Toronto, Ontario: November 22, 2011 – Galway Resources Ltd. (GWY: TSX-V) is pleased to announce complete assay results from three diamond drill holes and partial results from another four holes at its Vetas gold-silver project, host of the El Volcan gold-silver mine that has been in operation over 400 years and is the largest mine in the California-Vetas-Surata gold region. The Company also is pleased to announce that a third diamond drill rig is scheduled to arrive at Vetas later this week, which will target extensions on Galway’s side of the common border to CB Gold’s discovery of 7.57 grams per tonne gold (g/t Au) over 114.98 meters in what appears to be the same stockwork zone that Galway initially discovered through extensive sampling and geophysical exploration programs in late 2010 and early 2011. The CB Gold intersection includes 17.17 g/t Au over 40.89 meters (which includes 316.67 g/t Au over 2.09 meters), and 5.36 g/t Au over 30.35 meters. 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 and other anomalies within the Company’s Vetas concessions. Results confirm that mineralization extends over 250 meters below current workings and approximately 550 meters from surface, which represents a 50 meter extension below previous discoveries.
“The bonanza-style gold grades we’re seeing at Vetas are exceeding our most optimistic expectations, and new discoveries at depth and to the west of El Volcan expand the mine’s ultimate potential. In addition, the new surface drill rig provides Galway the capacity to explore the many other targets that have been identified through our geophysical and soil, tunnel and trench sampling programs, including the stockwork zone on our side of the common border in which CB Gold made its high grade discovery located just 50 meters away. Our exploration efforts confirm that the same mineralized intrusive extends on to our property. We continue to be very enthusiastic about the exploration potential at Vetas,” cites Robert Hinchcliffe, President and CEO of Galway Resources.
On June 22, 2011, Galway released the first-ever drill results from its Vetas project, and on November 4, 2011, the Company released partial results from two holes, GWY-V012 and GWY-V014. Complete results from these two holes, as well as results from an additional five holes are provided below. All holes drilled to date host at least one assay in excess of 10 g/t, with the average being 3.2 per hole in the first 18 holes drilled. In addition, 15 of the first 18 holes reported to date contained visible gold. Previously-released results are italicized.
GWY-V012
- 15.3 g/t Au and 36.5 g/t silver (Ag) over 11.44 meters, including 112.3 g/t Au and 34.2 g/t Ag over 0.92 meters
- 12.8 g/t Au over 7.2 meters, including 67.2 g/t Au and 34.4 g/t Ag over 1.12 meters
- 5.3 g/t Au over 1.00 meter
- 5.7 g/t Au over 1.94 meters
GWY-V014
- 17.9 g/t Au over 5.46 meters, including 33.6 g/t Au and 10.9 g/t Ag over 1.21 meters (previously reported as >10.0 g/t Au over 1.21 meters), and 46.8 g/t Au and 22.5 g/t Ag over 1.20 meters (previously reported as >10.0 g/t Au over 1.20 meters)
- 33.1 g/t Au and 17.4 g/t Ag over 1.10 meters (previously reported as >10.0 g/t Au over 1.10 meters)
- 106.8 g/t Au and >100 g/t Ag over 1.00 meter (previously reported as >10.0 g/t Au over 1.00 meter)
- 8.4 g/t Au and 82.0 g/t Ag over 2.30 meters, including 11.3 g/t Au and 149.0 g/t Ag over 1.20 meters
- 12.7 g/t Au and 29.0 g/t Ag over 1.14 meters
- 6.8 g/t Au over 0.68 meters
- 6.1 g/t Au over 0.6 meters
GWY-V015
- 40.4 g/t Au and Pending g/t Ag over 3.47 meters, including 84.8 g/t Au and 12.0 g/t Ag over 1.26 meters
- 6.6 g/t Au and Pending g/t Ag over 9.44 meters, including 41.9 g/t Au and Pending g/t Ag over 1.04 meters
- 14.7 g/t Au and 13.0 g/t Ag over 1.28 meters
- 7.1 g/t Au over 1.44 meters
- 13.8 g/t Au and 62.0 g/t Ag over 1.02 meters
- 6.5 g/t Au over 1.14 meters
- 104.3 g/t Au and 16.0 g/t Ag over 1.2 meters
GWY-V016
- 8.7 g/t Au and 11.3 g/t Ag over 0.61 meters
- 26.2 g/t Au over 0.85 meters
- 78.2 g/t Au and 12.6 g/t Ag over 3.16 meters, including 248.3 g/t Au and 38.0 g/t Ag over 0.96 meters
- 23.6 g/t Au and 13.0 g/t Ag over 0.55 meters
- 16.2 g/t Au and 16.0 g/t Ag over 1.15 meters
- 5.6 g/t Au and 21.0 g/t Ag over 0.58 meters
GWY-V017
- 5.8 g/t Au over 1.3 meters
- 8.7 g/t Au and 38.0 g/t Ag over 12.9 meters, including 42.0 g/t Au and 306.0 g/t Ag over 1.33 meters and 31.8 g/t Au and 18.0 g/t Ag over 1.18 meters
- 21.6 g/t Au over 1.37 meters
- 9.6 g/t Au over 1.2 meters
- 28.3 g/t Au over 4.07 meters, including 61.7 g/t Au over 1.45 meters
GWY-V018
- 92.2 g/t Au and 18.0 g/t Ag over 0.98 meters
- 10.8 g/t Au over 1.15 meters
Notes: A 2.0 g/t lower cutoff grade was applied. No upper cutoff grade was applied. Galway has not received 450 meters of assays out of a total of 1,782 meters drilled for holes GWY-V013, GWY-V015, GWY-V017 and GWY-V018. Of the assays for GWY-V013 received to date, the best intersect contained 3.6 g/t Au and 15.8 g/t Ag over 2.90 meters, including 10.0 g/t Au and 76.0 g/t Ag over 0.52 meters.
Western Extension
Drill hole GWY-V015, which was collared on Pad 2 and drilled in a northwest direction (326.3 degree azimuth, -10 degree dip), intersected either a new mineralized vein or a splay vein off the Corteros structure that graded 104.35 g/t over 1.2 meters. This intersect was located 35 meters beyond the western limit of the El Volcan mine, which was previously bounded by the Corteros Vein. While several new veins have been identified within the main mineralized trend under the El Volcan mine, drilling had not previously identified lateral extensions to the mine. Hole GWY-V015 is the first to do so, and is only the third hole reported to date that pierced this western boundary. The other two were drill holes GWY-V009 and GWY-V013 (refer to Figure 1 for a plan view of all drill hole locations). Another hole, GWY-V017, was also drilled in this direction, and while some assay results for this hole have been released, assays are still pending for significant portions beyond the western boundary.
Vetas Drill Results Summary
It is noteworthy that 17 of the 18 holes reported to date at Vetas have intersected multiple veins, which is in-line with expectations given the vertical nature of veining below the El Volcan mine, and drill orientations sub-perpendicular to the strike of the deposit. As such, drilling was expected to pierce multiple veins. Exceeding expectations, however, is the frequency of high-grade intersects, which is highlighted in the table below. This table shows that, on average, Galway has intersected 5.2 samples above 5 g/t Au, 3.2 samples above 10 g/t Au, and 1.3 samples above 30 g/t Au in each drill hole reported to date. A summary of individual drill samples with varying cutoffs is provided below:
Vetas Results in 18 Drill Holes (four of which have assays pending):
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Also of note is that visible gold has been seen in 15 of the first 18 holes reported to date. Visible gold has also been seen in the next two drill holes, through hole 20, in which assays are pending. As such, in the first 20 holes drilled, visible gold has been seen in the first 17. Pictures of visible gold from Galway’s Vetas and California projects can be viewed in the photo gallery. A map, cross sections and a detailed table of assay results can be viewed on the Company’s website at www.galwayresources.com. 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.
To date, 7,515 meters have been drilled in the 18 holes reported, from the first phase of Galway’s 10,000 meter, or 25-hole drill program that began in April 2011. Drilling is continuing with two diamond drill rigs, with a soon to be commissioned third rig set to drill the intrusive, among other targets, near the western boundary of Galway’s Reina de Oro concession. Phase 2 of Galway’s exploration at El Volcan will continue to delineate a resource and will test for lateral extensions beyond the current limits of the existing mine.
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 (Piedra Colorada and El Coco). Ore 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 200 meters below the bottom level. True widths for assays reported in this release are 81%-91%, except 72% for hole GWY-V012, 64% for hole GWY-V018, 57% for hole GWY-V014 and 51% for hole GWY-V016 of down-hole widths.
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. To date, Galway has received results from 7,065 meters of drilling at Vetas. 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 below the lowest level of the mine.
The El Volcan mine has been the site of gold mining since the 1590’s and is the largest mine in the California-Vetas-Surata gold mining districts. The focus of Galway’s exploration efforts at Vetas is within, below, and extensions both along strike and laterally from the El Volcan mine. This mine is contained within the Reina de Oro concession, which is not subject to development restrictions associated with Páramo legislation.
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 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 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.
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.