Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Coverage Launched on Co. With High Grade Gold, Silver Assets
Research Report

Share on Stocktwits


Several compelling factors make this Nevada precious metals explorer an investment worth considering, noted a Fundamental Research report.

Western Exploration Inc. (WEX:TSX.V;WEXPF:OTC) caught the attention of Fundamental Research, which just initiated analyst coverage on it with a Buy rating, reported head of research Siddharth Rajeev in a Jan. 26 research note.

"We believe the company's primary strengths are its high-grade Doby George project with near-term production potential, a strong management and board and Agnico Eagle's backing," Rajeev wrote.

The Reno, Nevada-based precious metals explorer has a share price of CA$1.95, yet Fundamental gives it a fair value of CA$3.48 per share.

Whereas Western Exploration is trading "in line with the comparables average," Rajeev wrote, it "should trade at a premium considering its high-grade resources and near-term production potential."

Rajeev discussed the factors that make Western Exploration a compelling investment.

Potential of the Flagship Asset

Doby George is one of three high-grade, Carlin-type deposits at the explorer's Aura gold-silver project in Nevada, "one of the most attractive mining jurisdictions in the world," the analyst wrote.

Doby George has a near-surface, high-grade oxide gold resource amenable to heap-leach processing. Management is planning a 3,000-meter (3,000m) resource expansion/stepout drill program there in H2/23, along with metallurgical studies, in preparation for a prefeasibility study next year.

"We believe there is potential for resource expansion as the deposits remain open along strike and at depth," Rajeev commented.

"We believe this deposit can be advanced to production quickly, at a low initial capex (less than US$50 million [US$50M])," wrote Rajeev. "Based on its existing resource, we believe the project has the potential to operate for nine years (40,000–50,000 ounces per year) at a relatively low opex  (US$800 per ounce)."

In addition to Doby George, Aura hosts Gravel Creek, with an underground sulfide gold resource, and previously mined Wood Gulch, both about 8 kilometers from Doby George. Geological models of both show prospective mineralization over a total area more than three times the size of the current resource envelope.

As such, Western Exploration plans for Gravel Creek 5,000–10,000m of infill drilling and metallurgical studies.

"We believe there is potential for resource expansion as the deposits remain open along strike and at depth," Rajeev commented.

Accordingly, investors can expect sets of drill results this year that could boost the company's stock price.

Strong Management and Board

Western Exploration boasts a management team and board comprised of professionals with "extensive experience in resource exploration and capital markets," Rajeev wrote.

Chief Executive Officer Darcy Marud, for instance, previously was an executive in exploration and development at Yamana Gold and Meridian Gold, noted Rajeev. Collectively, the management team has been involved in gold discoveries amounting to 12,000,000 ounces.

Notable Share Ownership

Agnico Eagle owns 17% of the Canadian exploration company, Rajeev pointed out. Backing by this major gold producer is a highlight of the Western Exploration story.

Also, members of Western Exploration's board of directors and management own 3% of the shares.

As for finances, Rajeev relayed that Western Exploration ended Q3/22 with US$1M in working capital and subsequently raised US$1.14M in equity financing. According to management, another equity financing, for an estimated US$5–$10M, is likely this year.

Want to be the first to know about interesting Gold and Silver investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Western Exploration Inc. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal  disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 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., a company mentioned in this article.

Disclosures For Fundamental Research Corp., Western Exploration Inc., January 26, 2023

The opinions expressed in this report are the true opinions of the analyst about this company and industry. Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary.

The analyst and Fundamental Research Corp. “FRC” does not own any shares of the subject company, does not make a market or offer shares for sale of the subject company, and does not have any investment banking business with the subject company. Fees were paid by WEX to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. To further ensure independence, WEX has agreed to a minimum coverage term including an initial report and three updates.

Coverage cannot be unilaterally terminated. Distribution procedure: our reports are distributed first to our web-based subscribers on the date shown on this report then made available to delayed access users through various other channels for a limited time. The distribution of FRC’s ratings are as follows: BUY (63%), HOLD (2%), SELL / SUSPEND (35%). To subscribe for real-time access to research, visit for subscription options. This report contains "forward looking" statements. Forward-looking statements regarding the Company and/or stock’s performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products/services in the marketplace; acceptance in the marketplace of the Company's new product lines/services; competitive factors; new product/service introductions by others; technological changes; dependence on suppliers; systematic market risks and other risks discussed in the Company's periodic report filings, including interim reports, annual reports, and annual information forms filed with the various securities regulators.

By making these forward-looking statements, Fundamental Research Corp. and the analyst/author of this report undertakes no obligation to update these statements for revisions or changes after the date of this report. A report initiating coverage will most often be updated quarterly while a report issuing a rating may have no further or less frequent updates because the subject company is likely to be in earlier stages where nothing material may occur quarter to quarter. Fundamental Research Corp DOES NOT MAKE ANY WARRANTIES, EXPRESSED OR IMPLIED, AS TO RESULTS TO BE OBTAINED FROM USING THIS INFORMATION AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OR FITNESS FOR A PARTICULAR USE. ANYONE USING THIS REPORT ASSUMES FULL RESPONSIBILITY FOR WHATEVER RESULTS THEY OBTAIN FROM WHATEVER USE THE INFORMATION WAS PUT TO. ALWAYS TALK TO YOUR FINANCIAL ADVISOR BEFORE YOU INVEST. WHETHER A STOCK SHOULD BE INCLUDED IN A PORTFOLIO DEPENDS ON ONE’S RISK TOLERANCE, OBJECTIVES, SITUATION, RETURN ON OTHER ASSETS, ETC. ONLY YOUR INVESTMENT ADVISOR WHO KNOWS YOUR UNIQUE CIRCUMSTANCES CAN MAKE A PROPER RECOMMENDATION AS TO THE MERIT OF ANY PARTICULAR SECURITY FOR INCLUSION IN YOUR PORTFOLIO.

This REPORT is solely for informative purposes and is not a solicitation or an offer to buy or sell any security. It is not intended as being a complete description of the company, industry, securities or developments referred to in the material. Any forecasts contained in this report were independently prepared unless otherwise stated and HAVE NOT BEEN endorsed by the Management of the company which is the subject of this report. Additional information is available upon request. THIS REPORT IS COPYRIGHT. YOU MAY NOT REDISTRIBUTE THIS REPORT WITHOUT OUR PERMISSION. Please give proper credit, including citing Fundamental Research Corp and/or the analyst, when quoting information from this report. The information contained in this report is intended to be viewed only in jurisdictions where it may be legally viewed and is not intended for use by any person or entity in any jurisdiction where such use would be contrary to local regulations or which would require any registration requirement within such jurisdiction.

Want to read more about Gold and Silver investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe