Galway hits “best gold intersect yet” at California

Vancouver – Galway Resources (GWY-V) has hit what it describes as the best gold intersect to date at its California project in Colombia.

Hole 115 hit 26 metres grading 129 grams gold per tonne and 22.3 grams silver per tonne from 136 metres downhole. The intercept, however, included a bonanza-grade metre of 3,310 grams gold which, if removed, leaves the remaining 25 metres grading 1.8 grams gold.

The hole also contained a 21.5 metre intercept carrying 8.48 grams gold and 11.3 grams silver from 43 metres depth, which included 1 metre grading 13.7 grams gold and 2 metres averaging 78.3 grams gold.

Galway reports that hole 115 helps bridge the gap between the Pie de Gallo and Northeast zones. The hole was drilled 95 metres northeast of hole 54 on Pie de Gallo that hit 19.5 metres averaging 11.01 grams gold, and 110 metres southwest of hole 76 on the Northeast zone that cut 16.5 metres grading 8.11 grams gold. Like hole 115, both holes 54 and 76 had short but very high grade intercepts within the longer intercept.

Hole 116 from the latest results hit 92.5 metres grading 2.9 grams gold and 114 metres averaging 1.1 grams gold. Again, the hole held a number of short high grade intercepts such as 1 metres grading 28.4 grams gold, 1 metre of 59.6 grams gold and 1 metre of 44.9 grams gold. The company reports hole 116 was a strategic infill hole on the Pie de Gallo zone that cross-confirmed hole 10 and then extended mineralization further across the width of the structure.

Hole 113 hit much lower grades of 34.5 metres grading 0.9 gram gold and 10 metres averaging 0.8 gram gold, while hole 114 cut 4 metres averaging 1.8 grams gold and 6 metres grading 1.1 grams gold. Hole 113 was drilled along the same azimuth but at a steeper dip than significantly mineralized holes 109 and 112, with the company now believing the zone plunges west of hole 113. Hole 114 was drilled west of the Pie de Gallo zone.

Holes 109 and 112, reported only a week earlier, returned 86 metres grading 2.7 grams gold and 97 metres grading 3 grams gold respectively. Again holes contained several short very high grade intercepts.

News of the results sent Galway’s shares up 35¢ or 40% to $1.23 over two days of trading, with 16.5 million shares traded. The company has a 52-week share price range between 63¢ and $1.52 with 112 million shares outstanding.

The California project sits adjacent to and on strike with what was Ventana Gold’s project before it was bought out for $1.5 billion by Eike Batista’s AUX Canada. The company reports that mineralization is typical of the area, hosted by silicified zones, breccias, fracture zones and stockwork. Galway has identified mineralization so far over a 150- to 200-metre-wide and 1-km-long zone.