Galway discovers 3 new high grade gold zones at Vetas; 26.0 g/t over 4.2 m from surface; 34.3 g/t over 6.4 m and 18.9 g/t over

    




 TORONTO, Oct. 9, 2012 /CNW/ - Galway Resources Ltd.  is pleased to announce assay results from 17 underground diamond drill  holes and 11 surface drill holes at its Vetas gold-silver project, host  of the El Volcan gold-silver mine that has been in operation for over  400 years and is the largest mine in the Vetas-California-Surata gold  region of Colombia. The focus of Galway's exploration efforts at Vetas  is to test for a continuation of mineralization below the El Volcan  mine, strike and lateral extensions to the mine as well as to test the  6 surface anomalies that have been identified. Galway also has an  ongoing exploration program at its California project, located 8 km  northwest of Vetas. On September 12, 2012, Galway announced initial resource estimates for California prepared by  SRK Consulting, Inc., which contained indicated gold resources of  424,385 ounces grading 5.5 g/t plus inferred gold resources of 666,470  ounces grading 5.4 g/t. 

 Three New High Grade Zones Discovered:  




        --  New surface discovery returned26.0 grams per tonne gold (g/t
            Au) over 4.19 meters (m), 29.2 g/t Au over 1.34 m, and 14.5 g/t
            Au and 572.0 g/t silver (Ag) over 0.98 min drill hole 61,
            located 200 m from hole 28 and 150 meters northeast of CB
            Gold's recent discovery
        --  8 separate intersections greater than 6.6 g/t Au, including two
            new veins that assayed 34.3 g/t Auand 83.0 g/t Agover 6.44
            m,plus18.9 g/t Au over 11.81 mfrom underground hole 49
        --  7.3 g/t Au over 1.33 m, located 180 m west of Corteros, which
            was the western-most vein known to exist when drilling began,
            and 140 m west of La Virgen 2




 "The initial corporate goal was to delineate resources of 1,000,000  ounces from each of our California and Vetas projects at a combined  grade of 10 g/t Au. The California goal has been achieved - at a higher  grade than initially expected. The California resource is open to  expansion from newly-discovered extensions at Machuca and Santa  Catalina, within the fractions and at depth. For Vetas, the initial  goal was to drill off an area of 500 m along strike by 500 m depth  below the mine workings. Using an average horizontal mining width of  1.5 m, a grade of 15 g/t, and with a 25% success ratio over the mines'  8 veins would give 1,000,000 ounces. The actual average horizontal mining width has been exceeded, the  success ratio has been exceeded, the depth has been exceeded, and the  number of veins present is greater than the 8 originally thought to  exist," cites Robert Hinchcliffe, President and CEO of Galway Resources. 

  





                              New underground drill result highlights

     

                                                     Au       Ag
      Hole ID      From        To      Interval                     Vein Name,
                 (Meters)   (Meters)   (Meters)     g/t      g/t      Notes


    GWY-V0041     116.82     117.89       1.07    17.53    37.00    Chocolatua

                  200.06     203.47       3.41    40.13    35.79    Manzanilla

    including     202.21     203.47       1.26    94.26    55.00    Manzanilla

    GWY-V0042     114.18     116.43       2.25     6.29    20.07       Loscas

    including     115.32     116.43       1.11    10.28    15.00       Loscas

                  284.06     285.33       1.27    22.77     5.70        Tajo
                                                                      Abierto

    GWY-V0045     200.38     202.56       2.18    12.49    14.82       New 18

    including     200.38     201.46       1.08    22.82    23.50       New 18

                  229.72     231.95       2.23    12.38    13.63    New5 - VG

    GWY-V0046     210.31     213.60       3.29    10.09     1.30       Loscas

    including     210.31     211.38       1.07    25.20     2.00       Loscas

                  279.88     280.41       0.53    283.58   99.00    Green - VG

                  294.13     294.63       0.50    27.81     2.00       Green

    GWY-V0049     157.73     158.98       1.25    86.90    16.00        Tajo
                                                                      Abierto

                  243.37     244.49       1.12    15.16    162.00      Loscas

                  320.87     327.31       6.44    34.34    83.03       New 17

    including     320.87     322.17       1.30    98.79    154.00      New 17

                  335.66     347.47      11.81    18.85     3.78       New 5

    including     344.10     345.42       1.32    52.85     2.00       New 5

    GWY-V0053      48.07      49.51       1.44     9.96    121.00    Loscas -
                                                                        VG

                   91.19      93.58       2.39    41.76    102.00   Manzanilla

    including      91.19      92.44       1.25    76.64    102.37   Manzanilla

    GWY-V0055     156.29     159.82       3.53     6.10    16.60    Chocolatua

    including     158.68     159.82       1.14    10.11    36.30    Chocolatua

    GWY-V0056      42.52      43.91       1.39    25.70     7.00       New 19

                  161.03     178.03      17.00     8.94    17.27     El Burro

    including     161.03     162.21       1.18    19.65    22.00     El Burro

                                                                       Tajo
                  164.48     169.29       4.81    17.72    49.90    Abierto -
                                                                        VG

                  176.98     178.03       1.05    27.18     1.00    Chocolatua

                                                                       Tajo
    GWY-V0059     142.34     142.88       0.54    15.66     6.00    abierto -
                                                                        VG

                  290.28     291.45       1.17    143.73   216.00   New 5 - VG

                  402.37     403.90       1.53    17.29    10.00    Corteros -
                                                                        VG

                  542.42     543.75       1.33     7.29     4.00    La Virgen
                                                                        3

                                                                       Tajo
    GWY-V0062     190.27     192.42       2.15    25.16     9.30    Abierto -
                                                                        VG

                                                                       Tajo
    including     190.27     191.39       1.12    43.84    19.00    Abierto -
                                                                        VG

    GWY-V0064      99.56     100.79       1.23     9.45    32.00       Loscas

                  142.31     144.78       2.47    50.40    12.01       Green

    including     142.31     143.56       1.25    94.18    13.00    Green - VG

    GWY-V0066     137.50     139.03       1.53    13.13     5.00    New 5 - VG

    GWY-V0067     343.08     352.41       9.33     9.73    116.95   Manzanilla

    including     343.08     343.97       0.89    17.78    305.00   Manzanilla

    including     345.03     346.23       1.20    26.97    308.41   Manzanilla

    GWY-V0068     102.10     103.63       1.53    11.65    10.20       New 4

                  416.36     417.88       1.52    10.28    90.60       New 19






  

 Highlights of Underground Drilling Program Include: 




        --  New discoveries in hole 49 are wide open to the east and
            northeast
            (Figure 1)
        --  Drill rigs will be moved to Pads 3 and 4 to extend El Volcan's
            drill-defined strike length beyond the current 410 m in order
            to bring in ounces toward the north
            (Figure 2
            and
            Figure 3)
        --  La Virgen 3 discovered 180 m west of Corteros, which was the
            western-most known vein, and 140 m west of La Virgen 2
        --  New Veins show deposit remains open to the west
        --  Drilling continues to show excellent continuity of El Volcan's
            high grades along strike and to depth




 Successful Hit Ratio Far Exceeds Expectations for Underground Drilling  Program To put the success Galway has achieved in its underground drill program  at Vetas into perspective, since June 22, 2011, when Galway released the first set of Vetas drill results, 45 of the  52 underground holes that have been reported host at least one assay in  excess of 10 g/t Au (the average is 2.8 per hole, or 146 times in  total), and all holes except hole 25 contained multiple mineralized  intersects. In the first 52 underground drill holes, Galway has  intersected 5 g/t Au or more 237 times, 20 g/t Au or more 76 times, 30  g/t Au or more 44 times, 100 g/t Au or more 13 times and 1,000 g/t or  more two times. 

 Vetas Surface Drill Results Summary A new discovery has returned 26.0 g/t Au over 4.19 meters (including 105.0 g/t Au over 1.0 m) from surface drilling (hole 61)  northwest of the mine (Figure 4). This hole also intersected other zones such as 29.2 g/t Au over 1.34 m, 14.5 g/t Au and 572.0 g/t Ag over 0.98 m, 5.3 g/t Au over 1.5 m, and 4.9 g/t Au over 1.52 m. It is located 150  meters northeast of CB Gold's recent intersections in hole RM-DDH12-119  of 17.3 g/t Au over 15.5 m (including 234.9 g/t Au over 1.03 m and 14.0  g/t Au over 1.54 m), 78.1 g/t Au over 3.31 m (including 227.6 g/t Au  over 1.13 m), 17.0 g/t Au over 2.27 m (including 35.9 g/t Au over 1.06  m), 7.4 g/t Au over 4.85 m (including 25.5 g/t Au over 1.00 m), and 3.1  g/t Au over 7.86 m (including 21.7 g/t Au over 1.05 m). The zones in  the area appear to dip to the northeast, and so the new discovery,  which range up to 369 m below surface, appears to correlate with CB's  intersections. Because of the dip of the zones, the current drilling is  not ideal for intersecting the zones (drilling appears to have been  sub-parallel to the zones; thus several veins may have been missed);  better-located drill pads are to be constructed in order that all zones  can be drilled across. 

  





                              New surface drill result highlights

                                                                     

                                                     Au       Ag
      Hole ID      From        To      Interval                      Vein
                 (Meters)   (Meters)   (Meters)     g/t      g/t     Name


    GWY-VS0043    258.64     271.41      12.77     1.18     1.05      New

    including     258.64     259.64       1.00     7.05    10.80      New

    GWY-VS0044    182.66     183.94       1.28     2.50     1.30      La
                                                                    Araña

                  336.64     338.52       1.88     2.60     1.86     New3

    including     336.64     337.64       1.00     4.20     2.80     New3

    GWY-VS0047    211.38     215.83       4.45     1.24     2.38      El
                                                                    Brinco

                  349.24     350.49       1.25     3.04     2.30     New3

    GWY-VS0048    354.19     355.19       1.00     3.15    12.00     New3

    GWY-VS0050     96.15      96.71       0.56    14.44     5.90      La
                                                                    Araña

                                                                      El
    GWY-VS0054    230.49     231.53       1.04    45.91     9.90    Brinco
                                                                     - VG

    GWY-VS0061    289.78     290.76       0.98    14.55    572.00     El
                                                                    Brinco

                  302.65     306.84       4.19    26.00    26.88      El
                                                                    Brinco

                                                                      El
    including     302.65     303.65       1.00    104.99   76.60    Brinco
                                                                     - VG

                  374.58     375.92       1.34    29.18     6.20      New

    GWY-VS0063    142.68     143.68       1.00     4.78     3.80      La
                                                                    Araña






  

 As reported on March 14, 2012, hole 28 was the first surface hole drilled on Galway's Vetas property  - located in the northwest as well. This hole contained 17.4 g/t Au  over 1.38 m, including 45.2 g/t Au over 0.51 m in the Piedra Colorada  structure and 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 8.3 g/t Au over 2.30 m in the La Araña  structure. The La Araña intersect appears to be a 160 m down-dip  extension at a 358 meter vertical depth below surface from CB Gold's  discovery of 7.6 g/t Au over 114.98 m, including 17.2 g/t Au over 40.89  m (which included 316.7 g/t Au over 2.09 m), and 5.4 g/t Au over 30.35  m. Both of these results appear to be contained in the same stockwork  zone that runs on both sides of the common border. 

 As seen in Figure 4, only two of the eleven new surface drill holes reported herein were  drilled in the direction of CB Gold's discoveries noted above. The rest  targeted other zones, from which early sampling yielded encouraging  results. Noteworthy of these are holes 43, 50, and 54 that intersected  7.0 g/t Au over 1.0 m plus 1.2 g/t Au over 12.77 m, 14.4 g/t Au over  0.56 m, and 45.9 g/t Au over 1.04 m, respectively. 

 In order to optimize Galway's ability to intersect high-grade targets  within the stockwork zone, the Company has chosen to temporarily  suspend surface drilling until it receives the necessary pad  construction approvals. 

 Notes: GWY-VS052 and GWY-V057 returned multiple, narrow, low-grade  intersects that ranged up to 4.9 g/t Au and 2.15 m; 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; only gold grades of 9.0 g/t Au or higher were  highlighted for underground drill holes unless drill core thickness  exceeded 2.0 m; only gold grades of 1.0 g/t or higher or drill core  lengths of 5 m or more were highlighted for surface drill holes; true  widths for assays reported to date for underground holes at Vetas are  28% to 98% of downhole widths. True widths for all surface holes  reported to date have not been established as the zones are of unknown  orientations. 

 Pictures of visible gold from Galway's Vetas and California projects can  be viewed in the photo gallery. Maps, cross sections and a detailed table of assay results can be  viewed on the Company's website at www.galwayresources.com. All Vetas drill results released to date can be viewed in Table 1. A preliminary NI 43-101 technical report on Galway's Vetas property,  which was prepared by Roscoe Postle Associates, was filed on SEDAR on  August 24, 2011. 

 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 that could be successfully  mined using modern bulk-tonnage longhole mining methods. The known vein  system comprises nine 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. Visible gold in the sampling  almost invariably indicates higher gold and silver assay grades.  Galway's geologists are impressed and surprised by the widths of  mineralization attained in the first tier of drill holes relative to  the narrower veining seen in the mine workings above, and by the  classic low sulfidation vein textures seen. Grey chalcedonic quartz,  colloform banded texture, vuggs and drussy quartz, with fine pyrite  crystals are typical. The mineralization has been intersected up to 670  meters below the bottom level of the El Volcan mine, and 860 meters  below surface. 

 Rapid development of resources 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 robust 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  of 300 meters. Drilling is testing multiple veins at 25-50 meter  centers. The Company has reported on the first 68 holes (including 16  surface holes). 

 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. 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 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. 

 MMI soil samples were sent to SGS Group (ISO 19011 certified)  preparation facility in Medellin, Colombia, for processing and are  analyzed in SGS's laboratory in Lima, Peru. 

 About The Company Galway Resources is a mineral exploration company primarily focused in  northeast Colombia, with gold exploration occurring at the California  and Vetas gold projects. The Company also has the Victorio  molybdenum-tungsten project, with excellent infrastructure, in  southwestern New Mexico. A positive scoping study was completed by SRK  in 2008. The recent surge in tungsten pricing, coupled with a steady  molybdenum price, has prompted management to reassess strategic  alternatives to advance the Victorio project. 

 Neither the TSX Venture Exchange nor its regulation services provider  (as that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this release.   

 Forward Looking Statements:  

 Forward-Looking Statements: Statements in this release that are  forward-looking statements are subject to various risks and  uncertainties concerning the specific factors disclosed under the  heading "Risk Factors" and elsewhere in the Company's periodic filings  with Canadian Securities Regulators. Such information contained herein  represents management's best judgment as of the date hereof based on  information currently available. The Company does not assume the  obligation to update any forward-looking statement. 

Galway Resources Ltd.


CONTACT:  Galway Resources Ltd.Robert Hinchcliffe1-800-475-2412www.galwayresources.com 


    

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