Resource World Magazine

A P R I L / M A Y 2 0 1 9 www.resourceworld.com 45 MINING New Discoveries add luster to Clarence Stream by Thomas Schuster GALWAY METALS INC. [GWM-TSXV; GAYMF-OTC] is in the midst of a 7,000-metre drilling campaign at its Clarence Stream Project in southern New Brunswick with a goal of identifying new deposits and expanding its existing gold resources along the 65-km-long Sawyer Brook fault structure. Gold mineralization at Clarence is closely related to deep- seated faults and intimately associated with major geological terrain boundaries. The company has been successful at vector - ing in on new gold discoveries along the Sawyer Brook structural trend by using gold-in-soil geochemical anomalies as pathfinders. The newly discovered Richard Zone represents the second deposit that Galway has found since it began drilling Clarence Stream in October 2016. The George Murphy Zone (GMZ) was the first. In total, five deposits have been identified in the Clarence Stream district to date (North, South, Jubilee, Richard and George Murphy zones). So far, only two of them, the North and South zones, have existing resources. An updated resource which will include the new discoveries is expected later in 2019. All five deposits remain wide open for expansion. "The discovery of a fifth gold deposit at Clarence Stream shows the effectiveness of our exploration program and points to the strong prospectivity of this new gold belt in New Brunswick," said Robert Hinchcliffe, President and CEO. "The George Murphy Zone is filling in and expanding nicely and remains open in all directions. Looking forward, our plan is to follow up with more holes in the new discovery area, and to then expand the Jubilee Zone before moving further west in search of additional new discoveries where a high-priority, four-km long, high-grade soil anomaly exists. We then plan on returning to the GMZ to follow up on wide-open drill targets. Given these and other strong targets and deposits already identified, we believe Clarence Stream represents an exciting new gold district in east - ern Canada." Current measured and indicated resources at Clarence Stream stand at 6.18 million tonnes averaging 1.96 g/t gold (390,000 contained ounces gold). An additional inferred resource adds 3.4 million tonnes averaging 2.53 g/t gold (277,000 oz contained gold). The new Richard Zone was discovered in an area where there has been no previous drilling, centred between the George Murphy and Jubilee Zones, approximately 1 km from each. The discovery hole, BL18-12, returned 7.3 g/t gold over 36.7 metres, including 38.1 g/t over 6.5 metres in multiple quartz veins containing abundant visible gold, starting only 51 metres downhole and 36 metres vertical. Follow-up drilling in hole BL19-15 intersected 5.4 g/t gold over 11.0 metres, including 20.9 g/t gold over 2.55 metres. A total of four holes have been drilled into the Richard Zone so far. Complete assay results are pending. Geologists made the new discovery by testing gold-in-soil anomalies. It should be noted that the soil anomaly that lead them to the Richard Zone had only 19 parts per billion (ppb) as its high - est value versus. This compares with much higher values (up to 1,030 ppb) elsewhere on the property not yet drilled. Galway recently announced more drill results from the GMZ located 2 km and 1 km east of the Jubilee and Richard Zones, respectively. The gold-bearing structures at the GMZ have been drilled to a maximum of 265 metres vertical, although most drill - ing is down only to 130 metres. The GMZ is 500 metres long with all zones open in all directions. Two holes intersected multi-hundred-gram intersections over short intervals: 201.0 g/t gold over 0.5 metres (within an 8.7-metre interval averaging 13.0 g/t gold in hole CL18-36) and 807.0 g/t gold over 1.25 metres (within 4.2 metres averaging 241.5 g/t gold in hole CL18-26). Galway geologists believe the proximity of these two holes sug - gest that a sub-vertical shoot exists. These shoot-like structures are typical for orogenic gold systems. Galway has also intersected very high-grade silver miner- alization for the first time in GMZ drilling. Hole 5 returned an intersection of 1,650 g/t silver over 1.0 metre at a vertical depth of 377 metres and north of the known gold structures. Galway states that this zone may possibly lie outside the GMZ deposit. With $7 million in the till and market capitalization of $33 mil - lion, Galway Metals is well funded to continue work on its two projects in Canada; the Clarence Stream Project and the Estrades Project, a former producing, high-grade VMS mine in Quebec. The company was a spinout to existing shareholders from Galway Resources following the completion of the US $340 million sale of that company. n Visible gold in discovery hole BL18-12 at Clarence Stream that intersected 38.1 g/t gold over 6.5 metres. Photo courtesy Galway Metals Inc.

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