Galway Metals Reports Robust PEA Results with 33% and 61% After Tax IRR, Using both Long Term and Spot Pricing Scenarios, Respectively

Core Viewpoint - Galway Metals Inc. has announced the results of an independent Preliminary Economic Assessment (PEA) for its Estrades Project, indicating strong economic potential with a focus on toll milling and the possibility of constructing an on-site mill [1][2][3]. Economic Assessment - The PEA indicates a 33% after-tax Internal Rate of Return (IRR) and a Net Present Value (NPV) at 5% of $212 million based on long-term gold price forecasts of $3,137 per ounce [2]. - If current spot prices are used, the after-tax IRR increases to 61%, and the NPV at 5% rises to $518 million [2]. - The project is estimated to have an All-in Sustaining Cost (AISC) of US$1,987 per ounce [4]. Project Development Scenarios - Two production scenarios are being considered: a toll milling operation and the construction of an on-site mill [3][4]. - The toll milling option requires a capital expenditure of $117 million and is viewed as a quicker route to production [4]. - The on-site mill option, while requiring higher capital investment, offers greater confidence in project feasibility by eliminating reliance on third-party agreements [23]. Mineral Resource Estimate - The PEA incorporates an updated mineral resource estimate based on drilling campaigns conducted from 2019 to 2022, totaling 31,720 meters in 92 drillholes [17]. - The indicated resources are estimated at 1,750,000 tonnes with grades of 0.97% Cu, 0.48% Pb, 5.76% Zn, 2.86 g/t Au, and 94.4 g/t Ag [18]. Capital and Operating Costs - The total capital expenditure for the toll milling scenario is estimated at $236.2 million, with initial capital at $116.7 million [10]. - Total operating costs are projected at $796 million, leading to an AISC of $916 million [12]. Future Plans - The company plans to continue optimizing the project, including a geophysical survey and drilling program funded by Dowa Metals and Mining Co. Ltd. [4][26]. - An Environmental Baseline study is expected to begin in the second quarter of 2026, along with community outreach efforts [26].