Junior Miner Uncovers 104 g/t Gold in New Brunswick

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Galway Metals Inc. (GWM:TSX.V; GAYMF:OTCQB) announced results from seven diamond drill holes at the Southwest Deposit of its 100%-owned Clarence Stream high-grade gold project in New Brunswick, Canada, according to a February 24 release.

The Clarence Stream Gold Project boasts significant district-scale potential, with a strike length of approximately 65 kilometers featuring promising gold showings and anomalies. According to a 2022 Mineral Resource Estimate (MRE), the project contains 12.4 million tonnes at 2.3 grams per tonne gold (g/t Au) indicated for 922,000 ounces, and 16 million tonnes at 2.6 g/t Au inferred for 1.334 million ounces of gold, as detailed in the NI 43-101 technical report by SLR Consulting Ltd.

"The Southwest Deposit continues to deliver robust high-grade intercepts at shallow depths, reinforcing our interpretation of strong vertical and lateral continuity," President and Chief Executive Officer Rob Hinchcliffe said. "By connecting mineralization from depth into the near-surface pit shells, we are working to enhance the overall coherence of the deposit. These results will be incorporated into our ongoing Mineral Resource Estimate update, which we anticipate releasing around the end of Q2. We believe this phase of drilling has the potential to positively influence the near-surface component of the resource and further highlight the open-pit potential at Clarence Stream."

Highlights Include:

• CL-242: 9.0 g/t Au over 6 meters (including 44.7 g/t Au over 1 meters) and 1.6 g/t Au over 15 meters.
• CL-240: 52.3 g/t Au over 2 meters (including 104 g/t Au over 1 meter), 33.5 g/t Au over 2 meters (including 66.2 g/t Au over 1 meter), and 1.1 g/t Au over 20 meters.
• CL-241: 2.8 g/t Au over 13 meters (including 8 g/t Au over 2 meters).
• CL-243: 2.5 g/t Au over 6 meters (including 6.7 g/t Au over 1 meter).
• CL-239: 1.4 g/t Au over 13 meters (including 5.8 g/t Au over 1 meter)

The seven drill holes reported are located in the northeastern section of the Southwest Deposit. The drilling aimed to fill gaps within existing resource pit shells and extend mineralization toward the surface, the company said.

According to the release, on Section 1, drill hole CL-242 yielded 9 g/t Au over 6 meters starting just 15 meters from the surface. Nearby holes CL-240 and CL-243 also encountered near-surface mineralization, with 1.1 g/t Au over 20 meters and 2.5 g/t Au over 6 meters, respectively. Deeper drilling along the resource pit margins produced high-grade intercepts, such as 52.3 g/t Au over 2 meters (including 104 g/t Au over 1 meter) and 33.5 g/t Au over 2 meters (including 66.2 g/t Au over 1 meter) in CL-240, and 1.6 g/t Au over 15 meters in CL-242.

On Section 2, drilling continued to connect mineralization between previously reported holes, with CL-239 returning 1.4 g/t Au over 13 meters and CL-238 intersecting 1 g/t Au over 8 meters and 0.6 g/t Au over 9 meters.

There are currently 44 drill holes from the Southwest Deposit with pending assays, including 7 holes located near the drill results reported in this release, Galway noted.

The Clarence Stream deposits are classified as intrusion-related, structurally controlled gold deposits hosted within quartz veins, the company said. These deposits feature quartz veins and stockwork within brittle-ductile fault zones, which also include crushed and altered wall rocks and veinlet material. The mineralized systems are found in intrusive and metasedimentary rocks within high strain zones governed by regional fault systems. These deposits contain pyrite, base metal sulfides, and stibnite, along with elevated levels of bismuth, arsenic, antimony, and tungsten. Alteration in the host rocks is limited to a few meters around the quartz veins, primarily manifesting as sericitization and chloritization.

Analyst Initiates Coverage

Last month, Galway announced it had filed a Preliminary Economic Assessment (PEA) technical report for its wholly-owned Estrades Project in northern Abitibi, Western Quebec.

The Estrades Project, a former high-grade gold and zinc mine, operated briefly in the early 1990s, producing notable grades of gold, silver, zinc, and copper. Existing infrastructure includes a ramp to 200 meters and a ventilation raise to 150 meters, with a previous operator investing US$20 million in development. Galway released a PEA after enhancing gold recovery rates from 58% to 86.6%.

In a February 17 report, Ron Stewart of Red Cloud Securities highlighted Galway's active advancement of its flagship Clarence Stream project and noted a term sheet allowing for up to US$25 million investment to earn a 45% interest in the Estrades project.

Stewart initiated coverage with a "Buy Recommendation" and a CA$2.20/share price target, noting the company's valuation at an enterprise value per in-situ gold equivalent ounce of US$15.6/oz, compared to a median level of US$68.0/oz.

According to Technical Analyst John Newell of John Newell & Associates on January 12, The company manages well-defined gold resources and is actively progressing projects with proven geology and scale.

Its chart indicates a recurring pattern of accumulation, breakout, and consolidation, reflecting a market that is slowly reassessing the value of the company's assets. With a solid foundation of higher lows and improving momentum, Galway is transitioning from being overlooked to gaining recognition as confidence in the CDNX returns, Newell said.

According to its investor presentation, Galway Metals is actively drilling at the Clarence Stream project with three rigs to expand resources and enhance project economics. Two rigs focus on the Southwest deposit, while a third targets shallow gold mineralization in the North deposit, Stewart noted.

The company plans to add a fourth rig for new discoveries. Metallurgical testing at Clarence Stream shows gold recoveries of up to 98% in the Southwest deposit, which contains over 70% of the project's ounces. A program is underway to optimize a 25-million-pound antimony resource, with reported recoveries of up to 98% for both gold and antimony. Galway aims to start an updated mineral resource estimate by mid-2026.

For the Estrades Project, following the PEA release and an agreement with DOWA Metals and Mining Co., Phase I of the deal is expected to last about six months, with drilling anticipated to begin in March 2026.

The Catalyst: Tariff Uncertainty Puts Gold in Spotlight Again

Gold prices experienced a rise on Wednesday, recovering from the previous day's decline as investors evaluated the effects of newly implemented U.S. tariffs and anticipated upcoming U.S.-Iran discussions, according to a report by Peter Nurse for Investing.com on February 24. By 08:50 a.m. ET, spot gold had increased by 0.8% to US$5,185.90 per ounce, while U.S. Gold Futures rose by 0.5% to US$5,203.62 per ounce. This rebound followed a 1.6% drop on Tuesday after four consecutive sessions of gains.

The U.S. initiated a temporary 10% global import tariff on Tuesday, with plans to raise it to 15%, a move that has heightened uncertainty regarding global trade and inflation, Nurse reported. The tariff action came after a U.S. Supreme Court decision last week that invalidated previous extensive duties imposed under emergency powers, leading Washington to reintroduce tariffs under a different legal framework.

Geopolitical tensions are also in the spotlight, with the U.S. and Iran set to hold a third round of talks on Thursday in Geneva concerning Tehran’s nuclear program, according to the report. A slightly weaker U.S. dollar provided additional support, making dollar-priced metals more affordable for international buyers. However, expectations of sustained high U.S. interest rates limited gold's gains. Two Federal Reserve officials indicated on Tuesday that there is little inclination to alter the central bank’s policy stance in the near term, reinforcing a higher-for-longer rate outlook that typically affects non-yielding assets like gold.

JP Morgan predicts that demand from central banks and investors will drive gold prices to US$6,300 per ounce by the end of 2026. The investment bank also increased its long-term price forecast for gold to US$4,500 per ounce, Nurse wrote.

President Donald Trump's implementation of the universal tariff has provided a boost to mining stocks, which had previously declined following their earnings reports last week, according to a report by Paolo Confino for Investor's Business Daily on February 23. This new policy, introduced after the Supreme Court invalidated many of Trump's earlier tariffs, has driven investors toward safe-haven assets like gold, subsequently increasing the share prices of mining companies.

The rise in gold prices has positively impacted miners such as Barrick Mining, Agnico-Eagle, Kinross Gold, and Newmont, whose stocks had dropped after their earnings releases. On Monday, gold prices increased by approximately 3%, while silver saw a gain of about 7%, Confino reported.

Ownership and Share Structure¹

Insiders hold 7.31% of Galway, including 6.62% held by CEO Rob Hinchcliffe. Institutional ownership totals 18.52%, led by Van Eck Associates Corp. at 4.45%, Caisse de dépôt et placement du Québec at 3.33%, and Mackenzie Investments at 3.27%. The remainder of the shares are held by retail investors.

Galway has 125.76 million shares outstanding and a market capitalization of CA$90.11 million. The company's 52-week trading range is CA$0.32 to CA$1.01 per share.