Galway Resources files scoping study for Victorio molybdenum-tungsten project

TORONTO, ON - Galway Resources Ltd. reported that the National Instrument 43-101 Preliminary Assessment for its 100% owned Victorio molybdenum-tungsten project, located 20 miles west of Deming, New Mexico.
"We are pleased with the results of the Victorio Scoping Study. We believe that there is room for improvement in the economics of the project, particularly regarding the engineering. Management is currently focused on exploring strategic alliances in order to creatively advance the Victorio project", said Rob Hinchcliffe, President and CEO of Galway Resources.
The highlights of the Scoping Study completed by SRK Consulting U.S. Inc., which contemplated two different mining scenarios using an average life of mine price of $15/lb molybdenum and $8/lb tungsten price include:
Block Caving Scenario: This scenario is a larger project that considers producing an average of 9.4 million pounds of molybdenum and 9.0 million pounds of tungsten annually for 17 years. The preliminary economics suggest an NPV (discount rate of 6%) of over US$270 million, a pre-tax (unlevered) IRR of 15%, and a required investment in the order of US$442 million.
Selective Mining Scenario: This is a smaller scale project that offers higher returns with a pre-tax (unlevered) IRR of 26%, and a NPV of US$95 million. Under this scenario only a portion of the target resource is extracted, with an average of 6.2 million pounds of molybdenum and 5 million pounds of tungsten annually for 10 years. The capital required is in the order of US$242 million, the mining methods are a combination of long hole stoping with paste backfill and room-and-pillar mining.
The Scoping Study includes a recommended work program to advance the project to the permitting and pre-feasibility stages.
As a result of the favorable findings of the Scoping Study, Galway is now proceeding with the next phase of development work necessary to complete a Pre-feasibility study. A 12 hole in-fill core drilling program is currently underway at Victorio to provide additional data with the goals of upgrading the resource classification, collecting new data for geotechnical evaluation, and collecting additional sample material for metallurgical and geotechnical testing.
The company's address is 380 Court Street, Elko, NV 89801, 800-475-2412, fax: 775-748-5223, email: [email protected].