Galway Metals: New Discoveries And Targets All Over The Place! (Maybe Hinchcliffe Isn’t So Cuckoo After all)

One of the many companies at PDAC, but one that really does stand out in a crowd, is Galway Metals (GWM, TSX-V).  It’s a stock we first presented to subscribers late last year when it was languishing in the upper teens.  Today it closed at 36 cents, 8 cents below its February 13 high of 44 cents.  The trend remains bullish, fundamentally and technically.

“The newest discovery is high-grade Gold located just beneath a relatively weak soil anomaly that we drilled,” stated Michael Sutton, Galway’s Chief Geologist who’s also director of the Northern Prospectors’ Association.   “We have other anomalies all across the property that are very-very strong, a lot stronger than that, and there’s not a drill hole in any of them.  So we’re pretty stoked about the potential on the property.”

Soils work at Clarence Stream (New Brunswick), not unlike how soil anomalies work in the Yukon and Nevada.  It’s a cheap exploration method and it works –  great combination for exploration success and creating wealth for shareholders!

All 5 zones at Clarence Stream are wide open in every direction.  Assays are still pending for a few holes recently drilled into the George Murphy and Richard zones.  Clarence Stream ranks high on my list of most interesting drill-discovery plays in North America.

Estrades, Galway‘s #2 after Clarence Stream, is both a drill-discovery and development stage project.  It’s a past producing VMS deposit located in Quebec, and also features unusually high Gold content for a VMS system (historical production averaged around 6 g/t Au and 13% Zn).

With little to no outcrop, Galway’s targeting strategy at Estrades hinges on geophysics.  Thus far they’ve completed gravity and Titan geophysical surveys,  looking for conductors.  Gravity tells Galway where there’s a density contrast.  Below you can see a new anomaly, Estrades South, that was identified approximately 2 km from the deposit (this new target is begging to be drilled soon).

“We’ve got a lot of targets based on those two geophysical surveys that have never been drilled,” stated Sutton.  “These VMS deposits occur in clusters around the world so we think we’re going to find more deposits on the property.  It’s a big land package that basically hasn’t been worked since the 1980’s when Teck discovered Estrades.”

Galway and Sutton will be drilling underneath the existing deposit, roughly 1 million ounces of Gold equivalent, with hopes of discovering the feeder system this year.  The Estrades project spans 31 km along the prolific Casa Berardi break.  As of now, Galway plans to drill 6,000 m and publish a PEA on Estrades during 2019.  Economics should look good or even great thanks to existing infrastructure, high-grades, mining method, and the potential for toll milling.

At Clarence Stream Galway plans to drill +7,000 m (70 holes with a focus on satellite discoveries), take an additional 10,000 soil samples for target generation, plus publish a new resource estimate including all 5 zones.  With about $7 million cash on hand they’ve got the money to stay very busy at Clarence Stream and Estrades all year.

Technical strength is the cherry atop Galway’s 2 top-notch projects (each likely weighing in at +1 million ounces AuEq. following resource updates).  Shares of GWM are trading near 52-week highs.  Volume on the buy side has been very strong and we know insiders are heavily invested.  I see GWM pushing toward 50 and then 60 cents, from a current price of 36 cents (market cap $38 million), in the months ahead.