|May 23, 2007|
Galway Resources' Infill Drilling Intercepts 105 Feet of Molybdenum/Tungsten at Victorio
|Elko, Nevada: May 23, 2007 - Galway Resources Ltd. (GWY: TSX-V) is pleased to announce additional encouraging drill results from the Victorio molybdenum-tungsten project located in southern New Mexico. The 6-hole 10,000 feet infill drilling program was recently completed with the results of the final two holes provided below. The purpose of the infill drilling program is to upgrade the resource categories from those outlined in the recently published N.I. 43-101 resource estimate done by S.R.K. Consulting (U.S.) Inc. The next step in the advancement of this project is to initiate a Scoping Study. |
"We are pleased with the results of our 10,000 feet drilling program that combined with the 165,000 feet (71 holes) of historical drilling done by Gulf Minerals will enable us to advance this project in a timely manner. In short, the results corroborate the attractive thickness of the mineralization at Victorio as well as some new high grade intercepts.
As we have noted previously, the grades & geometry of the mineralization at Victorio are likely to lend themselves quite nicely to low-cost bulk mining methods," cites Robert Hinchcliffe, President of Galway Resources. He adds, "a Scoping Study is the next step for our flagship property Victorio."
Highlights of the Current Drill Results.
The most noteworthy for the results received thus far and outlined below is the 105 foot thickness of mineralization intersected in GRV-72. To see the plan map and cross sections, please click on the following links:
The intervals listed represent true thickness. The results of the previously released results can be seen on the following page.
"We welcome people to go to our website www.galwayresources.com, to take a virtual tour of the Victorio Project. The extremely favorable location and infrastructure cannot be emphasized enough," states Robert Hinchcliffe, President of Galway Resources.
The company filed the NI 43-101 Technical Report on March 14, 2007 for the Victorio Project. Some of the highlights of that report include:
Cutoff grade is based on dollar rock value calculated from contained molybdenum valued at US$12.00 per pound combined with the contained tungsten (WO3) valued at US$8.00 per pound or combined US$40 per ton.
Current Molybdenum and Tungsten Pricing
After remaining below US$10.00 per pound for the past 25 years, molybdenum prices began to rise in January 2004. Over the past 2 years or so, prices for molybdenum have traded around US$25.00 per pound, and within the past months prices have moved to above US$28.00 per pound. Higher levels of global molybdenum demand is cited by experts as the primary reasons that molybdenum prices have performed so well as of late.
A similar story holds true for tungsten, with pricing remaining between US$2.50 per pound and US$5.00 per pound for over 20 years. Tungsten pricing surged in January 2005 to just over US$15.00 per pound and has remained resilient ever since. Over the past sixteen months tungsten prices have remained around US$12.50 per pound, and more recently have moved to above US$13.00 per pound. Continued steady global tungsten demand coupled with lower exports from China are cited as two primary drivers for sustained strong tungsten pricing.
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 facility in Deming, New Mexico prior to shipping to the Chemex lab in Sparks, Nevada. Other QA/QC procedures include the insertion of blanks and control samples every 20 samples and re-assaying duplicate pulps of 5% of all samples by a certified independent laboratory (SGS Labs). WO3 is assayed at the Chemex Vancouver laboratory by two methods: (1) lithium borate fusion with an XRF finish and (2) lithium borate fusion with an ICP finish.
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," Peter Kurisoo , CPG, for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects, of the Canadian Securities Administrators). Galway is following the "Best Practices Guidelines" in documenting, reporting, and conducting exploration activities at Victorio.
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 has compiled all the historical data and we 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 (molybdenum, tungsten, copper, zinc, and silver).
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.
You can view the Next News Releases item: Wed May 30, 2007, Galway Resources Engages SRK to Proceed with Scoping Study at the Victorio Molybdenum/Tungsten Project
You can view the Previous News Releases item: Mon May 7, 2007, Galway Resources Infill Drilling Intercepts High Grade Molybdenum & Tungsten at Victorio
You can return to the main News Releases page, or press the Back button on your browser.