Galway plans Q1 resource update in New Brunswick
Galway Metals Inc. [GWM-TSX.V, GAYMF-OTC] on Tuesday said it is planning to table a resource update in the first quarter of 2022 after releasing new drill results from its Clarence Stream gold property in New Brunswick.
Galway was spun out in December, 2012 by way of a plan of arrangement that involved the sale of a California gold-silver project in Colombia to Brazilian resource investor Eike Batista for $340 million.
It secured an option to acquire a 100% interest in the Clarence Stream property from Wolfden Resources Corp. in August, 2016. Located 70 kilometres southwest of Fredericton, Clarence Stream hosts a total measured and indicated resource of 6.2 million tonnes of grade 1.96 g/t gold or 390,000 ounces and an inferred resource of 3.4 million tonnes of grade 2.53 g/t gold or 277,000 ounces.
That material is located in the North and South Pit areas. Management has said it believes this resource can be significantly expanded and is optimistic about the potential for satellite discoveries.
“Galway continues to receive wide and high-grade drill results that are expanding the George Murphy (GMZ) and Adrian Zones and significantly improving the potential to combine these two pits into one,” the company said in a press release, Tuesday.
“We see the same potential with the GMZ and Richard zones where wide mineralized intersects were recently released and where additional assays are pending,” it said.
“We believe these pending results will contribute significantly to the ability to combine these zones, enhance the economics of the project and benefit the resource update.”
As a result, the resource update will be announced in the first quarter, instead of this month.
The company said the latest results expand the Adrian zone in multiple directions and the GMZ where the company recently reported a 50% strike-length expansion. The company now says significant potential exists to enable the company to be able to combine the GMZ with the Adrian and Richard Zones.
In announcing drilling highlights from the Adrian Zone, the company said a wide vein within the this zone was previously expanded by 44 metres to the northeast with an intersect that now returns 5.8 g/t gold over 55.5 metres in hole CL-122 (originally reported as 38.6 g/t gold over 7.5 metres with assays pending; assays are still pending) from previously released intersect that returned 1.1 g/t gold over 78.5 metres in hole CL-52.
Drilling in the GMZ has intersected 8.1 g/t gold over 17.5 metres in hole CL-136. This intersection is located 108 metres southwest of a previously reported intersection in hole 109 that returned 1.9 g/t gold over 10 metres.
Galway’s land position consists of 60,465 hectares with 65 kilometres of strike length (and width up to 28 kilometres along the Sawyers Brook Fault System, which straddles several intrusives that are believed to have created the conditions necessary for gold deposition.
On December 6, 2021, Galway shares closed at 57 cents and trade in a 52-week range of $1.27 and 52 cents.