This gold and silver company's chief executive officer is updating shareholders on its flagship gold and silver 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) Chief Executive Officer Darcy Marud has issued an update to shareholders and supporters on its Aura gold and silver project in Nevada.
Field activities started in mid-June, preparing for the geophysics and drilling. The geophysics program got underway on July 11, and the diamond drill arrived on-site on July 27.
"Geophysics can be an important tool for identifying extensions of mineralization and favorable geology undercover and at depth," Marud wrote. "We expect to have the (geophysics) program complete by mid-August with full results available by early September."
A 2,000-meter major drilling campaign started at the project on August 1.
"We anticipate drilling to continue through August and into September and results to be available towards the end of September and mid-October," Marud noted. "We have a lot on the go, and as always, we look to complete our work as diligently and cost-effectively as possible."
The company wants to grow Aura comprised of the Doby George, Wood Gulch, and Gravel Creek deposits from a more than 1-million-ounce (Moz) gold and 10 Moz silver resource.
It is also looking to complete a preliminary economic assessment (PEA) for Gravel Creek, where previous drilling found grades up to 40.05 grams per tonne gold (g/t Au) and 1,951 g/t silver (Ag), in 2025 after possibly more drilling.
The induced polarization (IP) geophysics program, which uses chargeability in the soil to explore for mineralization, will help the company better define drill targets to expand the project's gold and silver resources.
The project already has the attention of at least one analyst in the sector.
"The Aura gold-silver project in Nevada (is) one of the most attractive mining jurisdictions in the world," wrote Fundamental Research Corp. analyst Sid Rajeev, who rated the stock a Buy and gave it 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.
Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) owns 16% of the company.
Western announced 69.3% gold extraction in metallurgical heap leach test results at Doby George in July. Technical Analyst Clive Maund rated the stock a Speculative Buy and wrote that the stock looked "like a Buy here for a reversal into a recovery."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 (