The resource update showed indicated resources of 922,000 ounces at 2.31g/t Au, which is up 136% from 2017; and inferred resource of 1.33 million oz at 2.60g/t, which is up 382%.

"We are very pleased to have taken a major step forward at Clarence Stream," Hinchcliffe said.

"Looking forward, the focus of our drilling programme is to continue to expand the existing zones that are all open, to follow-up on three previously-made discoveries that weren't included in the resource and to make more discoveries to further enhance this new gold district," he said.

Galway noted that the increases in gold resources were primarily driven by the discovery of the Adrian, George Murphy and Richard Zones. These zones are now linked to the previously-known Jubilee Zone. They are collectively known as the SW deposit.

The new SW deposit's measured and indicated resources were 504,000oz at 2.02g/t and inferred resources were 869,000oz at 2.31g/t.

Also contributing to the resource increase was a lowering of cut-off grades for open pit constrained and underground resources to 0.38g/t and 2.00g/t, respectively, from 0.42g/t and 2.55g/t previously, Galway said.

"We believe that this resource can be significantly expanded and are optimistic about the potential for additional discoveries to further enhance this new gold district," Galway's exploration vice president Mike Sutton said.

Galway's share price climbed 4% day on day on April 25 to C$0.52 (US$0.52), giving the company a market capitalisation of C$92.9 million.

The Clarence Stream is in New Brunswick.