Gold Resource Climbs 20% as Updated Estimate Tops 2.7 Million Ounces

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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 an updated Mineral Resource Estimate (MRE) for its 100%-owned Clarence Stream Gold Project in southwest New Brunswick. The updated estimate reports Indicated Mineral Resources of 27.2 million tonnes grading 1.62 g/t gold containing 1.42 million ounces of gold and Inferred Mineral Resources of 28.5 million tonnes grading 1.40 g/t gold containing 1.29 million ounces of gold. The updated estimate also includes approximately 19,500 tonnes of contained antimony in the Indicated category and 3,100 tonnes in the Inferred category, representing increases of approximately 103% and 45%, respectively, compared with the 2022 Mineral Resource Estimate.

The updated MRE includes open-pit Mineral Resources of 1.36 million ounces of gold in the Indicated category and 1.02 million ounces of gold in the Inferred category. Underground Mineral Resources total 60,000 ounces of gold in the Indicated category and 271,000 ounces of gold in the Inferred category. Overall, the updated estimate reports open-pit constrained Indicated resources of 26.68 million tonnes grading 1.58 g/t gold, containing 1.36 million ounces of gold, and Inferred resources of 25.17 million tonnes grading 1.26 g/t gold, containing 1.02 million ounces of gold. Underground constrained resources total 519,000 tonnes grading 3.60 g/t gold containing 60,000 ounces of gold in the Indicated category and 3.37 million tonnes grading 2.50 g/t gold containing 271,000 ounces of gold in the Inferred category.

According to the company, the updated Mineral Resource Estimate incorporates results from approximately 340 diamond drill holes totaling approximately 70,000 meters completed since the 2022 Mineral Resource Estimate. The estimate reflects revised geological interpretations and resource modeling for the North, South, and Southwest deposits.

Galway said approximately 50% of contained Indicated gold ounces occur at grades above 3.0 g/t gold, including approximately 35% occurring at grades above 5.0 g/t gold. The company also stated that approximately 96% of the contained gold ounces within the Indicated Mineral Resource are constrained within optimized open pit shells across the North, South, and Southwest deposits.

Robert Hinchcliffe, President and CEO of Galway Metals, said in a company news release, "This updated Mineral Resource Estimate marks a significant milestone for the Clarence Stream Project. The 20% increase in total contained gold, together with the 54% increase in Indicated gold ounces, provides a substantially stronger foundation for the Project."

He added, "Approximately half of our contained Indicated gold ounces occur at grades above 3.0 g/t Au, underscoring the quality of the updated resource and its potential to support future development."

Gold Sector Continued to Balance Inflation, Monetary Policy, and Safe-Haven Demand

According to gold dealer JMBullion on July 14, the spot price of gold had risen 0.62% to US$4,033.92 per ounce. The company reported that "Gold spot price can fluctuate by the second, driven by investment supply and demand, and other factors."

Reuters reported on July 14 that gold had rebounded after reaching a two-week low as markets awaited U.S. inflation data and testimony from Federal Reserve Chair Kevin Warsh. ActivTrades analyst Ricardo Evangelista said, "Gold prices are edging higher today, supported by a pause in the U.S. dollar's recent rally." He also stated, "A CPI reading above the region of 3.8% could reinforce expectations of a hawkish Federal Reserve and create a headwind for gold prices." Reuters also reported that the U.S. dollar index had fallen 0.2%, making dollar-priced bullion less expensive for holders of other currencies, while elevated oil prices had increased inflation concerns and strengthened the case for higher interest rates.

Kitco News wrote on July 13 that Sprott managing partner and market strategist Paul Wong viewed gold's recent price weakness within the context of monetary policy, inflation, and currency markets. Wong stated, "The drop in gold prices appears to be much more significant than the actual moves in the U.S. dollar and federal funds rates. It suggests that much of the potential negative effects of a higher-rate, stronger-dollar combination have already been discounted."

Wong also said, "The rising tension between inflation, politics, and central bank credibility creates an environment that has historically supported gold." Discussing the role of the metal in the global financial system, he stated, "The paradox is that the stronger the U.S. dollar becomes, the greater the incentive for countries to find alternatives to it." He added that "gold occupies a unique position in this evolving framework as it is 'outside money,'" and said its role was "gradually evolving from an inflation hedge to a monetary hedge, a reserve asset and potentially a form of monetary collateral."

Ongoing Work Advances Across Clarence Stream

Galway said four diamond drill rigs are currently operating at Clarence Stream as part of its planned approximately 40,000-meter 2026 drill program. Two rigs are focused on resource expansion and infill drilling around the North, South, and Southwest deposits, while two additional rigs are testing regional and near-deposit exploration targets with the objective of making new discoveries across the broader Clarence Stream district.

The company stated that the North, South, and Southwest deposits remain open for expansion through continued drilling. It also said the broader Clarence Stream district spans approximately 65 kilometers and contains numerous gold showings, geochemical anomalies, and untested exploration targets.

In addition to the ongoing drill program, Galway said its next phase of work is expected to include expansion and delineation drilling at the North, South, and Southwest deposits to support further resource growth, resource conversion, and refinement of the geological model. Planned work also includes additional metallurgical test work to evaluate gold recovery, processing characteristics, and potential optimization opportunities across the established deposits.

The company said it also plans to complete waste rock characterization studies to support mine planning, environmental assessment, and future project design, along with geotechnical drilling and engineering studies to support future pit design, infrastructure planning, and development evaluations. Galway also intends to continue evaluating development scenarios using the updated Mineral Resource Estimate and supporting technical studies, evaluate a Preliminary Economic Assessment (PEA), and continue district-scale exploration across its approximately 65-kilometer prospective gold trend, including follow-up work on regional exploration targets. 

Hinchcliffe said, "With four drill rigs currently operating as part of our planned 40,000-meter 2026 drill program, Galway is well positioned to continue expanding and upgrading the Mineral Resource, make new discoveries across our 65-kilometer district, and advance Clarence Stream through future economic studies. Notably, the next milestone for Clarence Stream is the Preliminary Economic Assessment (PEA). We are currently reviewing proposals for this next step."

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.