|December 13, 2006|
Galway Announces Additional Positive Drill Results From Indian Springs
|Elko, Nevada: December 13, 2006 - Galway Resources Ltd. (GWY: TSX-V) ("Galway" or the "Company") is pleased to announce encouraging drilling results from the Indian Springs Tungsten Project. The Company recently completed it's 20 hole 7,000 foot reverse circulation program, and more recently finished a 3 hole 1,000 feet core program. Results for the first fourteen holes were reported on August 29, 2006, September 26, 2006 and on November 28, 2006. Receipt of the results for the last 4 core holes, are still pending. |
"The results from our drilling campaign continue to be very encouraging. Not only has Galway's drilling confirmed the drill results from the major mining companies in the past, but the mineralized intercepts beginning at surface and continuing for significant depths add credence to the historical reports suggesting that this historical resource could have a low strip ratio. Moreover, the thick mineralized intervals at greater depths are also an excellent indicator of the project's potential for resource growth, and warrant more follow-up drilling for next year. This will all contribute to our 43-101 resource estimate to be completed in January 2007, followed by the scoping study in March." cites Marshall Himes the COO of Galway Resources.
Highlights of the Current Drill Results
Analytical results have been received for an additional six holes from the Indian Springs project and are shown in the table provided on the top of the next page. Of particular interest are:
"I think our technical team has done a splendid job advancing the Indian Springs project in just over six months. With tungsten prices remaining very strong and holding steady at $13.00 per pound, coupled with strong fundamentals regarding the favorable outlook for tungsten, we believe that advancing this project will generate considerable shareholder value for Galway shareholders," stated Robert Hinchcliffe, CEO of Galway.
Current Tungsten Pricing
After trading between $45- $75 per short ton unit (as reported by Metal Bulletin and the United States Geological Service) during the 1980s and 1990s, a significant decrease in exports from China prompted prices to rise sharply at the end of 2004. Since October of 2005, tungsten prices have remained above $250 per short ton unit, with current pricing of $260 per short ton unit. Note, one short ton unit is equal to 20 pounds of WO3, which puts current tungsten prices at $13.00 per pound.
The near-surface mineralization at Indian Springs tends to dip shallowly to the east. The holes reported here cut the shallow mineralized zones nearly perpendicularly and represent approximately true thickness intercepts. The geometry of the deeper zones is not understood as well, but the holes were not drilled down-dip or parallel to the trend of mineralization and the intercepts are thought to represent substantial zones of disseminated mineralization.
About Indian Springs
The Indian Springs Tungsten Project, located in northeastern Nevada (25 miles north of Montello), is an advanced stage exploration property that has been inactive since the early 1980's due to low tungsten prices. The open-pittable project represents an opportunity for Galway to bring a historical advanced tungsten property to the scoping study (expected March 2007) level in less than 1 year of acquisition by spending less than US$1 million.
The project had undergone extensive exploration drilling and metallurgical testing during the period of 1968 through 1986, including the activities of three major mining companies: Placer Amex, Union Carbide, and Utah International, for a total estimated expenditure of from US$3.0 to $5.0 million. To replicate this information, management estimates would cost more than $6 million. A historical tungsten resource was defined based upon 336 drill holes, representing over 82,000 feet of drilling and thousands of feet of trenching, geologic mapping, sampling, along with metallurgical testing. The drill-defined tungsten mineralization has exploration potential along strike to the northeast and southwest.
The most recent historical resource estimate, carried out by Utah International in 1984 (internal Company documentation), stated a reserve of 8.85 million tons @ 0.257% WO3 at a 0.17% cutoff and a strip ratio of 4.8. Additionally, using a lower cut-off grade on the same ore body, Utah International also reported a reserve of 21.94 million tons @ 0.179% WO3, at a 0.10% cut-off grade and a strip ratio 1.3. These historical reserve numbers should not be relied upon as they have not been classified according to CIM resource/reserve categories. There is insufficient documentation to categorize the historical "reserves" and therefore to reconcile them with current NI 43-101 resource/reserve categories. While current NI 43-101 compliant resources and/or reserves are not established for Indian Springs, Galway considers the project data to be substantial and relevant. Indications are that resource estimation is achievable using the large amount of existing historical drill data. Plans are in place for SRK Consulting U.S. to produce a N.I. 43-101 resource estimate sometime in January 2007.
The Company has implemented a quality assurance and quality control (QA/QC) program to ensure collection and analysis of all drill samples is conducted in accordance with the best possible practices. Samples are stored in a secured area in Montello prior to transfer to lab personnel for shipping to the Chemex sample preparation facility in Elko, Nevada. Other QA/QC procedures include the insertion of blanks and control samples every 100 feet, and re-assaying duplicate pulps of 5% of all samples and 10% of samples assaying greater than 0.1% WO3. Duplicate samples are re-assayed at both Chemex and at a certified independent laboratory (SGS). WO3 is assayed at the Chemex Vancouver laboratory by two methods: (1) lithium borate fusion with an XRF finish and (2) pressed pellet XRF.
The results of the Company's current drilling program have been reviewed, verified (including sampling, analytical and test data) and compiled by the Company's geological staff (which includes a "qualified person," Bob Morrell, CPG, the Company's Vice President of Project Development, for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators).
Bob Morrell is Galway's Qualified Person responsible for the activities at Indians Springs and has reviewed the technical content of this news release. Galway is following the "Best Practices Guidelines" in documenting, reporting, and conducting exploration activities at Indian Springs.
About the Company
Management is focused on developing three U.S. based exploration projects that are favorably located and have over 300,000 feet of historical drilling. We have established a solid technical team that is compiling all the historical data and are now advancing these projects in an aggressive but cost effective manner. Management believes that its strategic portfolio of properties offers investors an interesting exposure to a unique blend of commodities.
For further information contact:
Galway Resources Ltd.
President and Director
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.
Forward Looking Statements:
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the completion of transactions, the timing and amount of payments and share issuances, the completion of financings, the use of proceeds, future exploration, development and production activities and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the ability to complete contemplated transactions, payments, share issuances and financings, the use of proceeds, the time and success of future exploration, development and production activities and the timing and amount of expenditures.
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