Co.: High-Grade Results Point to Resource Expansion in Nevada

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. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Western Exploration Inc.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4.  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. 

For additional disclosures, please click here.

Western Exploration Inc. (WEX:TSX.V; WEXPF:OTC) announced initial assay results from its 2024 core drilling program in the Jarbidge rhyolitye northeast of the Gravel Creek resource area of its fully owned Aura gold-silver project in Nevada.

One of four oriented core holes totaling 2,789 meters, WGC459,  was drilled 80 meters north on strike from the drilling area and intersected up 75.3 grams per tonne gold (g/t Au) and 3,080 g/t silver (Ag), with key intercepts including 3.69 meters of 22.06 g/t Au Eq (16.66 g/t Au and 458.6 g/t Ag) and 6.1 meters of 12.44 g/t Au Eq (8.52 g/t Au and 333.5 g/t Ag), the company said.

In a release, the company said the results provide "further definition to a set of high-grade Au-Ag-bearing veins and breccias in the Jarbidge rhyolite adjacent to the Gravel Creek resource area."

"These results support the company's belief that high-grade veins continue at least 80 meters to the north of the drilling area," said Chief Executive Officer Darcy Marud. "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.”

Technical Analyst Clive Maund wrote Monday that the stock is "ready for a period of strong gains" and it the new positive drill results should "get it moving." He said it was a Strong Buy for all time horizons.

Technical Analyst Clive Maund wrote Monday that the stock is "ready for a period of strong gains" and it the new positive drill results should "get it moving." He said it was a Strong Buy for all time horizons.

He noted the stock 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."

The volume pattern has been positive since the Double Bottom, with "the predominance of upside volume driving the Accumulation line higher in a robust manner," Maund noted.

"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," Maund wrote.

The stock is readying to break above a band of resistance to CA$1.50, he said, "and this morning's news of the very positive drill results should help it to achieve this."

More Results Pending

The Aura Project consists of three locations in Nevada: Doby George, Gravel Creek, and Wood Gulch. Earlier this year, the company announced that it is expanding the size of the Wood Gulch/Gravel Creek resources area and working toward a resource update for Doby George.

Western Exploration said previous drilling in the Miocene Jarbidge rhyolite to the northeast of the Gravel Creek deposit intersected "multiple high-grade Au-Ag-bearing vein intercepts," including assays of 237 g/t Au Eq in hole WG379 and 2,800 g/t Ag in hole WG456.

The 2024 drilling program at Aura is "very likely to deliver more high-grade assays to the market in H2/24 and confirm a very significant new discovery zone," writer Brien Lundin of Gold Newsletter has noted.

None of these intercepts have been included in previous resource estimates, the company noted, but the results from the 2023 drilling have been used to start linking vein intercepts.

The results from three other holes drilled in 2024 — WGC458, WGC460, and WGC461 — are pending. A fifth hole, WGC462, was in progress at the time of writing.

The initial results from hole WGC459 help support the extension of oriented core drilling to link multiple high-grade Au Eq intercepts in widely spaced legacy holes, the company said.

According to Western Exploration, the number of intercepts over 10.0 g/t Au Eq intersected in the farthest east/northeast drill holes suggests that the Gravel Creek system has not been closed off.

"The 2024 drill results will be evaluated in context with legacy drilling, with the goal of defining a preliminary inferred resource to expand the Gravel Creek deposit resource base," the company said.

The 2024 drilling program at Aura is "very likely to deliver more high-grade assays to the market in H2/24 and confirm a very significant new discovery zone," writer Brien Lundin of Gold Newsletter has noted. "With a target like this, the company is largely immune to the gold price action if it can deliver results as hoped. Thus, it remains a Buy."

The Catalyst: Gold Bulls Charging

Many experts agree gold is in the early stages of a bull market after hitting a record of US$2,685.45 last month. While the price cooled slightly after the release of U.S. payroll data (it was US$2,643.42 per ounce at the time of writing, some believe the yellow metal will go higher.

"In March 2024, gold hit US$2,070 and, even though the last six months have seen pushbacks and dips, gold continues to climb," Nick Fulton, managing partner at USA Pawn, told Newsweek. "When we saw $2,600 an ounce gold, I thought $2,800 by the end of the year. Now? We could see gold at $3,000 an ounce happen in a 30-day time span."

Newsweek author Aliss Higham put down the surge to several factors, including newly lowered interest rates from the Federal Reserve, fresh investor attraction, and war in the Middle East, as gold is considered a safe-haven investment particularly in times of geopolitical conflict.

Goldman Sachs on raised its forecast for gold in early 2025 to US$2,900 from the previous US$2,700, Investing.com reported.

"Firstly, they anticipate faster declines in short-term interest rates in Western countries and China, adding that the gold market 'doesn't fully price in the rates boost to Western ETF holdings backed by physical gold yet, which tends to be gradual,'" Goldman Sachs noted, according to Investing.com's Vahid Karaahmetovic. "Secondly, ongoing robust purchases by emerging market (EM) central banks in the London over-the-counter (OTC) market are expected to continue fueling the gold rally that began in 2022. Strategists believe 'that these purchases will remain structurally elevated.'"

Ownership and Share Structure

About 72% of Western Exploration is owned by strategic entities and high net worth investors, according to its latest investor presentation, including Golkonda LLC with about 46%, Agnico Eagle Mines Ltd. with 14%, and Auramet Capital Partners with 5%.

Other institutions hold about 6%, insiders and management hold about 3%, and the rest is retail.

Western Exploration's capital structure consists of 43.8M outstanding shares and 16.21M free float traded shares. Its market cap is CA$49.49 million. Its 52-week trading range is CA$0.46−$1.55 per share.