Update adds pit-constrained resources.
Galway’s Clarence Stream now hosts a total of ~390k oz Au (M&I) grading 1.96 g/t Au and 277k
oz Au (Inferred) grading 2.53 g/t Au, an increase of 54% (Figure 1). The previous resource estimate completed in October 2016 focused on underground
resources only, the update combines underground and a new pit-constrained estimate (M&I: ~350k oz Au, Inferred: ~150k oz Au), to incorporate near-surface
mineralization in the South and North Zones. In adding the pit-constrained option, cut-off grades have lowered from 3.00 g/t Au underground only (2016)
to 2.55 g/t Au for underground and 0.42 g/t Au for open-pit (2017). The resource extends over a strike length of 1.6km, which has been increased by
over 1km with recent drilling.
Drill results pending; more exploration to come. 69,761m of drilling in 496 holes were included in the updated resource estimate for
Clarence Stream. Results for 20 holes are still pending from the North (9 holes) and South (11 holes) Zones, which have been designed to further
expand resources, these results were not included in the updated resource. An additional 11 holes were drilled at Jubilee, 5km southwest of the
South Zone, targeting a new satellite resource. Further exploration work is planned, as well, the company’s next steps include a PEA.
Exploration should help close valuation gap to peers.
Galway currently trades at a discount to peers, or C$17/oz versus peers at C$37/oz.
Continued exploration success will likely be an important catalyst for the company and should help close the valuation gap to peers. Upcoming drilling
at Estrades will continue to be a combination of shallow and deep holes as the program focuses on expanding resources, as well as exploration of
satellite targets at Clarence Stream.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
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Galway Metals Inc. - TSXV:GWM - 2
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