Mining Co. Uncovers 7km Epithermal System at Nevada Gold Project

1. Western Exploration Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Western Exploration Inc. and Agnico Eagle Ltd.
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Western Exploration Inc. (WEX:TSX.V; WEXPF:OTC) released results from four additional reverse circulation holes drilled down dip of the Saddle Resource in the Tomasina target, located about 1 kilometer west of Gravel Creek at the company's wholly owned Aura gold-silver project in Nevada.

"The 2025 drilling expands the known epithermal alteration zone an additional kilometer west of Gravel Creek and has now identified an epithermal footprint of at least 7 kilometers by 2.4 kilometers in size through drilling, surface sampling, and mapping," Chief Executive Officer Darcy Marud said. "Western Exploration is encouraged by the initial drill results from the deep extension of the Tomasina Fault Zone. Drilling on wide-spaced centers has intersected +3 g/t Au mineralization on five sections along a 1.5-kilometer strike length of the Tomasina Fault Zone."

Widespread clay and silica alteration, along with local quartz-pyrite-marcasite veins in both the Frost Creek tuff and the underlying Schoonover Formation, confirm the presence of a significant hydrothermal alteration system extending at least 300 meters below the Saddle Zone resource, 1 kilometer west of the Gravel Creek resource.

Broad zones within these altered areas show high anomalies in gold and silver, including:

• 1.52 meters of 3.24 grams per tonne gold (g/t Au) and 71.1 g/t silver (Ag) within 19.81 meters at 0.45 g/t Au and 11.1 g/t Ag in WG468.
• 1.52 meters of 4.68 g/t Au and 10 g/t Ag within 15.24 meters at 0.86 g/t Au and 4.1 g/t Ag in WG471.

Intervals greater than 3 g/t Au (up to 10.9 g/t Au and 308 g/t Ag) have now been intersected across five widely spaced sections testing parts of a 1.5-kilometer-long trend that remains open in all directions, the company said. Overall results from the 2025 RC drill program support further drilling along the +2.5-kilometer-long Tomasina Trend.

Key areas still to be tested include the highly promising 500-meter-long "GAP Zone" down dip from the Wood Gulch Pit area, bracketed by holes WG467 (3 meters at 7.1 g/t Au) and WG360 (1.52 meters at 7.28 g/t Au); and the entire Hammer Head target (southeast of the notable alteration plume in WG463 and the chargeability anomalies in Line 2023 IP Line 5).

"Further drilling of the 2.5-kilometer-long Tomasina structural corridor, including the highly promising GAP zone down dip from the Wood Gulch Pit area and the Hammer Head target, will be prioritized alongside the 2026 Gravel Creek-Jarbidge drill targeting. All upcoming exploration will concentrate on areas with the greatest potential for resource expansion," Marud said.

The Tomasina Target

The Tomasina target is a 2.5-kilometer-long structural zone extending down dip from the mineral resources in Saddle and Wood Gulch, as well as the mineralized zone at Hammer Head. WEX said the goal of the 2025 drilling was to assess mineralization in the Tomasina Fault corridor down dip from near-surface resource areas, both within the favorable Frost Creek tuff (the main host rock at Gravel Creek) and below the Eocene unconformity in the underlying Schoonover Formation. The four RC drill holes (WG468-WG471) reported in Tuesday's release evaluated targets 150 to 300 meters down dip from the Saddle resource.

Holes WG468 and WG469 were drilled on section T5210 down dip from the Saddle Zone, the company said. Hole WG468 intersected a zone of significant quartz-pyrite +/- marcasite veining approximately 190 meters down dip, averaging 19.81 meters at 0.45 g/t Au and 11.0 g/t Ag, including 1.52 meters at 3.24 g/t Au and 71.1 g/t Ag. Hole WG469 aimed to test the faulted contact with the Frost Creek tuff. Due to deviation, the hole missed the target and should be redrilled further to the northeast.

Holes WG470 and WG471 were drilled down dip of the Saddle zone on section T5120N, the company said. Hole WG470 was designed to evaluate the faulted contact with the Frost Creek tuff. The entire interval showed clay +/- silica alteration with local quartz-sulfide stringers, averaging 24.38 meters at 0.26 g/t Au and 3.2 g/t Ag. Hole WG471 was intended to offset the vein zone intersected in WG468 and evaluate the extension of the Saddle resource zone approximately 300 meters down dip from known mineralization.

Western Exploration noted that variable amounts of quartz +/- pyrite +/- marcasite veining were observed within bleached and locally silicified argillite of the Schoonover Formation. The strongest results included 1.52 meters at 4.68 g/t Au and 10.0 g/t Ag (within a broader interval grading 15.24 meters at 0.86 g/t Au and 4.1 g/t Ag) and a second interval of 4.57 meters at 1.62 g/t Au and 15.5 g/t Ag.

Significance for Future Exploration

WEX said the 2025 RC drilling confirmed that significant hydrothermal alteration and local quartz-pyrite-marcasite veining extend along at least a 1.5-kilometer strike length of the Tomasina Fault Zone, 1 kilometer west of the Gravel Creek area. Based on mapping, geochemical sampling, and drill hole observations, the area of hydrothermal alteration through the Wood Gulch-Gravel Creek area has expanded to nearly 7 kilometers long and up to 2.4 kilometers wide.

Although the alteration zone generally follows a north-south trend, it is strongly influenced by northwest and northeast trending structures, with the Tomasina Fault, GC Fault, and strong northeast trending density anomaly under Gravel Creek as examples, Western Exploration said in the release.

"The presence of highly anomalous to local higher-grade Au-Ag values gives justification for additional evaluation of the +2.5-kilometer-long Tomasina structural corridor," the company's release noted.

Future drilling should focus on structural zones in contact with the Frost Creek tuff and the Schoonover unconformity, WEX said. Key areas that remain to be tested include: 1) the highly prospective 500-meter-long "GAP Zone" down dip from the Wood Gulch Pit area, bracketed by holes WG467 (3 meters at 7.1 g/t Au) and WG360 (1.52 meters at 7.28 g/t Au); and 2) the entire Hammer Head target (southeast of the alteration plume in WG463 and the chargeability anomalies in Line 2023 IP Line 5.

These target areas will be prioritized alongside the 2026 Gravel Creek-Jarbidge drill targeting, focusing on the highest priority areas with resource growth potential, the company said.

Results Show Similar Geology to Gravel Creek

On December 11, 2025, Brien Lundin of Gold Newsletter noted that the company had "completed nine reverse circulation holes totaling 3,239 meters in the first phase of drilling at the Tomasina Vein Zone, part of its Aura gold-silver project in Nevada."

He continued, "The work confirmed widespread alteration and local quartz-sulfide veining along the 2.5-kilometer structural corridor west of the Gravel Creek deposit, indicating a robust hydrothermal system. With assays pending, Western plans to resume drilling after permitting is extended to test additional targets down dip of Saddle and Wood Gulch, offering strong potential for resource expansion. It’s a hold for now."

In November, Jeff Clark of TheGoldAdvisor.com recorded a video commentary at the company's Reno headquarters. In the video, he revealed his personal investment in the stock, describing it as a "likely long-term Hold" as the company advances with project development and ongoing drilling.

On November 17, he provided an update on results released by the company, noting that one "headline" hole "intersected 3 meters of 7.1 g/t Au and 4.8 g/t Ag, within a broader interval of 44.2 meters 0.38 g/t Au and 1.71 g/t Ag."

Clark emphasized the significance of these results, stating, "What’s significant about today’s results is that it shows Tomasina’s geology is the same as Gravel Creek. This is very positive: it means Tomasina is a precious metals bearing system and that management’s model is working."

Chen Lin of What Is Chen Buying? What Is Chen Selling? described the results as "significant" on November 18 and recommended watching a three-minute video from the company about its discovery. "They have a lot of news coming," he wrote.

In a research report dated September 30, Don MacLean of Paradigm Capital highlighted significant progress by Western Exploration Inc. at Aura. MacLean noted that "WEX offers leveraged exposure to a district-scale Nevada gold-silver growth story," emphasizing the company's potential to expand its resources across various deposits. He mentioned that Paradigm had been monitoring Western Exploration "for some time now" and was "impressed by the progress it has made in the past year unlocking Nevada's emerging high-grade epithermal potential."

MacLean drew attention to the company's exploration efforts at the past-producing Wood Gulch deposit, where drilling was being conducted along the untested Tomasina Fault corridor. He summarized Western Exploration's broader goals, stating that the company was "targeting greater than 2 Moz gold and 30 Moz silver in its next resource update."

The Catalyst: Gold Rises After Venezuela Action

Gold prices inched up to $4,480 per ounce on Tuesday, building on Monday’s 3% rise to reach a one-week high, as investors turned to safe-haven assets amid escalating geopolitical tensions and anticipated U.S. interest rate cuts, according to a Jan. 6 report by TradingView.

This increase follows the U.S. capture of Venezuelan President Maduro over the weekend. President Donald Trump warned that Washington would temporarily "run" Venezuela and threatened further action if the interim government does not meet U.S. demands. Meanwhile, Maduro pleaded not guilty on Monday in a New York court to charges of narco-terrorism and possession of machine guns and destructive devices.

Investors are also focused on Friday’s nonfarm payrolls report for insights into U.S. monetary policy. FOMC member Neel Kashkari warned that an increase in the unemployment rate could heighten the chances of a rate cut, with markets anticipating two Fed cuts this year. Gold reached a record US$4,550 on December 23 and concluded 2025 with a 64% gain, marking its strongest annual performance since 1979.

According to the latest metals research report from Bank of America (BofA), gold will continue to be a crucial hedge and source of returns in 2026, NAI 500's Caroline Kong reported on January 5.

Michael Widmer, head of metals research at Bank of America, noted in the report that gold will remain an essential hedge and a primary driver of returns. The bank predicts that the average gold price will reach US$4,538 per ounce in 2026, with the potential to approach the US$5,000 mark. Key factors influencing this include a tightening gold supply, increasing production costs, and robust investment demand.

Ownership and Share Structure¹

Directors and management own 3% of the company, high net worth individuals hold 9%, Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) has 12%, Auramet holds 4%, and Institutions hold 48%. The rest is retail.

Western Exploration has 52.58 million outstanding shares and 24.96M free float traded shares. Its market cap is CA$32.6 million. Its 52-week range is CA$0.58–CA$1.05 per share.