Galway Metals (GWM, TSX): What Will It Take To “Shock And Awe” The Market?

Feb 19

Galway Metals (GWM, TSX): What Will It Take To “Shock And Awe” The Market?

Everybody wants 5-baggers and 10-baggers, and they want ’em now!

Patience isn’t exactly a strong suit for most traders and investors.

Well, Galway already provided a 6-bagger for some shareholders.  It happened fast, too.  GWM skyrocketed from 10 cents to 60 cents between April and August of 2016.

Since then GWM hasn’t advanced whatsoever in terms of stock price appreciation.  It did provide 1 great trading opportunity about a year ago.  We positioned ourselves in GWM at around 15 to 20 cents prior to assay results after learning Galway had hit some nice sections of visible Gold while drilling.  When the news came in, some subscribers were able to cash out with 200% gains, or better, within a month.

I’m sure some of you, like myself, continued to hold GWM because Galway’s Clarence Stream Project (New Brunswick) really is shaping up to be a “district”.

With each round of drill results and each news release it’s becoming glaringly obvious that Clarence Stream is in fact a new Gold district in eastern Canada.  Their next resource estimate should show they’ve got 1+ million ounces of open-pit material grading nearly 2 g/t.  Then if you start extrapolating out over the 65 km of strike, which is littered with high-grade Gold boulders in soil anomalies, a high percentage of which lead to drilling discoveries, I think it’s easy to see Clarence Stream will keep growing (Galway is like a mini-Marathon – MOZ, TSX – at this point).

Galway published some more solid results Thursday, including 6.3 g/t Au over 30 m.  Drilling also intersected visible Gold in 3 separate locations within 1 hole, located about 230 m west of the prior western-most George Murphy Zone (GMZ) drilling.  Assays are pending.

Galway is rapidly expanding the George Murphy Zone in both vertical and horizontal dimensions.  The structure containing 6.3 g/t Au over 30 m was drilled up-plunge of known mineralization, towards surface, to enable it to become part of a pit-constrained resource estimate.  The new discovery to the north contains strong quartz veining.  New drilling to the west is intended to shrink what was an 800 m gap between the Richard and GMZ.  Galway is demonstrating that its interpretation that the Jubilee, Richard and George Murphy Zones, which cover 2.5 km of strike length, are part of the same system. These 3 zones are not included in the existing Clarence Stream resource, as 2 of them, the GMZ and Richard, were discovered by Galway after the last resource estimate was released in September 2017.  These results, and those that precede them, demonstrate that Clarence Stream is an emerging new Gold district in North America,” cited Robert Hinchcliffe, President and CEO of Galway.

I don’t know what kind of high-grade assays it would take to create some shock and awe for GWM, but I do know I like project and potential for shock and awe (fast money).  Hinchcliffe sure likes GWM and Clarence Stream, during the past year he’s purchased 1.5 million shares in the open market.

Galway’s got 3 rigs on site and plans to drill 25,000 m this year.

At 33 cents per share Galway’s market cap is $42 million.

And don’t forget Galway also owns 100% of a relatively high-grade Zinc and Gold-rich VMS deposit on its Estrades Project.  Estrades is a wildcard for an unexpected new discovery and/or non-dilutive financing.  Hinchcliffe will look to monetize Estrades when Zinc prices improve.