en.Wedoany.com Reported - Canada's Galway Metals Inc. (TSX Venture Exchange: GWM; OTC Markets: GAYMF) has released an updated mineral resource estimate for its wholly-owned Clarence Stream gold project in southwestern New Brunswick. The report indicates indicated mineral resources of 27.2 million tonnes at 1.62 g/t gold, containing 1.42 million ounces of gold, and inferred mineral resources of 28.5 million tonnes at 1.40 g/t gold, containing 1.29 million ounces of gold. The updated estimate also includes approximately 19,500 tonnes of antimony in the indicated category and 3,100 tonnes in the inferred category, representing increases of approximately 103% and 45%, respectively, compared to the 2022 mineral resource estimate.
The latest mineral resource estimate includes open-pit mineral resources: 1.36 million ounces of gold in the indicated category and 1.02 million ounces in the inferred category. Underground mineral resources total: 60,000 ounces of gold in the indicated category and 271,000 ounces in the inferred category. Overall, the updated estimate reports open-pit constrained indicated resources of 26.68 million tonnes at 1.58 g/t gold, containing 1.36 million ounces of gold, and inferred resources of 25.17 million tonnes at 1.26 g/t gold, containing 1.02 million ounces of gold. Underground constrained resources total: 519,000 tonnes at 3.60 g/t gold, containing 60,000 ounces of gold in the indicated category, and 3.37 million tonnes at 2.50 g/t gold, containing 271,000 ounces in the inferred category.
According to the company, the updated mineral resource estimate incorporates results from approximately 340 diamond drill holes (totaling about 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 stated that approximately 50% of the indicated gold ounces are at grades above 3.0 g/t, with about 35% at grades above 5.0 g/t. The company also noted that approximately 96% of the indicated gold ounces are constrained within optimized open-pit shells at the North, South, and Southwest deposits.
Robert Hinchcliffe, President and CEO of Galway Metals, said in a company press release that this updated mineral resource estimate represents a significant milestone for the Clarence Stream project, with total gold content increasing by 20%, coupled with a 54% increase in indicated gold ounces, providing a stronger foundation for the project. He added that approximately half of the indicated gold ounces are at grades above 3.0 g/t, highlighting the quality of the updated resource and its potential to support future development.
On the capital markets front, Red Cloud Securities analyst Ron Stewart maintained a Buy rating and a C$2.20 per share target price for Galway Metals in a July 14 research report. Stewart wrote that the updated mineral resource estimate increases the Clarence Stream resource to 2.7 million ounces of gold, an increase of 450,000 ounces or 20% from the 2022 estimate, while indicated ounces increased by 54% to 1.42 million ounces, raising the indicated share of the resource from 41% to 52%. He noted that the grade decreased from 2.3 g/t to 1.62 g/t because the estimate used a long-term gold price of US$3,250 per ounce, compared to US$1,650 per ounce in the 2022 estimate, which more than doubled indicated tonnage to 27.2 million tonnes. He added that with the resource in place, the company is reviewing proposals to commission a preliminary economic assessment for Clarence Stream.
Stewart further noted that all three deposits remain open, and drilling has extended mineralization at the North zone approximately 430 meters beyond the previous open-pit shell. The company has identified 12 high-priority geochemical and geophysical targets along a 65-kilometer trend. Additionally, metallurgical test results show antimony recovery of approximately 84% in flotation concentrate, with gold recovery ranging between 85% and 98%.
Galway stated that four diamond drills are currently operating at Clarence Stream as part of its planned approximately 40,000-meter 2026 drilling program. Two drills are focused on resource expansion and infill drilling around the North, South, and Southwest deposits, while the other two drills are testing regional and near-deposit exploration targets, with the aim of discovering new mineralized zones within the broader Clarence Stream area. The next phase of work is expected to include expansion and delineation drilling, additional metallurgical test work, waste rock characterization studies, geotechnical drilling, and engineering studies. The company also intends to use the updated mineral resource estimate to continue evaluating development options, including a preliminary economic assessment, and to continue regional exploration along its approximately 65-kilometer prospective gold trend.
