Western Exploration Announces Commencement of Drill Program at Doby George in Nevada

2022-07-26 04:10:55

VANCOUVER, British Columbia / Jul 26, 2022 / Business Wire / Western Exploration Inc. (TSXV: WEX; OTCQX: WEXPF) (the “Company” or “Western Exploration“) is pleased to announce the commencement of the 2022 diamond drill program (the “Drill Program“) at its 100% owned Aura project, located in Elko County, Nevada (the “Aura Project“).

Figure 1. Aura Project – Land holdings and Infrastructure. (Graphic: Business Wire)

The Drill Program forms a part of the recommended two-phase exploration program as outlined in the Company’s technical report on the Aura Project, entitled “2021 Updated Resource Estimates and Technical Report for the Aura Gold-Silver Project in Elko County, Nevada” and dated October 20, 2021 (with an effective date of October 14, 2021), which was prepared for Western Exploration by Mine Development Associates (the “Aura Technical Report“). The Phase 1 Drill Program provides, among other things, for approximately 2,000 meters of large diameter core drilling in 10 to 12 drill holes at the Doby George mineral deposit.

The purpose of the Phase 1 Drill Program is to evaluate areas within, and adjacent to, the current resource boundary to:

  • validate and delineate current mineral resources;
  • locally test for the expansion potential and structural controls on mineralization;
  • provide samples for metallurgical test work to outline leach kinematics, as well as ore and waste rock characteristics; and
  • expand upon geotechnical studies through additional test work.

The results of the Drill Program, including all metallurgical testing and other exploration activities completed at the Aura Project, will be used to determine the basis for completing Phase 2 of the exploration program on the Aura Project, which is expected to focus on advancing the Doby George deposit towards the completion of a pre-feasibility study (“PFS“).

Following the commencement of drilling at Doby George, Western Exploration’s Chief Executive Officer, Darcy Marud, commented: “The Aura Technical Report recognized Doby George as an undeveloped high-grade oxide resource located in one of the most favorable mining jurisdictions in the world. We see the execution of the Drill Program as the first step towards unlocking the full potential of the Aura Project and towards the completion of a PFS at Doby George.”

About Doby George

Doby George is one of the highest grade, undeveloped open pit heap leach resources in northeast Nevada and one of three mineral deposits on Western Exploration’s 100% owned Aura Project. The Aura Project is located 32 kilometers north of the Jerritt Canyon mine, which has been in continual operation since 1981. The deposit is an outcropping, high-grade sediment hosted mineral deposit that has been defined by drilling along a strike length of approximately 2 kilometers and to a depth of approximately 250 meters, with the zone of oxidation extending approximately 150 to 200 meters below surface.

The deposit was initially discovered by Homestake Mining Company in the mid 1980s. Since that time, 827 drill holes have been completed, totaling 115,197 meters of drilling. This includes 74 drill holes, totaling 22,622 meters that were drilled by Western Exploration LLC between 1998 and 2017.

Metallurgical test work completed on oxidized material by Homestake Mining Company, Independence Mining Company, and Atlas Precious Metals Inc., has indicated favorable metallurgy for standard cyanide heap leach processing. Results from the previous metallurgical testing completed on 52 bottle rolls and 23 column leach samples indicate that heap leach gold recoveries approaching seventy percent can be expected via a crush of 1 to 1.5 inches.

In addition to an established mineral resource estimate (as determined in accordance with NI 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101“)), the Aura Project has well established infrastructure including year-round accessibility by highway and county-maintained road and nearby access to water and electricity. Western Exploration has exploration, development, and mining rights on 930 hectares of privately owned fee lands through a mineral lease agreement with a local landowner and may purchase those fee lands at any time for the development of Doby George.

The 6,000-hectare Aura Project is unique in the junior mining space insofar as resources have been identified in three different deposits (Doby George, Gravel Creek and Wood Gulch), as supported by the Aura Technical Report (see Table 1 below).

Table 1. Updated resource estimates for the Aura Project










MINERAL RESOURCE(1)

 

Indicated

Inferred

 

Tonnes

Au (g/t)

Au
(ozs)

Ag (g/t)

Ag
(ozs)

AuEq (g/t)

AuEq (ozs)

Tonnes

Au (g/t)

Au
(ozs)

Ag (g/t)

Ag
(ozs)

AuEq (g/t)

AuEq (ozs)

Doby George(2)

12,922,000

0.98

407,000

0.98

407,000

4,999,000

0.73

118,000

0.73

118,000

Wood Gulch(3)

4,359,000

0.66

93,000

5.80

808,000

0.74

104,543

Gravel Creek(4)

1,315,000

4.73

200,000

75.0

3,169,000

5.81

245,271

2,744,000

4.16

367,000

60.20

5,307,000

5.02

442,814

TOTAL

14,237,000

1.33

607,000

75.0

3,169,000

1.43

652,271

12,102,000

1.48

578,000

15.74

6,115,000

1.71

665,357

Notes:

(1) Au equivalent oz assumes US$1,800 per oz Au and 70:1 ratio of Ag:Au.
(2) Pit constrained 0.2 g/t AuEq cutoff for oxide, 0.4 g/t Au cutoff for mixed and 1.4 g/t Au cutoff for unoxidized.
(3) Pit constrained 0.2 g/t AuEq cutoff.
(4) 3.0 g/t Au cutoff.

In 2017, Agnico Eagle Mines Limited became a partner of the Company and has invested over US$14 million in support of the Company’s exploration initiatives. In addition, Agnico Eagle Mines Limited provides technical expertise to the Company through a joint technical committee with Western Exploration’s management team.

About Western Exploration

Western Exploration Inc. is Nevada-focused precious metals exploration company, aiming to be a premier gold and silver development company in North America. The Company was born out of a 25-year history of advancing exploration projects in Nevada as a private company. Its principal asset is the Aura gold-silver project, located in Elko County, Nevada, approximately 120 kilometers north of the city of Elko, Nevada.

Qualified Person Approval

The scientific and technical content of this news release has been reviewed, prepared and approved by Mark Hawksworth, General Manager of the Western Exploration’s Aura Project, who is a “qualified person” within the meaning of NI 43-101.

Quality Control

Drill Program design, Quality Assurance/Quality Control (“QA/QC“) and the interpretation of results is performed by qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. Standards and blanks are included with every 20 samples for QA/QC purposes by the Company as well as the lab.

Please see below under the heading “Cautionary Note Regarding Forward-Looking Information” for further details regarding risks facing Western Exploration.

For additional information on the Aura Project, please see the Aura Technical Report, which has been prepared in accordance with NI 43-101, a copy of which available on SEDAR (www.sedar.com) under Western Exploration’s issuer profile and on Western Exploration’s corporate website (www.westernexploration.com).

Cautionary Note Regarding Forward-Looking Information

This news release may contain “forward-looking information” and “forward-looking statements” within the meaning of the applicable Canadian and United States securities legislation (collectively, “forward-looking statements“). These forward-looking statements, by their nature, require the Company to make certain assumptions and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always, using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “potential”, “feasibility”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This news release contains the forward-looking information pertaining to, among other things: the focus and results of the Phase 1 Drill Program; the expectations for the Phase 2 Drill Program; the timing and ability of Western Exploration, if at all, to publish a PFS for the Doby George deposit or a PEA for the Wood Gulch-Gravel Creek deposits; the Doby George deposit being located in one of the most favourable mining jurisdictions in the world; Doby George being one of the highest grade, underdeveloped open pit heap leach resource in northeast Nevada; the accuracy of results from prior exploration activities conducted at the Aura Project; the key assumptions, parameters and methods used to estimate the mineral resource estimate disclosed in this news release; the prospects, if any, of the Doby George and Wood Gulch-Gravel Creek mineral deposits; the amount and type of drilling to be completed and the timing to complete such drilling; future drilling at the Aura Project; the significance of historic exploration activities and results. Such factors include, among others, risks relating to the ability of exploration activities (including drill results) to accurately predict mineralization; errors in management’s geological modelling; the ability of Western Exploration to complete further exploration activities, including drilling; property and royalty interests in respect of the Aura Project; the ability of the Company to obtain required approvals; the results of exploration activities; risks relating to mining activities; the global economic climate; metal prices; dilution; environmental risks; and community and non-governmental actions. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, Western Exploration cannot assure shareholders and prospective purchasers of securities of the Company that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither Western Exploration nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. Western Exploration does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

For additional information with respect to these and other factors and assumptions underlying the forward‐looking statements and forward-looking information made in this news release concerning Western Exploration, see the management information circular dated November 12, 2021, available electronically under Western Exploration’s issuer profile on SEDAR (www.sedar.com).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.



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