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Gold Co. Plans Resource Expansion Drilling at Nevada Project

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Western Exploration Inc. has announced details for its proposed 2024 resource expansion drilling at its wholly owned Aura gold and silver project in Nevada. Find out why one analyst says the stock would be good to own going into an emerging gold bull market.

Western Exploration Inc. (WEX:TSX.V;WEXPF:OTC) has announced details for its proposed 2024 resource expansion drilling at its wholly-owned Aura gold and silver project in Nevada.

The planned drilling will target the Jarbidge rhyolite east of the Gravel Creek resource area based on the interpretation of 2023 drill results that provided a "breakthrough" showing a significantly expanded resource there.

"The 2024 core drilling program will focus on extending vein zones intersected on the 'Discovery Section' with 80-meter step-out holes, with the goal of expanding the Gravel Creek resource base," Western Exploration Chief Executive Officer Darcy Marud said. "Longer term, the company anticipates completing additional drilling to identify a link with multiple legacy intercepts in the high-grade Au-Ag (gold and silver) vein zones in the Jarbidge rhyolite, which could significantly expand the Gravel Creek resource base."

The Aura Project consists of three locations in Nevada: Doby George, Gravel Creek, and Wood Gulch.

Western Exploration said assay results, in combination with oriented core structural studies from 2023 drilling, identified a significant North-South trending/moderately west dipping zone with multiple high-grade Au-Ag bearing quartz-pyrite-marcasite vein, stockwork, and hydrothermal breccias located 140 meters to 250 meters east/north-east of the Gravel Creek resource area.

Multiple intercepts of +20.0 grams per tonne gold equivalent (g/t Au Eq) intercepts in two parallel vein zones and associated splay structures have been traced along a dip length of over 200 meters, with drill widths ranging from 0.3 to 4.6 meters and grades up to 257.0 g/t Au and 1,655 g/t Ag, the company said.

Technical Analyst Clive Maund noted that the company has already delineated significant reserves at its properties in northern Nevada.

With many thinking that gold is set to embark on a new bull market (which may have already started), Technical Analyst Clive Maund wrote that it was a good reason to look at companies like Western Exploration.

Maund noted that the company has already delineated significant reserves at its properties in northern Nevada.

The analyst also noted that Western Exploration's share structure also could work in investors' favor.

"The number of shares available to retail investors is tiny at just 6.5% of the number of shares in issue, which itself is a modest 34.4 million," Maund wrote. "What this means is that any significant increase in demand for the stock could drive a spectacular spike, and the stock is already starting to make significant gains."

The Catalyst: Connecting the Dots

Earlier this year, the company announced that it is expanding the size of the Wood Gulch/Gravel Creek resources area and working toward a resource update and Preliminary Economic Assessment (PEA) for Doby George.

"Past drilling has already outlined very high Au and Ag grades, and this should allow us to connect the dots and expand the current Gravel Creek resource," Marud said in an annual update to shareholders.

The company said Major Drilling Group International Inc. had been contracted to supply two drills to complete a 4,000-meter oriented core drill program at the site. Preparations will begin in June, commencing shortly after that.

Drilling will focus on bracketing the 2023 discovery section with 80-meter step-out fence drilling on strike to the north and south, as well as 80 meters up-dip, Western Exploration noted.

"With confirmation of grade and structural trends, the company anticipates that drilling can be expanded to link with other +5 g/t Au Eq legacy drill intercepts within the Jarbidge rhyolite," the company said in a release.

Asset Manager Chooses Co. for Q2 Picks

Asset Manager Chen Lin of the What is Chen Buying? What is Chen Selling? newsletter named WEX as one of his picks for the second quarter.

Two holes drilled last year evaluated the resource expansion potential northeast of the Gravel Creek resource. Hole WG457 reported assays of up to 257 g/t Au and 1,655 g/t Ag, including 0.7 meters of 143.56 g/t Au Eq and 1 meter of 67.49 g/t Au Eq. Hole WG456 reported 2,800 g/t Ag.

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Western Exploration Inc. (WEX:TSX.V;WEXPF:OTC)

*Share Structure as of 3/27/2024

According to an updated mineral resource estimate (MRE), Gravel Creek has a resource of 245,571 Au Eq ounces at 5.81 g/t Au Eq in the Indicated category and 442,814 Au Eq ounces at 5.02 g/t Au Eq in the Inferred category.

"They have everything lined up for them to do a major drilling this year," Chen said. "So, we should expect a lot of new drilling results this year, which should propel them to a much higher valuation."

Ownership and Share Structure

According to Reuters, about 74% of the company is owned by strategic investors. This includes Golkonda LLC, a syndicate of dozens of high-net-worth investors, which owns about 58% of the company, and Agnico, which owns 16%.

Management and directors own about 7%, and other institutions own about 12%, the company said.

The rest is retail.

Western Exploration has a market cap of CA$27.56 million and has 34.45 million shares outstanding. It trades in a 52-week range of CA$2.20 and CA$0.455.

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Important Disclosures:

  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. In addition, Western Exploration Inc. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
  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. 
  3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  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. 

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Contributing Author Disclosures 

  1. Author Certification and Compensation: [Clive Maund of] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989.  The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed. Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be  only be construed as a recommendation or solicitation to buy and sell securities.

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