Positive Drill Results Signal Resource Expansion Potential Western Exploration Inc.
(TSXV: WEX / OTC: WEXPF)
Positive Drill Results Signal Resource Expansion Potential
Since our previous report in January 2023, WEX has completed a step-out drill
program at the Aura gold-silver project in Nevada. We believe initial results
indicate potential for resource expansion.
The Aura property hosts three deposits (Doby George, Wood Gulch, and Gravel
Creek) with indicated resources totalling 652 Koz gold equivalent (“AuEq”), and
inferred resources totaling 665 Koz. Doby George hosts near-surface/high-grade
oxide resources, while Gravel Creek hosts underground/high-grade sulfide
resources. Agnico Eagle (NYSE: AEM, 16%) is a major shareholder.
Assay from two holes, located 140 m to 250 m east of the known Gravel Creek
resource, returned bonanza gold-silver grades of up to 257 g/t Au, and 2,800 g/t
Ag.
At Doby George, preliminary metallurgical heap leach tests confirmed high-grade
oxide mineralization, and an average recovery of 69.3%, supporting our
previous estimate of 70%.
Management is planning resource updates for Gravel Creek, and Doby George,
followed by a Preliminary Feasibility Study (PFS) for Doby George by Q4-2024/Q1-
2025. We believe Doby George can be advanced to production quickly, with a
low initial CAPEX (<$50M). Based on its existing resource, we envision the project
operating for nine years (40-50 Koz/year), with a relatively low OPEX ($800/oz).
*FRC provides issuer paid coverage.
*Past performance is not indicative of future results