GALWAY METALS OPTIONS KEY CLAIMS WITH 5.2 G/T AU OVER 2.5M AT CLARENCE STREAM
Galway Metals Inc. has optioned five claim groups consisting of a total of 79 claim units at the Clarence Stream gold project in southwestern New Brunswick. Highlights include:
Mineralization at Oak Bay and Lily Hill consists of arsenopyrite-rich quartz veining in altered, silicified gabbro dykes in contact with sediments - a similar setting to the South Zone that currently hosts most of the resource.
Oak Bay: Hole OB05-07 intersected 5.2 grams per tonne (g/t) Au over 2.5 metres (m), including 11.8 g/t Au over 0.5m, and 8.2 g/t Au over 0.5m, not followed up since, and starting at a vertical depth of 13m; a Gabbro dyke is entirely mineralized.
Oak Bay: Hole OB08-005 intersected 0.6 g/t Au over 4.0m, including 1.7 g/t Au over 1.0m, not followed up since, and starting at a vertical depth of 98m; a felsic intrusive dyke is entirely mineralized.
Oak Bay: A 2km north-south horizontal length of drill holes with mineralized gabbro along a magnetic high continues north 5.0km to the Tower Hill showing that assayed as high as 89.1 g/t along a gabbro contact
Lily Hill: Hole LH07-01 intersected 3.7 g/t Au over 3.0m, not followed up since, and starting at a vertical depth of 16.5m; a 23.6m Gabbro dyke is entirely mineralized with the zone in a contact breccia
Lily Hill: Hole LH07-02 intersected 0.6 g/t Au over 9.0m, not followed up since, and starting at a vertical depth of 31.2m; a 27m Gabbro dyke is entirely mineralized (e.g. the 0.6 g/t Au over 9.0m is preceded by 0.26 g/t Au over 6.0m)
Wilson Hill: key claim group on strike with the North Zone resource, with continuous strong soil anomalies going north from the resource - includes the highest arsenic till + soil anomalies anywhere on Galway's 65km property; gold in those soils/tills couldn't be sourced from the North Zone resource to the SE
"Galway is very pleased with this transaction. Two claim groups, Oak Bay and Lily Hill, contain intersections such as 5.2 g/t Au over 2.5m and 3.7 g/t Au over 3.0m that are 19 km west of the current resource at the South Zone, and the geology in these new claim groups are mirror images in all respects to the South Zone. Another claim group at Wilson Hill contains a felsic intrusive similar to the one that controls Galway's deposits along the 3.7km trend that hosts the George Murphy, Richard and Jubilee Zones, as well as the two new recently-reported discoveries. This claim group has strong soil trends on strike with the North Zone that is a no-brainer for potential. With over $20 million in cash, Galway is fully funded through the end of 2021 to complete its 75,000-metre drill program at Clarence Stream. Galway believes Clarence Stream is an important new gold district in North America," cites Robert Hinchcliffe, President and CEO of Galway Metals.
Other notable intersections at Oak Bay include 1.9 g/t Au over 5.5m in hole OB05-03, 1.1 g/t Au over 2.25 m in hole OB05-06, and 0.4 g/t Au over 4.0 m in hole OB08-001. Hole OB08-002 intersected 5 intervals >0.3 g/t in a gabbro that is mineralized throughout that returned 103 ppb for the 36m of the 52.55m that was sampled. A total of 2 holes have been drilled at Lily Hill (in 2008-160m), 11 holes have been drilled at Oak Bay (in 2008-1,711m), and 7 holes have been drilled at Oak Bay (in 2004/2005-487m). Galway plans on initially doing follow-up drilling to the promising previously-drilled intersects.
The Oak Bay claims are host to widespread boulders with grades up to 17.9 g/t Au, while Lily Hill has boulders to 18.5 g/t Au. Strong linear gold soil anomalies at Oak Bay are present grading up to 882 ppb Au, which is in the top 10 of the approximately 50,000 soil samples taken at Clarence Stream, while Lily Hill has values to 190 ppb Au. Cordierite alteration is present in the sediments that consist of siltstones and slate. The Sawyer Brook Fault is located close to the drilling at Oak Bay and Lily Hill.
Deal Terms
Terms of the deal are for Galway to pay the vendor an aggregate of $500,000, divided in seven (7) equal installments of $71,428.57. The first payment will be made upon the approval of the TSX Venture Exchange ("TSXV"), and each subsequent payment will occur on or before the anniversary of this agreement for the following six years. The first payment shall, and at the sole election of the Company, each subsequent payment may be paid either in cash, or 80% in cash and 20% in Galway shares. As such, each payment will be comprised of $57,142.86 in cash and $14,285.71 worth of Galway shares, with the Galway shares valued at a deemed price equal to the higher of: (A) the closing price of the Galway shares on the TSXV on the day that is two (2) business days prior to the date of the respective share issuance, and (B) the lowest price of Galway shares that shall be acceptable to the TSXV. The Galway shares will be subject to the statutory hold periods of four months and one day. For the first share issuance and upon receipt of TSXV approval, a total of 9,524 Galway shares will be issued at a deemed value of $1.50 per Galway share for an aggregate deemed value of $14,285.71.
Table 1. Assay Results Hole ID From(m)To(m) Intercept(m)Intercept(m) TWAug/t GMZ NORTH TREND OB05-07 18.70 21.20 2.50 5.2 incl. 20.20 20.70 0.50 11.8 incl. 20.70 21.20 0.50 8.2 OB05-03 71.00 76.50 5.50 1.9 incl. 73.00 73.50 0.50 8.1 OB05-06 6.60 8.85 2.25 1.1 LH07-01 23.50 26.50 3.00 3.7 6.50 23.50 17.00 0.15* LH07-02 30.40 36.40 6.00 0.26* 36.40 45.40 9.00 0.6 45.40 48.95 3.55 0.21* OB08-005 140.20144.20 4.00 0.6 incl. 140.20141.20 1.00 1.7 OB08-002 42.00 43.00 1.00 0.5 53.55 54.55 1.00 0.3 63.55 64.55 1.00 0.3 66.55 67.55 1.00 0.3 18.00 70.55 52.55 0.07* OB08-001 12.50 16.50 4.00 0.4*
True widths are unknown if not noted. *0.42 g/t Au was used for the bottom cut-off, except where noted.
Geology and Mineralization
The recent discovery of the Richard Zone in hole 12 contains elevated levels of bismuth, arsenopyrite, and antimony, in multiple quartz veins, with tungsten in the vicinity. This is similar to other Clarence Stream deposits, which can be characterized as intrusion-related quartz-vein hosted gold deposits. Richard Zone contains multiple zones of quartz veining with sulfides and sericite alteration. In general, mineralization at Clarence Stream consists of 10-70% quartz stockworks and veins with 1-5% fine pyrite plus pyrrhotite plus arsenopyrite plus stibnite in sericite altered sediments. The Jubilee mineralization consists of 2%-5% disseminated pyrite, sphalerite, galena, arsenopyrite, chalcopyrite, and pyrrhotite in sediments with white to smoky grey quartz veining. Locally there is up to 10% sphalerite and semi-massive galena veinlets. The 2.5 km trend that hosts the GMZ, Richard and Jubilee Zones contains a mineralized mafic intrusive locally - similar to the South Zone, which currently hosts most of the property's last reported gold resources (September 2017). A more complete description of Clarence Stream's geology and mineralization can be found at www.galwaymetalsinc.com.
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