Galway Resources Ltd announced that Prodeco Colombian subsidiary of Xstrata has begun drilling the first of 19 holes in the initial drill program at Galway's Galca coal project.

The company has an exploration and joint venture agreement with Prodeco, which is the third largest coal producer in Colombia with 11 million tons of annual coal production. The GALCA coal project comprises 132,000 hectares that Galway believes could host a new undiscovered coal basin that occurs close to surface. This drilling program will be focused on two areas (the northern flank and the southeastern portion) that appear to have the highest prospect of coal near the surface.

Mr Robert Hinchcliffe president & CEO of Galway Resources said that "We are very pleased that our joint venture partner Prodeco has begun the drilling program, which could be very exciting. This area has the potential to host several new coal deposits with great existing infrastructure. The upside could be tremendous.”