64.8 F
London
June 19, 2024
PI Global Investments
Silver

Co. Hits 257 G/T Gold & 2800 G/T Silver at NV Project


View Important Disclosures for this Article

These and other stepout drill results indicate the existing mineral resource there could be expanded, noted a Fundamental Research Corp. report.


Western Exploration Inc.’s (WEX:TSX.V;WEXPF:OTC) newly released 2023 stepout drill data from its Aura gold-silver project in Nevada boasted bonanza grades, reported Fundamental Research Corp. analyst Sid Rajeev in a January 10 note.

“We believe initial results indicate potential for resource expansion,” Rajeev wrote.

Stock Undervalued, Offers 152% Gain

Fundamental Research maintained its Buy rating on the Reno, Nevada-based mining company but lowered its fair value price to CA$2.07 per share from CA$3.48 to account for share dilution, noted Rajeev.

Currently, Western Exploration is trading at a 31% discount, the analyst added, at about CA$0.82 per share, or CA$28 per ounce.

 “We believe Western Exploration stands out with high-grade projects, a strong management/board, and the backing of Agnico Eagle,” Rajeev commented.

The difference between the current and fair value prices reflects a compelling potential return on investment of 152%.

Bonanza Grades Encountered

Two stepout holes drilled 140−250 meters northeast of Aura’s Gravel Creek, returned impressive grades of gold and silver, Rajeev highlighted. Specifically, hole WG457 demonstrated 257 g/t gold and 1,655 g/t silver. Hole WG456 showed 35 g/t gold and 2,800 g/t silver.

Adjacent to Gravel Creek, these results delineated an area of epithermal mineralization about 0.55 kilometers by 0.35 kilometers in size. This suggests potential exists for expanding the existing resource, now comprising 652,000 ounces of gold equivalent (652 Koz Au eq) in the Indicated category and 665 Koz Au eq in the Inferred category.

The Three Deposits

Gravel Creek is one of Aura’s three deposits and hosts underground high-grade sulfide resources. Extending 600m along strike and more than 400m in depth, this deposit hosts 52% of Aura’s resource estimate.

Another Aura deposit is Wood Gulch, which, along with Gravel Creek, is 8 kilometers away from the third deposit, Doby George, that hosts near-surface high-grade oxide resources. Western intends to advance Doby George before the other two.

“We believe Doby George can be advanced to production quickly, with a low initial capex (less than $50 million),” wrote Rajeev. “Based on its existing resource, we envision the project operating for nine years (40−50 Koz per year) with a relatively low opex ($800 per ounce).”

Will Need More Capital

Rajeev noted that at the end of 2023, the mining company had US$1.2 million (US$1.2M) in working capital. Thus, Fundamental expects Western Exploration will need to raise equity on the order of CA$ 3M-plus sometime this year.  

What To Watch For

Investors can expect catalysts from Western Exploration throughout this year, including metallurgical test results, Rajeev wrote.

Resource updates each on Doby George and on Gravel Creek are slated for completion in Q1/24−Q2/24, followed by drill results from these two deposits in Q3/24−Q4/24. Subsequently, a prefeasibility study for Doby George is planned to be finished in Q4/24−Q1/25.


Want to be the first to know about interesting Silver and Gold investment ideas? Sign up to receive the FREE Streetwise Reports’ newsletter. Subscribe

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. [Doresa Banning] wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.

Disclosures for Fundamental Research Corp., Western Exploration Inc., January 10, 2024

Disclaimers and Disclosure The opinions expressed in this report are the true opinions of the analyst about this company and industry. Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. The analyst and Fundamental Research Corp. “FRC” does not own any shares of the subject company, does not make a market or offer shares for sale of the subject company, and does not have any investment banking business with the subject company. Fees were paid by WEX to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct.

Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. To further ensure independence, WEX has agreed to a minimum coverage term including an initial report and three updates. Coverage cannot be unilaterally terminated. Distribution procedure: our reports are distributed first to our web-based subscribers on the date shown on this report then made available to delayed access users through various other channels for a limited time. The distribution of FRC’s ratings are as follows: BUY (67%), HOLD (3%), SELL / SUSPEND (30%). To subscribe for real-time access to research, visit https://www.researchfrc.com/website/subscribe/ for subscription options. This report contains “forward looking” statements. Forward-looking statements regarding the Company and/or stock’s performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products/services in the marketplace; acceptance in the marketplace of the Company’s new product lines/services; competitive factors; new product/service introductions by others; technological changes; dependence on suppliers; systematic market risks and other risks discussed in the Company’s periodic report filings, including interim reports, annual reports, and annual information forms filed with the various securities regulators. By making these forward-looking statements, Fundamental Research Corp. and the analyst/author of this report undertakes no obligation to update these statements for revisions or changes after the date of this report. A report initiating coverage will most often be updated quarterly while a report issuing a rating may have no further or less frequent updates because the subject company is likely to be in earlier stages where nothing material may occur quarter to quarter.

Fundamental Research Corp DOES NOT MAKE ANY WARRANTIES, EXPRESSED OR IMPLIED, AS TO RESULTS TO BE OBTAINED FROM USING THIS INFORMATION AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OR FITNESS FOR A PARTICULAR USE. ANYONE USING THIS REPORT ASSUMES FULL RESPONSIBILITY FOR WHATEVER RESULTS THEY OBTAIN FROM WHATEVER USE THE INFORMATION WAS PUT TO. ALWAYS TALK TO YOUR FINANCIAL ADVISOR BEFORE YOU INVEST. WHETHER A STOCK SHOULD BE INCLUDED IN A PORTFOLIO DEPENDS ON ONE’S RISK TOLERANCE, OBJECTIVES, SITUATION, RETURN ON OTHER ASSETS, ETC. ONLY YOUR INVESTMENT ADVISOR WHO KNOWS YOUR UNIQUE CIRCUMSTANCES CAN MAKE A PROPER RECOMMENDATION AS TO THE MERIT OF ANY PARTICULAR SECURITY FOR INCLUSION IN YOUR PORTFOLIO.

This REPORT is solely for informative purposes and is not a solicitation or an offer to buy or sell any security. It is not intended as being a complete description of the company, industry, securities or developments referred to in the material. Any forecasts contained in this report were independently prepared unless otherwise stated and HAVE NOT BEEN endorsed by the Management of the company which is the subject of this report. Additional information is available upon request.

THIS REPORT IS COPYRIGHT. YOU MAY NOT REDISTRIBUTE THIS REPORT WITHOUT OUR PERMISSION. Please give proper credit, including citing Fundamental Research Corp and/or the analyst, when quoting information from this report.

The information contained in this report is intended to be viewed only in jurisdictions where it may be legally viewed and is not intended for use by any person or entity in any jurisdiction where such use would be contrary to local regulations or which would require any registration requirement within such jurisdiction.




Source link

Related posts

Gold and Silver Prices in India Witness Surge this week

D.William

Silver – Speculators Desperate For Quick Profits, Why This Matters For Silver Investors

D.William

Steps taken to drive silver economy

D.William

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.