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Galway Metals gold resource update in New Brunswick falls short
Galway reported 1.42 million ounces of contained gold in the indicated category, below an earlier Red Cloud Securities forecast for the overall new resource to approach 3 million ounces.
Galway Metals said its latest resource update for the Clarence Stream gold project in New Brunswick, Canada, increased tonnage and lifted the higher-confidence indicated category, but the contained gold ounces came in below an analyst forecast, sending shares down.
The company outlined 27.2 million indicated tonnes grading 1.62 grams gold per tonne for 1.42 million ounces of contained gold, plus 19,500 tonnes of antimony. It also reported 28.5 million inferred tonnes at 1.4 grams gold per tonne for 1.29 million ounces of contained gold and 3,100 tonnes of antimony.
Last month, Red Cloud Securities had forecast the overall new resource could approach 3 million ounces of gold, compared with 2.7 million ounces reported in Galway’s update. Shares in Galway Metals fell 20% to 41.5 Canadian cents in Toronto at mid-Monday, valuing the company at $56.4 million.
Galway said the shift toward the higher-confidence indicated category could support future engineering studies, and that about 96% of contained gold ounces are constrained within optimized open pits across the North, South and Southwest deposits. The update reflects results from 342 drill holes totaling almost 70,000 metres completed since the 2022 resource, plus revised geological modeling, metallurgy and pit optimizations, and it is considering the timing of a preliminary economic assessment.
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