Is This Exploration Co. Readying for a Period of Strong Gains?
Contributed Opinion

1. Western Exploration Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
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Western Exploration Inc. (WEX:TSX.V; WEXPF:OTC) has been shaping up very well on its stock charts for many weeks since we last looked at it on August 21.

 It looks like it is readying for a period of strong gains, and this morning, we have positive drilling results out of the company that is thought likely to get it moving — Western Exploration Reports Positive Assay Results From 2024 Drilling Program at Gravel Creek.

Western Exploration CEO Darcy Marud had this to say about the drill results: "Western Exploration is extremely pleased with the initial results of the 2024 drill program, which intersected assay values of up to 75.3 g/t Au and 3,080 g/t Ag in hole WG459. These results support the company's belief that high-grade veins continue at least 80 meters to the north of the Discovery Section, as reported in January 2024. Oriented core drilling is still ongoing to extend the north/north-west trending vein zone and to connect with multiple high-grade Au intercepts identified by wide-spaced legacy holes in an area of approximately 550 meters by 350 meters in size. The company anticipates that these results will help support the expansion of the mineral resource at Gravel Creek."

Gravel Creek is one of two main ore-bearing bodies within the company's flagship Aura Project in northern Nevada. The other is Doby George, whose locations are on the map in the following slide.

The MRE (Mineral Resource Estimate) for the Aura Project as of October 2021 is shown below.

The principal attributes of Western Exploration are set out on the following slide.

Lastly it is worth reviewing the Capital Structure of Western Exploration by means of the following slide on which we see that of the 43.8 million shares in issue, only 18% are available to retail investors which means that, in the event of a significant increase in demand for the stock, which is expected, gains in the stock will be amplified by the modest quantity of stock available on the market.

Looking now at the stock charts for Western Exploration and starting with the 6-month chart, we see that it has been advancing in a measured manner for the past couple of months away from a Double Bottom that formed from late June through late July. This has been a "staircase" advance with sharp rallies punctuated by Flag consolidations. The volume pattern has been very positive since it completed the Double Bottom by rallying sharply out of it, with the predominance of upside volume driving the Accumulation line higher in a robust manner.

This is very bullish and portends a breakout above the resistance shown into a major uptrend, and conditions are ripe for it with moving averages in very favorable alignment.

On the 20-month chart we can see that the June – July Double Bottom marked the end of the reaction back to test support at the upper boundary of the Head-and-Shoulders bottom that it broke out of back in March.

We can also see more clearly the origins of the band of resistance up to CA$1.50 that it is now readying to break above and this morning's news of the very positive drill results should help it to achieve this.

Holders should, therefore, stay long, and Western Exploration is rated a Strong Buy for all time horizons.

Western Exploration's website.

Western Exploration Inc. (WEX:TSX.V; WEXPF:OTC) closed for trading at CA$1.16 US$0.86 on October 4, 2024