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Bullboard - Stock Discussion Forum Galway Resources Ltd V.GWY

TSXV:GWY - Post Discussion

Galway Resources Ltd > Drilling put off pending sale?
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Post by Red5Luke on Sep 06, 2012 11:22am

Drilling put off pending sale?

Sounds like drilling at both sites is just down to bare minimum - probably pending the sale.  No use dumping millions into drilling if a sale has been finalized.  Sounds like they have really extended the length of the Cali site which should really add some ounces to the resource estimate. Could be over 1 km long from the way they talk about the new zones. 

We are finally getting some share price increase now we just need that volume to run.  Two weeks until the AGM and there should be lots of fireworks between now and then.

 

California (from todays news release)

Drilling has been curtailed in California pending an analysis of the work that has been completed to date. The upcoming resource will identify a number of drill targets. As this analysis progresses, we will be better able to determine where future drilling should occur.

Vetas (from MD&A on Sedar)

As at June 30, 2012, there were 2 drills operating underground and 2 operating on surface targeting the stockwork intrusive located west of the mine. Subsequent to the end of the quarter, the Company temporarily suspended surface drilling while we reassess priority targets

Comment by fisherman8 on Sep 06, 2012 11:36am
Red5Luke; Agree, and also likely due to lack of funds. They likely have huge legal fees......
Comment by Red5Luke on Sep 06, 2012 12:00pm
Well it looks like we are starting to get that volume I was asking for along with the share price increase.  Have hit $1.42 so far.... looks like we are having a good little run today. 
Comment by fisherman8 on Sep 07, 2012 9:06am
Unless GWY gets bought for a huge price very soon, its seems to me that GWY needs to do more drilling to increase reserves in both Cali and Vestas. Sounds like there is allot more gold to be found. But to do more drilling they need more cash. Going to to market to raise cash results in more dilution. Really a catch 22 situation. What do you guys think?  Raise cash to ...more  
Comment by melone on Sep 07, 2012 9:57am
GWY is selling CALI for. Good price and keeping VETAS  for more drills that will accede more than 6m ounces by next year.  This way will get more money after the spin off of CALI and deduct about 5% of the price of it for the money needed for VITAS drills.
Comment by whiteirish on Sep 07, 2012 9:57am
They just got a "bridge loan" of $10 million at 0.5% over prime.  What does that tell you ???   It's essentially unsecured unless they have a good plan to sell something; the lender knows that.
Comment by Red5Luke on Sep 07, 2012 10:07am
At a minimum they are selling Cali but I think there is a very good chance everything will be sold, lock, stock and barrel.  Either way they won't need to go to market to get $$$ hence the $10 million unsecured loan to get them the concessions and finalize a sale. If they sell Cali only they'll have the money to move other sites forward and if they sell everything  ...more