Junior Mining Co. Boosts Resource of Deposit in NV by 54%

1. 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.
2. 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. and Agnico Eagle Mines Ltd.
3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
4.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Western Exploration Inc. (WEX:TSX.V; WEXPF:OTC) updated the mineral resource estimate (MRE) of the Gravel Creek gold-silver deposit at its 100%-owned Aura project in Nevada, noted a news release. Chief Executive Officer (CEO) and President Darcy Marud will discuss the new estimate and provide an update on Aura in a live webinar at 1 p.m. PST on Thursday, June 26.

"The strength of this updated resource, combined with favorable market conditions for both gold and silver, positions us to deliver shareholder value in the near term," Marud said in the release.

The MRE update, based on results of 96 drill holes, reinforces Western's strategy, validates its exploration model, highlights two years of drilling success and underscores its momentum in expanding the resource.

Compared to the previous MRE In 2021, both gold and silver grades and ounces are significantly higher in the new 2025 version. This reflects a 54% boost to total gold equivalent ounces, at a 3 grams per ton (3 g/t) cutoff grade.

As for gold, the Inferred resource grew to 571,000 ounces (571 Koz) from 367 Koz, representing a 56% increase in ounces and a 9% increase in grade.

Regarding silver, the Inferred resource increased to 9,726,000 (9.726 Moz) from 5.307 Moz, representing an 83% jump in ounces and a 28% rise in grade.

With respect to the Indicated resource category, using the same 3 g/t Au eq cutoff, ounces and grade remained relatively the same between the previous and new resources. In the 2025 MRE, total Indicated gold is 216 Koz, and total Indicated silver is 3.365 Moz.

"The significant resource increase at Gravel Creek supports a more extensive drill program aimed at infill drilling and resource expansion," the release stated.

The growth between the two resources is due primarily to the high-grade vein discovery in the Jarbidge rhyolite hanging wall zone east of Gravel Creek and the revised geologic and structural model's positive impacts. In the updated MRE, the new zone accounts for about half of the gold ounces and most of the silver ounces, in the Inferred category. Initial geologic and resource modelling showed remarkable continuity for an area tested only with 19 diamond drill holes.

The new Gravel Creek model displays better continuity of mineralization and highlights significant potential for resource expansion along strike. Additional drilling would better define the high-grade veins and upgrade the resource classification.

"Our revised geologic models highlight new exploration opportunities along the GC Fault at Gravel Creek and the potential to expand high-grade veins in the Jarbidge rhyolite," Marud said in the release.

Management believes the remarkable success rate Western has had with drilling could translate into additional resource expansion with continued drilling and exploration activities, noted the release. Gravel Creek remains open along strike and downdip. Jarbidge is open in all directions.

The other two gold and silver deposits at Aura are Wood Gulch, the focus of the company's 2025 drill campaign, and Doby George, on which it released a preliminary economic assessment (PEA) in May.

RESPEC Co. LLC in Reno, Nev., prepared the updated MRE. A technical report is being created in accordance with NI 43-101 to include the updated mineral resource estimate and the Doby George PEA. The report will be filed on SIDAR 45 days from the PEA news release.

Developing Two Projects in One

Western Exploration aims to become a premier precious metals development company in North America, according to its website. It is committed to advancing Aura, in Nevada, which has an NI 43-101-compliant resource of 1.475 Moz Au eq, notes Western's presentation. Aura's geochemistry, geology and geophysics support numerous targets at the project, from discovery, such as North Badger, to a past-producing mine, Wood Gulch, all open for expansion. Aura has been permitted continuously since 1997 with the U.S. Forest Service. The current plan of operations is valid through 2028-2029 and is renewable.

Nevada is a top mining jurisdiction because of its favorable geology, supportive regulatory climate and established infrastructure. In the U.S., The Silver State is the No. 1 gold producer and the leading silver producer, according to the Nevada Bureau of Mines and Geology. The project is 100 kilometer (100 km) north of the city of Elko and on Independence trend that hosts a 15 Moz-plus gold resource and past-producing mining operations, notes Western's presentation. Spanning 61.6 square kilometers (61.6 sq km), Aura is north of Warriedar Resources Ltd.'s (WA8:ASX) Big Springs and First Majestic Silver Corp.'s (AG:TSX; AG:NYSE; FMV:FSE) Jerritt Canyon. Infrastructure, including road, power and water, is nearby.

Why he likes WEX, Jeff Clark wrote, is because upcoming drilling on Wood Gulch could expand the already sizeable Wood Gulch-Gravel Creek resource even more.

Aura offers two value creating projects in one with district-scale potential: Doby George and Gravel Creek/Wood Gulch. Doby George is a near-surface, heap-leachable, 1 g/t oxide deposit that can generate more than US$100 million (US$100M) of operating cash flow yearly. The resource is 394 Koz of 0.90 g/t gold in the Indicated category and 71 Koz of 0.69 g/t gold in the Inferred category. Excellent potential exists to grow the resource, oxide and sulphide, at depth.

The base case economics for Doby George, outlined in the PEA from earlier this year, are an after-tax net present value (NPV) of US$70.7M and an internal rate of return (IRR) of 25.4%, using a US$2,150 per oz (US$2,150/oz) gold price. The upside case economics are an after-tax NPV of US$211.2M with an IRR of 62.2%, using a US$3,000/oz gold price.

Wood Gulch is 15 square kilometer (15 sq km) large preserved epithermal system with multiple discoveries and resources and part of the Gravel Creek epithermal system 1 km to the west. Past drill results from Wood Gulch include up to 13.72 meters (13.72m) of 27.57 g/t Au and 144.1 g/t silver (WG -125). The Inferred resource is 105 Koz of 0.74 g/t Au eq. The project has exploration and long-term resource growth potential, and the Wood Gulch target is open along 3 km of strike length.

Western Exploration has an impressive management team with the skills to see its corporate mission through, wrote Jeff Clark of The Gold Advisor in his initial recommendation report on the company in March 2024.

About Marud, the company's CEO and a geologist with 36 years of experience, Clark wrote: "Darcy is a down-to-earth straightshooter, someone who knows all the hints Mother Nature provides that can lead to a gold deposit — in this case, a bigger gold deposit. As such, we have a geologist with huge discovery success leading the helm. He's also invested half a million dollars of his own money in Western Exploration.

"He's made so many gold discoveries, they're hard to keep track of. . .

• He led the team that discovered four gold mines in Chile: El Peñon with 5 Moz, Fortuna with 2 Moz, Pampa Augusta Victoria with 1.5 Moz, and Amancaya with 400 Koz.
• He was VP-Exploration at Meridian Gold (MNG:TSX.V) and spearheaded the exploration at Mercedes (2 Moz) for Yamana Gold Inc. (YRI:TSX; AUY:NYSE; YAU:LSE).
• He's also had success leading the exploration teams at Corpo Sul, Pilar, and Jacobina."

Time to be Long Junior Miners

Geopolitical events drove the gold price to a record high on June 15 of US$3,434/oz, but it ended the day at US$3,370, no longer reflecting a "safe haven premium," wrote Brien Lundin of Gold Newsletter on June 19.

"Yet gold is trading at an even higher plateau," Lundin added. "We're not back in full rally mode after I reported on gold's breakout from the correction earlier this month, but we have made steady progress higher."

Doug Hornig, contributing editor to The Gold Advisor, estimates that the market cap of gold is about US$21–23 trillion, and in comparison, the market cap of the world's gold miners in sum is US$500 billion  (US$500B), he wrote in the June 18 edition. That being the case, only a little bit of added interest in the gold miners could launch "the next boom in mining stocks."

"Gains in the junior miners could be spectacular, since the sector is down about 70% from its peak in 2012," Hornig wrote. "It's a bull market, and it's time to be long."

Central bank buying of gold has contributed largely to the gold price's ongoing rise. According to Bloomberg, Goldman Sachs estimated that, in aggregate, central banks around the world are accumulating roughly 80 metric tons of gold per month, worth about US$8.5B at June 3's prices.

Dominic Frisby of The Flying Frisby reported on June 19 that gold just surpassed the euro to become central banks' second most held asset. Now, gold accounts for 20% of their reserves versus 10% a decade ago, whereas euros comprise 16%.

"I've little doubt this [increase] will double again over the next 10 years, and we'll be at 40%," Frisby wrote. "Gold is reclaiming its historical role as a core international holding. Make sure you own some."

Ron Struthers wrote in the Struthers Resource Stock Report on June 18 that the long-term bull market in stocks is approaching its end and thus creating a scenario reminiscent of the one in the late 1960s and 1970s when gold and silver soared.

"Gold has already confirmed its breakout from a 13-year cup and handle pattern," he added, "and once the stock market finally rolls over, we can expect an explosive move in gold."

In his June 18 article in The Gold Advisor, Hornig discussed the range of current price forecasts. On one end, Goldman Sachs, with a "very aggressive" stance, predicts US$3,700/oz at year-end 2025 (YE25), and were the economy to slump into a recession or were global risk to spike, the price could leap to US$3,900 or even as high as US$4,500/oz. UBS sees a base case of US$3,500/oz at YE25, with an upside high of US$3,800 and a downside floor of US$3,200. Similarly, J.P. Morgan expects US$3,675/oz gold in Q4/25 and US$4,000-plus/oz gold in Q2/26.

"A lot depends on what else is happening in the world, of course," added Hornig. "Continuing turmoil in Ukraine and the Middle East will tend to support a higher gold price. So would interest rate cut(s) by the Federal Reserve. And FOMO (fear of missing out) looks like it's just revving up among individual investors."

Other institutions with more conservative estimates, Hornig reported, include Citi, predicting a YE25 price in the US$3,100–3,500/oz range. Bank of America predicts the price will drop to below US$3,100/oz over the rest of the year. Deutsche Bank calls for US$2,450–3,050/oz gold by year-end.

"A recession might depress gold," noted Hornig. "And a large-scale stock market retreat always means lower prices for a while, as people sell their gold to cover paper losses."

As for the overall global gold market, it is projected to expand at a 6.51% compound annual growth rate between 2025 and 2030, according to Virtue Market Research. The expectation is it will reach US$400B in market size by YE30, up from US$292B in 2024. According to Virtue Market, this growth will be fueled primarily by environmental control, oil and gas exploration and technological advancements in seal materials.

Two Big Catalysts on Horizon

The next major catalyst is its planned 4,000m drill program at Wood Gulch, slated to commence in late July-early August, noted the news release.

The prospective 3 km-long Tomasina Fault zone target will be the primary focus.

What Two Experts Are Saying

Jeff Clark included Western Exploration in the "Where to Devote Funds Now" portion of The Gold Advisor's June 19 edition, his recommendations of gold stocks that "haven't left the station yet." Why he likes WEX, he wrote, is because upcoming drilling on Wood Gulch could expand the already sizeable Wood Gulch-Gravel Creek resource even more.

In his initial recommendation report, he wrote this about the explorer: "Bottom line, we have a proven mine finder who's found strong hints that his company's flagship project has significantly more gold, in a pro-mining jurisdiction." He continued, "Is Western's flagship project about to double in size and push the resource over 2 Moz? It's a spec, but my money's on this team and their prospects."

The Gold Newsletter also likes this junior miner, too. Given the exploration upside at Aura, it wrote in the May 29 edition, the company should generate significant news in H2/25. The geological picture is "compelling," and Gravel Creek is looking more and more like it could be another Midas, a legendary historical mine in Nevada, it wrote. 

"Much more drilling will be necessary, but my takeaway is that I'm glad I'm a shareholder, and Western Exploration's still a Buy."

Fundamental Research Corp. has WEX as one of its Top Picks, as noted in a May 20 report highlighting the explorer as a top performer during the previous week.

Ownership and Share Structure

According to Western Exploration, directors and management own 3% of the company through Golkonda LLC. High net worth individuals hold 10%. Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) has 15%. Auramet holds 5%.

Institutions, including Euro Pacific Asset Management, U.S. Global Investors, and tGOLD (TXAU), own 50%. The remaining 17% is in retail.

Refinitiv reports that Western Exploration has 52.58 million (52.58M) outstanding shares and 24.96M free float traded shares. Its market cap is CA$25.65M. Its 52-week range is CA$0.60–1.49 per share.