Western Exploration is a gold exploration and production company, with its main interest in Northern Nevada. The results shared today came from its 2023 core drilling program, focused on identifying vein extensions in the Jarbidge rhyolite north-east of the Gravel Creek resource area at the company's 100%-owned Aura gold-silver project.
Highlights of these results were shared by the company:
- Two oriented core holes totaling 1,470 meters were completed to verify the existence of a mineralized corridor trending northeast from the Gravel Creek deposit, as outlined in a news release of the Company dated March 6, 2023, entitled "Western Exploration Announces Additional Exploration Results at Gravel Creek."
- Both holes WG456 and WG457 intersected multiple quartz-pyrite-marcasite bearing veins, stockwork, and hydrothermal breccias within the targeted mineralized corridor.
- Hole WG456, located 250 meters north-east of the Gravel Creek resource area, reported individual assays up to 34.9 g/t Au (grams per tonne gold) and 2800.0 g/t Ag (silver), with key intercepts including:
- 4.7 meters of 9.20 (g/t AuEq (gold equivalent)) (4.55 g/t Au and 395.4 g/t Ag)
- 2.4 meters of 7.82 g/t AuEq (5.37 g/t Au and 208.1 g/t Ag)
- 2.0 meters of 21.96 g/t AuEq (12.77 g/t Au and 780.9 g/t Ag)
- 2.1 meters of 7.56 g/t AuEq (5.40 g/t Au and 183.1 g/t Ag)
- 3.0 meters of 6.75 g/t AuEq (5.42 g/t Au and 113 g/t Ag)
- Gold-silver grades in WG456 occur at the same elevation as the "productive horizon" in the Gravel Creek deposit and are comparable in grade to those seen in multiple legacy intercepts.
- These results support further exploration drilling to the northeast along a 2.0-kilometer trend of Au-As soil and rock anomalies that parallel a N35E trending density anomaly.
- WG456 was abandoned at a depth of 730.6 meters due to drilling complications, with the final 3.0 meters returning 5.42 g/t Au and 113 g/t Ag.
- Assays for hole WG457 are currently being finalized by ALS Chemex.
According to the company, past drilling found many high-grade Au-Ag vein intercepts of up to 40.05 g/t Au and 1951 g.t Ag in the Miocene Jarbdidge volcanics, which are lateral to Gravel Creek. Previous calculations have never included these intercepts.
To put things into perspective, Bullion By Post notes that 8 to 10 g/t Au is considered high-grade.
The company shares this Table:
In light of these results, CEO Darcy Marud said, "Western Exploration has long believed in the potential to greatly expand resources within the Wood Gulch/Gravel Creek mineralized system, and it is now become more evident that Wood Gulch and Gravel Creek are part of a large Au-Ag bearing hydrothermal system over an area of 10km2. The integration of structural surface alteration and geochemical data generated by the 2023 core drilling program has brought greater understanding of the controls on the high-grade veins in the Jarbidge rhyolite overlying and peripheral to the Gravel Creek deposit. Significant additional oriented core drilling is justified to better define the vein trends and determine the extent of the mineralized system to the north-east, with the ultimate goal of expanding the project resource base."
Why Gold? On the Verge of a Major Breakout
Often seen as a hedge against inflation, gold is seeing promise as inflation and waning faith in the U.S. dollar increases. In October, Marin Katusa of Katusa Research echoed these sentiments, saying, "Gold is responding to uncertainty on the geopolitical chess board and could just as easily spike to new highs or correct lower."
Yesterday, Technical Analyst Clive Maund wrote he saw promise in gold in his newsletter. He wrote, "Gold is on the verge of a major breakout, and frankly, it would be surprising if it wasn’t given that money creation is in the final vertical stages of a parabolic blowoff. Gold has taken so long to build up to this, having been in a giant trading range since mid-2020, that when it happens, it will take most investors by surprise, which is of course what you expect when a major breakout occurs."
Catalysts: Further Drilling
Western Exploration shared in its company presentation further drilling plans, extending throughout 2024. A new resource update for Gravel Creek is set to be released in the first two quarters of the new year.
Further drilling is planned on Gravel Creek and Dolby George in the third quarter of 2024, and a PFS for Dolby George will be released in the last quarter of 2024.
Streetwise Ownership Overview*
Ownership and Share Structure
According to Reuters, 2.81% of the company is held by management and insiders. Chairman Marceau Nicolas Jean Schlumberger owns 1.91%, with 0.66 million shares. CEO and President Darcy E. Marud owns 0.56%, with 0.19 million shares. Director Gerard Emmanuel Munera owns 0.24%, with 0.08 million shares, and Director Nicolas J.R. Schlumberger owns 0.10%, with 0.04 million shares.
74.79% is owned by institutions. Golkonda, LLC, owns 57.97%, with 19.97 million shares. Agnico Eagle Mines Ltd. (a CA$32 billion market cap major mining company) owns 15.80%, with 5.44 million shares, and US Global Investors, Inc., owns 1.02%, with 0.35 million shares.
The rest is with retail investors.
Reuters reports that there are 34.45 million shares outstanding and 8.07 million free float traded shares, while the company has a CA$16.23 million market cap and trades in the 52-week period between CA$0.65 and CA$2.40.
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- Western Exploration Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Western Exploration Inc. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- 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.
- Katherine DeGilio wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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