Galway Resources Ltd V.GWY

GWY - No plan to drill fractions?

[nor_easter]

My opinion and view...please do your own due diligence.

If you look at the presentation...the plan to drill the Cali fractions is no longer there. Good move for Galway, why waste money when you can use extrapolation to estimate the resource.

Cali is being packaged for sale...

Drilling stopped with a 43-101 defined resource. Now we have some numbers for our fractions found on p.13 of the presentation. (Galway probably using extrapolation using AUX 43-101 drilling results.)

Link: https://www.galwayresources.com/i/pdf/Presentation.pdf

Fractions:
200m @ 20m
width @ 300m
depth @ 4 g/t
=3,300,000 tonnes
=350,000 oz;
+ 130m @ 8m
width @ 300m
depth @ 4 g/t
=850,000 tonnes
=90,000 ounces

Total gold in fractions = 440,000 ounces

plus our 43-101 =1,090,666 ounces

The sale of Cali will be based on these two numbers; plus a premium paid for location, high grade, exploration potential, and excellent metallurgical tests.

[SchiffKnowsBest]

Nice find nor_easter.  Throw a lowball $200/ounce offer for the Cali property and we are now up over $2/share based on the now 1.5mm ounces at a grade of ~5.5g/tonne.    Throw a lowball $100/ounce offer for the Vetas high grade (at 1mm ounces) and you can add in another 66 cents.     

[NaturalCurrency]

This find is big, but I am a little intrigued as well.    If everything is sewn up from the deal perspective, and we are just waiting for concessions to transfer, then what is the need for this back of the envelop calculation. Does this mean that we are some distance from the deal finalization and this is a signal to entice the other party - drive home the potential value of

[Red5Luke]

In addition to the land fractions adding 440,000 ounces they are also indicating in a couple slides that the 2 new zones could double the resource estimate:  Strong exploration upside potential at California - wide open at Machuca and Santa Catalina zones, fractions; open at depth below main resource (potential for 100% increase in ounces) So a possible end result could be Res Est

[cosford74]

2.6M ounces would be fantastic, but haven't we stopped drilling at Cali?  Anything beyond the initial 1.1M ounce estimate is pure speculation.  Given the price of gold, the high-grade and location of Cali, it seems reasonable that any offer would be at $400/oz.  But, not for speculative ounces.   

[$HAWK]

Would be nice

[misty18]

If not, I am very interested in Schiff's daily house positions today! TIA

[$HAWK]

House # 83 is buying, this must be good

[Dejos74]

Judging by the end of the day action I would think there is more news this week. Should be almost time for those remaining concessions to be finalized or maybe something bigger.