Nevada Gold Co. Shows a Highly Favorable Buying Opportunity
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. 
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. Clive Maund: I determined which companies would be included in this article based on my research and understanding of the sector.
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Although Western Exploration Inc.'s (WEX:TSX.V; WEXPF:OTC) stock hasn't done much since we last looked at it, the company has continued to return favorable drill results from its 2024 drilling program at its Aura Project in northeastern Nevada, and this morning concluded the season's favorable drill results with the news that Western Exploration reported the extension of high-grade mineralization at Gravel Creek. With this, every drill hole delivered consistent mineralization in terms of grade and width.

Before reviewing the company's latest stock charts, we will swiftly overview the most important fundamentals using slides from the company's latest investor deck. Please refer to the deck for more details, especially regarding the geology.

The first slide from the deck includes some general information about the company and also includes a map showing the location of the Project in Nevada and its extent and within it, the locations of the principal targets, Doby George and Gravel Creek / Wood Gulch.

Here is the MRE (Mineral Resources Estimate) as of October 2021:

More details on the project are shown below. 

Very good gold grades have already been encountered at Gravel Creek.

There is scope for district scale expansion of the resource at Gravel Creek / Wood Gulch.

Meanwhile, at Doby George, a near-surface high-grade oxide deposit is being advanced.

Doby George will benefit from a low strip ratio, extensive high-grade mineralization, and depth potential.

Lastly, we look at the capital structure of the company via this slide, where we see that of the 45.4 million shares in issue, only 18% are available to retail investors. This clearly implies substantial leverage in the event that interest in the stock ramps up as expected.

Turning now to the stock charts for Western Exploration, we see on the 3-year chart that what we had earlier described as a Head-and-Shoulders bottom appears to have morphed into a Cup & Handle base, hence the delay in the stock advancing. The Head-and-Shoulders bottom still exists within it, and is still valid, and is embedded within the left part of the pattern, and is highlighted on the 15-month chart below.

The volume buildup from the middle of last year is viewed as bullish as it denotes a significant rotation of stock from weaker to stronger hands, with the new buyers less inclined to sell until they have turned a profit. A substantial part of this volume was upside volume, which is bullish, as made clear by the Accumulation line shown at the top of this chart.

Together, these factors imply that an upside breakout from the base pattern is pending, which means that the dip of the past couple of months has presented a buying opportunity.

The 15-month chart affords us another way of looking at the latter part of the base pattern, where we see that the Handle part of the Cup & Handle base is made up of a gentle uptrend.

We also see here that moving averages are in favorable alignment if it gets moving as soon as expected and that there is plenty of upside potential on the MACD indicator.

It is clearer on this chart that the dip of the past couple of months that has brought the price back to support near to the lower boundary of the gentle uptrend channel has presented a highly favorable buying opportunity.

Therefore, Western Exploration is an Immediate Strong Buy for all time horizons.

The first target is CA$1.46 - CA$1.50, which is the clear resistance you will see at the top of the base pattern. The net target is CA$2.30 - CA$2.40, which is the resistance you will see at the 2022 highs, which also fulfills the MINIMUM measuring implications of the base pattern.

Western Exploration's website.

Western Exploration Inc.'s (WEX:TSX.V; WEXPF:OTC) closed for trading at CA$0.96, US$0.66445 on January 10, 2025.