Surface Results To Point Explorer's Drills in Right Direction
Source: Streetwise Reports
March 9, 2023 (Investorideas.com Newswire) This gold explorer will use data from surface exploration work at its flagship project in Nevada to help target its drilling as it develops three different deposits on the site.
Gold explorer Western Exploration Inc. (WEX:TSX.V;WEXPF:OTC) has released the results of surface exploration work at the Gravel Creek resource area of its Aura project in Nevada.
The company will use the information from rock geochemistry and detailed structural mapping from 2022 to help target drilling with an eye on northeast-trending structural zones where there have been multiple high-grade gold and silver vein intercepts.
"Western Exploration has long believed in the potential to greatly expand resources within the Wood Gulch/Gravel Creek mineralized system," Western Exploration Chief Executive Officer Darcy Marud said. "This data gives us additional confidence for drilling in the upcoming field season."
The fieldwork data support the concept of northeast-trending structures as a secondary ore control to the Gravel Creek system, the company said.
Previous drilling at Gravel Creek found grades up to 40.05 grams per tonne gold (g/t Au) and 1,951 g/t silver (Ag).
Mining heavyweight Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) invested in Western Exploration (it owns 18% of the company) because of Gravel Creek, Marud has said. Western Exploration wants to grow Aura - made up of the Doby George, Wood Gulch, and Gravel Creek deposits - from a more than 1-million-ounce (Moz) Au and 10-Moz Ag resource.
"The Aura gold-silver project in Nevada (is) one of the most attractive mining jurisdictions in the world," Fundamental Research Corp. analyst Sid Rajeev wrote when he initiated coverage of the company on Jan. 26.
Gravel Creek and Wood Gulch account for 60% of the project's resources, Rajeev noted.
"Geological models have identified a large footprint of prospective mineralized area (1 km x 3.5 km), which is more than three times the size of the current resource areas," Rajeev wrote. "Management is planning an aggressive resource expansion drill program this year."
Rajeev rated the stock a Buy and gave it a fair value of CA$3.48.
Western Exploration is looking to complete a preliminary economic assessment (PEA) for Gravel Creek in 2024.
The Catalyst: Expanding the Resource
The previous drilling intersected multiple gold-and-silver-bearing veins in the Miocene Jarbidge volcanic rock overlying and lateral to the Gravel Creek deposit, the company said. A cross-section through the deposit shows intercepts of more than 30 g/t gold equivalent (Au eq) in the Jarbidge rhyolite lie between 1,500 and 1,750 meters in elevation.
One core hole from 2020 tested for the presence of northeast-trending vein zones within the Jarbidge rhyolite. Hole WG450, drilled 190 meters northeast of the Gravel Creek resource, intersected three high-grade vein zones of 1.52 meters at 4.07 g/t Au and 363 g/t Ag, 1.83 meters at 7.22 g/t Au and 334.3 g/t Ag, and 0.3 meters at 37.1 g/t Au and 1,951 g/t Ag.
None of this data has been included in previous resource totals, the company said.
Drilling "is planned to verify structural trends and continuity of mineralization, with the ultimate goal of adding the known mineralization into the project resource base," Marud said. "The data also (give) us further encouragement to continue to evaluate the Gravel Creek resource area for new areas of mineralization."
More than 1,200 drill holes have been completed on the Aura project totaling more than 200,000 meters.
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 company also said a 3D geological model of Gravel Creek and Wood Gulch updated in 2022 significantly expanded the areas of prospective mineralization.
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. The project is 100% owned by Western and is about 32 kilometers north of the Jerritt Canyon Mine, which has been in operation since 1981.
Nevada Dominates US Gold Production
It is in an under-explored area of Nevada, the largest gold producer in the United States, accounting for 74% of the country's output in 2021, Rajeev pointed out.
The company released the final four holes from its 2022 drilling campaign at Doby George in January.
One of those holes, DGC794, intersected 26.06 meters of 6.93 grams per tonne gold (g/t Au), including 12.34 meters of 4.57 g/t Au.
Western Exploration is planning step-out drilling at Doby George later this year, plus metallurgical studies required for a preliminary feasibility study (PFS) for the deposit, which it plans to advance into production first while exploring and developing Gravel Creek and Wood Gulch.
Ownership and Share Structure
About 84% of the company is owned by strategic investors, including Golkonda LLC, a syndicate of dozens of high-net-worth investors, which owns about 66% of the company; and Agnico, which owns 18%.
Management and directors own about 3%, and other institutions own about 6%, the company said.
The rest is retail.
Western Exploration has a market cap of CA$50.37 million and has about 31.5 million shares outstanding, 11.2 million of them free floating. It trades in a 52-week range of CA$2.40 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.
Fundamental Research Corp. Disclosures
The opinions expressed in this report are the true opinions of the analyst about this company and industry. Any "forward looking statements" are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. The analyst and Fundamental Research Corp. "FRC" does not own any shares of the subject company, does not make a market or offer shares for sale of the subject company, and does not have any investment banking business with the subject company. Fees were paid by WEX to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. To further ensure independence, WEX has agreed to a minimum coverage term including an initial report and three updates. Coverage cannot be unilaterally terminated. Distribution procedure: our reports are distributed first to our web-based subscribers on the date shown on this report then made available to delayed access users through various other channels for a limited time.
The distribution of FRC's ratings are as follows: BUY (63%), HOLD (2%), SELL / SUSPEND (35%).
To subscribe for real-time access to research, visit https://www.researchfrc.com/website/subscribe/ for subscription options.
This report contains "forward looking" statements. Forward-looking statements regarding the Company and/or stock's performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products/services in the marketplace; acceptance in the marketplace of the Company's new product lines/services; competitive factors; new product/service introductions by others; technological changes; dependence on suppliers; systematic market risks and other risks discussed in the Company's periodic report filings, including interim reports, annual reports, and annual information forms filed with the various securities regulators. By making these forward-looking statements, Fundamental Research Corp. and the analyst/author of this report undertakes no obligation to update these statements for revisions or changes after the date of this report. A report initiating coverage will most often be updated quarterly while a report issuing a rating may have no further or less frequent updates because the subject company is likely to be in earlier stages where nothing material may occur quarter to quarter. Fundamental Research Corp DOES NOT MAKE ANY WARRANTIES, EXPRESSED OR IMPLIED, AS TO RESULTS TO BE OBTAINED FROM USING THIS INFORMATION AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OR FITNESS FOR A PARTICULAR USE. ANYONE USING THIS REPORT ASSUMES FULL RESPONSIBILITY FOR WHATEVER RESULTS THEY OBTAIN FROM WHATEVER USE THE INFORMATION WAS PUT TO. ALWAYS TALK TO YOUR FINANCIAL ADVISOR BEFORE YOU INVEST. WHETHER A STOCK SHOULD BE INCLUDED IN A PORTFOLIO DEPENDS ON ONE'S RISK TOLERANCE, OBJECTIVES, SITUATION, RETURN ON OTHER ASSETS, ETC. ONLY YOUR INVESTMENT ADVISOR WHO KNOWS YOUR UNIQUE CIRCUMSTANCES CAN MAKE A PROPER RECOMMENDATION AS TO THE MERIT OF ANY PARTICULAR SECURITY FOR INCLUSION IN YOUR PORTFOLIO. This REPORT is solely for informative purposes and is not a solicitation or an offer to buy or sell any security. It is not intended as being a complete description of the company, industry, securities or developments referred to in the material. Any forecasts contained in this report were independently prepared unless otherwise stated and HAVE NOT BEEN endorsed by the Management of the company which is the subject of this report. Additional information is available upon request. THIS REPORT IS COPYRIGHT. YOU MAY NOT REDISTRIBUTE THIS REPORT WITHOUT OUR PERMISSION. Please give proper credit, including citing Fundamental Research Corp and/or the analyst, when quoting information from this report.
The information contained in this report is intended to be viewed only in jurisdictions where it may be legally viewed and is not intended for use by any person or entity in any jurisdiction where such use would be contrary to local regulations or which would require any registration requirement within such jurisdiction.
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com