Star Metro - Dramatic Increase in Gold Recovery Significantly Improves the Business Options for Past-Producing High-Grade Gold Zinc Estrades Mine - Scoping Study to be Initiated

"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 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

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.

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.

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 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.

SOURCE: Galway Metals Inc.

View the original press release on ACCESS Newswire

F.T. Michaud--SMC