July 18, 2012 (Source: Marketwire) – VANCOUVER, BRITISH COLUMBIA, Galaxy Graphite Corp. (TSX VENTURE:GXY) (the "Company" or "Galaxy") is pleased to announce that it has commenced field work on its Brownell Lake gold property, located approximately 100 km E of La Ronge. The work program will include line cutting, ground geophysics (VLF/Mag), mapping, prospecting and soil sampling. This work will be managed by Mackevoy Geosciences Ltd of Williams Lake, BC. This Phase 1 work program is expected to be completed by the end of July, 2012, with a Phase 2 field program in early September 2012 to follow up on the results of the current program.
Brownell Lake Property, Saskatchewan
On March 3, 2011, the Company signed a letter of Intent ("LOI") with Brownell Lake Holdings Inc. ("Brownell") whereby Brownell agreed to grant to the Company an option to acquire a 100% interest in seven mining contiguous claims located approximately 100 kilometres east of La Ronge, Saskatchewan. On December 2, 2011, the Company received regulatory approval for its qualifying transaction.
Galaxy can earn a 100% undivided interest in the property in three stages by paying an aggregate sum of CDN$825,000 to the vendors, issuing 5,000,000 Common Shares to the vendors and spending an aggregate sum of CDN$1,250,000 on expenditures over a three year period.
An NI43-101 Technical Report was prepared for property vendor in October 2009. This report can be viewed on Sedar (www.sedar.com) under the company's profile. The report concluded that the Brownell Lake project is at an early exploration stage and additional ground geophysics, ground prospecting, geological mapping and geochemical sampling are warranted. Significant amounts of exploration data are available from the Saskatchewan Government and the digitization and compilation into a GIS database will greatly enhance the framework and help focus further work. Subsequent to compilation and further ground work, additional diamond drilling was recommended to assess continuity of mineralization tested in 2007 and 2008 and to evaluate the other anomalous zones in the area.
The Olsen Lake showing has been the main subject of exploration by 101053292 Sask Ltd. receiving preliminary drilling in 2007. Follow up drilling in 2008 successfully tested lateral and down dip extensions of the first promising drill hole, DDH BL-1. In total, 5 holes totaling 894.5 m have been drilled on the Brownell Lake Property. The drilling results include mineralized zones correlating between drill holes, assay values up to 13 g/t Au over 0.65 m (DDH BL-4), composite continuous assay values of up to 1.52 g/t Au over 11.6 m (DDH BL-4), and discontinuous composite assay values of 0.56 g/t over 17.3 m (DDH BL-2).
Chris M. Healey P.Geo, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical content of this release.
ON BEHALF OF THE BOARD
Chris M. Healey, President and CEO
We seek safe harbor.
Neither 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.
Galaxy Graphite Corp.
Chris M. Healey
President and CEO
(604) 921-1898 (FAX)