Gold Co. Says Assays Point to Resource Expansion Potential in Nevada

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Western Exploration Inc. (WEX:TSX.V; WEXPF:OTC) announced additional high-grade results from its core drilling program in the Jarbidge rhyolitye northeast of the Gravel Creek resource area of its fully owned Aura gold-silver project in Nevada.

Five oriented core holes totaling 3,556 meters were drilled in 2024 to offset earlier intercepts in the Jarbidge rhyolite. New results were released for two holes and additional assay results were released for another hole and included individual assays up to 50.3 grams per tonne gold (g/t Au) and 2,110 g/t gold equivalent (Au Eq).

"The 2024 drill program has intersected multiple high-grade gold-silver intercepts in the three core holes reported to date," Chief Executive Officer Darcy Marud said. "Mineralization is open in all directions and preliminary interpretation suggests the vein zones may be widening up dip to the east. Western Exploration continues to believe that the area NE of the Gravel Creek resource offers significant resource expansion potential with high-grade gold and silver values hosted in epithermal veins and breccia zones."

According to Analyst Sid Rajeev of Fundamental Research Corp. in an updated research note on October 31, the company plans to complete a resource update for the Gravel Creek and Doby George deposits in the first half of 2025, followed by a preliminary feasibility study (PFS) for Doby George in Q4 2025.

"We are reiterating our BUY rating, and (adjust) our fair value estimate from CA$2.07 to CA$2.67/share," Rajeev wrote. "WEX has made notable strides at its Aura gold-silver project, showcasing promising drill results, and improved recoveries. With M&A activity on the rise, we believe WEX is emerging as a strong acquisition target."

Two New Holes, More Results From Third

In a release, the company said the new results were for holes WGC458 and WGC460 and included further assays from WGC459.

WGC458 was drilled 80 meters south on strike from the Discovery Section and reported individual assays of up to 22.2 g/t Au and 977.0 g/t silver (Ag), with key intercepts including:

• 0.34 meters at 33.69 g/t Au Eq (22.2 g/t Au and 977 g/t Ag)
• 0.40 meters at 15.36 g/t Au Eq (13.20 g/t Au and 184.0 g/t Ag)
• 0.61 meters at 13.74 g/t Au Eq (12.35 g/t Au and 118.0 g/t Ag)

WGC459 was drilled 80 meters north on strike from the Discovery Section. Additional unreported results include:

• 0.86 meters at 10.08 g/t Au Eq (9.80 g/t Au and 23.4 g/t Ag)
• 0.31 meters at 7.54 g/t Au Eq (7.21 g/t Au and 27.7 g/t Ag)

Hole WGC460 was drilled 80 meters north on strike from the Discovery Section and 80 meters down dip from hole WGC459, and reported individual assays up to 50.3 g/t Au and 2,110 g/t Au Eq, with key intercepts including:

• 1.04 meters at 16.72 g/t Au Eq (12.34 g/t Au and 372.2 g/t Ag)
• 0.55 meters at 75.12 g/t Au Eq( 50.30 g/t Au and 2,110 g/t Ag)

"I think it follows up well with what we put out last year," Marud told Jeff Clark of The Gold Advisor in an interview on his "Paydirt Podcast." "We made a discovery last year, some high-grade veins just to the east of our Gravel Creek resource, and I think these are consistent with that even though they're an 80-meter step out along strike, we're seeing the same style of mineralization with . . . those real splashy grades that you like to see."

Clark, who said he was overweight on the stock himself, noted the "headline holes" and said, "There are some good results in here."

Marud agreed. "We've got these wide zones that we're seeing," he said, noting the "robust nature of what we're finding right now."

"We've got the consistency of the grade, consistency of width, and now we're seeing that along strike length," Marud said. "That's really what we're trying to do this year with the drilling. Last year, we said, 'Hey, we've got a system with a lot of grade over about 500 meters north-south, 300 meters east-west.' If we can connect those dots, then we've got a real chance of increasing the resource here above that 750,000 ounces we currently have, and we're starting to see that continuity."

Co. Has Made 'Significant Progress'

According to WEX's release, the results from core holes WGC458 to WGC460 "confirm there are multiple vein-breccia zones with +10.00 g/t Au Eq values within the projected structural corridor in the Jarbidge rhyolite northeast of the Gravel Creek resource."

"This gives the company good reason to expand oriented core drilling into and beyond the 550-meter by 350-meter area that hosts multiple high-grade Au Eq intercepts in widely spaced legacy holes," the company said.

Rajeev with Fundamental Research noted that the company has made "significant progress," calling initial metallurgical results from Gravel Creek "impressive recoveries of 95%."

"We maintain a positive outlook on gold in light of the anticipated rate cuts by the Fed, and elevated geopolitical tensions," Rajeev wrote. "The sector has witnessed a substantial rise in M&A activity . . .  We see WEX as a prime acquisition target, with majors actively pursuing attractive projects to grow their portfolios."

The Catalyst: Gold Bulls Still Going Strong

Gold hit its latest record high on October 30 but has slid after the U.S. election of Donald Trump as president-elect. The price fell nearly 3% following the vote, wrote Ian Salisbury for Barron's on Monday.

"One reason for the reversal is that Trump’s clear-cut win removed uncertainty hanging over U.S. markets and politics, weakening the case for haven assets," he wrote. "A bigger factor, however, was a spike in interest rates that came as markets digested the prospect a second Trump term could lead to higher inflation. Many investors buy gold as an alternative to bonds, and when bond yields rise, gold becomes comparatively less attractive."

However, Salisbury wrote that "most of the arguments gold bulls make — and have been making throughout 2024 — look stronger after Trump's win."

"We are still relatively constructive on gold," said Taylor Krystkowiak, investment strategist at Themes ETFs, according to Salisbury's report. "Why does gold go up? It's geopolitical uncertainty, it's deficit spending, and it's inflation. Right now, all those stars are aligned."

Most experts agree gold is in a bull market that is not going away anytime soon.

"In March 2024, gold hit US$2,070 and, even though the last six months have seen pushbacks and dips, gold continues to climb," Nick Fulton, managing partner at USA Pawn, told Newsweek. "When we saw $2,600 an ounce gold, I thought $2,800 by the end of the year. Now? We could see gold at $3,000 an ounce happen in a 30-day time span."

Ownership and Share Structure

About 72% of Western Exploration is owned by strategic entities and high net worth investors, according to its latest investor presentation, including Golkonda LLC with about 46%, Agnico Eagle Mines Ltd. with 14%, and Auramet Capital Partners with 5%.

Other institutions hold about 6%, insiders and management hold about 3%, and the rest is retail.

Western Exploration's capital structure consists of 45.43 million outstanding shares and 17.85 million free-float traded shares, according to Reuters. Its market cap is CA$61.54 million. Its 52-week trading range is CA$0.46−$1.50 per share.