There Was a Gap in This Gold Resource. Drilling Just Hit 68.3 g/t

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Key Investor Takeaways

• High-grade gold drilling at the Southwest Deposit returned multiple notable intercepts at Galway Metals' 100%-owned Clarence Stream Gold Project in New Brunswick, including mineralization outside the current resource wireframes.
• BL-332 intersected 2.8 g/t gold over 48.0 meters, including 16.7 g/t gold over 5.0 meters, plus a separate 3.9 g/t gold over 30.0 meters interval that included 68.3 g/t gold over 1.0 meter.
• Additional high-grade gold assays included 8.3 g/t gold over 6.0 meters in BL-333, including 39.2 g/t gold over 1.0 meter, and 6.4 g/t gold over 7.0 meters in BL-334, including 38.5 g/t gold over 1.0 meter.
• The new gold intercepts tested a gap in the current mineral resource model along an interpreted southwest-plunging trend, with existing resource areas on either side of the new intercepts.
• Deeper drilling could test potential resource expansion, with Galway identifying additional interpreted southwest-plunging trends for follow-up drilling while evaluating the Southwest Deposit's underground potential.
• Clarence Stream currently contains 1.42 million ounces of Indicated gold resources and 1.29 million ounces of Inferred gold resources, based on the latest mineral resource estimate.
• A Clarence Stream preliminary economic assessment is advancing as Galway evaluates deeper resource expansion opportunities and the deposit's underground potential.
• Galway Metals also holds a 90% interest in the Estrades polymetallic project in Quebec, where Dowa Metals & Mining can earn up to a 45% interest under the previously announced Option and Joint Venture Term Sheet.

High-Grade Gold Drilling Extends Beyond Current Southwest Deposit Resource Model

Galway Metals Inc. (GWM:TSX.V; GAYMF:OTCQB) reported new assay results from drilling at the Southwest Deposit, part of its 100%-owned Clarence Stream Gold Project in New Brunswick, where three drill holes tested a gap in the current mineral resource model along an interpreted southwest-plunging trend. The company said holes BL-332 and BL-333 intersected high-grade mineralization outside the current resource wireframes, while BL-334 intersected modeled mineralization and extensions.

The drilling returned several high-grade gold intervals. BL-332 intersected 2.8 g/t gold over 48.0 meters, including 16.7 g/t gold over 5.0 meters. Separate intervals in the hole returned 3.9 g/t gold over 30.0 meters, including 68.3 g/t gold over 1.0 meter, and 4.5 g/t gold over 13.0 meters. BL-333 intersected 8.3 g/t gold over 6.0 meters, including 39.2 g/t gold over 1.0 meter, as well as 4.2 g/t gold over 5.0 meters, including 12.2 g/t gold over 1.0 meter.

BL-334 returned 6.4 g/t gold over 7.0 meters, including 38.5 g/t gold over 1.0 meter, along with a separate interval of 1.0 g/t gold over 10.0 meters. Galway also reported that BL-276 intersected 4.0 g/t gold over 6.0 meters, including 22.5 g/t gold over 1.0 meter.

"These three holes have intersected high-grade gold where our current resource model has a gap along the interpreted southwest plunge," Galway Metals President and CEO Robert Hinchcliffe said. "Resource areas on either side give us a compelling target to follow at depth, and the results reinforce our view that there may be other high-grade shoots to test across the Southwest Deposit."

The company said BL-332, BL-333, and BL-334 were drilled specifically to test the gap along the interpreted southwest-plunging trend, with resource areas occurring on either side of the new intercepts. The holes encountered high-grade gold in and adjacent to the gap, including mineralization outside the current resource wireframes. Galway said the results supported its interpretation of repeated high-grade shoots in this portion of the Southwest Deposit.

The deposit-scale long section also identified other interpreted southwest-plunging trends that could be followed with deeper drilling for potential resource expansion. Galway said further drilling would be used to define the continuity and extent of the shoots and evaluate the Southwest Deposit's underground potential.

The BL-270-series holes were principally drilled to increase coverage between and within areas of the current resource and test continuity across gaps between resource pit shells. Those holes encountered additional gold mineralization, including the BL-276 interval of 4.0 g/t gold over 6.0 meters, with 22.5 g/t gold over 1.0 meter. The company said the result supported its interpretation of mineralized connections in the area.

Clarence Stream's latest mineral resource estimate contained 27.2 million tonnes grading 1.62 g/t gold for 1.42 million ounces in the Indicated category and 28.5 million tonnes grading 1.40 g/t gold for 1.29 million ounces in the Inferred category. The estimate was supported by an NI 43-101 technical report with an effective date of May 29, 2026.

Hinchcliffe said the drilling was also being conducted as Galway advanced the Clarence Stream preliminary economic assessment. "As we advance the Clarence Stream PEA, this drilling is helping us evaluate opportunities for deeper resource expansion and the deposit's underground potential."

Gold Holds Above US$4,100 as Rate Expectations Shift

Gold remained above US$4,100 per ounce in early October as investors assessed weaker U.S. employment data, elevated Treasury yields, inflation concerns and geopolitical risks. Trading Economics reported on October 5 that gold had moved above US$4,150 per ounce after September employment figures came in below expectations, easing some concerns that the Federal Reserve would need to raise interest rates further. The U.S. economy had added 29,000 jobs during the month, compared with forecasts for 90,000, while unemployment had increased to 4.2%.

Trading Economics reported gold at US$4,158.52 per ounce, representing a 4.95% increase from a year earlier. The source 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." Despite the weaker employment data, elevated Treasury yields had continued to pressure precious metals, while geopolitical tensions in the Middle East remained another consideration for the market.

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

A separate October 4 report from Eamonn Sheridan focused on the structure supporting global bullion trading. Sheridan reported that approximately US$1 trillion in gold changed hands each week through the London market, where the Good Delivery List provided an accreditation standard relied upon by market participants and futures exchanges. He characterized uncertainty surrounding the market's rule-setting organization as "a structural risk to how the bullion market operates."

According to Sheridan, disruption to the Good Delivery List or difficulties transferring its responsibilities to a successor organization could add costs and friction to gold trading, refining, and settlement. Refiners could also encounter increased supply-chain scrutiny depending on the outcome of an ongoing legal case. "The stakes for the bullion market are considerable," Sheridan wrote, citing the scale of trading activity operating under the existing framework.

On October 5, Bloomberg's Wendy Wells and Preeti Soni reported that gold had traded near US$4,140 per ounce after posting its steepest weekly decline since June. Bullion had declined 3.4% over the previous week and more than 6% during the prior month as markets contended with energy-related inflation concerns, higher U.S. interest rates, and a stronger dollar.

The Bloomberg report said markets had assigned roughly a 20% probability to an October interest rate increase, down sharply from 70% a week earlier. Higher interest rates had generally weighed on gold because the metal did not provide interest income, leaving the Federal Reserve's potential policy path as a central consideration for bullion traders.

Manav Modi, commodity analyst at Motilal Oswal Financial Services Ltd., said elevated bond yields had remained an obstacle to a stronger bullion recovery. "Bullion's recovery remains constrained by elevated Treasury yields, with the 10-year yield holding around 5.2% as persistent inflation, fiscal concerns, and heavy government borrowing continue to pressure bonds," Modi said. He also identified strength in the U.S. dollar as another headwind facing gold.

Exploration, Resource Growth, and PEA Work Ahead

Galway's investor material identified several ongoing and potential catalysts across its Clarence Stream and Estrades projects. The company's flagship Clarence Stream project was described as a 100%-owned, high-grade, open-pitable gold project in New Brunswick, with an approximately 65-kilometer prospective corridor. The investor material listed Indicated Mineral Resources of 1.42 million ounces at 1.62 g/t gold and Inferred Mineral Resources of 1.29 million ounces at 1.4 g/t gold.

At the Southwest Deposit, the newly reported drilling established additional areas for follow-up work. Galway said further drilling would help define the continuity and extent of the interpreted southwest-plunging shoots and evaluate underground potential. The deposit-scale long section also highlighted other interpreted southwest-plunging trends that could be followed with deeper drilling for potential resource expansion.

The Clarence Stream PEA represented another ongoing work stream. Hinchcliffe said the company was advancing the PEA while using drilling to evaluate opportunities for deeper resource expansion and the deposit's underground potential.

Clarence Stream also contained an antimony resource. The supplied investor material listed an Indicated antimony resource of 19,482 tonnes and an Inferred antimony resource of 3,065 tonnes.

Separately, Galway's investor material described its 90%-owned Estrades project in Quebec as a former high-grade producing mine. Estrades had Underground Mineral Resources at an NSR cut-off value of US$150 per tonne estimated at approximately 1.75 million tonnes at average grades of 0.97% copper, 0.48% lead, 5.76% zinc, 2.86 g/t gold, and 94.4 g/t silver in the Indicated Resource category. An additional 2.68 million tonnes at average grades of 0.86% copper, 0.28% lead, 4.75% zinc, 1.81 g/t gold, and 77.4 g/t silver were listed in the Inferred Mineral Resource category.

On January 14, 2026, Galway Metals entered into an Option and Joint Venture Term Sheet with Dowa Metals & Mining Co., Ltd. for the Estrades Project in three phases, with total contributions of up to US$25 million. The October news release stated that Dowa held a 10% participating interest under the previously announced agreement and could earn up to a 45% interest in the project.