“We are very pleased with all of the results we have received thus far, and what is most exciting is that it has become more apparent that there is plenty of upside potential to expand the high grade core of the deposit in addition to the lower grade material in the periphery. The positive results of our Scoping Study reflect that this deposit is amenable to low cost underground bulk mining methods and that the project enjoys excellent infrastructure advantages,” cites Robert Hinchcliffe, President and CEO of Galway Resources.
Highlights of the Current Drill Results:
- Thick Intercepts: The most noteworthy of the results received from the two holes is the 200 feet of 0.17% Mo and 0.09% WO3 mineralization in hole GRV-87 and the 35 feet of 0.14% Mo encountered in hole GRV-88.
- High Grade Intercept: For hole GRV-87, an intercept of 40 feet of 0.29% Mo and 0.21% WO3 was encountered, along with 15 feet of 0.21% Mo and 0.20% of WO3.
VICTORIO DRILL RESULTS
| Hole Number | Depth in | Depth in feet | Thickness in | Intervals* | |
% Mo | % Tungsten -WO3 | ||||
| GRV-87 | 1545 | 1575 | 30 | .11 | .15 |
including | 1560 | 1575 | 15 | .21 | .20 |
1630 | 1650 | 20 | .06 | .11 | |
1665 | 1865 | 200 | .17 | .09 | |
including | 1705 | 1745 | 40 | .29 | .21 |
| GRV-88 | 1670 | 1700 | 30 | .05 | .09 |
1730 | 1755 | 25 | .03 | .15 | |
1955 | 1990 | 35 | .14 | .00 | |
2015 | 2030 | 15 | .14 | .00 | |
2095 | 2120 | 25 | .10 | .11 | |
*The cutoff is US$25/ton combined grade calculated using a price of U.S.$15/lb Mo and $8/lb WO3
To see the plan map and cross section, please click on the following links:
http://www.galwayresources.com/i/pdf/2008-08-04_VPXS5.pdf
http://www.galwayresources.com/i/pdf/2008-08-05_VPDHL.pdf
As reported on February 27, 2008, the highlights of the Scoping Study completed by SRK Consulting U.S. Inc., which contemplated two different mining scenarios using an average life of a mine price of $15/lb molybdenum (versus the current price of $33 per pound) and $8/lb tungsten price (versus the current price of $13 per pound) include:
Block Caving Scenario: This scenario is a larger project that considers producing an average of 9.4 million pounds of molybdenum and 9.0 million pounds of tungsten annually for 17 years. The preliminary economics suggest an NPV (discount rate of 6%) of over US$270 million, a pre-tax (unlevered) IRR of 15%, and a required investment of US$442 million.
Selective Mining Scenario: This is a smaller scale project that offers higher returns with a pre-tax (unlevered) IRR of 26%, and a NPV of US$95 million. Under this scenario only a portion of the target resource is extracted, with an average of 6.2 million pounds of molybdenum and 5 million pounds of tungsten annually for 10 years. The capital required is estimated to be US$242 million, the mining methods are a combination of long-hole stoping with paste backfill and room-and-pillar mining.
QA/QC Statement
The Company has implemented a quality assurance and quality control (QA/QC) program to ensure that a collection and analysis of all drill samples is conducted in accordance with the best possible practices. Samples are stored in a secure facility in Deming, New Mexico prior to shipping to the Chemex lab in Sparks, Nevada. Other QA/QC procedures include the insertion of blanks and control samples every 20 samples and re-assaying duplicate pulps of 5% of all samples by a certified independent laboratory (SGS Labs). WO3 is assayed at the Chemex Vancouver laboratory by two methods: (1) lithium borate fusion with an XRF finish and (2) lithium borate fusion with an ICP finish.
The results of the Company’s current drilling program have been reviewed, verified (including sampling, analytical and test data) and compiled by the Company’s geological staff (which includes a “qualified person,” Peter Hahn , CPG, for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators). Galway is following the “Best Practices Guidelines” in documenting, reporting, and conducting exploration activities at Victorio.
About the Company
The Company is focused on developing and commercializing the Victorio project, and exploring for gold and coal in Colombia. The Victorio project has 165,000 feet of historical drilling and Galway has drilled an additional 40,000 feet. The Company has retained John Tumazos to investigate strategic alternatives to advance this project. The Company also has an exploration initiative underway in Colombia that is focused on coal and gold exploration. Management believes that its strategic portfolio of properties offers investors an interesting exposure to a unique blend of commodities (molybdenum, gold, tungsten, metallurgical and thermal coal) in varying stages of development.
For further information contact:
Galway Resources Ltd.
Robert Hinchcliffe
President and Director
1-800-475-2412
www.galwayresources.com
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.