TSX-V:GLW Galw Galway Go Gold’s ld’s Vetas P s Proj oject Sant ntand nder S State, Col olomb ombia
FORWARD-LOOKING STATEMENT Certain disclosures in this presentation, including management’s assessment of Galway Gold’ plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors beyond Galway Gold’s ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, gold price volatility, changes in debt and equity markets, timing and availability of external financing on acceptable terms, the uncertainties involved in interpreting geological data and confirming title to recently acquired properties, the possibility that future exploration results will not be consistent with Galway Gold’s expectations, increases in costs, environmental compliance and changes in environmental and other local legislation and regulation, interest rate and exchange rate fluctuations, changes in economic and political conditions and other risks involved in the gold and development industry. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this presentation. Such statements are based on a number of assumptions that may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for Galway Gold’s exploration and development activities; operating and exploration costs; the Company’s ability to retain and attract skilled staff; timing of the receipt of regulatory and governmental approvals for exploration projects and other operations; market competition; and general business and economic conditions. The forward looking statements contained in this document are based on what management believes to be reasonable assumptions, however, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Galway Gold’s actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law. 2
CORPORATE OVERVIEW Galway Gold is a well-capitalized company focused on the exploration of gold in • the historic Vetas gold district of northeast Colombia where mining dates back over 400 years Vetas is located just 8-km southeast of the multi-million ounce, world-class • California gold district Galway Gold’s predecessor company, Galway Resources, sold its interests in • California plus a 10% interest in Galway Gold to AUX Canada (Eike Batista) for approximately $340 million in cash Galway embarked on very successful underground and surface drilling • campaigns at Vetas in which over 46,000 meters in 91 holes were completed In the 68 underground drill holes in the El Volcan mine, Galway reported that 171 • samples sent to the lab returned gold values of 10 g/t or more, which equates to 2.5 times per drill hole Measured and Indicated resource of 224,900 oz Au at 10.5 g/t and Inferred • resource of 377,000 oz Au at 10.3 g/t identified through underground drilling at El Volcan 3
CORPORATE OVERVIEW The Reina de Oro option agreement is for Galway to pay 1.5% of the value of • Measured and Indicated gold and silver resources, which equated to $4.3 million as of the date of option expiry Galway had $10.1 million in cash at September 30, 2015 • Galway sought to exercise its option to acquire the Reina de Oro concession, • which hosts the El Volcan Mine, but was rejected by landowners Galway received a favorable ruling in arbitration and was awarded damages of • COP$79,341,923 (approximately US$35,000) per month from December 18, 2013 until February 13, 2015 for a total of approximately US$490,000. Under terms of this award, owners of the Reina de Oro concession were required • to make the payment for damages by February 20, 2015. Payment was not received by the required date and therefore Galway has • proceeded with legal action to collect the payment of damages. The option agreement remains in effect until title can be transferred into • Galway’s name, which is anticipated to require several months. Galway is committed to Building High-Grade Value, Ounce-by-Ounce • 4
AUX ACQUISITION Galw alway R Resources – AUX UX De Deal: al: Excell llent V Valu alue for Galw alway Sh Shar areholders Cash Plus Growth in Two New Cash-Rich SpinCo’s For Each Galway Resour sources Share, Sharehol olders Re Receive ved: • $2.05/share cash • 1.0 share in Galway Gold to hold Vetas with US$18 million cash • 1.0 share in Galway Metals to hold Victorio with US$12 million cash • The combined US$30 million cash is worth $0.20/share; total cash from AUX is $2.25/share, or $340 mm • AUX received Galway’s California concessions and 10% of Galway Gold Vetas: Hi High-Gr Grad ade Gol old-Silve ver Syste tem; Excellent Explor oration Resul sults at El Vol olcan Min ine • Excellent gold-silver resource potential in high-grade veins; maiden resource reported Nov 2013 • El Volcan system drill-defined along 550 m of strike; open to at least 1.25 km • Gold intersected 600 m below lowest level of El Volcan mine, or 900 m below surface; open to depth, along strike and laterally • 16 sub-parallel and sub-vertical veins in competent host rock; bulk-tonnage low-cost underground mining • Upside beyond El Volcan mine block: 6 anomalies, including western border with CB Gold 5
CAPITAL PROFILE • Market cap 3/1/16: C$9m • Shares issued and outstanding: 166,511,932 • 52 week high-low: C$0.12 - C$0.04 • Share price as of 3/1/16: C$0.05 • Cash: US$10.1m (September 30, 2015), $0 debt • Ownership position: AAV (Mubadala): 17% Institutions: 30% Management, family, friends: 15% 6
COLOMBIA – VAST GOLD POTENTIAL • 80 million ounces of gold have been discovered in the past 10- 15 years, accounting for about 10% of the discoveries worldwide in that time. • Early mover advantage enabled Galway Gold to secure an excellent property package in Vetas • Other discoveries include Angostura, Gramalote, Marmato, La Colosa and AUX’s (Ventana) La Mascota/La Bodega • The country hosts 4 prolific gold trends 7
VETAS GOLD DISTRICT Reina de Oro - El Volcan Mine 8
VETAS DEAL TERMS All option payments of US$1,642,500 and 1,200,000 shares have been made. Only the exercise payment remains. Option exercise payment to earn 100% of the Vetas project is 1.5% of the gold and silver values of Measured and Indicated gold resources, payable in cash and/or stock, at Galway Gold’s discretion. 9
VETAS HIGHLIGHTS • The largest gold and silver mine in the Vetas district, producing for over 400 years, metallurgical recoveries 80%-90% with artisanal mill • Exploration efforts are looking for strike, lateral and vertical extensions of mineralized veins; 16 veins now identified - double the original 8 previously known; mineralization open in all directions • Mineralization drill intersected along 550 m of strike, 250 m of width and 600 m below the lowest level of the mine (the main, or Reina de Oro level), or to 900 m below surface • 2,000 meters of accessible underground workings enable quick geological advancement • Galway is the first company to carry out a modern geological exploration program; over 46,000 meters in 91 holes have been completed • Measured and Indicated resource of 224,900 oz Au at 10.5 g/t and Inferred resource of 377,000 oz Au at 10.3 g/t High High h hit it r rat atio in in 68 u undergr ground d drill h ill hole les: 5 g/t Au or more, 282 times 50 g/t Au or more, 36 times 10 g/t Au or more, 171 times 100 g/t Au or more, 16 times 20 g/t Au or more, 84 times 150 g/t Au or more, 9 times 30 g/t Au or more, 50 times 1,000 g/t Au or more, 2 times 10
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