Westhaven Gold Corp. (WHN:TSX.V) announced that all six holes drilled in the Certes target at the Shovelnose project intersected anomalous gold pathfinder elements, reported Red Cloud Securities Vice President and Mining Analyst Taylor Combaluzier in a Dec. 13 research note.
"The stage has been set for future drill programs to potentially home in on epithermal mineralization and make additional discoveries," Combaluzier wrote. "We continue to believe that the Shovelnose property has the potential to eventually become a multimillion-ounce gold camp."
Possible 1,250% Return
Given the news, Red Cloud reiterated its CA$1.35 per share target price on the Canadian exploration company, trading at the time of the report at about CA$0.10 per share, noted Combaluzier.
The target price implies a potential return for investors of 1,250%.
Westhaven remains a Buy.
'An Important Step'
Combaluzier presented the results of Westhaven's recent drilling, comprising two holes in each of three target areas, at the Certes showing at Shovelnose, its flagship gold project in south-central British Columbia. The analyst also indicated what follow-up drilling might encompass.
"The 2024 drill program at Shovelnose was an important step to improve the geological understanding of the 11-kilometer (11 km) corridor that extends across [the] southcentral part of the property," Combaluzier wrote.
Highlight in Certes 2
The best intercept, the analyst pointed out, came from hole SN24-425 drilled in the Certes 3 target area. It was 0.69 grams per ton (0.69 g/t) gold, 2.76 g/t silver and 5% zinc over 1.74 meters (1.74m), from 286.9m downhole. Drilling there confirmed a potentially preserved epithermal system extending more than 2.1 km in strike length and remaining open at depth.
SN24-424 encountered elevated pathfinder elements and, near the end of the hole, quartz-carbonate veins.
"Follow-up work would target the downdip extent of veining to look for an underlying gold zone, as seen in the Franz-FMN-South zone trend," Combaluzier wrote.
Westhaven drilled these two holes, SN24-425 and SN24-424, 0.9 kilometers to the southeast of Certes 2, with 150m between them.
Results From Other Targets
As for Certes 2, drilling consisted of holes SN24-422 and SN24-423 placed 440m apart and 1.2 km to the southeast of Certes 1, Combaluzier reported. Both intersected epithermal pathfinder elements and quartz-carbonate veining, suggesting a broad target area exists between the two holes.
"Follow-up work would target the stronger vein zone in hole SN24-422 to test downdip and along strike to the northwest," wrote Combaluzier.
Regarding the Certes 1 target, drill holes SN24-420 and SN24-421, spaced 150m apart, tested the "surface boulders of banded, mercury-bearing chalcedony sinter/silica cap," explained Combaluzier.
Results suggested a "high-level, mercury-venting geothermal plume" is present to the northeast. SN24-420 did not intersect the mineralized portion of this system, perhaps because the hole was ended before it could reach it.
As such, the analyst noted, "a drill hole designed to undercut hole SN24-420 would be part of a future follow-up program."
Looking Forward
It is anticipated the junior explorer will resume drilling at Shovelnose in Q1/25, wrote Combaluzier.
He added, "We also expect Westhaven to continue executing on its parallel plans to advance Shovelnose (both exploration and development) with an updated mineral resource estimate and preliminary economic assessment incorporating the FMN and Franz zones (in addition to the South zone) in Q1/25."
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Disclosures for Red Cloud Securities, Westhaven Gold Corp., December 13, 2024
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