en.Wedoany.com Reported - Red Cloud Securities analyst Ron Stewart maintains a "Buy" rating on Galway Metals Inc. (GWM:TSX.V; GAYMF:OTCQB) with a target price of C$2.20 per share. This target price implies a 358% upside from the closing price of C$0.48 on June 11, 2026. Previously, the company released assay results from 34 diamond drill holes at the North Zone of its wholly-owned Clarence Stream gold deposit in New Brunswick, Canada.

Stewart believes the overall impact of these drilling results is neutral. He notes that while most drill holes intersected narrow veins (1 to 2 meters wide) with moderate grades (1 to 2 grams of gold per tonne), a few standout intercepts raised the average grade of 45 mineralized intervals to 2.88 grams of gold per tonne, with an average width of 1.94 meters.

Drilling highlights include: Hole ND-52 intersected 1.55 meters grading 40.3 grams of gold per tonne, including a sub-interval of 0.85 meters grading 69.7 grams of gold per tonne; Hole ND-50 intersected 6.0 meters grading 2.1 grams of gold per tonne, including a sub-interval of 1.0 meter grading 8.7 grams of gold per tonne; and Hole ND-44 intersected 3.0 meters grading 3.9 grams of gold per tonne, including a sub-interval of 1.7 meters grading 6.2 grams of gold per tonne. Most of the drilling was conducted approximately 430 meters north of the 2022 open-pit constrained resource boundary, with drill hole spacings of 25 to 50 meters, extending beyond the current resource estimate.

Stewart stated that while these results alone will not directly drive the stock price, they improve understanding of the deposit's northern boundary and help identify targets for subsequent drilling. Follow-up drilling in 2026 will evaluate targets near the West Zone, which hosts a significant amount of antimony in the deposit. Near existing resources, Hole ND-61 intersected 10.85 meters grading 5.0 grams of gold per tonne (including sub-intervals of 2.0 meters grading 11.3 grams of gold per tonne and 2.0 meters grading 10.4 grams of gold per tonne) from a gap between the Eastern and Central open-pit constrained zones, supporting the company's view that additional mineralization may exist between previously modeled areas. Currently, four drill rigs are continuing to infill and expand the deposit.

Stewart emphasized that the more important event is the updated mineral resource estimate (MRE) expected to be released by the end of this month. Since the 2022 MRE, the company has drilled 342 holes (approximately 70,000 meters). He estimates that total resources could increase from 2.3 million ounces to approximately 3 million ounces, with the proportion of indicated resources rising from about 40% to about 60%. This would lay the foundation for Galway to advance the Clarence Stream project into a preliminary economic assessment (PEA).

The current MRE includes indicated resources of 922,000 ounces (12.4 million tonnes at 2.3 grams of gold per tonne) and inferred resources of 1.33 million ounces (16 million tonnes at 2.6 grams of gold per tonne), based on a gold price assumption of $1,650 per ounce. Open-pit resources account for 75% of the total, with a grade of 2.3 grams of gold per tonne—more than double the average open-pit gold grade of Stewart's selected peers. The new resource estimate will be prepared under a significantly higher gold price environment.

Financially, Galway Metals has a market capitalization of C$65.2 million, an enterprise value of C$50.5 million, holds cash of C$14.7 million, and has no debt. The basic number of shares outstanding is 135.9 million (163.5 million fully diluted), with a 52-week trading range of C$0.35 to C$1.01.

Stewart values Galway's Clarence Stream and Estrades projects at an in-situ enterprise value per ounce of $65 per ounce and believes that a larger, higher-confidence resource should help narrow the valuation gap. Galway's in-situ gold equivalent price is approximately $11.8 per ounce, compared to a peer median of $61.3 per ounce (P/NAV of 0.23x vs. peer median of 0.25x). He believes positive exploration and development progress should drive the stock price in the near term.

Upcoming catalysts include: the updated MRE for Clarence Stream (mid-2026), further assay results from the ongoing drilling program, ongoing metallurgical test results, and exploration work on the Dowa-funded Estrades project in the second half of 2026. A key risk implicit in the analysis is that the company relies on continued exploration success and sustained high gold prices to achieve the resource growth and valuation re-rating anticipated by Stewart.

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