See the first results of this company's metallurgical heap leach test program at one of the deposits in its gold and silver project in Nevada.
Western Exploration Inc. (WEX:TSX.V;WEXPF:OTC) announced the first results from its metallurgical heap leach test program of the Doby George deposit at its Aura gold and silver project in Nevada.
The company reported an average gold extraction oxide mineralization of 69.3% from the agitated cyanidation bottle roll leach test work.
"The metallurgical test results that support heap leach gold recoveries of approximately 70% are in line with the extensive historical exploration and metallurgical test results generated by previous owners of the deposit," Western Exploration Chief Executive Officer Darcy Marud said. "The metallurgical heap leach test program will be used to support the preparation of a pre-feasibility study on the Doby George deposit in 2024, pursuant to which the company expects to update its existing mineral resource estimate and underline potentially robust project economics supported by surface outcrops and the recent metallurgical test results."
The company wants to grow Aura made up 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).
"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 rated the stock a Buy and gave it a fair value of CA$3.48 per share, compared to Monday's price of about CA$1.24 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."
Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) owns 16% of the company.
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 potential for relatively low OPEX/CAPEX," Rajeev wrote. "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 (