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Galway Metals Inc (2)
Symbol GWM
Shares Issued 134,534,126
Close 2020-06-24 C$ 0.54
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Galway Metals drills 0.6 m of 186.5 g/t Au at Clarence

2020-06-24 07:18 ET - News Release

Mr. Robert Hinchcliffe reports


Galway Metals Inc. has released assay results from wildcat exploration drilling located 950 metres southwest and along strike of the westernmost intersection of the Jubilee zone at the company's Clarence Stream project in southwestern New Brunswick, Canada. That intersection had returned 1.9 grams per tonne (g/t) Au over 43.3 metres (m) (35.7 m true width (TW), including 21.2 g/t Au over 2.35 m), starting at a vertical depth of 36 m below surface (Sept. 5, 2019). The new discovery returned 186.5 g/t Au over 0.6 m from a 35-centimetre quartz vein that contains very fine sulphides, including arsenopyrite. Another similar vein located 13 m farther downhole returned 2.2 g/t Au over 0.7 m. The closest drill holes are located 270 m to the southwest and 560 m to the northeast. The one to the northeast intersected 4.4 g/t Au over 1.0 m and also contained 4,050 parts per million bismuth and 344 ppm tungsten (Sept. 5, 2019). These results appear to be along the Jubilee-Richard-George Murphy zone trend that Galway believes is part of the same 2.5 km long mineralized system. These zones have returned such intersects as 10.6 g/t Au over 47.0 m, 1.4 g/t Au over 85.0 m and 6.2 g/t Au over 38.5 m, among many others (refer to previous Galway Metals' press releases). None of these three deposits is in the current resource.

New discovery may be along the northeast-southwest trend, the northwest-southeast trend or at the intersection of both

The new discovery appears to be located along the same northeast-southwest trend as the Jubilee-Richard-George Murphy zones, which are located 950 m to the northeast. The new discovery is between those deposits and a strong plus-four km long soil anomaly that hosts 11 soils that returned between 100 and 681 parts per billion Au located 1,000 m to the southwest. This plus-four km soil anomaly, which is associated with a magnetic low (as are all deposits at Clarence Stream), has not yet been drilled. The new discovery (186.5 g/t Au over 0.6 m) could also be trending along a strong, subperpendicular northwest-southeast (similar to the North zone trend) soil and glacial till anomaly, or it could be at the intersection of both northeast-southwest and northwest-southeast trends. If the new discovery goes in a northwest-southeast direction, it would be along the same trend as the second-highest glacial till anomaly (95 ppb Au) at Clarence Stream, which hosts boulders ranging up to 16.3 g/t Au. The 186.5 g/t Au assay, in a wildcat hole, is the ninth-highest grade on the property.

Robert Hinchcliffe, president and chief executive officer of Galway Metals, said: "The previously announced $17.35-million private placement, which is expected to close within the next few days, will fully fund Galway's newly expanded drill program through the end of 2021 to 75,000 m, up from 25,000 m for 2020 only. In doing so, Galway will soon increase its drill count to five rigs, up from three previously, and up from one during the first three years of exploration since the company's acquisition of Clarence Stream in August, 2016. This expanded program will enable the company to drill the three zones not in resource, to expand the South and North zones that are in resource but which haven't been expanded in nearly three years, to follow up on the new discovery and to make other new discoveries. Other plans for Clarence Stream include ore sorting and metallurgical testing, seismic and magnetic geophysical surveys, intensive prospecting, and excavator trenching and stripping. With all five zones at Clarence Stream open in every direction, and with a multitude of existing drill targets outside the known zones, Galway is thrilled to be able to expand its drill program and unlock value for shareholders. Galway's strong drill results demonstrate that Clarence Stream is an emerging new gold district in North America."

Drilling the gaps, follow-up on recent discoveries and wildcat drilling planned

Galway resumed drilling with three rigs at Clarence Stream in late May. Subsequently, a one-week delay was imposed due to extreme dry and hot conditions. Galway's plan over the next several months is to continue drilling the two gaps between the three zones not in resource, to tighten drill spacings -- generally to 50 metres for inclusion in the pending resource update, to follow up on the recent new discoveries of multiple veins to the north of the GMZ, which includes 11.4 g/t Au over 2.0 m in hole CL20-58, and to follow up on the new 186.5 g/t Au discovery. In addition, further wildcat exploration drilling will ensue on the scores of soil and geophysical targets across the 65 km, 60,000-hectare property.

A sixth rig will be added for ore sorting and metallurgical test drilling

Galway will also add a sixth rig (doubling the current count of drills) to drill wide-diameter (PQ size) core for both ore sorting and metallurgical tests of the three zones not yet in resource. Metallurgical tests have been conducted by previous operators on the North and South zones, which returned recoveries in excess of 90 per cent in both zones.

                             ASSAY RESULTS

Hole ID          From      To  Intercept              Intercept TW        Au
                  (m)     (m)        (m)    (unknown if not noted)     (g/t)
GWM-19BL-38    219.75   221.8                                        pending
                221.8   222.4        0.6                              186.5*
                222.4   235.2                                        pending
                235.2   235.9        0.7                                 2.2
                235.9   244.4                                        pending

TW: true widths, which are calculated -- sectional measuring may give 
slightly different numbers); true widths are unknown if not noted. 
VG: visible gold; 0.42 g/t Au was used for the bottom cut-off. 
* Average gravimetric of two cuts on reject.

New Brunswick junior mining assistance program

Galway would like to acknowledge financial support from the New Brunswick junior mining assistance program, which partially financed drilling of the GMZ, Jubilee and Richard zones.

Geology and mineralization

The recent discovery of the Richard zone in hole 12 contains elevated levels of bismuth, arsenopyrite and antimony, in multiple quartz veins, with tungsten in the vicinity. This is similar to other Clarence Stream deposits, which can be characterized as intrusion-related quartz-vein hosted gold deposits. Richard zone contains multiple zones of quartz veining with sulphides and sericite alteration. In general, mineralization at Clarence Stream consists of 10 to 70 per cent quartz stockworks and veins with 1 to 5 per cent fine pyrite plus pyrrhotite plus arsenopyrite plus stibnite in sericite altered sediments. The Jubilee mineralization consists of 2 per cent to 5 per cent disseminated pyrite, sphalerite, galena, arsenopyrite, chalcopyrite and pyrrhotite in sediments with white to smoky grey quartz veining. Locally there is up to 10 per cent sphalerite and semi-massive galena veinlets. The 2.5 km trend that hosts the GMZ, Richard and Jubilee zones contains a mineralized mafic intrusive locally -- similar to the South zone, which currently hosts most of the property's last reported gold resources (September, 2017). A more complete description of Clarence Stream's geology and mineralization can be found at the company's website.

Review by qualified person, quality control and reports

Michael Sutton, PGeo, director and vice-president of exploration for Galway Metals, is the qualified person who supervised the preparation of the scientific and technical disclosure in this news release on behalf of Galway Metals. All core, chip/boulder samples and soil samples are assayed by Activation Laboratories, 41 Bittern St., Ancaster, Ont., Canada, which has ISO/IEC 17025 accreditation. All core is under watch from the drill site to the core processing facility. All samples are assayed for gold by fire assay, with gravimetric finish and other elements assayed using ICP. The company's quality assurance/quality control program includes the regular insertion of blanks and standards into the sample shipments, as well as instructions for duplication. Standards, blanks and duplicates are inserted at one per 20 samples. Approximately 5 per cent of the pulps and rejects are sent for check assaying at a second lab with the results averaged and intersections updated when received. Core recovery in the mineralized zones has averaged 99 per cent.

About Galway Metals Inc.

Galway Metals is well capitalized with two gold projects in Canada, Clarence Stream, an emerging gold district in New Brunswick, and Estrades, the former producing, high-grade VMS (volcanogenic massive sulphide) mine in Quebec. The company began trading on Jan. 4, 2013, after the successful spinout to existing shareholders from Galway Resources following the completion of the $340-million (U.S.) sale of that company. With substantially the same management team and board of directors, Galway Metals is keenly intent on creating similar value as it had with Galway Resources.

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