October 31, 2022 (Investorideas.com Newswire) The results from the first two holes of a nine-hole drilling campaign at this company’s Nevada flagship project have surpassed expectations.
Junior explorer, Western Exploration Inc. (WEX:TSX.V;WEXPF:OTC) is reporting “very encouraging” assay results from the first two holes drilled at the Doby George deposit of its Aura gold project in northern Nevada, according to one investment manager.
The company intersected 20.88 meters of 1.41 grams per tonne gold (g/t Au) and 23.63 meters of 3.27 g/t Au at hole DGC789, including 7.32 meters of 5.27 g/t Au.
At hole DGC790, it intersected 54.56 meters of 2.08 g/t Au, including 6.4 meters of 4.70 g/t Au.
The results are promising, Marceau Schlumberger, managing partner of the family investment vehicle Golkonda LLC, told Streetwise Reports. Golkonda is the largest investor in Western Exploration at 66%.
“These were higher grade (results) than what I had expected,” Schlumberger said. “It basically confirms the high-grade and continuous nature of this deposit.”
Doby George Project. Source: Western Exploration Inc.
Western Exploration Chief Executive Officer and Director Darcy Marud told Streetwise Reports that the company was excited to see “grades in excess of 2 g/t that are fully oxidized right near the surface.”
The results make it a good time to invest in the company, he said.
“I think everybody’s realized that we’ve got a couple of good assets, but you need to really do the work and demonstrated to everybody that your belief can be backed by results, not just talking,” Marud said. “I think we’re starting to deliver those results.”
The Phase 1 drill program at Doby George involved nine large-diameter core holes drilled between July and September. A total of 1,138 meters were drilled. Results from seven of those holes are still expected in the coming weeks.
“You can’t say what they’re going to be until you get the results,” Marud said of the remaining holes. “But I wouldn’t be surprised if they’re not similar to what we’re seeing now.”
More than 1,200 drill holes have been completed on the Aura project totaling more than 200,000 meters. At Doby George, 827 drill holes were completed for a total of 115,217 meters, of which Western completed 74 drill holes for a total of 22,642 meters.
Western Exploration is looking to finish a preliminary feasibility study (PFS) next year on a 5,000 to 7,000 tonnes per day (tpd) open pit heap leach mine there.
The company also has the backing of big names like Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), which owns 18% of the company.
It also plans to drill in 2023 on its new Gravel Creek discovery, with a preliminary economic assessment (PEA) to follow in 2024.
The goal is to grow the more than 1-million-ounce (Moz) Au and 10-Moz silver (Ag) resource at Aura, which is made up of the Doby George, Wood Gulch, and Gravel Creek deposits. It’s 100% owned by Western and is about 32 kilometers north of the Jerritt Canyon Mine, which has been in operation since 1981.
Gravel Creek Brought in Heavy Hitter Agnico
Precious metals mineralization at Aura was initially discovered at Doby George in the 1960s, but it wasn’t until the 1980s that Homestake Mining Co. discovered the Wood Gulch deposit. It produced about 646,000 tons at 2.87 g/t Au and 3.1 g/t Ag, with recoveries of 65% Au and 30% Ag.
At Gravel Creek, 458 drill holes were drilled for a total of 89,388 meters, of which Western completed 131 holes for a total of 62,441 meters.
Marud said Gravel Creek was why Agnico invested in Western Exploration. The major also provides technical support to the company and has invested about US$14 million in it since 2017.
Western hopes to connect the Gravel Creek and Wood Gulch deposits, creating a “much larger footprint” with the potential for 2 to 5 Moz Au.
The area is an under-explored area of Nevada, which with 5.58 Moz Au, hosted 84% of U.S. gold production in 2019. The state has historical production of more than 185 Moz Au.
The stock has also been surging. TMX Money rated Western Exploration No. 18 out of the top 50 companies with the largest price gains by dollar value on the TSX Venture Exchange in the past three months – on Wednesday, it was up CA$0.49 over 90 days.
Ownership and Share Structure
Golkonda LLC, a syndicate of dozens of high-net-worth investors, owns about 66% of the company, and Agnico owns 18%. Management and directors own about 2.8%, and other institutions own about 5.6%, the company said.
Western Exploration has a market cap of CA$45.69 million and has about 30.7 million shares outstanding, 10.4 million of them free floating. It trades in a 52-week range of CA$2.55 and CA$0.96.
1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his 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.
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.
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. and Agnico Eagle Mines Ltd., companies mentioned in this article.
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