Gold Exploration Yields Promising Results in British Columbia's Spences Bridge Gold Belt

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Westhaven Gold Corp. (WHN:TSX.V) has released the final results from its 2024 drilling campaign at the Shovelnose Gold Property in British Columbia's Spences Bridge Gold Belt (SBGB). The results highlight progress across multiple targets, including the Certes target, which has revealed a potentially preserved epithermal gold system.

The Certes target, situated 11 kilometers southeast of the high-grade South Zone, yielded promising results. Drill hole SN24-425 intersected 0.69 grams per tonne (g/t) gold (Au), 2.76 g/t silver (Ag), and 5% zinc over 1.74 meters, located at a depth of 286.9–288.64 meters. Notably, this hole also intersected a carbonate-healed breccia vein at 237.4 meters, with anomalous arsenic levels over a 9-meter interval, suggesting a transition to gold-associated pathfinders at depth.

Exploration Manager Peter Fischl noted in the news release, "Exploration at the southeast end of the 11km long corridor of mineralization and anomalous geochemistry that includes the Certes target has uncovered a well-preserved epithermal system, now confirmed in the pathfinder geochemistry and TerraSpec (SWIR) analytical work. Six holes drilled at Certes along three fences spaced over a 2km strike length tested the upper 200m thick mercury-antimony bearing cap to this preserved epithermal system. The transition from high-level pathfinders such as mercury and antimony to deeper gold-associated pathfinders such as arsenic is observed in several of these holes, including the last hole drilled at Certes, hole SN24-425, located 10km southeast of the bonanza-bearing South Zone. This hole intersected a carbonate-healed breccia vein at 237.4-245.0m depth that returned 124.8 ppm arsenic over 9.0m. Anomalous gold is present farther downhole as well, where a sphalerite-bearing quartz vein and associated fault returned 0.69 g/t Au and 2.76 g/t Ag over 1.74m at 286.9-288.64m downhole.  Deeper follow-up drilling is planned to test the downdip extent of these arsenic and gold bearing structures for stronger gold mineralization."

Gareth Thomas, President and CEO, remarked, "Intersecting an anomalous gold-bearing quartz vein on our last hole of the 2024 exploration season...gives confidence to our thesis that this Certes target area may represent the continuation of an 11-kilometer structure extending southeast from the main Vein Zone One trend."

In 2024, the Shovelnose project saw 27 drill holes covering approximately 8,347 meters, with efforts focused on expanding known mineralization and exploring new targets. Other highlights include gold discoveries proximal to the Franz-FMN-South Zone structure and the identification of gold in surface rock samples within expanded landholdings.

Gold Sector Shows Resilience Amid Global Demand

Macroeconomic conditions have further influenced the gold market, as outlined by Gary Wagner for Kitco on December 5. Wagner reported that gold prices, which settled at US$2,653.90 on that date, were supported by a weakening U.S. dollar and the expectation of a third Federal Reserve interest rate cut in December. These factors have cushioned potential losses in gold, with Wagner noting the market's attention on the Fed's monetary policy and its potential to shape investor sentiment moving forward.

As of December 2024, gold prices have risen from a low of US$1,618.30 in November 2022 to a peak above US$2,800 in October 2024. This increase, described by Shad Marquitz in Excelsior Prosperity as "a bullish storm," has been driven by factors such as central bank buying, geopolitical demand, and safe-haven investments. Marquitz highlighted the sector's recent stabilization as "the calm in the eye of the storm," noting that technical indicators like the Relative Strength Index (RSI) remain neutral, suggesting the market is undergoing a healthy consolidation rather than a bearish shift. He emphasized that as long as gold remains above its 200-day Exponential Moving Average (EMA), the broader market maintains a "muted bullish posture."

Red Cloud maintained a "Buy" rating on Westhaven with a target price of CA$1.35, representing a significant upside from its last close at CA$0.10 per share. 

Gold equities have reflected the broader trends in the gold market. Marquitz in Excelsior Prosperity continued explaining in the report that the VanEck Vectors Gold Miners ETF (GDX) recovered strongly from its 2022 lows, more than doubling by October 2024 before rolling back somewhat more sharply than gold itself. Despite this pullback, Marquitz emphasized that "the bulls are still mildly in control," supported by seasonal trends and consistent interest in gold as an investment. He added that consolidation in gold stocks aligns with the broader patterns seen in the gold market.

Global demand has played a critical role in the sector's strength, as Adam Hamilton detailed in Ahead of the Herd on December 6. Hamilton noted that demand from China, India, and central banks has remained robust, with Indian gold demand in the third quarter of 2024 reaching 248.3 metric tons after a reduction in import taxes. Hamilton described the sector as a "monster upleg," citing a 53.1% increase in gold prices over the past 12 months. He highlighted gold's ability to consolidate at high levels without steep corrections, attributing this resilience to the diversified nature of global demand.

Ole Hansen, head of commodity strategy at Saxo Bank, offered further insights in Reuters on December 13, stating that gold prices are expected to consolidate through the end of 2024 before resuming an upward trajectory in 2025. Hansen projected that prices could potentially reach US$3,000, depending on broader economic conditions and Federal Reserve policy. This reflects a continued optimistic outlook for the gold sector, underscoring its strength in the face of macroeconomic uncertainties and its enduring appeal as a hedge against volatility.

Westhaven's Strategic Path: Unlocking Shovelnose's Potential

As outlined in the company's investor presentation, Westhaven's forward exploration plans are poised to capitalize on the discoveries made during the 2024 campaign. Follow-up drilling at the Certes target will focus on testing the down-dip potential of high-priority gold structures, particularly those identified in hole SN24-425. Additional surveys, including IP and detailed magnetic studies, will refine drill targets in Certes and other prospective zones.

The Shovelnose property remains a flagship project for Westhaven, supported by its proximity to major infrastructure and year-round accessibility. The upcoming updated Mineral Resource Estimate (MRE) and Preliminary Economic Assessment (PEA), expected in Q1 2025, will include results from key zones, such as Franz, FMN, and Certes, potentially bolstering the project's economic outlook.

Thomas emphasized the project's district-scale potential, stating, "The new discovery at Certes raises the potential for similar exploration upside within the Shovelnose property." With multiple high-grade discoveries already identified, the property's largely untested 11-kilometer mineralized corridor remains a significant exploration opportunity.

Third Pary Analysis of Westhaven Gold

According to Taylor Combaluzier, Vice President and Mining Analyst at Red Cloud Securities, Westhaven Gold's final 2024 drill results at the Shovelnose Gold Property reflect significant progress in understanding the potential of the Certes target.

In a report dated December 13, Combaluzier noted that drilling at Certes confirmed the presence of a "potentially preserved epithermal system extending over 2.1 kilometers of strike length and open at depth." The analysis highlighted the importance of the Certes 3 target, where drill hole SN24-425 intersected 0.69 g/t gold, 2.76 g/t silver, and 5% zinc over 1.74 meters alongside anomalous pathfinder elements that suggest the potential for deeper mineralization.

Combaluzier emphasized that the 2024 drilling program was a critical step toward improving the geological understanding of the 11-kilometer mineralized corridor at Shovelnose.

He remarked, "We believe the stage has been set for future drill programs to potentially home in on epithermal mineralization and make additional discoveries." The report also projected that Westhaven's planned updated Mineral Resource Estimate (MRE) and Preliminary Economic Assessment (PEA), expected in Q1 2025, will integrate results from key zones, including Franz, FMN, and Certes, further advancing the project's development.

Red Cloud maintained a "Buy" rating on Westhaven with a target price of CA$1.35, representing a significant upside from its last close at CA$0.10 per share. This valuation reflects confidence in the Shovelnose property's potential to become a multimillion-ounce gold camp, supported by ongoing exploration and development activities.

The report highlighted Westhaven's strategy to resume drilling in Q1 2025, focusing on deeper targets and refining the geological model to unlock further value from its flagship project.

Ownership and Share Structure

According to Refinitiv, 16.32% of the company is with management and insiders. Advisor Gren Thomas owns 7.61%, with 11.82 million shares. President, CEO, and Director Gareth Thomas owns 2.69%, with 4.17 million. Chairman Eira Thomas owns 2.15%, with 3.33 million. Director Victo Tanaka owns 1.90%, with 2.95 million. CFO Shaun Pollard owns 1.84%, with 2.86 million, and Director Hannah McDonald owns 0.13%, with 0.20 million.

7.33% is owned by strategic investor Anglo Celtic Exploration Ltd. at 7.33%, with 11.38 million shares. 

5.79% is with institutions. Merk Investments LLC. has the largest out of this category at 3.54%, with 5.50 million shares. 

The rest is retail. 

In terms of share structure, Westhaven has 155.2M outstanding shares and 118.48M free float traded shares.

The company has a CA$21.26M market cap and a 52-week trading range of CA$0.115–0.335 per share.