Drilling at Galway Metals’ (TSXV GWM) Clarence Stream gold project in New Brunswick has more than doubled the strike of the Richard zone from 400 metres to over 900 metres.
The company has released assay results for holes completed along the western and eastern limits of the Richard area, which lies between the Jubilee zone (to the west) and the George Murphy zone (to the east).
Highlights included 15 metres of 9.7 grams gold per tonne from a vertical depth of 177 metres in hole 118; 6 metres of 17 grams gold starting at 124 vertical metres in hole 125; and 9 metres of 5.1 grams gold from a vertical depth of 225 metres in hole 122.
Holes 125 and 122 stepped out the Richard area to the east, by 262 metres and 96 metres, respectively. Drill hole 118 hit gold mineralization 90 metres to the west of the prior western limit of Richard.
With these results, the company has now closed a 1-km-long gap in drilling between the Richard and Jubilee zones, with infill work planned for this area. To the east, hole 125 is the first of five holes completed within a 660-metre gap between George Murphy and Richard, with assays pending for four of the holes. With these most recent results, this gap has now been reduced to 400 metres.
In a news release, Robert Hinchliffe, Galway’s president and chief executive, noted that the company has over $20 million of cash in its treasury and recently expanded its drill program at Clarence Stream to five rigs for a total of 75,000 metres.
“Galway’s aim is to not only expand the existing zones, but to also continue making new discoveries to further demonstrate that Clarence Stream is an important new gold district in North America,” Hinchcliffe said.
Assays for additional holes, two of which hit visible gold, are pending.
According to the company, the results provide additional confirmation that the Jubilee, Richard and George Murphy zones are part of a 2.5-km-long mineralized system. Based on this year’s drill results, the system has the potential to cover 3.5 km of strike.
In September 2017, Galway published a resource estimate for the project – measured and indicated resources in the North and South zones total 6.2 million tonnes grading 1.96 grams gold for a total of 390,000 oz., with additional inferred resources of 3.4 million tonnes at 2.53 grams gold totalling 277,000 ounces.
The GMZ, Jubilee and Richard zones are excluded from this inventory.
Clarence Stream covers 65 km of strike, with anomalous gold geochemistry along the Sawyer Brook fault.
In a note to investors, Jacques Wortman of Laurentian Bank Securities commented that although he is “encouraged by today’s press release and see[s] the potential for our estimate of total gold inventory to increase with improved confidence from additional drilling,” he is not changing his assumptions for the company based on the results. Wortman has a “buy” rating and a $2.25 target price for Galway Metals.
At press time in Toronto, Galway was trading at $1.19 per share within a 52-week range of 27¢ and $2.09. The company has 167 million common shares outstanding for a $191.3-million market capitalization.