Galway Resources Ltd V.GWY

News 26 m of 129 g/t gold

[Bob_Ten]

Galway's best gold intersect yet: 26 m of 129 g/t and 21.5 m of 8.5g/t in one hole, and 92.5 m of 2.9 g/t and 114 m of 1.1 g/t in another

TORONTO, July 21, 2011 /CNW/ - Galway Resources Ltd. (GWY: TSX-V) is pleased to announce assay results from holes GWY-113 to GWY-116 fromthe ongoing diamond drill exploration program at its Californiagold-silver property in Colombia. This property is located adjacent to,and on strike with the La Bodega/La Mascota deposit (acquired for $1.5billion in cash by AUX Canada). The mineralization on Galway's propertyhas been identified over a 1 km strike length and is at the lowestelevation among the major deposits along the California gold trend.Galway also owns a 360 meter-long fractional land position that appearsto be directly within the La Mascota mineralized structure. Galway alsohas two diamond drill rigs operating in Vetas at the high-grade ElVolcan gold-silver mine, which is located 8 km southeast of Californiaand is the largest gold producer in the region. Results from the firstset of holes at El Volcan contained significant high-grade gold andsilver (see June 22, 2011 news release).

"We are very encouraged that our drill results at California haveimproved over the past few months. Our geologists have been better ableto hone in on the high grade veins within the longer intervals ofmineralization. In addition, while we have identified high grade goldfrom surface to a depth of 380 meters, the mineralization remains opento depth as well as along strike. Aside from the fact that GWY-115 hasby far the highest grade we've ever seen on our property, this hole issignificant because it further bridges the gap between the Pie de Galloand Northeast Zones. GWY-116 is significant because it helps define thewidth of the main mineralized trend at California and demonstratescontinuity both vertically and laterally," cites Robert Hinchcliffe,President and CEO of Galway Resources.

Highlights from recent drill results at California are as follows:

GWY-115

• 26.0 meters grading 129.0 grams per tonne gold (g/t Au) and 22.3 g/t silver (Ag), including 1.0 meter of 3,310.0 g/t Au and 454.0 g/t Ag
• 21.5 meters grading 8.5 g/t Au and 11.3 g/t Ag, including 2.0 meters of 78.3 g/t Au and 17.1 g/t Ag, and 1.0 meter of 13.7 g/t Au

GWY-116

• 92.5 meters grading 2.9 g/t Au, including 6.0 meters of 19.6 g/t Au (that includes 1.0 meter of 28.4 g/t Au, 1.0 meter of 59.6 g/t Au and 14.5 g/t Ag, and 1.0 meter of 24.2 g/t Au and 13.4 g/t Ag), 1.0 meter of 7.0 g/t Au, and 1.0 meter of 45.7 g/t Au and 11.0 g/t Ag
• 114.0 meters grading 1.1 g/t Au, including 2.0 meters of 25.4 g/t Au (that includes 1.0 meter of 44.9 g/t Au)

Details of Galway's California drill results are provided in the AssayResult Highlights Table on the Company's website at www.galwayresources.com. Also on the website are all maps and sections associated with thispress release and pictures of significant visible gold from GWY-115. A0.5 g/t Au lower cutoff grade was applied in determining all intervalsprovided in this news release. No upper cutoff grade was applied. Truewidths are unknown unless specified. In hole GWY-115, if the one,one-meter sample that grades 3,310.0 g/t Au is excluded, the averagegrade of the remaining 25.0 meters is 1.8 g/t Au.

Not only are the results from hole GWY-115 significant because of thevery high grade received, they are perhaps even more significantbecause they are located 95 meters to the northeast and 110 meters tothe southwest of strong results seen in holes GWY-54 and GWY-76,respectively. Thus, GWY-115 further improves the continuity alongstrike between the Gap Zone (that bridges the NE Zone with the Pie deGallo Zone) and the Pie de Gallo Zone. Holes GWY-54 and GWY-76 returnedthe following:

GWY-54

• 19.5 meters grading 11.0 g/t Au, including 1.5 meters of 108.0 g/t Au
• 4.5 meters grading 11.1 g/t Au, including 1.5 meters of 29.8 g/t Au and 80.2 g/t Ag
• 19.5 meters grading 1.2 g/t Au, including 1.5 meters of 8.4 g/t Au and 45.3 g/t Ag

GWY-76

• 16.5 meters grading 8.1 g/t Au, including 1.5 meters of 80.0 g/t Au
• 1.5 meters grading 4.8 g/t Au and 231 g/t Ag

GWY-116 is a strategic, in-fill hole near the northeast portion of thePie de Gallo Zone. It is strategic because it enhances continuity ofmineralization across the width of the mineralized structure, alongstrike both to the northeast and southwest, and vertically. It hoststwo thick mineralized intervals, one that is 92.5 meters grading 2.9g/t Au and the other that is 114.0 meters grading 1.1 g/t Au. The twowide intervals are separated by 19.0 meters grading 0.28 g/t Au, whichis below Galway's cut-off of 0.5 g/t. Together, the intervals inGWY-116 would equal 225.5 meters grading 1.8 g/t Au.

GWY-116 was drilled at a -60 degree dip and a 190 degree azimuth (10degrees west of due south). This hole was collared 80 meters NNE ofGWY-10, but drilled in a nearly opposite direction (-65 degree dip anda 5 degree azimuth, or 5 degrees east of due north), which was one ofthe most encouraging holes that Galway encountered in its earlyexploration program. Thus, the top interval in hole GWY-116 crossed andconfirmed results seen in GWY-10 (89.0 meters grading 2.9 g/t Au, including 13.5 meters of 15.6 g/t Au and181.5 g/t Ag), while the bottom interval extended the mineralization further acrossthe width of the structure.

GWY-116 was also drilled almost perpendicular to, and above, the strongresults seen in holes GWY-99 and GWY-104. The mineralizationencountered in GWY-116 was located 75 meters and 65 meters,respectively, above the intersections seen in GWY-99 and GWY-104.

GWY-116 was also drilled 105 meters and 160 meters to the northeast ofholes GWY-74 and GWY-103, respectively, and 15 meters southwest ofholes GWY-109 and GWY-112, and 40 meters southwest of hole GWY-62.Given hole GWY-116's continuity to many other holes, the Pie de GalloZone has now been identified from surface to a depth of 380 meters,across 100 meters of width, and along a strike length of 240 meters(with potential to extend this such that it joins with mineralizationidentified in the Northeast and San Celestino Zones for a strike lengthin excess of 1,000 meters).

Highlights from these earlier holes, which provide enhanced verticalcontinuity, strong continuity of mineralization along strike in boththe southwest and northeast directions, and an extension of continuityalong the width of the structure, are provided below.

GWY-10 (Width Continuity)

• 89.0 meters grading 2.9 g/t Au, including 13.5 meters of 15.6 g/t Au and 181.5 g/t Ag (which includes 3.0 meters of 50.0 g/t Au and 383.0 g/t Ag)

GWY-99 (Vertical and Strike Continuity to the SW)

• 150.0 meters grading 3.0 g/t Au and 12.0 g/t Ag, including 36.0 meters of 8.4 g/t Au (which includes 9.5 meters of 28.1 g/t Au, which includes 2.0 meters of 103.2 g/t Au), 1.0 meter of 11.9 g/t Au, and 2.0 meters of 17.5 g/t Au
• 15.0 meters of 4.2 g/t Au, including 1.0 meter of 54.1 g/t Au
• 85.0 meters grading 1.1 g/t Au, including 14.0 meters of 3.1 g/t Au (which includes 1.0 meter of 25.6 g/t Au and 1.0 meter of 12.5 g/t Au)

GWY-104 (Vertical and Strike Continuity to the SW)

• 50.0 meters grading 7.0 g/t Au, including 29.0 meters of 11.5 g/t Au (which includes 1.0 meter of 177.8 g/t Au and 23.2 g/t Ag, 3.0 meters of 27.3 g/t Au, 1.0 meter of 35.9 g/t Au, and 1.0 meter of 27.5 g/t Au)
• 16.0 meters grading 1.2 g/t Au
• 1.0 meter grading 17.0 g/t Au

GWY-74 (Strike Continuity to the SW)

• 22.5 meters grading 7.8 g/t Au and 16.5 g/t Ag, including 1.5 meters of 102.5 g/t Au
• 16.0 meters grading 1.1 g/t Au and 17.5 g/t Ag

GWY-103 (Strike Continuity to the SW)

• 16.0 meters grading 10.9 g/t Au, including 1.0 meter of 12.4 g/t Au and 1.0 meter of 154.5 g/t Au
• 45.0 meters grading 0.9 g/t Au, including 6.0 meters of 3.0 g/t Au

GWY-109 (Strike Continuity to the NE)

• 86.0 meters grading 2.7 g/t Au, including 2.0 meters of 11.2 g/t Au, 2.0 meters of 14.9 g/t Au, 3.0 meters of 35.8 g/t Au (which includes 1.0 meter of 100.5 g/t Au
• 48.0 meters grading 2.0 g/t Au, including 1.5 meters of 7.7 g/t Au, 1.0 meter of 30.0 g/t Au, and 1.0 meter of 7.3 g/t Au

GWY-112 (Strike Continuity to the NE)

• 97.0 meters grading 3.0 g/t Au, including 13.5 meters of 9.9 g/t Au (which includes 3.0 meters of 25.5 g/t Au and 1.0 meter of 38.9 g/t Au), and 1.0 meter of 20.0 g/t Au
• 51.0 meters grading 1.7 g/t Au, including 1.0 meter of 21.8 g/t Au and 11.8 g/t Ag
• 14.0 meters grading 1.4 g/t Au

GWY-62 (Strike Continuity to the NE)

• 24.0 meters grading 8.4 g/t Au, including 1.5 meters of 112.0 g/t Au and 28.9 g/t Ag
• 21.0 meters grading 1.7 g/t Au, including 3.0 meters of 6.5 g/t Au
• 19.5 meters grading 1.2 g/t Au, including 1.5 meters of 5.2 g/t Au
• 4.5 meters grading 20.0 g/t Au, including 1.5 meters of 45.1 g/t Au

Hole GWY-113 intersected several lower grade intervals, including 34.5meters grading 0.9 g/t Au and 25.9 g/t Ag, 10.0 meters grading 0.8 g/tAu, 3.0 meters grading 1.7 g/t Au and 15 g/t Ag, and 4.5 meters grading0.8 g/t Au. This hole was drilled along the same azimuth (direction)but at a steeper dip (angle of inclination) than holes GWY-109 andGWY-112, which as noted above, returned significant mineralization. Itis thought that the zone plunges west of GWY-113. Hole GWY-114, whichwas drilled west of the Pie de Gallo Zone, intersected severalmoderately mineralized intervals including 4.0 meters grading 1.8 g/tAu and 79.9 g/t Ag, and 6.0 meters grading 1.1 g/t Au.

Drill holes completed in the Pie de Gallo Zone were drilled generally at20 to 30 meter centers. These holes continue to extend continuity ofmineralization both vertically and laterally along structure inmultiple overlapping lenses typical of the district. Mineralization inthe Pie de Gallo Zone remains open in all directions. Drilling iscontinuing with 3 drills targeting gap areas between the San Celestino,Pie de Gallo and Northeast Zones. More complete drill hole results areprovided on Galway's website.

Mineralization

Intercepts reported above and in previously reported drill holes arehosted by silicified zones, breccias, fracture zones and stockwork,typical of the district, which includes Greystar Resources' and VentanaGold's National Instrument 43-101 compliant resources, Angostura and LaBodega, respectively. The principal geologic control in theCalifornia-Angostura District is a linear structural corridor thattrends northeast-southwest and dips steeply to the north. Segments ofthis zone host the resources reported by both Greystar and Ventana, andGalway is exploring another segment along the same structural corridor.The entire corridor may be one continuous mineralized zone through allthree properties. The mineralized Zone identified on Galway'sproperties to date is approximately 150-200 meters wide and 1,000meters long, characterized by hydrothermal alteration andmineralization within various phases of pervasively altered intrusiveporphyries. Mineralization remains open along strike where untested, atdepth along the entire Zone, and across the width of the structure inmost places.