In its ongoing drilling efforts on its Shovelnose gold property in British Columbia, Canada, Westhaven Gold Corp. (WHN:TSX.V) continues to find multiple high-grade gold-silver veins along with significant widths of disseminated gold-silver, including 85.45 meters of 1.09 g/t (grams per tonne) gold and 2.43 g/t silver, as well as 3.14 meters of 10.80 g/t gold and 24.80 g/t silver. The company announced the findings in a recent news release.
Westhaven has noted that resource drilling is complete in the South Zone of its 17,623-hectare (about 43,547 acres) property and drilling is now focused on recently identified exploration targets.
“The recent drill results at the South Zone once again confirm that we are dealing with a robust gold-silver system that continues to expand with drilling,” said Gareth Thomas, the company’s CEO.
“What’s interesting about our recent drilling results is that they came from exploration drilling on the periphery of previous drilling at the South Zone, not from in-fill drilling between existing holes.
“The recent drill results at the South Zone once again confirm that we are dealing with a robust gold-silver system that continues to expand with drilling,” -- Gareth Thomas
“And we’re seeing not just high-grade gold veins but also large intercepts of lower-grade mineralization. While the high-grade veins may be mined later underground, the 'halo' of lower-grade disseminated mineralization may be more suitable for lower-cost open-pit mining, which could make for larger production profile,” Thomas explained.
If that becomes the case, management said the easily accessible location of the company’s site — right off a major highway and not far from Vancouver and even closer to the city of Merritt — is likely to become an even more attractive consideration.
“What’s getting us excited now is the successful start of drilling in the FMN Zone of the property, which is a few kilometers away from the South Zone, on trend and in the same vein zone," Thomas said.
So what was all the excitement from the initial drilling in late 2018 and early 2019? What caused the share price to jump so high so fast? Management clarified that drilling high-grade gold (17.70 meters of 24.50 g/t gold and 12.66 meters of 39.31 g/t gold) sparked the excitement in the company.
The fact that the Shovelnose Gold Property is located just off a major highway (just a 2.5-hour drive from Vancouver and 30 minutes from the city of Merritt) has unique strategic advantages going forward.
A really big picture perspective is asking the question, “Where was the potential source of the Fraser River gold rush back in 1857, which drew about 20,000 prospectors to the area?”
Management’s theory is that the Spences Bridge Gold Belt is that source. “Westhaven has a large land package (four gold properties) across this new and emerging gold belt in south central B.C., and we have the first high-grade discovery at our flagship Shovelnose gold property as discussed above,” said Thomas.
The company is currently awaiting the assays for several holes from the newly discovered FMN Zone, which could be the next big, near-term share price catalyst for the company.
This past spring, the company raised about $15 million in a bought deal largely bought by expert institutional investors specializing in resource-specific investments.
Westhaven’s 126.2 million shares are 25% owned by the company’s directors and officers, 25% by institutions and funds, 40% by retail investors, and 10% by friends and family. The proceeds will be used to publish a maiden resource on the South Zone later this year or in early 2022 and fund exploration drilling on this large and underexplored property.
Management believes that value will be unlocked with exploration and discovery drilling and that the maiden resource is just the beginning of what could be a multi-million-ounce gold discovery.
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Disclosures:
1) Evan Cooper compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee. He/she or members of his/her household own securities of the following companies mentioned in the article: None. He/she or members of his/her household are paid by the following companies mentioned in this article: None. His/her company has a financial relationship with the following companies referred to in this article: None.
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