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 TSX.V; GWY
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Company Statement
Galway Resources is a well capitalized company, primarily focused on the exploration of gold and coal in Colombia. The company holds a significant land package in California's Colombia Gold Trend. The properties are located adjacent to and south-west of Ventana’s La Mascota and Las Mercedes zones, and 3 kilometers from Greystar's Angostura project, and are along strike. Prodeco (Colombian subsidiary of Xstrata) signed an agreement with Galway, whereby they will fund the all drilling at the GALCA coal project. Drilling is currently taking place. Galway has engaged John Tumazos of Very Independent Opinion to commercialize the Victorio molybdenum-tungsten project located in south-western New Mexico, USA.
Current Operations
California
Galway has secured a significant land position in one of the world's most exciting gold trends. Galway has acquired 335.6 hectares (829 acres) of concessions in the California district of northeastern Colombia. The properties are located adjacent to and south-west of Ventana’s La Mascota and Las Mercedes zones, and 3 kilometers from Greystar's Angostura project, and are along strike. Greystar Resources' Angostura gold deposit contains a National Instrument 43-101 ("NI 43-101") compliant measured and indicated resource of 11.5 million ounces of gold (plus 3.5 million ounces of inferred resources).
Galway has announced analytical results of the Phase I sampling program.. Galway's gold team has taken a total of 1,500 samples (including 952 assayed), and historic data has been compiled. Data compilation to delineate bulk-mineable drill targets is in progress.
High-grade gold/silver mineralization, up to 6 meters of 63 grams/tonne Au and 451 grams/tonne Ag, have been sampled. The Company is pleased to report the following sample results from the areas known as El Dorado, Machuca and Pie de Gallo.
El Dorado: A small underground mine, located along the La Baja fault, Galway sampling has returned an average of 9.21 g/t Au from 68 chip samples over 130m of tunnel walls, along multiple stacked mineralized zones. This includes 20m of 27.32 g/t Au (including 6m of 63.34 g/t Au that includes 86.03 g/t Au over 2.0m). Values across the zones include 26.79 g/t Au over 1.50m and 13.26 g/t Au over 2.40m, within a range of 1.11 to 26.79 g/t Au (7.05 g/t Au Average) in 15 samples. The main mineralized horizons at El Dorado are generally 0.5m true width, with subordinate veins commonly splaying off at low angles. The mineralization is hosted in highly sheared and altered, strongly silicified granodiorite. As at Pie De Gallo, veining is generally running east-west and northwest-southeast, and dipping north in two sets at 40º and at 75º. Mineralization remains open in all directions.
Machuca: Galway's 43 underground chip samples have returned an average of 3.85 g/t gold over 87m of tunnel walls, along a single grey siliceous vein with an approximate average true width of 0.4m. Included in these samples are 28m of 5.12 g/t Au including 2m of 34.92 g/t Au. Values across the zones range from 0.38 to 5.95 g/t Au in 27 samples. Host rocks for the mineralization are highly sheared and altered, strongly silicified gneiss and intrusive.
Pie De Gallo: A 300 meter-long pit, that was mined in ancient times, by the Spaniards, and was the location of Anaconda Mining Company's exploration efforts in 1946-47. Galway's surface chip sampling has returned 14.2 g/t Au over 2.0m, included in a 33.50m SW-NE continuous line of samples that gave 2.84 g/t of gold and 11.74 g/t of silver. This was taken across one of the zones. Historic sampling by Anaconda identified several areas of high grade gold mineralization including chip assays such as 15.55 g/t Au over 6.0m plus 8.23 g/t Au over 9.0m, (perpendicular to mineralization that also returned 20.37 g/t Au over 16.0m along it). True widths are currently unknown. These historical, and currently productive, mine workings contain dark grey siliceous veins at least up to 4.0m true width on surface hosted in a highly sheared and altered, silicified intrusive. Anaconda drilled six, shallow core holes under the pit in 1946-1947. Their assay data is unreliable due to a very low 20% core recovery.
Small-scale artisanal mining has gone on for hundreds of years within the boundaries of the newly-acquired concessions, and in the surrounding California gold district.
California - An Emerging Gold Trend With Good Infrastructure
Drilling programs are currently being carried out by Greystar Resources (TSX-GSL) and by Ventana Gold (TSX-VEN). Galway's management believes that its properties have the potential to contain a gold and silver deposit similar in nature to Ventana's adjacent La Bodega deposit. The La Bodega project is located 1.5 kilometers northeast of Galway's newly acquired concessions. Three kilometers to the northeast of Galway's concessions, along the same structural trend, is Greystar's Angostura deposit.
GALCA
Galway Resources has entered into an exploration and joint venture agreement with Prodeco, the Colombian coal subsidiary of Xstrata, for the GALCA coal project in Colombia. The GALCA coal project comprises 132,000 hectares that could host a new undiscovered coal basin that occurs close to surface. A 19-hole drilling program has begun for the first phase of exploration, this will be funded by Prodeco. This drilling program will be focused on the two areas (the northern flank, and the southeastern portion) that appear to have the highest prospect of coal near the surface.
Block 1.- Located in the eastern portion of GALCA, at the boundary between the alluvial lowlands of Magdalena River Basin and close to the slopes of the Oriental Range of the Andes. The block was determined using the geological sections C - C', D - D' and F - F', also developed with data from oil exploration wells and geophysical lines, covering 16,000 + acres. Within the boundaries of Block 1, Galway located the first 10 drill holes (600 m. each) targeting the eastern border of the basin, with extension and structure comparable with known mines with reserves of hundreds of million tons in northern Cesar.
Block 2.- Located in the northern portion of GALCA, near the town of Pelaya. This block was defined using the geological sections A-A', B -- B' and E - E' built upon the data of several oil exploration wells and geophysical lines, covering approximately ~20,000+ acres of land. Galway proposes to drill 9 holes (600 m. each) targeting the northern limit of Los Cuervos formation.
Victorio
The Victorio Molybdenum-Tungsten Project is an advanced-stage exploration property 100% owned by Galway Resources that has been inactive since the early 1980's due to depressed metal pricing. The property has favorable infrastructure such as access by paved road to within a few miles of the site, a nearby railway and a gas pipeline. Victorio is located approximately 20 miles west of Deming, New Mexico, in Luna County.
On April 23, 2008, results of the independent Scoping Study were announced by Galway Resources and filed with SEDAR. The report was done by SRK Consulting and focused on two possible types of low cost underground mining methods, using an average life of mine price of $15/lb molybdenum and $8/lb tungsten. Results of the scoping study (NI 43-101 Technical Report) can be viewed by clicking on the link to the right.
The highlights of the new resource estimate include:
- Block Caving Scenario: This scenario is a larger project that considers producing an average of just over 9 million pounds of both molybdenum and tungsten each year for 17 years. The preliminary economics suggest an NPV (discount rate of 6%) of over US$275 million, a pre-tax (unlevered) IRR of over 15%, and a required investment in the order of US$440 million.
- Selective Mining Scenario: This is a smaller scale project that offers higher returns with a pre- tax (unlevered) IRR of 26%, and an NPV of US$95 million. Under this scenario only a portion of the target resource is extracted, with an average of 6.2 million pounds of molybdenum produced each year and 5 million pounds of tungsten for 10 years. The capital required for this scenario is in the order of US$240 million. The mining methods are a combination of long hole stopping with paste backfill and room-and-pillar mining.
Carboluis
Galway has entered into an option agreement with Rio Tinto Mining and Exploration Corporation (Rio Tinto) to acquire 100% interest in nine coal concessions totaling 7,500 hectares, roughly 50% of the previously drilled San Luis Coal basin located in Santander, Colombia. Plans are in place to carry out a 7 hole drilling program that will begin in mid November 2008 and will concentrate on the southern flank of the coal basin.
San Luis Coal Basin
The San Luis Coal Basin (approximately 15,000 hectares) is believed to contain as much as 300 million tons (INGEOMINAS 2004) of coal resources in all categories. The region is known to contain 36 coal seams with coal widths ranging from 0.5 meters to over 3.0 meters. The coal basin is host to high quality coal, with historical drilling in the area showing high BTU content, an average in excess of 15,000 BTU's.
Colombian Coal Overview
After doubling the production and exports of coal in recent years Colombia is the largest exporter of coal to the United States, and is by far the largest coal producer in Latin America. More specifically, the total annual coal production is about 70 million tons and that figure is expected to double by 2015 as levels of foreign direct investments continue to increase with high energy prices. Colombia is recognized for its vast, high grade coal resources along with its highly motivated and skilled labor force.
Geographical Spread
Colombia, New Mexico
Board of Directors and Key Management
| Robert Hinchcliffe | President, Chief Executive Officer & Director |
| Larry Strauss | Director |
| Jose Oro | Director |
| Robb Doub | Director |
| Pablo Orsolani | Director, Chief Financial Officer |
Company Address360 Bay Street, Suite 500
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CapitalShares Issued and Outstanding: 77,080,367
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Year End31 December |
Related News
18/01/10 - With Ventana’s Drill Rigs Just A Stone’s Throw Away, Galway Resources Is In A Prime Position To Attract A BidMost Recent Statement
05/03/10 - Galway Reports Encouraging Results And Provides A Drilling Update For The California Gold Project25/02/10 - Galway Reports High Grade Results as Grades and Strike Lengths Improve at El Volcan
17/02/10 - Galway Reports High Grade Gold Channel Sample Results From Its Recently Acquired Vetas Property In Colombia
01/02/10 - Galway Receives Gold Concession in Surata, Columbia, Near its California-Vetas Gold Properties
26/01/10 - Galway Announces Acquisition Of Largest Gold Mine In The California-Vetas Mining District Of Colombia
14/01/10 - Galway Announces Very Encouraging Gold Results from the California Project in Columbia