Explorer Finds High-Grade Gold-Silver Potential in Nevada

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Western Exploration Inc. (WEX:TSX.V; WEXPF:OTC) announced it has submitted a National Instrument 43-101 technical report for its preliminary economic assessment (PEA) of the Doby George Deposit and its updated mineral resource estimate (MRE) of the Gravel Creek gold-silver deposit at its 100%-owned Aura project in Nevada.

The updated MRE included a notable increase in both grades and ounces within the inferred mineral resource category, demonstrating the positive impact from the high-grade vein discovery located within the Jarbidge rhyolite to the east of Gravel Creek.

Inferred gold increased from 367,000 ounces to 571,000 ounces and inferred silver ounces went up from 5,307,000 ounces to 9,726,000 ounces, indicating an 83% growth in silver ounces and a 28% rise in silver grade, the company said.

The indicated gold equivalent grade, which is reported at a cutoff of 3 grams per tonne (g/t) AuEq, has remained largely steady from 2021 to 2025, with the latest MRE indicating 216,000 ounces gold (Au) and 3,367,000 ounces silver (Ag).

Highlights from the updated Doby George Heap Leach PEA included:

• A base case after-tax Net Present Value (NPV) of US$70.7 million and an Internal Rate of Return (IRR) of 25.4%, based on a gold price of US$2,150. This NPV rises to US$211.2 million with a potential IRR of 62.2% at a gold price of US$3,000.
• A total Life-of-Mine (LOM) after-tax net cash flow estimated at US$271.2 million over a five-year project timeline at the US$3,000 gold price.
• An anticipated average annual operating cash flow of US$112.1 million and a payback period of less than 18 months, assuming a gold price of US$3,000.
• A LOM all-in sustaining cost of US$1,197 per ounce with the US$3,000 gold price and US$1,152 at the base case price of US$2,150.
• A LOM average grade of 1.01 g/t Au, indicating the potential for substantial profit margins.
• Pre-production capital costs are projected to be US$115.2 million, not including upfront working capital of US$12.4 million, which will be reimbursed in year five.

Management Believes Drilling Could Expand Resources Further

The report was compiled by RESPEC Company LLC and Kappes, Cassidy & Associates, both located in Reno, Nevada, with an effective date of June 17, 2025.

"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 the PEA in May.

The company said its exploration efforts will persist this year with a 4,000-meter drilling program focused on the Tomasina Fault Zone within Wood Gulch. Wood Gulch, a previously producing open pit mine, has been re-prioritized as a highly promising target based on geological reinterpretation informed by earlier drill findings.

While Wood Gulch will be the primary focus of Western Exploration's exploration initiatives in 2025, the significant resource enhancements at Gravel Creek (as detailed in this release) justify a broader drilling program dedicated to infill drilling and resource expansion. Furthermore, the company will work on mitigating project risks by refining parameters related to potential processing and costs, conducting ongoing geotechnical assessments, pursuing environmental studies, and preparing for permit applications.

'Compelling' Geological Picture

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."

On June 26, Jeff Clark shared an updated opinion of the company, writing, "Even if you leave aside the extraordinary exploration potential that remains at Wood Gulch and Gravel Creek, a resource of that size with a Nevada address makes the stock extremely undervalued when it sits at a 52-week low. Great bargain. It’s such a good bargain, in fact (and the recent resource upgrade has so effectively derisked the company) that I’m graduating Western Exploration to the Gold Advisor portfolio next week to give it a wider audience."

Chen Lin of What is Chen Buying? What is Chen Selling also shared a positive view of the company. In a June 24 newsletter, he wrote, "WEX.v released an excellent new resource report. It increased in grades and ounces in Gravel Creek and Wood Gulch deposits. A significant increase in grades and ounces, at a 3.0g AuEq/t cutoff*, in the inferred mineral resource category, reflecting the positive contribution from the high-grade vein discovery hosted in Jarbidge rhyolite east of Gravel Creek."

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.

The Catalyst: Precious Metal Prices Firmer

Gold and silver prices were firmer in early U.S. trading Thursday, supported by a wilting U.S. dollar index that overnight hit a 3.5-year low, reported Jim Wyckoff for Kitco. Precious metals gains were modest, however, as tensions in the Middle East have significantly de-escalated this week. August gold was last up US$6.00 at US$3,348.40. July silver prices were last up US$0.374 at US$36.485.

President Trump on Wednesday slammed Fed Chairman Jerome Powell and said he has a few people in mind to replace him when his term expires next year. Reads a Barron's headline today: "Trump may name next Fed chair early. Why it would fuel inflation and tank the dollar." The headline suggests Trump's new Fed chair pick would be very easy on monetary policy, which could prompt inflation and further depreciate the greenback.

Technically, August gold futures bulls have the overall near-term technical advantage. Bulls' next upside price objective is to produce a close above solid resistance at the June high of US$3,476.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at US$3,300.00. First resistance is seen at Tuesday's high of US$3,385.00 and then at US$3,400.00. First support is seen at Wednesday's low of $US3,325,50 and then at this week's low of US$3,308.30. Wyckoff's Market Rating: 6.5.

Specialists have said the current bull market in gold is not anticipated to diminish soon. Garth Friesen documented for Forbes on March 15 that DoubleLine Chief Executive Officer Jeffrey Gundlach said, "I think gold will make it to US$4,000. I'm not sure that'll happen this year, but I feel like that's the measured move anticipated by the long consolidation at around US$1,800 on gold."

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 outstanding shares and 24.96M free float traded shares. Its market cap is CA$33.13 million. Its 52-week range is CA$0.58–1.49 per share.