Galway Metals to release new Clarence Stream resource estimate

Galway Metals (TSXV: GWM; US-OTCQB: GAYMF) is preparing to release a new mineral resource update within days encompassing all six of the Clarence Stream gold project’s discovery zones in New Brunswick.

Recent exploration has confirmed a continuous mineralized strike of at least 3.1 km, connecting previously separate deposits. Most recently, the company has succeeded in expanding the George Murphy Zone (GMZ) in several directions and connecting the GMZ to the Adrian Zone (to the north) and the GMZ to the Richard Zone (to the southwest), which was previously connected to the Jubilee Zone (to the southwest).

“Galway has eliminated the 400-metre gap between the GMZ and Richard Zones, meaning the zones are now connected,” Galway’s VP for corporate development and director, Larry Strauss, told The Northern Miner. “We are delighted to finally prove our belief that these four new mineralized zones are connected, with a total strike length of 3.1 km.”

Previously, the company reported intercepts of 1.3 gram per tonne gold over 41.2 metres (now 42 metres) in hole 189; and 1.4 gram gold over 13.5 metres, 1.2 grams gold over 9 metres, 0.8 gram gold over 13 metres, 1.3 gram gold over 5 metres, and 1 gram gold over 5 metres in hole 185 in this gap. New results in the gap include 1.4 grams gold over 34.5 metres in hole 188, among others.

“Also in this gap area is a new intersection in hole 186 of 0.8 g/t gold over 25.5 metres, which is in addition to that hole’s previously-released intersect of 18.8 g/t gold over 6 metres,” said Strauss.

The GMZ East Area has been extended deeper below several previously released intersections, including 40 metres deeper by hole 152, which intersected 4 grams gold over 41.2 metres and 75 metres deeper by hole 150, which intersected 4.7 grams gold over 11.7 metres.

Meanwhile, the GMZ and the more recent Adrian Zone discovery were confirmed to be connected through the previous drilling. Still, the new intersection of 7.3 grams gold per tonne over 13.5 metres in hole 152 is the closest to where the two zones join together.

“This intersect is within the Adrian Zone but only 12 metres from the wireframed GMZ Zone. The previously released intersection of 5.8 g/t gold over 55.5 metres (in hole 122) is located 143 metres away from the 7.3 g/t gold over 13.5 metres,” said Strauss.

The GMZ has also bulked up with an intersection of 4.4 grams gold over 21.4 metres, plus 0.8 gram gold over 35.9 metres in hole 100, located in the former centre of the zone. They are located 47 and 30 metres from an intersection of 1.9 gram gold over 95.5 metres (previously 2 grams gold over 54 metres) in hole 97.

“Galway entered the project in 2016 with a vision of a new emerging gold district in Canada, with 65 km of under-explored strike length, coupled with good infrastructure, and our consistently good results continue to demonstrate that vision,” said Strauss.

But while connecting the formerly seemingly disparate deposits was a key part of the company’s strategy, Strauss said the company’s attention was now turning to priority regional targets where recent new discoveries have been based on more substantial prospecting results than those that led to the project’s initial discoveries.

Management further believes the continuity of mineralization should enhance the project’s economics.

“We are looking to have a new resource estimate out by the end of March, which will be the maiden resource estimate for this new area, in addition to an updated resource for the legacy North and the South zones, which have an additional 4.4 km of strike,” said Strauss.

“Moreover, with intercepts starting right from the surface, we are looking at open pit potential and underground for the deeper mineralization. Following the resource estimate, our drilling program will be focused on making new discoveries, following up on recent discoveries and expanding existing zones,” said Strauss.

“We have a three-pronged approach coming up in our program. We’re going to drill to continue to expand the six deposits using six drill rigs currently on site; we haven’t drilled the North and South Zones in four and a half years – they’re wide open; and we’ll test these zones at depth since each remains truly open at depth,” he said.

Galway has a 100% interest in the Clarence Stream gold project, located 70 km south-southwest of Fredericton in southwestern New Brunswick. The company’s land position includes 604.7 sq. km with 65 km of strike length (and a width of up to 28 km) along the Sawyer Brook Fault System. In addition, Galway holds the Estrades property, a former producing, high-grade VMS mine in Quebec.

The Clarence Stream deposits appear to be intrusion-related, quartz-vein hosted gold systems with elevated bismuth, arsenic, antimony and locally tungsten.

“Clarence Stream has become a classic ‘drill baby, drill’ project,” said Strauss. “The more we drill, the more we will find, I can almost assure you of that,” he said.

The GMZ discovery was initially reported in December 2017, but drilling stopped a year later after discovering the Richard Zone, first reported in January 2019.

Galway Metals shares trading in Toronto last traded more than 48% lower over the 12-month timeframe at 52c per share, which gives it a market capitalization of $92.9 million.