March 1, 2011 / 12:46 PM / 7 years ago

Galway encouraged by Colombia gold project results

TORONTO, March 1 (Reuters) - Galway Resources GWY.V, a Colombia-focused gold exploration company, on Tuesday announced promising results from six new drill holes at its California project in the north-eastern part of the country.

The company said all six holes returned between three and five intercepts of significant gold mineralization and all of the holes returned silver mineralization as well.

Galway’s California property is located adjacent to Ventana’s VEN.TO La Bodega project. Earlier this month, Ventana accepted a sweetened C$1.5 billion takeover bid from Brazilian billionaire Eike Batista. [ID:nN14278978] <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

For Feature on Gold miners in Colombia [ID:ID:nN01263692]

Map of Colombian gold rush: ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

The latest results confirm the presence of thick intervals of gold mineralization in both the Pie de Gallo and Northeast Zones of the property, the company said.

“We continue to be pleased with the successes achieved in our California exploration program, and are encouraged by our ability to identify a long, continuous corridor of strong, near-surface gold mineralization,” said Chief Executive Robert Hinchcliffe, in a statement.

Galway said it is continuing to work toward the spin-out of its Vetas gold project in Colombia. The Toronto-based company said it expects to be able to report progress on this spin-out transaction later this month.

Galway’s shares, which closed Monday at C$1.29, are up more than 65 percent over the last six months. ($1= 0.97 Canadian) (Reporting by Euan Rocha)

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