Galway finds three new high-grade zones at Vetas

Since June 2011 when Galway Resources (GWY-V) released the first set of underground drill results from its Vetas property in northeastern Colombia, forty-five of the fifty-two holes hosted at least one assay result grading better than 10 grams gold per tonne and all of them, with one exception, contained multiple mineralized intersects.

When the company further analyzes the drill results it says the first 52 holes intersected 5 grams gold per tonne or more a total of 237 times, 20 grams gold or more 76 times, 30 grams gold or more 44 times, 100 grams gold or more 13 times, and 1,000 grams gold or more twice.

Now Galway says it has found three new high-grade zones at the gold-silver project during the course of its work testing for the continuation of mineralization below the El Volcan mine, strike and lateral extensions to the mine, and six surface anomalies it has identified. (The El Volcan mine on the Vetas property has been in operation for more than 400 years and is the largest mine in the country’s Vetas-California-Surata gold region.)

Northwest of the mine, a new discovery from surface drilling came from drill hole 61, which returned 26 grams gold per tonne over 4.19 metres including 105 grams gold over 1.0 metres. Hole 61 also intersected other zones including 29.2 grams gold over 1.34 metres, 14.5 grams gold and 572 grams silver over 0.98 metres.

Hole 61 is 150 metres northeast of CB Gold’s (CBJ-V) recent intersections in hole RM-DDH12-119, which returned 17.3 grams over 15.5 metres, 78.1 grams gold over 3.31 metres, 17.0 grams gold over 2.27 metres, 7.4 grams gold over 4.85 metres and 3.1 grams gold over 7.86 metres.  Galway notes that the zones in the area seem to dip to the northeast and believes its new discovery, which ranges up to 369 metres below surface, appears to correlate with CB Gold’s intersections.

Galway also uncovered eight separate intersections greater than 6.6 grams gold per tonne, including two new veins assaying 34.3 grams gold and 83 grams gold over 6.44 metres, in addition to 18.9 grams gold over 11.81 metres from underground drill hole 49. In addition, Galway intersected 7.3 grams gold over 1.33 metres about 180 metres west of Corteros, the western-most vein known to exist when drilling began, and 140 metres west of La Virgen 2.

Galway hopes to extend El Volcan’s drill-defined strike length beyond its current 410 metres and bring in more ounces toward the north.

Apart from Vetas, Galway continues to explore its California project, which lies about 8 km northwest of Vetas. In mid-September Galway published its initial resource estimate on the project demonstrating California contains indicated resources of 424,385 oz. of contained gold (at a grade of 5.5 grams gold per tonne) and inferred resources of 666,470 oz. gold (grading 5.4 grams gold per tonne). The company believes the California deposit is open to expansion from newly discovered extensions at Machuca and Santa Catalina, within the fractions and at depth.

At presstime in Toronto Galway was trading at $1.03 within a 52-week range of 84¢and $1.87.