters) g/t g/t Notes GWY-V0041 116.82 117.89 1.07 17.53
37.00 Chocolatua 200.06 203.47 3.41 40.13 35.79 Manzanilla
including 202.21 203.47 1.26 94.26 55.00 Manzanilla GWY-V0042
114.18 116.43 2.25 6.29 20.07 Loscas including 115.32 116.43 1.11
10.28 15.00 Loscas 284.06 285.33 1.27 22.77 5.70 Tajo Abierto
GWY-V0045 200.38 202.56 2.18 12.49 14.82 New 18 including 200.38
201.46 1.08 22.82 23.50 New 18 229.72 231.95 2.23 12.38 13.63 New5
- VG GWY-V0046 210.31 213.60 3.29 10.09 1.30 Loscas including
210.31 211.38 1.07 25.20 2.00 Loscas 279.88 280.41 0.53 283.58
99.00 Green - VG 294.13 294.63 0.50 27.81 2.00 Green GWY-V0049
157.73 158.98 1.25 86.90 16.00 Tajo Abierto 243.37 244.49 1.12
15.16 162.00 Loscas 320.87 327.31 6.44 34.34 83.03 New 17 including
320.87 322.17 1.30 98.79 154.00 New 17 335.66 347.47 11.81 18.85
3.78 New 5 including 344.10 345.42 1.32 52.85 2.00 New 5 GWY-V0053
48.07 49.51 1.44 9.96 121.00 Loscas - VG 91.19 93.58 2.39 41.76
102.00 Manzanilla including 91.19 92.44 1.25 76.64 102.37
Manzanilla GWY-V0055 156.29 159.82 3.53 6.10 16.60 Chocolatua
including 158.68 159.82 1.14 10.11 36.30 Chocolatua GWY-V0056 42.52
43.91 1.39 25.70 7.00 New 19 161.03 178.03 17.00 8.94 17.27 El
Burro including 161.03 162.21 1.18 19.65 22.00 El Burro Tajo 164.48
169.29 4.81 17.72 49.90 Abierto - VG 176.98 178.03 1.05 27.18 1.00
Chocolatua Tajo GWY-V0059 142.34 142.88 0.54 15.66 6.00 abierto -
VG 290.28 291.45 1.17 143.73 216.00 New 5 - VG 402.37 403.90 1.53
17.29 10.00 Corteros - VG 542.42 543.75 1.33 7.29 4.00 La Virgen 3
Tajo GWY-V0062 190.27 192.42 2.15 25.16 9.30 Abierto - VG Tajo
including 190.27 191.39 1.12 43.84 19.00 Abierto - VG GWY-V0064
99.56 100.79 1.23 9.45 32.00 Loscas 142.31 144.78 2.47 50.40 12.01
Green including 142.31 143.56 1.25 94.18 13.00 Green - VG GWY-V0066
137.50 139.03 1.53 13.13 5.00 New 5 - VG GWY-V0067 343.08 352.41
9.33 9.73 116.95 Manzanilla including 343.08 343.97 0.89 17.78
305.00 Manzanilla including 345.03 346.23 1.20 26.97 308.41
Manzanilla GWY-V0068 102.10 103.63 1.53 11.65 10.20 New 4 416.36
417.88 1.52 10.28 90.60 New 19 Highlights of Underground Drilling
Program Include: -- New discoveries in hole 49 are wide open to the
east and northeast (Figure 1) -- Drill rigs will be moved to Pads 3
and 4 to extend El Volcan's drill-defined strike length beyond the
current 410 m in order to bring in ounces toward the north (Figure
2 and Figure 3) -- La Virgen 3 discovered 180 m west of Corteros,
which was the western-most known vein, and 140 m west of La Virgen
2 -- New Veins show deposit remains open to the west -- Drilling
continues to show excellent continuity of El Volcan's high grades
along strike and to depth Successful Hit Ratio Far Exceeds
Expectations for Underground Drilling Program To put the success
Galway has achieved in its underground drill program at Vetas into
perspective, since June 22, 2011, when Galway released the first
set of Vetas drill results, 45 of the 52 underground holes that
have been reported host at least one assay in excess of 10 g/t Au
(the average is 2.8 per hole, or 146 times in total), and all holes
except hole 25 contained multiple mineralized intersects. In the
first 52 underground drill holes, Galway has intersected 5 g/t Au
or more 237 times, 20 g/t Au or more 76 times, 30 g/t Au or more 44
times, 100 g/t Au or more 13 times and 1,000 g/t or more two times.
Vetas Surface Drill Results Summary A new discovery has returned
26.0 g/t Au over 4.19 meters (including 105.0 g/t Au over 1.0 m)
from surface drilling (hole 61) northwest of the mine (Figure 4).
This hole also intersected other zones such as 29.2 g/t Au over
1.34 m, 14.5 g/t Au and 572.0 g/t Ag over 0.98 m, 5.3 g/t Au over
1.5 m, and 4.9 g/t Au over 1.52 m. It is located 150 meters
northeast of CB Gold's recent intersections in hole RM-DDH12-119 of
17.3 g/t Au over 15.5 m (including 234.9 g/t Au over 1.03 m and
14.0 g/t Au over 1.54 m), 78.1 g/t Au over 3.31 m (including 227.6
g/t Au over 1.13 m), 17.0 g/t Au over 2.27 m (including 35.9 g/t Au
over 1.06 m), 7.4 g/t Au over 4.85 m (including 25.5 g/t Au over
1.00 m), and 3.1 g/t Au over 7.86 m (including 21.7 g/t Au over
1.05 m). The zones in the area appear to dip to the northeast, and
so the new discovery, which range up to 369 m below surface,
appears to correlate with CB's intersections. Because of the dip of
the zones, the current drilling is not ideal for intersecting the
zones (drilling appears to have been sub-parallel to the zones;
thus several veins may have been missed); better-located drill pads
are to be constructed in order that all zones can be drilled
across. New surface drill result highlights Au Ag Hole ID From To
Interval Vein (Meters) (Meters) (Meters) g/t g/t Name GWY-VS0043
258.64 271.41 12.77 1.18 1.05 New including 258.64 259.64 1.00 7.05
10.80 New GWY-VS0044 182.66 183.94 1.28 2.50 1.30 La Araña 336.64
338.52 1.88 2.60 1.86 New3 including 336.64 337.64 1.00 4.20 2.80
New3 GWY-VS0047 211.38 215.83 4.45 1.24 2.38 El Brinco 349.24
350.49 1.25 3.04 2.30 New3 GWY-VS0048 354.19 355.19 1.00 3.15 12.00
New3 GWY-VS0050 96.15 96.71 0.56 14.44 5.90 La Araña El GWY-VS0054
230.49 231.53 1.04 45.91 9.90 Brinco - VG GWY-VS0061 289.78 290.76
0.98 14.55 572.00 El Brinco 302.65 306.84 4.19 26.00 26.88 El
Brinco El including 302.65 303.65 1.00 104.99 76.60 Brinco - VG
374.58 375.92 1.34 29.18 6.20 New GWY-VS0063 142.68 143.68 1.00
4.78 3.80 La Araña As reported on March 14, 2012, hole 28 was the
first surface hole drilled on Galway's Vetas property - located in
the northwest as well. This hole contained 17.4 g/t Au over 1.38 m,
including 45.2 g/t Au over 0.51 m in the Piedra Colorada structure
and 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 8.3 g/t Au over 2.30 m in the La Araña
structure. The La Araña intersect appears to be a 160 m down-dip
extension at a 358 meter vertical depth below surface from CB
Gold's discovery of 7.6 g/t Au over 114.98 m, including 17.2 g/t Au
over 40.89 m (which included 316.7 g/t Au over 2.09 m), and 5.4 g/t
Au over 30.35 m. Both of these results appear to be contained in
the same stockwork zone that runs on both sides of the common
border. As seen in Figure 4, only two of the eleven new surface
drill holes reported herein were drilled in the direction of CB
Gold's discoveries noted above. The rest targeted other zones, from
which early sampling yielded encouraging results. Noteworthy of
these are holes 43, 50, and 54 that intersected 7.0 g/t Au over 1.0
m plus 1.2 g/t Au over 12.77 m, 14.4 g/t Au over 0.56 m, and 45.9
g/t Au over 1.04 m, respectively. In order to optimize Galway's
ability to intersect high-grade targets within the stockwork zone,
the Company has chosen to temporarily suspend surface drilling
until it receives the necessary pad construction approvals. Notes:
GWY-VS052 and GWY-V057 returned multiple, narrow, low-grade
intersects that ranged up to 4.9 g/t Au and 2.15 m; 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; only gold grades of 9.0
g/t Au or higher were highlighted for underground drill holes
unless drill core thickness exceeded 2.0 m; only gold grades of 1.0
g/t or higher or drill core lengths of 5 m or more were highlighted
for surface drill holes; true widths for assays reported to date
for underground holes at Vetas are 28% to 98% of downhole widths.
True widths for all surface holes reported to date have not been
established as the zones are of unknown orientations. Pictures of
visible gold from Galway's Vetas and California projects can be
viewed in the photo gallery. Maps, cross sections and a detailed
table of assay results can be viewed on the Company's website at
www.galwayresources.com. All Vetas drill results released to date
can be viewed in Table 1. A preliminary NI 43-101 technical report
on Galway's Vetas property, which was prepared by Roscoe Postle
Associates, was filed on SEDAR on August 24, 2011. 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 that could be successfully mined using modern
bulk-tonnage longhole mining methods. The known vein system
comprises nine 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. Visible gold in the
sampling almost invariably indicates higher gold and silver assay
grades. Galway's geologists are impressed and surprised by the
widths of mineralization attained in the first tier of drill holes
relative to the narrower veining seen in the mine workings above,
and by the classic low sulfidation vein textures seen. Grey
chalcedonic quartz, colloform banded texture, vuggs and drussy
quartz, with fine pyrite crystals are typical. The mineralization
has been intersected up to 670 meters below the bottom level of the
El Volcan mine, and 860 meters below surface. Rapid development of
resources 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 robust 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 of 300 meters. Drilling is testing
multiple veins at 25-50 meter centers. The Company has reported on
the first 68 holes (including 16 surface holes). 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. 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 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. MMI soil 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
mineral exploration company primarily focused in northeast
Colombia, with gold exploration occurring at the California and
Vetas gold projects. The Company also has the Victorio
molybdenum-tungsten project, with excellent infrastructure, in
southwestern New Mexico. A positive scoping study was completed by
SRK in 2008. The recent surge in tungsten pricing, coupled with a
steady molybdenum price, has prompted management to reassess
strategic alternatives to advance the Victorio project. 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. Galway
Resources Ltd. CONTACT: Galway Resources Ltd.Robert
Hinchcliffe1-800-475-2412www.galwayresources.com
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