West Point Gold Corp. (WPG:TSX; WPGCF:OTCQB) announced the results of additional holes from its recently finished eight-hole diamond-drill campaign focused on the Tyro Main Zone at its Gold Chain Project in Arizona.
Among the 1,264 meters of drilling, hole GC24-34 intersected 42.8 meters of 2.50 grams per tonne gold (g/t Au), including 11.7 meters of 5.94 g/t Au, returning mineralization from surface.
Hole GC24-32 intersected a hanging wall zone of mineralization for 6.94 meters of 4.3 g/t Au, including 1.44 meters of 15.24 g/t Au from 16.31 meters, the company said. It also intersected a footwall wall zone of 16.08 meters of 1.35 g/t Au from 49.07 meters.
Infill sampling of approximately 24 meters is underway. The company said it believes that these results are consistent with previous estimates of size potential at the Tyro Main Zone.
"We are excited by the material increase in grade and width at the north end of the Tyro Main Zone as evidenced by hole GC24-34 and plan to place additional focus on this area during the upcoming drill program," said Chief Executive Officer Quentin Mai. "As the correlation of mineralization between hanging wall and footwall improves, we anticipate the additional samples sent to the lab around the hanging wall could expand the mineralized zone."
The next phase of drilling at Tyro is expected to start in February, the company said.
Technical Analyst Clive Maund noted that at the end of last year* that Mako Mining announced its intent to acquire the nearby historic Moss Mine, where gold was first discovered in 1863.
"This development has two important implications for West Point," wrote Maund on January 16. "One is that Mako's interest in the Moss Mine signifies that there is a worthwhile resource there; otherwise, Mako would not be interested in buying it, which means that there are probably significant resources on the Gold Chain property, as it is nearby on the same trend. The other is that it increases the likelihood that a larger resource company will approach West Point in the future, wanting to buy the Gold Chain property or even West Point itself, which will have obvious major benefits for West Point shareholders.
Key Findings of Drill Program
The Q4 2024 drill program was designed to improve the company's understanding of the Tyro Main Zone's structural model and controls of the mineralization, West Point said.
Company officials said the results from all of the holes have led to several key findings.
"As evidenced in the assay results, the zone appears to have a potentially broader mineralized structure in the hanging wall (east side) of the Tyro Main Zone," the company said in a release. "As a result, West Point Gold has conducted infill sampling for holes GC24-30 (28 meters), GC24-31 (23 meters), and GC24-32 (24 meters) where assays are pending."
Technical Analyst Clive Maund continued, "The conclusion is that West Point Gold is in the earliest stages of a major bull market that we can expect to unfold against the background of a broad sector bull market . . . it is rated an Immediate Strong Buy for all time horizons."
Another finding was that the Tyro Main Zone appears to have developed between two near parallel structures whose relative movement is responsible for the ground preparation for subsequent gold-bearing fluids, the company said. The footwall boundary appears to be a sharp contact that may control mineralization while the hanging wall remains partially defined.
Finally, West Point said the area south of the White Spar fault appears to have a wider, lower-grade cap starting from surface, as evidenced by holes GC23-25 (51.8 meters at 0.28 g/t Au), GC23-26 (32 meters at 0.54 g/t Au) and the upper portions of holes GC24-29 and GC24-35.
"Surface exposures at the projected intersection of the Main Tyro trend and the White Spar fault zone reveal an array of vein orientations that the company continues to evaluate," the release noted. "The high grades encountered in hole GC23-28 (9.1 meters at 51.1 g/t Au) were not duplicated in hole GC24-29, suggesting a northeast orientation (Main Tyro Trend) or structures in this area maybe more discontinuous than previously thought."
West Point said it has started both a fluid inclusion study of the Tyro vein system and a hyperspectral study of the core from the most recent program to better understand this area.
"The company continues to believe that these results are consistent with the previously announced exploration target of 15.6 to 31.2 Mt (metric tonnes) at 1.5 to 2.5 g/t Au* and conform with the existing geologic model based upon drilling, trenching and geologic mapping conducted over the vein system," the release said.
Co. in 'Earliest Stages of a Major Bull Market,' Analyst Says
A recent update from Caesars Report also speculated that Mako Mining and the purchase of the Moss Mine will affect companies with nearby projects like West Point.
"It's interesting to see Mako Mining entering the United States to further diversify its asset base, and it will be equally interesting to see if it picks up more land in the regional district," the newsletter posted on January 7. "Now the Moss mine has been taken out of bankruptcy, more attention may come towards this specific area of Arizona. As mentioned in a previous update, West Point Gold … has drilled a few holes on its own project nearby."
Maund noted that the company's charts were "entirely positive" and "show a stock that is just starting to ascend out of a low base pattern on increasing upside volume."
"Starting with the long-term arithmetic chart going back to 2000, we see that West Point Gold is currently trading at a historically very low level since it got as high as CA$30 back in 2007 and 2009 and almost made this level again in 2011, which means that at its current price, it is at almost a 99% discount to its price at its peak," Maund wrote. "The volume buildup of the past six months and the dramatic rise in the Accumulation line … looks to be screaming higher here and is, as already pointed out, (is) a powerful indication that a major bull market is incubating."
Maund continued, "The conclusion is that West Point Gold is in the earliest stages of a major bull market that we can expect to unfold against the background of a broad sector bull market, and with it still relatively very close to its lows, there is believed to be everything to go for with the prospect of very substantial percentage gains going forward and it is rated an Immediate Strong Buy for all time horizons."
The Catalyst: A Great Start to 2025
The gold market is experiencing its best start since 2023 and is on track for its strongest monthly performance since September, which could signal another big year for the metal, Neils Christensen reported for Kitco on Tuesday.
Eric Strand, founder of the boutique precious metals firm AuAg Funds, said he expects gold prices to surpass US$3,000 an ounce this year, Christensen wrote.
"We predict that gold will break the US$3,000 level during the year and potentially finish even higher, with a realistic target of US$3,300," Strand said.
Streetwise Ownership Overview*
West Point Gold Corp. (WPG:TSX; WPGCF:OTCQB)
According to FX Empire's Christopher Lewis, the gold market pulled back a bit on Thursday.
"But quite frankly this is a very bullish market, and I think it has much further to go," Lewis wrote. "At this point, I’m paying close attention to the US$2,700 level, because it should offer a significant amount of support."
Ownership and Share Structure
According to Refinitiv, about 7% of the company is owned by insiders and management and about 1% by institutions. The rest is retail.
Top shareholders include Executive Chairman Derek Macpherson with 3.01%, Gary Thompson with 2.39%, Chief Financial Officer John McNeice with 0.49%, U.S. Global Investors Inc. with 1.29%, and Director Anthony Paterson with 1.27%.
Its market cap is CA$22.72 million with 65.86 million shares outstanding, and it trades in a 52-week range of CA$0.15 and CA$0.39.
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Important Disclosures:
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of West Point Gold Corp.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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* Disclosure for the quote from the Clive Maund article published on January 16, 2025
- For the quoted article (published on January 16, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,000.
- Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed
Clivemaund.com Disclosures
The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.
