Galway drills 24.0 m of 8.4 g/t Au at California
2010-12-15 10:35 MT - News Release
Mr. Robert Hinchcliffe reports
GALWAY INTERCEPTS 24.0 METERS OF 8.4 G/T GOLD AND 96.0 METERS OF 1.6 G/T GOLD, AND REITERATES ITS FRACTIONAL LAND POSITION
Galway Resources Ltd. has released assay results from nine additional drill holes from its diamond drill exploration program on the company's California property in Colombia. Six of the holes were drilled in the Pie de Gallo zone, with the remaining three in the Northeast zone. All holes contained significant intervals of gold mineralization. Moreover, all significant intervals are within 222 metres of surface (244.5 metres downhole), with the vast majority located at significantly shallower depths. A complete summary of drill hole assay results is provided below. All maps and sections associated with this news release can be found on Galway's website.
"Strong drill results continue to be returned from Galway's California exploration program. In light of Ventana Gold's recently released 3.5-million-ounce resource estimate and the takeover bid for that company by EBX, a fund controlled by Eike Batista, Galway reiterates its ownership of a fractional land position within Ventana's concessions. We consider it very significant that these resources appear to directly border Galway's properties," cites Robert Hinchcliffe, president and chief executive officer of Galway Resources.
Gold intercept highlights from the Pie de Gallo zone
GWY-62
24.0 metres grading 8.4 grams per tonne gold (g/t Au), including 1.5 metres of 112.0 g/t Au;
4.5 metres grading 20.0 g/t Au, including 1.5 metres of 45.1 g/t Au;
21.0 metres grading 1.7 g/t Au, including 3.0 metres of 6.5 g/t Au;
19.5 metres grading 1.2 g/t Au.
GWY-60
84.0 metres grading 1.2 g/t Au, including 3.0 metres of 10.6 g/t Au;
31.5 metres grading 1.7 g/t Au, including 9.0 metres of 2.6 g/t Au;
16.5 metres grading 1.5 g/t Au, including 6.0 metres of 2.9 g/t Au;
9.5 metres grading 1.3 g/t Au.
GWY-59
25.0 metres grading 2.4 g/t Au and 227.7 g/t silver (Ag), including 3.0 metres of 11.6 g/t Au, 1,730.0 g/t Ag, 1.6 per cent copper and 1.8 per cent zinc;
7.5 metres grading 3.1 g/t Au, including 1.5 metres of 8.3 g/t Au;
18.0 metres grading 1.2 g/t Au.
GWY-57
16.5 metres grading 3.6 g/t Au, including 4.5 metres of 10.9 g/t Au;
31.5 metres grading 1.9 g/t Au, including 1.5 metres of 12.3 g/t Au and also including 1.5 metres of 10.8 g/t Au.
GWY-56
10.5 metres grading 5.2 g/t Au, including 1.5 metres of 25.0 g/t Au;
4.5 metres grading 9.1 g/t Au, including 1.5 metres of 22.9 g/t Au.
GWY-63
16.0 metres grading 3.3 g/t Au, including 4.0 metres of 11.0 g/t;
8.0 metres grading 2.1 g/t Au and 77.1 g/t Ag.
The six holes drilled in the Pie de Gallo zone have extended the continuity of known parallel mineralized zones both vertically and laterally along structure. GWY-59 intersected zones near surface that correlate well downdip with intersections in GWY-53 and GWY-54. The hole also penetrated a thicker zone at depth of 25.0 metres grading 2.4 g/t, that, paired with GWY-62 (24.0 metres grading 8.4 g/t Au), indicates continuity of mineralization over 40 metres along structure northeast of the mineralized intercept in GWY-10 (13.5 metres grading 15.6 g/t Au), and with GWY 54 (19.5 metres of 11.0 g/t). GWY-56, GWY-57 and GWY-60 passed through and appear to correlate along structure with the 89.0-metre gold-bearing intercept in GWY-10, and these holes demonstrate mineralization from surface to a 200-metre depth. GWY-63 is interpreted to have intersected the southwest extension of the mineralization encountered in GWY-42 and GWY-43. Strike length of the mineralization identified in the Pie de Gallo zone is approximately 270 metres and is open in all directions. Gold intercept highlights from the Northeast zone are below.
GWY-58 has 96.0 metres grading 1.6 g/t Au, including 1.5 metres of 21.2 g/t Au.
GWY-55
70.0 metres grading 1.7 g/t Au, including 9.0 metres of 4.5 g/t Au;
13.5 metres grading 2.3 g/t Au, including 1.5 metres of 16.3 g/t Au.
GWY-61 has 45.0 metres grading 0.9 g/t Au.
A lower cut-off grade 0.5 g/t Au was applied in determining all intervals provided above. No upper cut-off grade was applied.
The three holes drilled in the Northeast zone offset the intercept encountered in GWY-37 (121.5 metres grading 2.7 g/t Au). Intercepts were shallow, starting at 14.3 metres in GWY-61 and 38.5 metres in both GWY-55 and GWY-58. GWY-58 and GWY-61 penetrated the mineralized zone above GWY-37, extending the known mineralization in this section up structure to surface outcrops. The intercepts correlate well from the surface to a minimum depth of approximately 100 metres. Strike length of this mineralized zone in the Northeast zone is approximately 100 metres and open in all directions. The intersections of Ventana's hole 330 in La Mascota's southwest extension (91.2 metres of 1.31 g/t Au, 3.0 metres of 16.5 g/t Au and 3.5 metres of 9.4 g/t Au) may correlate with Galway's mineralization. Ventana indicates that the average resource grade in this area is similar to the main La Mascota zone.
Fractional land
On May 25, 2010, Galway reported that it had increased its land position in the California district of Colombia by 67 per cent. Included were fractional concessions within Ventana Gold's land package. As reported previously, one of these fractional lands is 360 metres long and located within the main La Mascota structure. Ventana's mineral resource appears to have been constrained as Galway's land fractions limited Ventana's exploration of this highly prospective area. As Ventana is currently the subject of a takeover offer by EBX, a fund controlled by Mr. Batista, Galway has chosen to reiterate its ownership interest in this land.
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' National Instrument 43-101-compliant resource, Angostura, and Ventana Gold's National Instrument 43-101 documented project, La Bodega. 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 mineralized zone identified on Galway's properties is approximately 150 to 200 metres wide and 1,000 metres long, characterized by hydrothermal alteration and mineralization within various phases of pervasively altered intrusive porphyries. Precambrian gneiss is a less important host rock but well mineralized in places, especially near contacts with the intrusive bodies. Mineralization remains open along strike where untested, at depth along the entire zone and across the width of the structure in most places. Veins parallel to the main structure, hosted by gneiss, have also been encountered in drill core. Galway believes potential for high-grade gold occurrences as well as lower-grade bulk resources has been demonstrated by the first 63 core drill holes reported to date.
San Celestino
It has come to Galway's attention that a private company, Calvista Gold, has procured a 50-metre horizontal concession within a portion of a 10.1-hectare property located west of the San Celestino mine, the southwesternmost zone on its contiguous 1.2-kilometre California property. This horizontal concession is the only one of its kind in Santander, according to Ingeominas, the mining ministry of Santander. Galway controls all mineralization above 2,460 metres and all mineralization below 2,410 metres.
Review by qualified person, quality control and reports
In compliance with National Instrument 43-101, Mike Sutton, PGeo, 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 grams per tonne are sent for metallic screens. The company's quality assurance/quality control 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 5 per cent 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 per cent.
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