Gold Developer Finds Excellent Economics at Aura Project in Nevada

1. Western Exploration Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Western Exploration Inc. and Agnico Eagle Ltd.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Disclosure for the quote from the John Newell article published on February 10, 2026

1. For the quoted article (published on February 10, 2026), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$2,000.
2. Author Certification and Compensation: [John Newell of John Newell and Associates] was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a  U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.

John Newell Disclaimer

As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.

1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Western Exploration Inc. (WEX:TSX.V; WEXPF:OTC) announced its comprehensive exploration and development plans for 2026 at its Doby George and Gravel Creek projects located in North-East Nevada in a March 16 release.

The 2026 Program is strategically designed to push forward the engineering and permitting phases at Doby George while simultaneously boosting exploration and resource expansion at the Gravel Creek–Wood Gulch district.

"We are on our way to permitting at Doby George with contracts in place for engineering, baseline studies and permitting with the USFS," President and Chief Executive Officer Darcy Marud said. "Plans are being prepared to take advantage of the private fee land and potentially accelerate site work including power and water development in 2027. At Gravel Creek, we have taken a discovery made by Western Exploration to a resource of more than 800,000 ounces Au and 14 million ounces (Moz) Ag (silver). The current work with our partners is designed to accelerate the discovery process and outline a drill plan to double the Gravel Creek resource."

For the Doby George project, Western Exploration has enlisted the expertise of Kappes, Cassiday & Associates and Stantec Consulting Ltd. to aid in development planning. The project has already initiated baseline studies and permitting processes, which are expected to continue into the second quarter of 2027.

Western Exploration said it aims to submit a mine plan of operations to the United States Forest Service (USFS) by the second quarter of 2026. Additionally, infill and expansion drilling to convert inferred resources and extend known oxide mineralization is scheduled for completion by the end of 2026. Detailed engineering and a Pre-Feasibility Study (PFS) are slated for completion in early 2027, with a comprehensive environmental study anticipated by mid-2027. All engineering, drilling, and permitting activities for 2026 and 2027 are fully funded.

At the Gravel Creek site, preparations are underway for the 2026 drilling season, the release noted. The United States Geological Survey (USGS) is conducting a study, due for completion in March 2026, on the genesis and formation of the Gravel Creek deposit to enhance understanding of the ore controls and support resource expansion. Concurrently, the company is finalizing an artificial intelligence evaluation of alteration and geochemistry, expected by the end of March 2026. GeoMax of Denver, Colorado, will integrate this data into a detailed 3D model to refine the Company's geological models and expedite discovery targeting across the district. An updated model and a corresponding drill plan are expected to be ready by May 2026.

Doby George PEA

In 2025, the company published a preliminary economic assessment (PEA) for the Doby George deposit at the Aura Project in Nevada. The PEA outlined a potential open-pit, heap-leach gold operation with strong economics and relatively modest capital requirements. Using a base gold price of US$2,150/oz, the study estimates an after-tax net present value (NPV) (5%) of US$70.7 million and an internal rate of return (IRR) of 25.4%, with an upside scenario at US$3,000/oz gold increasing the after-tax NPV to US$211.2 million and the IRR to 62.2%.

WEX said the project is expected to generate approximately US$271 million in after-tax life-of-mine cash flow over a five-year mine life, with average annual operating cash flow of about US$112 million, a payback period of less than 18 months in the higher gold price scenario, and pre-production capital of about US$115 million. Life-of-mine all-in sustaining costs are estimated at roughly US$1,152-US$1,197 per ounce, supporting the potential for strong margins and positioning Doby George as a low-capital, rapid-payback development opportunity.

Western Exploration Inc. reached a significant regulatory milestone in January with the acceptance of its Notice of Intent (NOI) by the United States Forest Service (USFS) to submit a Mine Plan of Operations (MPO) for Doby George, marking the commencement of the formal submission and review process for the MPO.

"This is an important early milestone and supports the company's objective of advancing Doby George from study-stage toward a development decision," Marud said at the time.

The company is set to begin baseline environmental and cultural studies in February 2026, with plans to submit the necessary NEPA environmental reports by the second quarter of 2027, the release said.

Analyst: A Dual-Threat in Value Creation in Nevada's Mining Sector

¹In a February 10 review of the stock for Streetwise Reports on February 10, Technical Analyst John Newell of John Newell & Associates noted that the company is distinguishing itself not merely as an exploration entity, but as a burgeoning dual-threat in value creation within Nevada's mining sector. The company is enhancing its profile by advancing a past-producing, near-surface oxide project towards permitting, while simultaneously developing a high-grade underground discovery with district-scale potential. This strategic approach is particularly notable in the junior mining space, characterized by a robust management team and a disciplined share structure.

Western Exploration is intensively focused on its 100%-owned Aura Project, located approximately 100 kilometers north of Elko, Nevada, a region celebrated for its rich mining history, Newell said. The project is advantageously positioned along the Independence Trend, which historically has yielded over 15 million ounces (Moz) of gold. The company is actively advancing three known deposits within this promising land package: Doby George, Gravel Creek, and Wood Gulch, all benefiting from excellent infrastructure and a longstanding history of mining and permitting activities.

"The real investment appeal of Western Exploration lies in its two-pronged development strategy at Aura," Newell noted. "The first prong is Doby George, a near-surface oxide gold deposit that was previously mined by Homestake between 1988 and 1990. Western has completed extensive drilling, metallurgy, and a Preliminary Economic Assessment on the project and is now advancing it toward permitting with the U.S. Forest Service."

The second strategic element, Gravel Creek, represents the longer-term upside, the analyst said. It is a high-grade epithermal gold-silver discovery that has seen significant resource expansion over the past 18 months. The company aims to further develop this deposit towards a substantial underground operation, with ongoing exploration poised to potentially double the resource size.

Marud brings a wealth of experience from discovery through to production, having been integral to multiple successful mining projects, the analyst said. This depth of experience is critical as the company progresses from resource expansion to potential production phases.

From a technical analysis perspective, Western Exploration has been forming a solid base, indicative of accumulating interest and a potential upward trajectory. The stock has established support around CA$0.80–CA$0.85, with a critical resistance near CA$1.20. A break above this resistance could set the stage for higher targets, aligning the stock’s technical outlook with its fundamental growth narrative.

The stock should appeal to investors drawn to its strategic dual-development approach, disciplined management, and favorable jurisdiction, Newell said. Western Exploration’s ability to advance its projects, particularly the promising Doby George and Gravel Creek deposits, will be pivotal in realizing its full valuation potential over the coming months.

"For investors comfortable with the risks inherent in junior mining equities, Western Exploration Inc. is viewed as a Speculative Buy," he wrote.

The Catalyst: The Fed Holds the Line

On Wednesday, gold prices experienced a decline following the Federal Reserve's decision to maintain its overnight rate, a move that was widely anticipated by the market, according to a Reuters report published by CNBC on March 18. Spot gold saw a decrease of 2.2%, closing at US$4,895.61 per ounce, while gold futures dropped by 2.4% to US$4,889.80 per ounce.

During its latest policy meeting, the Federal Reserve opted to keep its policy unchanged but indicated the possibility of a rate cut in 2026, the article noted. The Fed's statement also highlighted the ongoing uncertainty in the economic landscape, particularly due to the recent U.S.-Iran conflict.

"The implications of developments in the Middle East for the U.S. economy are uncertain," noted the Fed, acknowledging the complex geopolitical factors at play and their potential impact on the U.S. economy.

On March 18, Angelica Leicht reported for CBS News MoneyWatch that the past year has marked one of the most significant transformations in the precious metals market, particularly for gold, which has seen an extraordinary rally. This surge in gold prices has been fueled by a combination of inflationary pressures, geopolitical uncertainties, and robust institutional demand. At the beginning of 2025, gold was trading near US$2,600 per ounce. By year's end, it had soared to approximately US$4,300 per ounce, an increase of more than US$1,700.

This upward trajectory has persisted into 2026, with gold prices reaching new heights amid ongoing market volatility and economic uncertainties. In late January, the price of gold peaked at US$5,589.38 per ounce, setting a new record. However, this rapid climb has experienced some turbulence in recent weeks, with gold prices retracting from their peak.

Gold was priced at US$4,864.63 per ounce on Wednesday, which is about a 13% decrease from its recent record high. This recent dip in prices presents a mixed signal to investors — some may see it as a reason for caution, while others might view it as a potential investment opportunity. Below, we will delve into why this could be the case.

Ownership and Share Structure²

Directors and management own 3% of the company, high net worth individuals hold 9%, Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) has 12%, Auramet holds 4%, and Institutions hold 48%. The rest is retail.

Western Exploration has 62.43 million outstanding shares and 34.48 million free float traded shares. Its market cap is CA$44.95 million. Its 52-week range is CA$0.58–CA$1.20 per share.