In a July 8 research note, Red Cloud Securities analyst Taylor Combaluzier reported that Westhaven Gold Corp.'s (WHN:TSX.V) recently released drill results of five holes from Shovelnose's South Zone returned "intercepts of significant grades and widths."
These are demonstrated in highlights from four of the five holes, which Combaluzier reviewed. The gold grades in those ranged from 2.48 to 8.53 grams per ton (2.48–8.53 g/t), and silver grades from 11.30 to 17.69 g/t. Widths were as broad as 76.33 meters (76.33m).
Specifically, hole SNR21-07 showed 4.47 g/t gold (Au) and 17.69 g/t silver (Ag) over 41.25m. SNR21-06 demonstrated 8.53 g/t Au and 14.14 g/t Ag over 4.77m from Vein 1. SNR21-05 returned 2.93 g/t Au and 11.30 g/t Ag over 76.33m. SNR21-08 showed 2.48 g/t Au and 14.25 g/t Ag over 26.6m from Vein 2.
"The intercept from SNR21-05 results in an impressive gram meter value of ~224 g/t*m," Combaluzier wrote.
"We are encouraged to see that Westhaven continues to enhance its understanding of the controls on the best mineralization at Shovelnose as drilling continues to return intercepts of significant grades and widths. In our view, continued positive results from the South Zone should bode well for the maiden resource (Q4/21)," the analyst wrote.
Looking forward, the analyst noted that Westhaven is adding a third rig to drill test the exploration targets. The first will be Target 3, defined via the geophysical survey, about 800m to the east of the South Zone. (The survey identified two additional targets.)
"Westhaven has only explored a small portion of the overall property, so there is lots of discovery potential remaining," Combaluzier wrote.
Westhaven's work planned for the rest of 2021, noted Combaluzier, includes continuing its 40,000-meter drill program, conducting metallurgical work for the South Zone's Veins 1, 2 and 3 in Q3/21 and preparing a maiden estimate of the South Zone resource in Q4/21.
Red Cloud has not yet formally valued Westhaven. "The company currently trades at a discount to peers on an EV basis at $63M (peers at $92M). We believe there is significant potential for the stock to re-rate with ongoing positive drill results and a maiden resource," Combaluzier wrote. Westhaven's shares are currently trading at about CA$0.57.
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Disclosures from Red Cloud Securities, Westhaven Gold Corp., Exploration Update, July 8, 2021
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