This gold company is exploring its 100%-owned project in Nevada, which one analyst called "one of the most attractive mining jurisdictions in the world.
Western Exploration Inc. (WEX:TSX.V;WEXPF:OTC) announced final assay results and structural interpretation from its 2023 core drilling program in the Jarbridge rhyolite northeast of the Gravel Creek resource area on its Aura gold and silver project in Nevada.
Two core holes were drilled to evaluate the resource expansion potential in the northeast mineralized vein and breccia trends there.
Hole WG457 reported assays of up to 257 grams per tonne gold (g/t Au) and 1,655 g/t silver (Ag), including 0.7 meters of 143.56 g/t gold equivalent (Au Eq) and 1 meter of 67.49 g/t Au Eq. Hole WG456 reported 2,800 g/t Ag.
Western Exploration said the 2023 core data and previous surface mapping has confirmed a series of northwest- and northeast-trending structures with high-grade epithermal gold and silver mineralization over a 550-meter- by 350-meter area immediately adjacent to the current Gravel Creek resource.
"I'm glad to say that the two drill holes we've completed . . . were able to link a lot of those high-grade intercepts up into a more meaningful zone of northeast and northwest-trending," Western Exploration Chief Executive Officer Darcy Marud said in a video posted to the company's website. "We've identified two parallel veins over 200 meters so far."
"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. He has rated the stock a Buy with a fair value of CA$3.48 per share.Marud said the breakthrough identifies "significantly expanded resource potential in the Jarbridge rhyolite to the east/northeast of the current Gravel Creek resource area," justifying more drilling there.
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 AuEq in the Inferred category.
Previous drilling hit multiple high-grade silver- and gold-bearing vein intercepts of up to 40.05 g/t Au and 1951.0 g/t Ag in the Miocene Jarbidge volcanics overlying and lateral to the Gravel Creek deposit, the company said.
"None of these Jarbidge-hosted intercepts have been included in previous resource estimates," the company said in a release announcing the two new holes.
Analysts in the sector are paying attention to the company.
"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. He has rated the stock a Buy with a fair value of CA$3.48 per share.
"We believe WEX's primary strengths are its high-grade Doby George project with near-term production potential, a strong management/board, and Agnico Eagle's backing," he wrote.
Gravel Creek and Wood Gulch account for 60% of the project's resources, Rajeev noted. Doby George accounts for the rest.
"Doby George's resource (40% of total resources) is amenable to heap leach processing, indicating the potential for relatively low OPEX/CAPEX," according to Rajeev. "WEX is planning a resource expansion/step-out drill program, followed by a Pre-Feasibility (study or PFS) in 2024. We believe this deposit can be advanced to production quickly at a low initial CAPEX (