Toronto, Ontario: April 26, 2011 – Galway Resources Ltd. (GWY: TSX-V) is pleased to announce assay results from four additional drill holes from its diamond drill exploration program on the Company’s California property in Colombia. Galway’s California property, which is not subject to development restrictions associated with Páramo legislation, is located adjacent to, along strike southwest of, and at lower elevations than Ventana’s La Bodega/La Mascota project, and 3 km from Greystar’s Angostura project. Galway also owns a previously-reported 360 meter-long fractional land position within Ventana’s main La Mascota mineralized structure (refer to Galway’s December 15, 2010 press release for details). Ventana has been acquired by AUX Canada, a company owned by Mr. Eike Batista, for in excess of $1.5 billion in cash.
Two of the new holes, GWY-97 and GWY-99, were drilled in the Pie de Gallo Zone. Hole GWY-99 has intersected 125.0 meters grading 3.8 grams per tonne gold (g/t Au) beginning 13.5 meters downhole, including 36.0 meters of 8.9 g/t Au (which includes 9.5 meters of 28.7 g/t Au and 1.0 meter of 33.3 g/t Au) and 4.5 meters of 13.2 g/t Au. This is on the same line and below hole GWY-91, which had returned 76.0 meters grading 3.3 g/t Au, including 2.0 meters of 64.3 g/t Au and 8.0 meters of 11.4 g/t Au. Importantly, assays have only been received for the first 140 metres of GWY-99. Assays reported in this press release are fire assayed with an AA with gravimetric finish; follow-up screen assays are pending.
“We are very excited with the drill results, particularly considering hole 99 holds 5 individual assays over 30.0 g/t Au, and 9 assays over 8.0 g/t Au. We’re calling hole 99, “The Great One”,” cites Robert Hinchcliffe, President and CEO of Galway Resources.
Pie de Gallo Zone:
GWY-99 (Results from the first 140 meters)
- 125.0 meters grading 3.8 g/t Au and 11.9 g/t silver (Ag), including 36.0 meters of 8.9 g/t Au (which includes 9.5 meters of 28.7 g/t Au and 1.0 meter of 33.3 g/t Au), 4.5 meters of 13.2 g/t Au, 1.0 meter of 8.1 g/t Au and 1.0 meter of 10.9 g/t Au
GWY-97
- 1.0 meter grading 151.5 g/t Au and 73.1 g/t Ag
- 33.0 meters grading 1.9 g/t Au, including 1.0 meter of 18.4 g/t Au
- 12.5 meters grading 2.2 g/t Au, including 1.0 meter of 11.9 g/t Au
- 5.0 meters grading 5.9 g/t Au, including 1.0 meter of 25.7 g/t Au
- 17.5 meters grading 1.7 g/t Au, including 1.0 meter of 7.5 g/t Au
- 9.0 meters grading 1.5 g/t Au
Visible gold was seen from 21 to 23 meters in GWY-99. Poor core recovery in hole GWY-99 from 191.5 to 194.5 meters, in the middle of a strongly-mineralized interval, has led Galway to drill a twin hole — GWY-107. This hole will provide a complete cut through the missing area and test the continuity of the mineralization. Galway believes potential for high grade gold as well as lower grade bulk-mineable resources has been demonstrated by the first 99 core holes drilled to date.
One hole was drilled in the gap area to follow up on holes GWY-76 (16.5 m grading 8.1 g/t Au), GWY-87 (99.0 m grading 1.3 g/t Au), and GWY-84 (39.0 m grading 2.1 g/t Au, including 1.5 m of 17.4 g/t Au and 1.5 m of 9.5 g/t Au plus 12.0 m grading 5.0 g/t Au, including 4.5 m of 12.2 g/t Au, which also includes 1.5 m of 28.2 g/t Au, plus 7.5 m grading 5.4 g/t Au and 10.9 g/t Ag, including 1.5 m of 22.9 g/t Au, plus 18.4 m grading 2.3 g/t Au and 10.4 g/t Ag, including 3.0 meters of 7.7 g/t Au and 32.7 g/t Ag) (refer to Galway’s February 9, 2011 and March 1, 2011 press releases for details). Mineralization encountered in GWY-96 correlates with intersections above it from hole GWY-11 (21.0 m grading 1.1 g/t Au and 1.5 m grading 16.4 g/t Au), and appears to correlate well with intercepts reported for GWY-76, GWY 84, GWY-79, GWY-82, GWY-85 and GWY-87 located to the northeast, displaying the same steep north dip seen across the Camp.
Gap Area (between Pie de Gallo and Northeast Zones):
GWY-96
- 7.0 meters grading 5.8 g/t Au and 23.6 g/t Ag, including 1.0 meter of 25.6 g/t Au
- 49.0 meters grading 1.9 g/t Au, including 5.0 meters of 7.3 g/t Au and 1.0 meters of 13.2 g/t Au
- 4.0 meters grading 4.8 g/t Au, including 1.0 meter of 15.5 g/t Au
- 19.0 meters grading 1.4 g/t Au, including 4.0 meters of 4.2 g/t Au
- 25.0 meters grading 1.0 g/t Au, including 1.0 meter of 4.5 g/t Au
Exploration was conducted to the south of the main mineralized corridor, with a drill hole targeting mineralization below small-scale workings and west of recent drill successes on neighboring Ventana ground (where they call these FW zones). Multiple narrow intersections were returned.
Exploration Footwall Zones:
GWY-98
- 10.0 meters grading 2.7 g/t Au and 12.4 g/t Ag
A complete summary of drill hole assay results is provided in Table 1. All maps and sections associated with this press release can be found on Galway’s website at www.galwayresources.com. A 0.5 g/t Au lower cutoff grade was applied in determining all intervals provided in this news release. No upper cutoff grade was applied.
Drill holes completed in the Pie de Gallo Zone were drilled generally at 25 to 30 meter centers. These holes continue to extend continuity of mineralization both vertically and laterally along structure in multiple overlapping lenses typical of the district. Mineralization in the Pie de Gallo Zone remains open in all directions. Drilling is continuing with 3 drills targeting gap areas between the San Celestino, Pie de Gallo and Northeast Zones.
Mineralization
Intercepts reported above and in previously reported drill holes are hosted by silicified zones, breccias, fracture zones and stockwork, typical of the district, which includes Greystar Resources’ and Ventana Gold’s National Instrument 43-101 compliant resources, Angostura and La Bodega, respectively. The principal geologic control in the California-Angostura District is a linear structural corridor that trends northeast-southwest and dips steeply to the north. Segments of this zone host the resources reported by both Greystar and Ventana, and Galway is exploring another segment along the same structural corridor. The entire corridor may be one continuous mineralized zone through all three properties. The mineralized Zone identified on Galway’s properties to date is approximately 150-200 meters wide and 1,000 meters long, characterized by hydrothermal alteration and mineralization within various phases of pervasively altered intrusive porphyries. Mineralization remains open along strike where untested, at depth along the entire Zone, and across the width of the structure in most places.
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. All core is under watch from the drill site to the core processing facility. Samples are fire assayed with an AA with gravimetric finish. Samples returning in excess of 3.0 g/t Au are sent for metallic screens. Assays reported in this press release may have screen assays pending and will be updated in the table on the website as needed. The Company’s QA/QC program includes the regular insertion of blanks and standards into the sample shipments, as well as instructions for duplication. Standards are inserted at one per 20 samples. Approximately five percent (5%) of the pulps and rejects are sent for check assaying at a second lab 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 has averaged over 92%.
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 drill programs occurring at the California and Vetas gold projects. The Company has also reported that drilling occurred in 2010 at the GALCA coal project, which is being managed and funded by Prodeco, the Colombian subsidiary of Glencore. Efforts are underway to secure access from GALCA property owners to move the drill rig to the next set of planned drill sites.
For further information contact:
Galway Resources Ltd.
Investor Relations
1-800-475-2412
www.galwayresources.com
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.