Western Provides 2022 Exploration and Development Objectives FOR AURA Project IN Nevada; Announces Other Corporate Updates
WESTERN PROVIDES 2022 EXPLORATION AND DEVELOPMENT OBJECTIVES FOR
AURA PROJECT IN NEVADA; ANNOUNCES OTHER CORPORATE UPDATES
Vancouver, British Columbia – January 31, 2022 – Western Exploration Inc. (TSX-V:
WEX) (the " Company" or " Western Exploration ") is pleased to release exploration and
development plans for its 100% owned Aura Project, located in North Elko County, Nevada (the
"Aura Project").
Update on 2022 Objectives for Aura Project
The Company has a three-pronged approach to advancing the Aura Project in 2022:
1. Surface Exploration – Geophysics, geochemistry and geology will be completed over high-
priority exploration targets (including Wood Gulch and Gravel Creek) with the objective of
further defining targets for drilling in 2023.
2. Drilling at Doby George – Approximately 2,000 meters of large diameter diamond drill core
will be completed at Doby George to advance the metallurgical understanding and geologic
interpretation of the project in advance of completing a pre-feasibility study in 2023.
3. Leveraging GoldSpot Discoveries – The Company will leverage the proprietary artificial
intelligence technology of GoldSpot Discoveries Corp. (" GoldSpot") to synthesize 25 years
of exploration and drilling data to develop further exploration drill targets at the Aura Project.
These objectives are described in greater detail below under the headings "Surface Exploration",
"Drilling at Doby George" and "Leveraging GoldSpot Discoveries", respectively.
Darcy Marud, Chief Executive Officer of Western Exploration, commented: "Western Exploration
Inc. was founded on 25 years of exploration success as a private company in Nevada. Our recent
go-public transaction will further our legacy of gold discovery by providing public financial markets
access to accelerate the exploration and development efforts at the Aura Project in Nevada."
About the Aura Project
The 6,000 hectare Aura Project is unique in the junior mining space insofar as it is supported by
a technical report prepared in accordance with National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101") at three different deposits (Doby George, Gravel
Creek and Wood Gulch (former operating mine)) reflecting an indicated resource of 652,271 Aueq
ounces at 1.43 g/t and an inferred resource of 665,357 Aueq ounces at 1.71 g/t (see Figure 1 and
Table 1 below).
Metallurgical test work for all three deposits has shown that well-established processes, including
whole ore flotation at Gravel Creek and heap leaching at Wood Gulch and Doby George, can be
used to extract gold and silver from the know n mineralization. A synthesis of exploration work
conducted at the Aura Project from 1997 to 2021 has resulted in the creation of a robust geologic
model, which offers significant potential for resource expansion and new discovery.
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The Aura Project is accessible year-round by highway and county roads with access to water and
electricity nearby. It is located 32 kilometers north of the Jerritt Canyon mine, which has been in
continual operation since 1981.
Figure 1. Geology and NI 43-101 resource areas on the Aura Project, Elko County, Nevada
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)
AuE
q
(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.
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All resources were independently estimated by Mine Development Associates of Reno, Nevada
and documented in the Company's current technical report, prepared in accordance with NI 43-
101, titled "2021 Updated Resource Estimates and Technical Report for the Aura Gold-
Silver Project, Elko County, Nevada" and dated October 20, 2021 (effective date of October 14,
2021) (the "Aura Technical Report").
In 2017, Agnico Eagle Mines Limited became a partner of the Company and has invested over
US$14 million in support of Western Explorations 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.
Surface Exploration
In the last two years, the Company has compiled all historic data to develop a three-dimension
model and establish a focused exploration program for the Aura Project. Mineralization at Wood
Gulch and Gravel Creek is structurally controlled and deposits form at the intersections of high
angle north to northwest trending faults and a property-wide low angle, sub horizontal
unconformity between Paleozoic sedimentary rocks and overlying Tertiary volcanics (See Figure
2).
Figure 2. Gravel Creek model of unconformity between Paleozoic sedimentary rocks "Schoonover
Formation" and Tertiary volcanics.
At Doby George, mineralization and resources are entirely contained within the Paleozoic
sedimentary package (immediately below t he unconformity) whereas mineralization and
resources at Gravel Creek are hosted primar ily in the overlying Eocene and Miocene volcanic
rocks.
The structural framework and unconformity have been mapped regionally and extend well beyond
the current resource areas where drilling has been completed to date. In 2022, the Company will
expand a program of surface geology mapping, geophysics, and rock and soil geochemistry to
identify prospective drill target areas along the trends of the current mineralization controls.
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Figure 3. Aura Project simplified long section showing geology, known deposits and key
exploration target concepts.
Drilling at Doby George
At Doby George, the current mineral resource is defined by more than 800 drill holes completed
between 1997 and 2017. In addition, metallurgical test work completed 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 26 bottle rolls and 23 column leach samples indicate that heap
leach gold recoveries approaching seventy perc ent can be expected. The work completed by
Western Exploration and previous operators has advanced the project to a stage where limited
additional metallurgical work can lead to the commencement of a pre-feasibility study.
In 2022, Western Exploration expects to comp lete between 10-14 large diameter diamond drill
core holes totaling 2,000 meters from within the current resource boundaries to collect samples
for confirmation of previous metallurgical test work, crushing studies and additional geotechnical
studies.
Leveraging GoldSpot Discoveries
In January 2022, Western Exploration engaged GoldSpot to assist with data compilation and
modelling at the Aura Project. GoldSpot will merge historic drill data to further refine the Aura
model and assist in defining additional exploration targets to be evaluated by drilling in the second
half of 2022 and 2023.
GoldSpot has a large, collaborative team of geoscientists and data scientists focused on
maximizing the chances of discovery by extracting the most out of all available data utilizing
proprietary machine learning technology and geoscience expertise. GoldSpot has an established
track record of working with mineral exploration companies to significantly increase the efficiency
and success rate of their exploration efforts.
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GoldSpot's mandate will be to incorporate all project data into their proprietary technology, using
artificial intelligence to assist the Company in identifying additional exploration targets. Western
Exploration is committed to applying all available exploration tools and techniques to assist our
exploration team in testing the full extent of exploration opportunities on the Aura Project.
Denis Laviolette, Executive Chairman and President of GoldSpot, commented: "We are excited
to see Western Exploration's advanced understanding of geology and mineralization controls at
Aura. We believe that our leading technology, combined with the work done to date will open up
new opportunities for exploration and ultimate resource definition and expansion."
Western Exploration looks forward to commencing exploration at the Aura Project and updating
the market with drill results in H2 of 2022 and into 2023.
Corporate Update on Investor Relations Services
The Company also wishes to announce that it has engaged the services of Hybrid Financial Ltd.
("Hybrid") to provide certain investor relations services in accordance with the policies of TSX
Venture Exchange (the "Exchange").
The Company has entered into a marketing agreement with Hybrid, pursuant to which, among
other things, Hybrid has agreed to provide ce rtain investor relations services (the " Investor
Relations Agreement ") in accordance with Policy 3.4 – Investor Relations, Promotional and
Market-Making Activities of the Exchange.
Under the terms of the Investor Relations Agreement, Hybrid's engagement is for an initial term
of 12 months (the "Initial Term") and will automatically renew for successive three-month periods
until terminated by Western Exploration upon a 30-day prior written notice. In consideration for
their services, Hybrid will receive C$22,500 per month, plus applicable taxes, which amount shall
become payable upon the earlier of: (a) the date the Company announces its intention of
completing a financing, or (b) the expiry of the Initial Term. There are no performance factors
contained in the Investor Relations Agreement and Hybrid will not receive common shares or
options as compensation. Further, Hybrid and the Company are unrelated and unaffiliated entities
and, at the time of the Investor Relations Agreement, neither Hybrid nor any of its principals have
an interest, directly or indirectly, in the securities of the Company.
Hybrid is a sales and distribution company that actively connects issuers to the investment
community across North America. Using a data dr iven approach, Hybrid provides its clients with
comprehensive coverage of both American and Canadian markets. Hybrid has offices in Toronto
and Montreal. Through Hybrid's engagement, the Company hopes to heighten market awareness
for Western Exploration and broaden the Company's reach within the investment community.
About Western Exploration
Western Exploration Inc. is Nevada-focused prec ious 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.
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For more information please contact:
Nichole Cowles
Investor Relations
Phone: 775-240-4172
Email: [email protected]
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 samples at regular intervals
for QA/QC purposes by the Company as well as the lab. For sample analysis the Company utilizes
a system of Quality Assurance/Quality Contro l that includes insertion and verification of
standards, blanks and duplicates consistent with industry standards.
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
Certain statements contained in this news release may be deemed "forward‐looking statements"
within the meaning of applicable Canadian and U.S. securities laws. These forward ‐looking
statements, by their nature, require Western Exploration to make certain assumptions and
necessarily involve known and unknown risks and uncertainties that could cause actual results to
differ materially from those expressed or implied in these forward ‐looking statements. Forward ‐
looking statements are not guarantees of perform ance. Words such as "may", "will", "would",
"could", "expect", "believe", "plan", "anticipate", "intend", "estimate", "continue", or the negative or
comparable terminology, as well as terms usua lly used in the future and the conditional, are
intended to identify forward ‐looking statements. This forward-looking information is based on
reasonable assumptions and estimates of management of the Company at the time such
assumptions and estimates were made, and involves known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or achievement
expressed or implied by such forward-looking information. Such factors include, among others,
risks relating to the ability of exploration activities (including drilling results), to accurately predict
mineralization; errors in management's geological modelling; the ability of Western Exploration to
complete further exploration activities, including drilling; to obtain additional financing for
exploration or development activities on favorabl e terms; to continue operations and to expand
operations; to identify additional resources and reserves and to exploit such resources and
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reserves on an economic basis; to main Western Exploration's property interests in the Aura
Project; the results of exploration activities; risks relating to mining activities; the global economic
climate; metal prices; environmental risks; community and non-governmental actions; the
engagement of Hybrid (if at all, on the terms descr ibed herein); the ability of Hybrid to increase
the market awareness for the Company; and the ability of the Company to pay Hybrid's fees.
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 respons ibility for the accuracy and completeness of
any such forward-looking information. Further, 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.
This release uses the terms “mineral resources”, “indicated mineral resources” and “inferred
mineral resources”. Mineral resources that are not mineral reserves do not have demonstrated
economic viability. You should not assume that all or any part of measured or indicated mineral
resources will ever be converted into mineral re serves. Further, inferred mineral resources have
a great amount of uncertainty as to their exis tence and as to whether they can be mined legally
or economically. On October 31, 2018, the SEC adopted new mining disclosure rules (“S-K 1300”)
that are more closely aligned with current industry and global regulatory practices and standards,
including NI 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), although there
are some differences in the two standards. Accordingly, information concerning mineral deposits
contain in this release may not be comparable with information made public by U.S. companies
that report in accordance with S-K 1300.
For additional information with respect to these and other factors and assumptions underlying the
forward‐looking statements made in this news releas e concerning Western Exploration, see the
management information circular dated Novem ber 12, 2021, available electronically under
Western Exploration's issuer profile on SEDAR ( www.sedar.com). The forward ‐looking
statements set forth herein concerning Western Exploration reflect management's expectations
as at the date of this news release and are subject to change after such date. Western Exploration
disclaims any intention or obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, other than as required by law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the
policies of the TSXV) 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.