July 21, 2010

Galway Resources Will Probably Become A Little Less Elusive Once It Announces Its Latest Drilling Results On Its Colombian Gold Projects

By Charles Wyatt

No , Galway is not in Ireland. Not in this case, anyway, as Galway Resources is a Canadian company with gold and coal interests in Colombia. Minesite last took a look at it back in January of this year and at that time it was clear that Galway had had an amazing 2009. From a 52 week low of C$0.04 hit back in January 2009, the shares had rocketed to around C$1.50 12 months on, which made it a ten bagger several times over. Talk was that Ventana Gold Corporation, another Canadian company whose shares were also flying at that time, until it ran into a dispute over ownership of its property next door to Galway, might make a bid for the company. This dispute hit the share price of Ventana quite hard and it fell from C$7.70 to C$4.20 between October and January of this year. It then came back to life and hit C$8.70 in May, but is now back to C$4.70. Galway has not participated in all this recent excitement, though but has simply drifted down from a heady C$1.60 to a more modest C80 cents.

One obvious reason might be cited for the share price weakness this year, though only chief executive Robert Hinchcliffe can say whether it’s on the money. Unfortunately he is a bit elusive, which may be a family trait as his brother Brian at Kirkland Lake Gold is seldom easy to track down either. Anyway, the first theory is that the sudden decision by the Colombian Government in April that Greystar Resources, another very close neighbour of Galway’s, needed to produce a new environmental