Toronto, Ontario: September 8, 2010 – Galway Resources Ltd. (GWY: TSX-V) is pleased to announce results from an additional 12 drill holes from the first phase of its diamond drill exploration program on the Company’s California district property in Colombia. Included in these drill results is the intersection of significant gold mineralization in the Northeast Zone, located along its eastern boundary with Ventana Gold, as well as in the San Celestino Zone, located approximately 1.0 kilometer to the southwest and along trend in the growing California gold camp of Colombia.
“Galway is so encouraged by the exploration results received to date, it has brought in a third drill rig to provide the flexibility it needs to quickly follow up on its early successes. We plan on having one drill rig focusing on each of the three zones at California; the Northeast Zone, the Pie de Gallo Zone and the San Celestino Zone. With this focus the Company fully expects to expand on the strong exploration results it has achieved,” cites Robert Hinchcliffe, President and CEO of Galway Resources.
Drill holes GWY-30, GWY-32, and GWY-36 were collared in the northeast corner of the property, drilled due south, just inside the boundary with Ventana, with that company concurrently drilling just on the other side of the boundary. Hole GWY-37 was drilled from the same location but fanned out more to the west (refer to the drill hole location map in Figure 1, the location map of significant intercepts in Figure 2 and highlights of the latest drill results in Table 1).
Highlights from Galway’s latest results in the Northeast Zone include the following:
- GWY-37 returned 121.5 meters grading 2.7 grams per tonne gold, true width equals 81.0 meters (g/t Au, TW=), including 79.5 meters of 3.8 g/t Au (TW=53.0m) that includes 1.5 meters of 151.5 g/t Au and 190 g/t silver (Ag); and
- GWY-30 returned 85.5 meters grading 1.1 g/t Au (TW=60.5m), including 1.5 meters of 21.4 g/t Au; and
- GWY-32 returned 148.5 meters grading 0.65 g/t Au (TW=87.0m), including 1.5 meters of 5.3 g/t Au.
These intersections correlate well with previously reported surface sampling that returned 36.0 meters of 2.2 g/t Au, including 8.0 meters of 6.6 g/t.
Drill holes GWY-24 and GWY-27 were drilled approximately 100 meters west of the drill pad setup for GWY-30, GWY-32, GWY-36 and GWY-37. Hole GWY-27, which was a twin of GWY-24 because GWY-24 had poor core recovery and therefore did not reach its intended depth, intersected 5.8 meters of 1.4 g/t Au and 7.6% Zn. A significant previously reported drill intercept from the same pad in which GWY-27 was collared was GWY-19, which returned 1.5 meters of 109.5 g/t and 42.5 g/t Ag, plus 15.0 meters of 0.8 g/t Au (located 10.5m up-hole from the 109.5 g/t intercept).
San Celestino Zone
Galway is also pleased to report additional drill results from the San Celestino Zone (previously known as the El Dorado Zone), located along strike to the southwest of the Northeast Zone. Highlights of drill results from San Celestino include the following:
- GWY-26 returned 25.0 meters of 3.6 g/t Au and 18.1 g/t Ag, including 16.0 meters of 5.4 g/t Auand 24.9 g/t Ag that includes 4.0 meters of 16.5 g/t Au and 84.9 g/t Ag. Included within this narrower interval is 1.5 metres of 27.4 g/t Au, 146.0 g/t Ag and 1.4% zinc (Zn); and
- GWY-29 returned 40.5 meters grading 1.5 g/t Au and 21.7 g/t Ag, including 1.5 meters of 13.0 g/t Au and 28.0 g/t Ag, plus 9.5 meters grading 1.5 g/t Au; and
- GWY-39 returned 17.1 meters grading 1.5 g/t Au and 22.9 g/t Ag, including 1.5 meters of 4.4 g/t Au and 109.0 g/t Ag. It is worth noting that GWY-38 and GWY-39 were collared approximately 100 meters to the southwest of GWY-26 and GWY-29.
These drill results are located in the same San Celestino Zone as those previously reported for GWY-14, GWY-17, GWY-20, GWY-22, GWY-23 and GWY-25. Highlights from previously reported results in the San Celestino Zone are as follows:
- GWY-22 returned 11.0 meters grading 9.9 g/t Au and 145.3 g/t Ag, including 3.3 meters of 30.4 g/t Au and 441.6 g/t Ag; and
- GWY-23 returned 7.2 meters grading 7.6 g/t Au, 62.4 g/t Ag and 1.4% Zn, including 3.0 meters of 14.3 g/t Au, 164 g/t Ag and 2.7% Zn; and
- GWY-25 returned 3.0 meters grading 24.6 g/t Au and 254.5 g/t Ag, including 1.5 meters of 47.1 g/t Au and 430.0 g/t Ag.
In addition to the current and previously reported drill results at San Celestino, Galway has also reported channel samples from the San Celestino mine, such as 19 meters grading 40.7 g/t Au and 752.4 g/t Ag over a true thickness of 7.1 meters. Galway has now discovered significant gold mineralization over a strike length of approximately 200 meters and to a depth of approximately 190 meters in the San Celestino Zone. Refer to Galway’s July 22, 2010 and March 5, 2010 press releases for details of its drilling and channel sampling results in the San Celestino Zone.
Pie de Gallo Zone
Results received for the Northeast Zone and the San Celestino Zone are very much in-line with those previously received from the Pie de Gallo Zone, which is located between the two. Now that Galway has three drill rigs on its California properties, it intends to devote one to each zone. The Company has already followed up on previously identified gold mineralization in the Pie de Gallo Zone with drill holes GWY-42, GWY-43 and GWY-46 completed with assays pending. The setup for these three holes is from a drill pad located approximately 30 meters to the southwest of thick intervals of up to 38.5 meters grading 2.5 g/t Au in GWY-02, and narrower intervals of higher grade mineralization such as 3.0 meters of 32.8 g/t Au in GWY-01.
Once drilling from its current location in the Pie de Gallo Zone is complete, Galway plans to move the rig closer to the previously released drill hole interval identified in GWY-10. This will enable the Company to follow up on the strong results received from GWY-10, which returned 89.0 meters grading 3.2 g/t Au, including 9.0 meters of 23.0 g/t Au that includes 3.0 meters of 50.0 g/t Au. Follow-up drilling to GWY-10 is scheduled to begin in approximately two weeks.
In summary, Galway has now identified significant intercepts of both relatively narrow high-grade and wide lower-grade gold mineralization in all three zones over a 1.0 kilometer length of its California property. For a complete list of drill results released to date, please refer to the table of Assay Result Highlights on our website.
Mineralization is easily recognizable as silicification/quartz veins in argillized Precambrian gneiss host rock. The mineralization contact angles to the core are not obvious. Veining is generally running east-west and northwest-southeast, and most commonly generally dipping steeply north. Mineralization remains open in all directions.
Review by Qualified Person, Quality Control and Reports
In compliance with National Instrument 43-101, Mr. Mike Sutton, P.Geo., is the Qualified Person responsible for the accuracy of this news release. All samples are assayed by ALS Chemex in Lima, Peru, after preparation at the Chemex facility in Bogota, Colombia. The veins and silicified zones are sent for metallic screens. For all other samples, the samples were fire assayed with an AA with gravimetric finish. The Company’s QA/QC program includes the regular insertion of blanks and standards into the sample shipments. A portion of the pulps and rejects are sent to a second lab for check assaying, with the results averaged and intersections updated when received. True widths are unknown at this time, except for those shown. Core recovery in the mineralized zones is generally good to excellent. All intersections are currently uncut as a result of insufficient data.
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 a drilling program occurring at the California gold project and extensive underground channel and surface sampling taking place at the nearby Vetas gold project. The Company has also reported that drilling is underway at the GALCA coal project in Colombia, which is being managed and funded by Prodeco, the Colombian subsidiary of Glencore. Efforts are underway to secure access from the GALCA property owners to move the drill rig to the next set of planned drill holes.
For further information contact:
Galway Resources Ltd.
President and Director
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.