5,000 Meters Drilled at a Former Quebec Gold Producer, Now the Assays Are Pending

Galway Metals Inc. (GWM:TSX.V; GAYMF:OTCQB) reported the completion of a 13-hole, approximately 5,000-meter diamond drill program at its Estrades Project in the northern Abitibi region of western Quebec. Drilling was completed at the end of August 2026, with assay results pending.

The program forms part of the Phase I work program under Galway's Option and Joint Venture Term Sheet with DOWA METALS & MINING CO., LTD., announced in January 2026. Estrades is a gold- and zinc-rich volcanogenic massive sulphide deposit.

The completed program focused on obtaining fresh mineralized material for metallurgical testwork. Thirteen holes were drilled across the Main, Central, and East zones to provide samples representative of the principal mineralization styles and grade ranges at Estrades. SGS Canada has been selected to conduct the planned testwork at its Burnaby facility, with the results to be incorporated into Galway and DOWA's ongoing evaluation of the project.

"We have just completed the Phase One work program funded by Dowa, where we completed 13 drill holes totaling approximately 5,000 meters coupled with additional metallurgical testwork and environmental baseline studies as well," Galway President and Chief Executive Officer Robert Hinchcliffe said in the company news release. "This program is an important first step under our agreement with DOWA; the drilling was designed to provide representative material for the next phase of metallurgical work while adding useful geological information across the Main, Central, and East zones."

Galway has completed approximately 57,281 meters of drilling at Estrades since acquiring the project in 2016. The company said assays from the 2026 program are pending. The new drilling is expected to improve local geological confidence and provide information that may support future resource, engineering, and development studies.

Previously disclosed metallurgical testwork improved gold recovery by 31% to 86.6%. Open-circuit testing also produced a copper concentrate grading 28% Cu at 95% copper recovery and a zinc concentrate grading 54.6% Zn at 82% zinc recovery. Fresh mineralized material collected during the completed drill program will support additional metallurgical testwork focused on further improving metal recoveries and concentrate quality.

Estrades was previously mined by Breakwater Resources Ltd., which invested approximately CA$20 million in developing the deposit and mined it through a 200-meter-deep ramp. Production in 1990 and 1991 totaled 174,946 tonnes grading 12.9% zinc, 6.4 g/t gold, 1.1% copper, and 173.3 g/t silver. The ore was shipped to the Matagami Mill, approximately 135 kilometers away, for processing.

Galway announced a positive Preliminary Economic Assessment for Estrades in January 2026. The company said recent market prices for gold, zinc, copper, and silver remained materially above the long-term consensus assumptions used as the primary economic basis of the PEA, while noting that no updated economic analysis has been completed using current metal prices.

Gold Holds Above US$4,200 as Rates, Inflation, and Geopolitical Risk Shape the Market

Broader financial markets moved lower on September 14. Zacks Equity Research reported that the S&P 500 recorded a "daily loss of 0.48%," while the Dow fell 0.29% and the Nasdaq declined 0.56%. The report also noted the importance of changing analyst expectations in financial markets, stating that "these estimate changes are directly correlated with near-term stock prices."

Gold traded around US$4,290 per ounce on September 15, according to Trading Economics, after falling to its lowest level since early August. The metal remained up 15.90% over the previous year despite declining 3.11% over the preceding month. Trading Economics attributed the recent pressure to a stronger U.S. dollar, elevated Treasury yields, and expectations for higher U.S. interest rates.

Red Cloud Securities analyst Ron Stewart reiterated a Buy rating on Galway Metals Inc. and maintained a CA$2.20 per share price target.

It described gold as "one of the most widely followed precious metals" and said it was "often regarded as a safe-haven asset during periods of economic uncertainty, inflation, and geopolitical risk."

Trading Economics also reported that geopolitical risks had intensified amid developments in the Middle East and that crude oil prices remained above US$100 per barrel following attacks on Saudi Arabia's energy infrastructure. At the same time, markets had priced in a 25-basis-point Federal Reserve rate increase. The combination of interest-rate expectations, currency movements, inflation concerns, and geopolitical developments provided the macroeconomic backdrop for the gold market.

Kitco News reported later on September 15 that spot gold had traded at US$4,283.60 per ounce, down 0.34% on the day, as the metal struggled to attract safe-haven demand despite weaker U.S. manufacturing data. The New York Federal Reserve's Empire State Manufacturing Survey had fallen to 7.6 in September from 20.6 in August, below economists' consensus estimate of 14.8.

According to Kitco, "gold has struggled in recent weeks as markets see a more than 90% chance of a 25-basis-point rate hike." The report said expectations for higher interest rates had strengthened the U.S. dollar and pushed 10-year Treasury yields above 5% for the first time since before the 2008 Global Financial Crisis. Kitco also reported that manufacturing indicators had cooled while employment remained comparatively firm and pricing pressures increased, leaving monetary policy and inflation conditions as significant factors affecting the gold market.

Analyst Maintains CA$2.20 Target After Gold Resource Grows to 2.7 Moz

In a July 14 research report, Red Cloud Securities analyst Ron Stewart reiterated a Buy rating on Galway Metals Inc. and maintained a CA$2.20 per share price target following an updated mineral resource estimate for the Clarence Stream gold project in New Brunswick.

Stewart reported that the updated resource contained 2.7 million ounces of gold, an increase of 450,000 ounces, or 20%, from the 2022 estimate. Indicated resources increased 54% to 1.42 million ounces and represented 52% of the overall resource, compared with 41% previously. The estimate incorporated approximately 70,000 meters of drilling from 342 holes completed since the previous resource estimate.

The analyst noted that optimized pit shells contained 2.37 million ounces, representing 88% of the total resource, while 331,000 ounces were classified as underground resources. The Southwest deposit contained 626,000 indicated ounces at 1.43 g/t gold and 791,000 inferred ounces at 1.13 g/t gold. The South deposit contained 664,000 indicated ounces at 1.72 g/t gold, while the North deposit contained 125,000 indicated ounces at 1.83 g/t gold.

The updated estimate also increased the project's contained antimony. Indicated antimony doubled to approximately 19,500 tonnes, while inferred antimony increased 46% to approximately 3,100 tonnes. Stewart reported that roughly 75% of the mineralization contained antimony as stibnite and that metallurgical testing had returned antimony recoveries of up to approximately 84% in a flotation concentrate, alongside gold extraction rates ranging from 85% to 98%.

Stewart also pointed to additional exploration work across the project. All three deposits remained open along strike and at depth, while drilling completed since 2022 had extended North mineralization approximately 430 meters beyond the previous pit shell. Twelve high-priority geochemical and geophysical targets had also been identified across the project's 65-kilometer trend.

Red Cloud valued Galway using an in-situ value of US$65 per ounce applied to ounces at Clarence Stream and Estrades. Stewart cited the increased resource, greater proportion of indicated ounces, ongoing drilling, and progression toward economic studies in discussing the company's valuation. He wrote that these developments "should help close the valuation gap, with GWM trading at US$10.8/oz in-situ AuEq versus the median of exploration and development peers at US$58.8/oz."

At the time of the report, Galway held CA$14.7 million in cash with no debt. Stewart identified assays from the 40,000-meter Clarence Stream drill program, metallurgical test results, a preliminary economic assessment for Clarence Stream, and DOWA-funded exploration at Estrades as upcoming catalysts.

Drilling, Metallurgy, and Project Studies Set the Next Work Programs

At Estrades, Galway's September 2026 corporate presentation states that the completed approximately 5,000-meter Phase I drill program was fully funded by DOWA and conducted for geological and metallurgical purposes, with baseline studies underway. The presentation identifies a 15,000-meter Phase II drill program funded by DOWA and slated for 2027. It also states that plans for the next 12 months include continuing to further optimize the project.

Under the Option and Joint Venture Term Sheet, DOWA may contribute up to US$25 million across three phases to increase its participating interest in Galway's Estrades Gold and Zinc Project to up to 45%. Phase I calls for US$5 million for a 10% participating interest and 50% zinc offtake. Phase II calls for an additional US$10 million for another 20% participating interest, bringing DOWA's potential total interest to 30%, along with 75% zinc offtake. Phase III calls for an additional US$10 million for another 15% participating interest, bringing the potential total interest to 45%, along with 100% zinc offtake.

The presentation also outlines ongoing work at Galway's Clarence Stream Gold and Antimony Project in New Brunswick. Four drill rigs are operating there. Two are drilling at the South deposit with a focus on adding gold ounces, a third is drilling for a new discovery along the 6-kilometer corridor between the South and Southwest zones, and a fourth is drilling between anomalies 3 and 4. Galway is targeting completion of a Preliminary Economic Assessment for Clarence Stream in the first quarter of 2027.

The company's 2026-2027 engineering and economic work at Clarence Stream includes pit optimization across all three deposits, development of scoping-level pit designs, preliminary life-of-mine scheduling and economic modeling, and initiation of the PEA.

Metallurgical and rock characterization work includes additional testing to optimize gold and antimony recoveries, waste and ore characterization to support mine planning and environmental studies, and comminution and rock characterization studies to support the PEA. Galway's metallurgical optimization program is underway, with the presentation reporting previously achieved recoveries of up to 98% for gold and 88% for antimony.

Ongoing drilling and core logging at Clarence Stream include oriented core drilling to support geological, structural, and geotechnical modeling. Galway also plans to continue infill drilling to upgrade Mineral Resource classification and pursue new gold discoveries through district-scale exploration.

One exploration area is the Fold Target, where a 2026 Helitem survey identified a large conductive corridor between the South and Southwest deposits. The presentation describes a 12-kilometer interpreted fold trend linking the two deposits, including 6 kilometers that have not been tested by drilling.

The company has also identified 12 high-priority untested, drill-ready regional targets at Clarence Stream based on soil geochemical anomalies, linear magnetic lows, and prospecting and boulder samples. Galway states that the known deposits at Clarence Stream are associated with intrusions, magnetic lows, and soil anomalies.

Ownership and Share Structure¹

Insiders hold 7.31% of Galway, including 6.62% held by CEO Rob Hinchcliffe. Institutional ownership totals 18.52%, led by Van Eck Associates Corp. at 4.45%, Caisse de dépôt et placement du Québec at 3.33%, and Mackenzie Investments at 3.27%. The remainder of the shares are held by retail investors.

Galway has approximately 135.87 million shares outstanding and a market capitalization of approximately CA$89.68 million. The company's 52-week trading range is CA$0.41 to CA$1.01 per share.