TORONTO, July 19, 2013 /CNW/ - Galway Gold Inc. (TSX-V: GLW) ("Galway Gold" or the "Company") announces that it has terminated the option agreement on the Coloro
property in Vetas, Colombia. The Company conducted extensive surface
sampling and geophysical programs and drilled 1,232 meters with no
significant results identified. For example, the best intersections in
the two Coloro holes, GLW-V069 and GLW-072, included 1.5 meters of 0.36
grams per tonne gold (g/t Au) and 1.4 m of 0.12 g/t Au. Similarly, the
best surface sample results included 0.4 m of 2.58 g/t Au and 2.0 m of
0.96 g/t Au. As reported on January 22, 2013, 45% of the Coloro concession will be affected by Colombia's new
Santurban Natural Park. The Reina de Oro concession, home of the El
Volcan Mine and where over 45,000 meters of drilling has occurred, is
not affected by the Natural Park.
Galway Gold will no longer make a cash payment of $715,000 and issue
300,000 shares due in January, 2014, along with other obligations with
respect to the contract with Sociedad Ordinaria de Minas Coloro S.O.M.
Galway's directors believe that with the limited exploration potential
and the loss of almost half of the concession to the Natural Park that
fulfilling these obligations and continuing with the Coloro option will
not benefit the Company or its shareholders.
Reina de Oro-El Volcan Mine
As reported on June 4, 2013, the Phase 1 drill program was completed at the end of April, which
comprised 89 drill holes and over 46,000 meters. The drill rigs remain
on site and at the optimum time, drilling can recommence at will.
Currently, the Company is analyzing all relevant data in an effort to
maximize efficiency for the Phase 2 drill program. Additional drilling
will commence once the review is completed and findings are interpreted
and incorporated into a revised model of the zones. Future drilling
will focus on further delineating and expanding the mineralized
envelope beyond defined limits.
The El Volcan mine is a high grade, narrow vein mine with over 2,000
meters of accessible underground workings. 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. The
Phase 1 geological data and assay results confirm the company's belief
that there exists potential for a high grade commercial discovery.
Galway Resources began drilling the Reina de Oro concession at Vetas in
April 2011, with the focus to test for a continuation of mineralization
below the El Volcan mine, strike and lateral extensions to the mine, as
well as to evaluate 6 surface geochemical/geophysical anomalies that
have been identified. Results from over 40,000 meters, or 78 diamond
drill holes have been released, 60 of which were drilled from
underground targeting the El Volcan structure, while the balance
(except for the two drilled at Coloro) were surface holes targeting the
intrusive exhibiting stockwork veining along its western border with CB
Gold Inc.
As reported on March 21, 2013, the number of veins doubled to 16 from the 8 previously established
veins. The Company has also more than doubled the depth at which gold
mineralization was originally identified below the main (Reina de Oro)
level to 710 meters, or 900 meters below surface. All 16 veins at El
Volcan are open in every direction. In the 60 underground drill holes
reported to date, Galway has intersected 5 g/t Au or more 266 times, 20
g/t Au or more 82 times, 50 g/t Au or more 35 times, 100 g/t Au or more
16 times and 1,000 g/t or more two times.
Highlights of underground drilling results released from El Volcan:
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1,082.6 g/t Au and 718.0 g/t silver (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
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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
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679.6 g/t Au and 164.0 g/t Ag over 1.16 m from GWY-V026
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203.4 g/t Au and 1,311.0 g/t Ag over 1.25 m from GWY-V029
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157.4 g/t Au over 4.15 m, including 470.2 g/t Au over 1.33 m from
GWY-V036
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143.7 g/t Au over 1.17 m from GWY-V059
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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
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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
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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 18.9 g/t Au over 11.81 m, including 52.9 g/t
Au over 1.32 m in GWY-V049
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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
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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
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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
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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 from GWY-V078
Highlights from the 16 surface drill holes that targeted the stockwork
intrusive along its western border with CB Gold include:
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26.0 g/t Au and 26.9 g/t Ag over 4.19 m, including 105.0 g/t Au and 76.6
g/t Ag over 1.00 m, plus 29.2 g/t Au over 1.34 m in GWY-V061
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45.9 g/t Au over 1.04 m in GWY-V054
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17.4 g/t Au over 1.38 m, including 45.2 g/t Au over 0.51 m, plus 4.0 g/t
Au over 12.38 m, including 7.8 g/t Au over 1.58 m, 12.0 g/t Au over
0.97 m, and 8.32 g/t Au over 2.30 m in GWY-V028
Notes: a 2.0 g/t Au lower cutoff grade was applied to all underground
drill holes; a 0.5 g/t Au lower cutoff grade was applied to all surface
drill holes; no upper cutoff grade was applied; true widths for assays
reported to date for underground holes at Vetas are 18% to 98% of
downhole widths; true widths for assays reported to date for surface
holes at Vetas are unknown. A complete list of results can be found on
the Galway Gold website.
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. The geometry of the veins
and the wallrock competency may allow adoption of a lower cost
underground mining method like long hole stoping. 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.
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 ranging up to 300 meters. Drilling is testing multiple veins at
25-50 meter centers. Of the 2 drill holes completed on Coloro (GLW-V069
and GLW-V072), along the eastern strike extension of the El Volcan
Mine, the best assay results were 1.5 m of 0.36 g/t Au, and 1.4 m of
0.12 g/t Au. Of the surface sampling, assays of 0.4 m of 2.58g/t Au and
2.0 m of 0.96 g/t Au were the highest values received.
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 Gold 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.
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.
About Galway Gold
Galway Gold is a well capitalized mineral exploration company with $16.3
million (March 31, 2013). Through its wholly owned Colombian
subsidiary, Galway Gold holds an option to acquire a 100% interest in
the Reina de Oro gold concession, home of the El Volcan Mine, in the
Vetas gold district 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 began trading on January 21,
2013.
Neither the TSX-V nor its regulation services provider (as that term is
defined in the policies of the TSX-V) 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