Mining Company Finds Major Gold Breakthrough in Arizona

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West Point Gold Corp. (WPG:TSXV; WPGCF:OTCQB) reported additional drilling results from its ongoing reverse circulation program at the Tyro Main Zone, part of the Gold Chain Project in Arizona. The company announced three significant intercepts, including 30.48 meters of 9.05 grams per tonne (g/t) gold in hole GC25-49, 33.52 meters of 5.46 g/t gold in hole GC25-47, and 28.96 meters of 6.02 g/t gold in hole GC25-48. These results build on previous drilling success, including 42.8 meters of 2.5 g/t gold announced in January 2025.

This article marks the first update on West Point Gold since April 16, 2025, when the company released results for holes GC25-42 through GC25-46. Since then, drilling has continued to define a higher-grade zone in the northeastern portion of the Tyro Main Zone. The newly reported intercepts suggest that this zone has a drilled strike extent of approximately 100 meters and appears to plunge northeast toward the Frisco Graben, a major structural feature associated with gold mineralization.

Chief Executive Officer Quentin Mai stated in the news release, "These three high-grade intercepts are expected to have a significant impact on building a maiden resource at Tyro, which is on patented ground in the southwestern US." Assays for an additional seven completed holes, totaling approximately 1,533 meters, are pending.

The reported drill widths represent downhole measurements, with true widths estimated at approximately 60 percent of the reported lengths. The drilling is part of a broader campaign designed to support a maiden mineral resource estimate and to advance exploration into the adjacent Frisco Graben.

This update follows West Point Gold's April 7, 2025 release of assay results from three reverse circulation drill holes at the Tyro Main Zone. At that time, the company reported intersections including 41.15 meters at 0.83 grams per tonne (g/t) gold in hole GC25-37 and 10.67 meters at 1.86 g/t gold in hole GC25-41. CEO Quentin Mai stated in a company news release that "the 2025 drill program continues to demonstrate the potential of Tyro is at least in line, if not better, than the previously announced exploration target at grades that remain significantly above the nearest operating open-pit mine." The Tyro Main Zone was noted to remain open at depth and along strike, and drilling had surpassed 3,000 meters toward the 5,000-meter target.

Additionally, technical analysis of the company's stock chart shows a flag pattern formation. While this observation is noted, no analysis or projections regarding the pattern are provided.

Gold Market Dynamics Amid Record Highs and Structural Change

The gold sector continued to experience significant volatility in April as prices briefly surged to record levels. According to an April 22 report from Reuters, spot gold touched a new high of US$3,500.05 per ounce before retreating by 1.5 percent to US$3,372.68 later in the session. Reuters attributed the pullback to comments from U.S. Treasury Secretary Scott Bessent, who suggested that U.S.-China trade tensions could ease. Bob Haberkorn, senior market strategist at RJO Futures, stated that "comments (of the U.S. Treasury Secretary) this afternoon that hinted towards a possible thaw in the trade war with China, was really when (gold) started to sell off." Concurrently, a rally in U.S. equities and a stronger U.S. dollar contributed to downward pressure on gold prices, as noted by Jim Wyckoff, senior analyst at Kitco Metals, who said, "Rallies in the stock market and the U.S. dollar index today are negative for the gold market."

Despite the short-term price retreat, broader institutional sentiment remained bullish. On April 22, JPMorgan issued a note projecting that gold would average US$3,675 per ounce by the fourth quarter and reach US$4,000 by the second quarter of 2026. As reported by GoldFix on April 23, JPMorgan identified sustained central bank and investor demand as a key driver, forecasting that "the gold market is expected to absorb 710 tonnes per quarter on net from these entities throughout 2025." The bank emphasized that gold was being repriced not due to inflation alone, but because of "systemic uncertainty, capital mobility constraints, and an increasingly fragmented global financial system."

Further commentary came from Stewart Thomson in a contributed opinion on April 23. He noted that the pullback in gold prices was technically expected and aligned with major support levels, citing retracement zones at US$3,250, US$3,150, and US$2,950 per ounce as key areas for potential buying interest. Thomson described the current period as part of a larger wave formation and suggested that gold's consolidation was consistent with longer-term bullish technical structures.

Additional sector commentary from FXStreet on April 28 noted that gold prices remained under pressure, trading just above the US$3,265 to US$3,260 support zone. According to the report, "optimism over the potential de-escalation of trade tensions between the world's two largest economies turns out to be a key factor undermining the safe-haven precious metal." The article also pointed to a 5.96 percent year-on-year decline in China's gold consumption in the first quarter of 2025 as a contributing factor to the recent softness in demand. However, the report added that "geopolitical risk premium remains in play amid the protracted Russia-Ukraine war," which continued to provide underlying support for gold. Market participants were described as cautious ahead of key U.S. economic data releases, which could further clarify the Federal Reserve's monetary policy outlook for the remainder of the year.

Unlocking Value at Gold Chain and Beyond

West Point Gold's current exploration efforts align with its broader corporate strategy outlined in its April 2025 investor presentation. The company continues to focus on unlocking value at its Gold Chain Project, where drilling, surface sampling, and geophysics have outlined multiple multi-kilometer gold targets across both patented and Bureau of Land Management (BLM) lands.

The Tyro Main Zone, where the latest high-grade drill results were reported, is part of a larger trend that extends over 10 kilometers. Early results at Tyro are designed to support a maiden resource estimate, with additional exploration targeting potential extensions into the Frisco Graben. Initial metallurgical testing at Tyro is also expected to take place in the second quarter of 2025.

West Point Gold's portfolio includes multiple historic gold mining areas and patented claims with water rights, giving the company a strategic position in Arizona's active Oatman District. The company's partnership with Kinross Gold at the Jefferson Canyon Project in Nevada further strengthens its long-term growth potential. Under the terms of the agreement, Kinross is responsible for US$600,000 in exploration expenditures and has an option to acquire up to a 70 percent interest.

With cash reserves of CA$6.11 million as of November 2024 and no debt, West Point Gold is positioned to continue advancing its drilling campaigns. Exploration at both Gold Chain and Jefferson Canyon is ongoing, with upcoming milestones expected to include further drilling results, metallurgical data, and progress toward resource delineation.

Analyst Sees Strong Breakout Potential for West Point Gold

According to Technical Analyst Clive Maund in a February 18 article, West Point Gold Corp. was described as "entirely positive" early in January. Maund noted that the company's stock "broke out of the rectangular trading range" that had been previously identified and "forged ahead on persistent strong upside volume." He emphasized that while the stock was "substantially overbought on a short-term basis" and could enter a consolidation phase, the "price / volume action is very bullish indeed" and suggested that "this still young bull market" was likely to continue.

Maund further stated that the long-term chart indicated West Point Gold was "building up to breaking out of a large base pattern" formed since spring 2022, adding that once the breakout occurred, "the rate of advance" could accelerate. He outlined specific price targets for the company, identifying an initial target of CA$0.50, which he confirmed was achieved, followed by a second target of CA$0.76, and a third target in the range of CA$1.28 to CA$1.35.

Ownership and Share Structure

According to Refinitiv, about 8% of West Point Gold 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 1.51%.

Its market cap is CA$28.98 million with 65.86 million shares outstanding, and it trades in a 52-week range of CA$0.15 and CA$0.52.