TORONTO,
March 21, 2013 /CNW/ - Galway Gold
Inc. (TSXV: GLW) ("Galway Gold, Galway or the Company") is
pleased to announce assay results from 8 underground diamond drill
holes at its Vetas gold-silver project, host of the El Volcan mine.
El Volcan, which has been in operation for over 400 years, and is
still operating today, is the largest mine in the
Vetas-California-Surata region of Colombia. Galway Gold's Vetas project was spun
out to existing shareholders of Galway Resources after it was
acquired by AUX on December 20, 2012
for total cash consideration of approximately Cdn$340 million. Galway Gold's exploration focus
at Vetas is to test for a continuation of mineralization below the
El Volcan mine, expand strike and lateral extensions to the mine,
and to test 7 surface geochemical/geophysical anomalies. Galway
Gold is well capitalized with US$18
million of cash and has made, and will continue to make
necessary adjustments in its exploration program cognisant of the
tough capital market conditions.
Galway has now doubled the number of veins to
16 from the 8 previously established veins. These new veins
have produced 30% of the gold intersects reported to date. We have
shown through drilling that gold mineralization has been extended
by an additional 40 m to 710 m below the main (Reina de
Oro) level of the mine or 900 m
below surface in the Reina de Oro
vein system. The new deep intersect is also at a significantly
higher grade at 9.5 g/t Au over 1.3 m compared with 2.5 g/t Au over
1.5 m previously. The first drill program ever conducted on the
property began in April 2011 and
44,686m in 82 holes have been completed. For a clear depiction of
El Volcan's veins, refer to the maps and sections associated with
this press release.
"Galway is very pleased that we have been able
to double the number of veins identified since drilling began, and
it is significant that we have extended mineralization by an
additional 40 m downdip. The new veins being discovered have grades
that are consistent with the high-grade tenor of the original
veins. Because of their proximity to the previously known mine
veins, mining and development should be very cost-effective.
Importantly, all 16 veins at El Volcan are open in every
direction." cites Robert
Hinchcliffe, President and CEO of Galway Gold.
New underground drill results highlights are provided
below:
GWY-V070
- 9.5 grams per tonne gold (g/t Au) and 15.0 g/t silver (Ag) over
1.34 meters (m)
GWY-V071
- 15.5 g/t Au and 34.9 g/t Ag over 2.48m
- 10.1 g/t Au and 28.3 g/t Ag over 2.56m
GWY-V073
- 106.0 g/t Au and 90.0 g/t Ag over 1.00m
- 13.8 g/t Au and 62.0 g/t Ag over 1.00m
- 6.2 g/t Au and 17.7 g/t Ag over 2.07m
- 8.2 g/t Au over 2.18m
- 7.2 g/t Au and 85.0 g/t Ag over 1.53m
- 6.3 g/t Au over 1.46m
- 5.0 g/t Au and 30.0 g/t Ag over 1.38m
- 4.7 g/t Au and 163.0 g/t Ag over 1.30m
GWY-V076
- 9.7 g/t Au and 26.0 g/t Ag over 1.18m
- 9.7 g/t Au over 1.07m
- 4.1 g/t Au and 22.0 g/t Ag over 1.16m
GWY-V078
- 27.2 g/t Au and 10.8 g/t Ag over 4.36m, including
92.4 g/t Au and 22.0 g/t Ag over 0.94m
- 127.8 g/t Au and 41.0 g/t Ag over 1.00m
- 45.5 g/t Au and 25.0 g/t Ag over 1.25m
- 24.2 g/t Au and 155.0 g/t Ag over 1.00m
- 15.4 g/t Au over 1.52m
GWY-V079
- 18.0 g/t Au and 22.0 g/t Ag over 1.20m
- 5.3 g/t Au over 1.17m
GWY-V081
- 174.4 g/t Au and 67.0 g/t Ag over 1.22m
- 8.4 g/t Au over 1.32m
- 8.2 g/t Au over 1.10m
- 4.8 g/t Au over 1.15m
Note: hole GWY-V074 didn't return values over 2
g/t
Vetas Underground Drill Results Summary: High
Grade Intercepts
To put the success Galway has achieved in its underground drill
program at Vetas into perspective, since June 22, 2011, when Galway released the first set
of El Volcan drill results, 60 underground holes have been reported
with the following results:
- 5 g/t Au or more, 266 times
- 10 g/t Au or more, 160 times
- 20 g/t Au or more, 82 times
- 30 g/t Au or more, 49 times
- 50 g/t Au or more, 35 times
- 100 g/t Au or more, 16 times
- 150 g/t Au or more, 9 times
- 1,000 g/t Au or more, 2 times
As seen above, the 8 newest underground drill
holes returned 4 assays of at least 92.4 g/t Au over 0.94m. Two of
these new high grade intersects are part of new vein structures,
such as 174.4 g/t Au over 1.22m in drill hole GWY-V081,
which is located in the Tajo Abierto hanging wall (HW) vein, and
lines up with an earlier-reported intersection of 66.7 g/t Au over
1.3m, located 40m NNW in drill hole GWY-V049. Another assay of
127.8 g/t Au over 1.0m in drill hole GWY-V078, is located
along the Loscas HW vein, and lines up with an earlier-reported
intersection of 40.0 g/t Au over 2.5m, located 92m SW in drill hole
GWY-V031. In addition to the previously reported Green vein and the
two described above, other new veins identified within the original
El Volcan mine boundaries include the Loscas footwall (FW) vein and
the Corteros FW vein. These new veins, as well as the three La
Virgen veins west of the original mine boundary, could add
appreciably to the resource currently being defined.
Presented below, moving from east to west across
the property, are assay highlights that are interpreted to be along
the new veins that were not part of the original eight. As can be
seen, some of the intersections interpreted to be along these new
veins are strong in grade and/or width. All new intersections are
highlighted in bold.
Tajo Abierto HW: 174.42 g/t Au over
1.22m (grade/length; 174.4/1.22) in drill hole GWY-V081,
and 66.72/1.25 (GWY-V049)
Green: 7.45/7.62 (GWY-V003), 9.9/1.17
(GWY-V010), 15.32/11.44 (GWY-V012), 106.82/1.00 (GWY-V014),
14.74/1.28 (GWY-V015), 21.59/1.37 (GWY-V017), 17.84/2.34
(GWY-V021), 203.36/1.25 (GWY-V029), 17.06/1.24 (GWY-V036),
13.96/6.10 (GWY-V40), 25.20/1.07 (GWY-V046), and 10.10/2.56
(GWY-V071)
Loscas FW: 50.30/0.99 (GWY-V005),
33.07/1.10 (GWY-V014), 92.19/0.98 (GWY-V018), 95.61/1.26
(GWY-V021), 1034.29/0.91 (GWY-V027), 16.68/1.18 (GWY-V036),
14.60/1.19 (GWY-V040), 22.82/1.08 (GWY-V045), and 13.13/1.53
(GWY-V066)
Loscas HW: 11.65/1.53 (GWY-V068),
39.97/2.51 (GWY-V031), 19.36/1.30 (GWY-V045), 25.70/1.39
(GWY-V056), 77.06/1.13 (GWY-V021), 25.20/1.04 (GWY-V010) and
9.72 g/t Au over 1.18m (GWY-V076), and 127.83 g/t Au over
1.00m (GWY-V078)
Corteros FW: 143.73/1.17 (GWY-V059), and
9.72/0.98 (GWY-V067)
La Virgen 1: 104.35/1.20 (GWY-V015), 17.29/1.53
(GWY-V059), and 13.81 g/t Au over 1.00m
(GWY-V073)
La Virgen 2: 19.53/1.29 (GWY-V039),
7.6/1.47 (GWY-V055), 8.15 g/t Au over 2.18m (GWY-V073), and
6.20 g/t Au over 2.07m (GWY-V073)
La Virgen 3: 7.29/1.33 (GWY-V059)
Highlights of results from the 52 previously released
underground drill holes that targeted El Volcan include:
- 1,082.6 g/t Au and 718.0 g/t Ag over 1.21 m, plus 77.1 g/t Au
and 51.3 g/t Ag over 1.13 m, plus 95.6 g/t Au over 1.26 m, plus
17.8 g/t Au and 77.7 g/t Ag over 2.34 m from GWY-V021
- 1,034.3 g/t Au and 300.0 g/t Ag over 0.91 m, plus 27.4 g/t Au
over 3.38 m, including 49.4 g/t Au over 1.16 m from GWY-V027
- 679.6 g/t Au and 164.0 g/t Ag over 1.16 m from GWY-V026
- 203.4 g/t Au and 1,311.0 g/t Ag over 1.25 m from GWY-V029
- 157.4 g/t Au over 4.15 m, including 470.2 g/t Au over 1.33 m
from GWY-V036
- 143.7 g/t Au over 1.17 m from GWY-V059
- 82.5 g/t Au and 39.1 g/t Ag over 2.66 m, including 202.0 g/t Au
and 53.5 g/t Ag over 1.07 m, plus 21.9 g/t Au and 63.0 g/t Ag over
6.7 m, including 69.1 g/t Au and 81.6 g/t Ag over 1.5 m from
GWY-V003
- 78.2 g/t Au over 3.16 m, including 248.3 g/t Au and 38.0 g/t Ag
over 0.96 m from GWY-V016
- 34.3 g/t Au and 83.0 g/t Ag over 6.44 m, including 98.8 g/t Au
and 154.0 g/t Ag over 1.30 m, plus 8.9 g/t Au over 11.81 m,
including 52.9 g/t Au over 1.32 m in GWY-V049
- 15.3 g/t Au and 36.5 g/t Ag over 11.44 m, including 112.3 g/t
Au and 34.2 g/t Ag over 0.92 m from GWY-V012
- 8.9 g/t Au and 17.3 g/t Ag over 17.00 m, including 19.7 g/t Au
and 22.0 g/t Ag over 1.18 m, 17.7 g/t Au and 49.9 g/t Ag over 4.81
m, and 27.2 g/t Au over 1.05 m from GWY-V056
- 40.4 g/t Au over 3.47 m, including 84.9 g/t Au over 1.16 m,
plus 104.4 g/t Au over 1.20 m, plus 41.9 g/t Au over 1.04 m from
GWY-V015
Notes: a 2.0 g/t Au lower cutoff grade was
applied to all drill holes; no upper cutoff grade was applied; only
gold grades of 9.0 g/t Au or higher appear in the highlights of 52
previously released drill hole results unless drill core thickness
exceeded 2.0 m; true widths for assays reported to date for
underground holes at Vetas are 18% to 98% of downhole widths.
Pictures of visible gold from Galway's Vetas and
California projects can be viewed
in the photo gallery. Maps, cross sections and a detailed table of
assay results can be viewed on the Company's website at
www.galwaygoldinc.com. All Vetas drill results released to date can
be viewed in Table 1.
A technical report on the Vetas Project is filed
on SEDAR (the "Technical Report"). The effective date of the
report is November 13, 2012 and the
Qualified Persons in charge were James G.
Lavigne, M.Sc., P.Geo and Elizabeth
Elder McMonnies, P. Geo., from RPA Consulting. Galway filed
a preliminary NI 43-101 technical report prepared by Roscoe Postle Associates on August 24, 2011.
There are currently two drills operating
underground below the mine and one operating on surface. Galway
Gold intends to continue to expand the mineralized footprint such
that it will be in position to issue a gold and silver resource
estimate for Vetas' El Volcan structures in the second half of
2013. Surface drilling is targeting the stockwork intrusive located
west of the mine, in the vicinity of CB Gold's significant
discoveries, among other gold-rich anomalies.
The Company reiterates that it is pleased that
boundaries of the Parque Natural Regional Paramo de Santurbán (the
"Park"), which have been established by the Corporación Autónoma
Regional para la Defensa de la Meseta de Bucaramanga ("CDMB"), do
not impact Galway Gold's Reina de Oro concession where all drill results from
the 76 holes released to date have occurred. Moreover, Galway Gold
is pleased that the Park does not adversely affect the Company's
planned 2013 drill program for the Vetas Project, details of which
can be found in the Vetas Project Technical Report filed under the
Company's profile on SEDAR.
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
(La Araña, Piedra Colorada and El Coco, among others).
Gold mineralization at the El Volcan mine
contains favorable steeply dipping quartz veins in competent host
rocks that could be successfully mined using modern bulk-tonnage
long-hole mining methods. The known vein system comprises 16
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. Grey
chalcedonic quartz, colloform banded texture, vuggs and drussy
quartz, with fine pyrite crystals are typical. Classic low
sulfidation vein textures are common. The mineralization has been
intersected up to 710 meters below the bottom level of the El
Volcan mine and 900 meters below surface.
Rapid evaluation of the Vetas Project 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 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. 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. Galway
has now reported on the first 76 holes (including 16 surface
holes).
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. There is no relationship
between the assay laboratory and Galway Gold. 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.
About Galway Gold
Galway Gold is a mineral exploration company with its primary asset
in Colombia. Through its wholly
owned Colombian subsidiary, Galway Gold holds an option to acquire
a 100% interest in the Vetas gold project in the Vetas gold
district of Colombia, comprised of
the Reina de Oro and Coloro
concessions (the "Vetas Project"). Galway Gold's Vetas project was
spun out to existing shareholders of Galway Resources after it was
acquired by AUX on December 20, 2012
for total cash consideration of approximately Cdn$340 million. Galway Gold is well capitalized
with US$18 million of cash and began
trading on January 21, 2013.
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:
Certain statements contained in this release
containing words like "believe", "intend", "may", "will", "expect",
"would" and other similar expressions, are forward-looking
statements that involve a number of risks and uncertainties.
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties. Such information
contained herein represents management's best judgment as of the
date hereof based on information currently available. Galway Gold
does not assume the obligation to update any forward-looking
statement, except as required by law.
SOURCE Galway Gold Inc
