High-Grade Gold Project Reveals 61% IRR With Low-Cost Toll Milling Path

Source: Streetwise Reports 01/22/2026

Galway Metals Inc. (GWM:TSX.V; GAYMF:OTCQB) released results from a preliminary economic assessment (PEA) for its 100%-owned Estrades Project, reporting an after-tax internal rate of return (IRR) of 33% using long-term gold prices and 61% under spot pricing. The PEA is based on a toll milling scenario and incorporates updated mineral resource estimates and projected production figures.

Galway Metals Inc. (GWM:TSX.V; GAYMF:OTCQB) announced results from an independent Preliminary Economic Assessment (PEA) for its 100%-owned Estrades Project in Québec’s Abitibi region. The study, which assessed a conceptual toll milling scenario, was prepared by BBA E&C Inc. and SLR Consulting (Canada) Ltd. in accordance with National Instrument 43-101. No toll-milling agreement is currently in place, and the scenario is for evaluation purposes only.

According to the company, the base-case scenario used long-term metal price forecasts, including a gold price of US$3,137 per ounce. That scenario returned an after-tax internal rate of return (IRR) of 33% and a net present value (NPV) at a 5% discount rate of CA$212 million. Under spot pricing, the after-tax IRR increased to 61% and the NPV rose to CA$518 million. Initial capital expenditures were estimated at CA$117 million, with a post-tax payback of 4.7 years using long-term pricing and 3.8 years using spot pricing.

CEO Rob Hinchcliffe stated in a company news release, “As the gold price moves higher, it only boosts the returns on this high-grade gold-zinc project.” He added, “We are delighted that Estrades is now creating value for Galway shareholders.” Hinchcliffe said both toll milling and on-site mill development paths are being considered, with toll milling offering a lower capital entry point.

The PEA outlined an 8-year underground mine life, with expected production of 245 million pounds of payable zinc, 30 million pounds of payable copper, and 171,000 ounces of payable gold. Financial metrics were also provided for the on-site mill alternative, showing a CA$186 million after-tax NPV using long-term pricing and CA$496 million using spot pricing. The toll-milling scenario estimated an all-in sustaining cost (AISC) of US$1,987 per gold equivalent ounce.

Updated resource estimates included 1.75 million tonnes of indicated resources at 0.97% copper, 0.48% lead, 5.76% zinc, 2.86 g/t gold, and 94.4 g/t silver. Inferred resources totaled 2.68 million tonnes at 0.86% copper, 0.28% lead, 4.75% zinc, 1.81 g/t gold, and 77.4 g/t silver.

Estrades was previously mined in 1990 for one year, with ore processed at the Matagami Concentrator, 135 kilometers away. The current vision is an underground operation using the modified Avoca long-hole method and targeting 1,500 tonnes per day. The toll-milling scenario estimated a total capital cost of CA$236.2 million, including CA$116.7 million in initial capital and CA$119.5 million in sustaining capital.

Operating costs over the life of mine were estimated at CA$680 million, with mining at CA$71/tonne, surface transportation at CA$35/tonne, and toll milling at CA$46/tonne. Total AISC was CA$250/tonne, equivalent to US$1,987 per gold equivalent ounce.

The flowsheet was designed to integrate with existing concentrators within 150 kilometers of the project. Bench-scale flotation testing supported the metallurgical assumptions, and the toll-milling case includes budget allocations for required circuit modifications. An on-site mill scenario was also evaluated, requiring higher capital investment but reducing third-party reliance.

The Estrades Project lies 95 kilometers north-northeast of La Sarre, Québec. Between 2019 and 2022, Galway drilled 31,720 meters across 92 holes, contributing to the updated 2024 resource estimate. The full technical report is expected within 45 days.

Geopolitics, Debt, and Distrust: The Forces Driving Gold Higher

In a January 20 report, GOLDINVEST noted that gold prices briefly surpassed US$4,700 per ounce (US$4,937.50 at the time of writing). The article attributed the rise to escalating geopolitical tensions and trade uncertainty, describing gold as a classic “safe haven” asset. It cited the World Economic Forum’s Global Risks Report 2026, which identified “geo-economic confrontation” as the top risk among global leaders.

Also on January 20, Stewart Thomson emphasized gold’s role as a hedge against fiat currency instability and debt-driven economic systems. He referred to gold as the currency of “citizen kings” and said demand is being driven by growing distrust in governments and financial institutions. “The fundamentals in favour of gold are ‘through the roof’,” Thomson wrote, pointing to central bank accumulation and global unrest.

On January 21, GoldFix reported that Poland’s central bank approved the purchase of up to 150 tons of gold, potentially raising its total reserves to 700 tons. “This will place Poland among the elite 10 countries with the largest gold reserves in the world,” the central bank stated. The report linked the decision to shifting sovereign reserve strategies amid ongoing geopolitical and financial fragmentation.

External Views on Company Positioning

In a January 12 report, John Newell of John Newell & Associates wrote that Galway Metals Inc. fits the profile of a junior transitioning from neglect to recognition as confidence returns to the CDNX. “The chart reveals a repeating pattern of accumulation, breakout, and consolidation, consistent with a market gradually revaluing the company’s asset base,” he stated.

Newell also included Galway among a group of juniors that “combine constructive charts with credible fundamentals.” He added that these companies “spent the downcycle quietly rebuilding while investors looked elsewhere,” and noted that “as the index transitions from capital starvation to capital reallocation, these names often respond early, sometimes dramatically, as liquidity returns and valuation gaps begin to close.”

In a January 16 corporate update, Ron Stewart of Red Cloud Securities wrote, “We view this agreement positively as it speaks to the quality and upside potential that is still available at the property,” referring to Galway’s joint venture term sheet with Dowa Metals & Mining Co., Ltd. He stated the agreement “sets the value of a 100% interest in Estrades at US$55M (CA$77M)” and noted that the project “would account for >65% of the current market cap of CA$94M.” Stewart also wrote, “GWM currently has an EV/oz value of ~US$20/oz vs. peers at a median of US$54/oz, representing a >60% discount.”

Work Program Advancing with Geophysical Survey and Drilling

Galway Metals plans to initiate a geophysical survey at Estrades in early March, followed by a drilling program targeting the western extent of the deposit and deeper mineralization. Metallurgical optimization is ongoing, alongside an Environmental Baseline study scheduled to begin in Q2 2026. Community outreach efforts will also continue. [OWNERSHIP_CHART-517]

At Clarence Stream, three rigs are currently active — two at the Southwest Deposit and one at the North Deposit. Galway is considering adding a fourth rig. A metallurgical testing program underway at Clarence Stream has reported recoveries of up to 98% for both gold and antimony. An updated mineral resource estimate is targeted for mid-2026. A scoping study for Estrades is also expected imminently.

Ownership and Share Structure

Insiders hold 7.46% of Galway, including 6.76% by CEO Rob Hinchcliffe. Institutional investors hold 18.88%, led by Van Eck Associates Corp. at 4.54%, Caisse de Depot et Placement du Quebec at 3.4%, and Mackenzie Investments at 3.35%. The remaining shares are held by retail investors.

Galway has 125.76 million shares outstanding and a market capitalization of CA$71.24 million. The company’s 52-week trading range is CA$0.32 to CA$0.93 per share.

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Important Disclosures:

1. Galway Metals Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Galway Metals Inc.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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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.

( Companies Mentioned: GWM:TSX.V; GAYMF:OTCQB, )

Source: https://www.streetwisereports.com/article/2026/01/22/high-grade-gold-project-reveals-61-irr-with-low-cost-toll-milling-path.html