Dramatic Increase in Gold Recovery Significantly Improves the Business Options for Past-Producing High-Grade Gold Zinc Estrades Mine - Scoping Study to be Initiated
Galway Metals Inc.
82 Richmond Street East, Toronto, Ontario, M5C 1P1
TSXV – GWM
OTCQB – GAYMF
1
NEWS RELEASE
Dramatic Increase in Gold Recovery Significantly Improves the
Business Options for Past-Producing High-Grade Gold Zinc Estrades
Mine - Scoping Study to be Initiated
(Toronto, Ontario, January 28, 2025) - Galway Metals Inc. (TSX-V: GWM); OTCQB: GAYMF) (the
"Company" or “Galway”) is pleased to report an updated Mineral Resource Estimate prepared by SLR
Consulting Ltd. and updated metallurgical testing p erformed at Base Metal Laboratories under the
design and direction of Principal Metallurgist Mr. Ken Roberts on the Estrades property located in the
northern Abitibi of Western Quebec, Canada. The 100% owned Estrades project, is a high-grade gold
and zinc deposit . Historically, Breakwater Resources Ltd, spent CAD$20 million developing the
precious metal rich VMS deposit which was previously mined via a 200-metre-deep ramp with
production in 1990-91 totalling 174,946 tonnes grading 12.9% Zn, 6.4 g/t Au, 1.1% Cu, and 173.3 g/t
Ag.
“We are extremely excited about 31% increase in gold recovery and its significant impact on the
potential economics of the project. We had previously undertaken 2 internal Scoping Studies that
indicated to us that absent a new discovery at the Estrades project, the next biggest improvement we
could make at Estrades was increasing the gold recovery. Which is exactly what Galway accomplished
as can be seen below, we also achieved improvements in copper, silver and lead recoveries.” States
Rob Hinchcliffe, President and CEO of Galway. Adding, “A positive Scoping Study would facilitate our
quest to move the project forward by establishing a more relevant value in the marketplace. There are
several operating mills in the area it is worth mentioning. The Clarence Stream gold project, located in
southwest New Brunswick, remains our flagship project where the vast majority of the company’s
resources and attention is focused. We are currently drilling at Clarence Stream, and we remain quite
bullish about the company’s prospects as we look forward to 2025.”
Metallurgical and Mineral Resource Estimate Highlights
• Gold recoveries have improved by 31% and now stand at 86.6% with further room for additional
improvement. Moreover, for Ag we find that recoveries stand at 45%, improving by just under 9%.
• With strong precious metal prices gold now accounts for 48% of the total NSR (net smelter
return) of Indicated Mineral Resources and 41% for the total NSR of Inferred Mineral
Resources.
• Open circuit testing produced marketable concentrates for copper that assayed 28% Cu with
low lead and zinc content with 95% copper recovery vs previous results of 22% assayed
copper and 44% recovered.
• Strong Exploration Potential: With 31 kilometres of strike length on the Casa Berardi Fault for
lode gold exploration and 17 km of the highly prospective Newiska Horizon for gold and
Galway Metals Inc.
82 Richmond Street East, Toronto, Ontario, M5C 1P1
TSXV – GWM
OTCQB – GAYMF
2
polymetallic VMS exploration, we believe the upside potential for making new discoveries at
Estrades is very high.
• We see a modest increase in tonnage with the new mineral resource estimate with a 17% increase
in Indicated Resource and a 22% increase in Inferred Resource compared to 2018 Estrade
Resource Estimate conducted by SLR Consulting Inc. (at a $150/t NSR cutoff compared to $140/t
used in 2018).
Updated Mineral Resource Estimate for the Estrades Deposit by SLR Consulting Inc., December
6, 2024
Category Tonnes Cu (%) Pb (%) Zn (%) Au (g/t) Ag (g/t)
Indicated 1,750,000 0.97 0.48 5.76 2.86 94.4
Inferred 2,680,000 0.86 0.28 4.75 1.81 77.4
Notes:
1. CIM (2014 definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at long-term metal prices (U$) as follows: Zn $1.30/lb, Cu $4.50/lb, Pb $1.00/lb, Au $2,000/oz, and
Ag $25.00/oz.
3. Mineral Resources are estimated using an average long-term foreign exchange rate of C$1: US$0.73.
4. Mineral Resources are estimated at a Net Smelter Return (NSR) cut-off value of C$150/tonne. NSR values were calculated based on
metal prices, metallurgical recoveries, and typical off-site charges applicable to concentrates. The cut-off value corresponds to the
projected operating costs for a conceptual operating scenario.
5. There are no Mineral Reserves estimated at the Estrades Project. Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
6. Numbers may not sum due to rounding.
Details of the Estrades Mineral Resource Update
The Mineral Resource update was done to reflect current metal prices, with the gold price having
increased 38%, and to include in-fill drilling conducted since 2018. SLR’s Mineral Resource update also
includes a sensitivity analysis at the same $140/t NSR cutoff as used in 2018.
That apples-to-apples comparison at the same 2018 $140/t NSR cutoff shows that infill drilling and
current metal prices resulted in the tonnage increase of 19% for Indicted and 25% for Inferred, with a
decrease in average grade of 11 to 15% for all metals, resulting in a minimal net change in total metal
content.
Metallurgical Improvements from Previous Work
Further metallurgical testing has been completed at Base Metallurgical laboratories (Base Met Labs,
now Intertek) on the Estrades Project to determine if improvements could be made in both metal
recoveries and upgrading of the concentrates. The previous work had been completed in 2007 and
2008. Highlights for the program are as follows.
Galway Metals Inc.
82 Richmond Street East, Toronto, Ontario, M5C 1P1
TSXV – GWM
OTCQB – GAYMF
3
The following are excerpts from the report “Metallurgical Update Study for the Estrades Project, by
Base Met Labs, August 2, 2024:
• “Testing compared Full Sequential vs. Bulk Cu/Pb Sequential Zn, the Bulk option was initially
thought to produce higher copper and precious metal recoveries.”
• “Locked cycle testing on the Bulk flowsheet option generated recoveries to separate concentrates
of 58% Cu, 44% Pb and 85% Zn. Precious metal recovery to Cu and Pb concentrates was
demonstrated to be 86.6% Au and 45% Ag.”
• “Open circuit testing produced marketable concentrates for copper that assayed 28% Cu with low
Pb and Zn content with 95% Copper recovery, the zinc concentrate assayed 54.6% Zn with 82%
recovery.”
• “Precious metals recovered to the copper and lead concentrate (with additional recovered from
solution) were 86% Au and 45% Ag”.
Additional testing was recommended.
Locked Cycle Test Results (Base Met Labs, 2024):
Ore Sorting Discussion
Ore sorting results suggested XRT based sensors were successful in rejecting dilution/waste for all
material types except Central East which did not demonstrate an amenability to sorting. QEMSCAN
analysis indicated that the ore is classified as ultra-fine textured massive sulphide polymetallic. The
current program tested grind sizes down to a k80 of 13 μm. It is likely regrind sizes in the sub 5 μm
range may be required to produce more favorable separations of the base metals, particularly the zinc.
The (locked cycle copper concentrate contained too much zinc and). Future studies should evaluate
finer regrind sizes in the sub k80 of 10 or even 5 μm size ranges to reduce the amount of zinc in the
copper concentrate.
Qualified Persons
The Mineral Resource Estimate and other scientific and technical information in this news release has
been prepared and approved by independent qualified persons for purpose of NI 43-101: Reno
Pressaco M.Sc.(A)., P.Geo., of SLR Consulting Inc., Principal Metallurgist Kenny Roberts of KJRoberts
Metallurgical Services Inc., and from Principal Metallurgist Jake Lang B.E.Cs., of Base Metallurgical
Laboratories Ltd.
Galway Metals Inc.
82 Richmond Street East, Toronto, Ontario, M5C 1P1
TSXV – GWM
OTCQB – GAYMF
4
About Galway Metals Inc.
Galway Metals is a Canadian mineral exploration and development company focused on advancing its
100%-owned, high-grade, open-pitable flagship Clarence Stream gold project in southwest New
Brunswick. Clarence Stream is an emerging gold district with an exploration strike length of
approximately 65 kilometres and the existing resource is open in virtually all directions. Galway Metals
also has 100%-ownership in the Estrades project, a former producing high-grade, gold-rich polymetallic
VMS mine in the northern Abitibi of western Quebec. Led by a management team with a proven track-
record of creating shareholder value having sold Galway Resources for US$340 million, Galway Metals
is focused on creating value for all its stakeholders.
For additional Information on Galway Metals Inc., Please contact:
Robert Hinchcliffe President & Chief Executive Officer
Telephone: 1-800-771-0680
Email: [email protected]
Website: www.galwaymetalsinc.com
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Cautionary Statement
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this
news release. No stock exchange, securities commission or other regulatory authority has approved or
disapproved the information contained herein.
This News Release includes certain “forward-looking statements” which are not comprised of historical
facts. Forward-looking statements include estimates and statements that describe the Company’s
future plans, objectives or goals, including words to the effect that the Company or management
expects a stated condition or result to occur. Forward-looking statements may be identified by such
terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since
forward-looking statements are based on assumptions and address future events and conditions, by
their very nature they involve inherent risks and uncertainties. Although these statements are based on
information currently available to the Company, the Company provides no assurance that actual results
will meet management’s expectations. Risks, uncertainties and other factors involved with forward-
looking information could cause actual events, results, performance, prospects and opportunities to
differ materially from those expressed or implied by such forward-looking information. Forward looking
information in this news release includes, but is not limited to, the Company’s objectives, goals or future
plans, information with respect to the OTCQB listing, DTC eligibility, and broadening U.S. institutional
and retail investors. Factors that could cause actual results to differ materially from such forward-looking
information include, but are not limited to changes in economic conditions or financial markets, political
and competitive developments, operation or exploration difficulties, changes in equity markets, changes
in exchange rates, fluctuations in commodity prices capital, operating and reclamation costs varying
significantly from estimates and the other risks involved in the mineral exploration and development
industry, an inability to predict and counteract the effects of COVID-19 on the business of the Company,
including but not limited to the effects of COVID-19 on the price of commodities, capital market
conditions, restrictions on labour and international travel and supply chains, and those risks set out in
the Company’s public documents filed on SEDAR. Although the Company believes that the
assumptions and factors used in preparing the forward-looking information in this news release are
reasonable, undue reliance should not be placed on such information, which only applies as of the date
Galway Metals Inc.
82 Richmond Street East, Toronto, Ontario, M5C 1P1
TSXV – GWM
OTCQB – GAYMF
5
of this news release, and no assurance can be given that such events will occur in the disclosed time
frames or at all. The Company disclaims any intention or obligation to update or revise any forward-
looking information, whether as a result of new information, future events or otherwise, other than as
required by law.