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The property hosts sediment-hosted, Carlin-type gold deposits. Three high-grade gold deposits have been identified: Doby George, Gravel Creek, and Wood Gulch.
Nevada is the fifth largest gold producer in the world. Located 32 km north of First Majestic Silver’s (NYSE: AG) Jerritt Canyon mine, which has been in production since 1981
Excellent infrastructure in place, including access to highways, water, and electricity. Resources are spread across three high-grade gold deposits with indicated resources totaling 652 Koz AuEq, and inferred resources totaling 665 Koz
Doby George and Wood Gulch have potential for open-pit operations, while Gravel Creek has potential for underground operations
Recent metallurgical heap leach tests at Doby George yielded a higher gold recovery rate of 72%, up from 69%.
Initial results of an ongoing 4,000 m step-out drill program at Gravel Creek returned unusually high intercepts of 75.3 g/t Au, and 3,080 g/t Ag.
Doby George’s resource (40% of total resources) is amenable to heap leach processing, indicating potential for relatively low OPEX/CAPEX. Oxidized mineralization extends 150 to 200 m below surface
2023 drilling at Gravel Creek yielded bonanza-grade gold and silver, delineating a 0.55 km by 0.35 km area of epithermal mineralization (Discovery zone), suggesting potential for the Wood Gulch and Gravel Creek deposits to be part of a large gold-silver system spanning 10 km²
Assay results from drill hole WGC459 indicate that high-grade mineralization extends at least 80 m north of the Discovery zone. Drilling is ongoing. WEX is awaiting results from three additional drillholes
We believe there is potential for resource expansion as the deposits remain open in multiple directions. In 2025, management intends to complete a resource update, and a PFS
Preliminary metallurgical test results from Gravel Creek indicate impressive recoveries of 95% for gold, and 90% for silver.
Sulphide flotation treatment of mineralized materials return positive results
US$3.9M in working capital at the end of Q2-2024. Subsequent to Q2, WEX closed a $1.7M equity financing with a strategic investor
In-the-money options and warrants could bring in $11M
Gold juniors are trading at $66/oz (previously $41/oz). WEX is trading at C$54/oz (previously $28/oz), reflecting a 19% discount. Applying the sector average EV/oz of $66/oz to WEX’s resources, we arrived at a comparables valuation of $1.50/share (previously $1.16/share
Our DCF valuation increased from $3.48 to $3.86/share, primarily because we raised our long-term (2028+) gold price forecast from US$1,400 to US$1,600/oz, and improved recoveries
Our models remain highly sensitive to gold prices and discount rates
We are reiterating our BUY rating, and adjusting our fair value estimate from $2.07 to $2.67/share (the average of our DCF and comparables valuations). WEX has made notable strides at its Aura gold-silver project, showcasing promising drill results, and improved recoveries. With M&A activity on the rise, we believe WEX is emerging as a strong acquisition target.
Aura Gold-Silver Project (Nevada)
The property hosts sediment-hosted, Carlin-type gold deposits. Three high-grade gold deposits have been identified: Doby George, Gravel Creek, and Wood Gulch.
Location Map
2021 Resource Estimate
Source: Company
Recent metallurgical heap leach tests at Doby George yielded a higher gold recovery rate of 72%, up from 69%.
2024 Doby George Metallurgical Results
Source: Company
Initial results of an ongoing 4,000 m step-out drill program at Gravel Creek returned unusually high intercepts of 75.3 g/t Au, and 3,080 g/t Ag.
2024 Drilling
2024 Gravel Creek Drill Highlights
Source: Company
Resource Expansion Potential
Source: Company
Preliminary metallurgical test results from Gravel Creek indicate impressive recoveries of 95% for gold, and 90% for silver.
2024 Gravel Creek Metallurgical Results
Source: Company
Financials
Source: FRC / Company
Source: FRC / Company
FRC Valuation and Rating
Source: FRC / S&P Capital IQ / Various
DCF Valuation
Source: FRC
We are reiterating our BUY rating, and adjusting our fair value estimate from $2.07 to $2.67/share (the average of our DCF and comparables valuations). WEX has made notable strides at its Aura gold-silver project, showcasing promising drill results, and improved recoveries. With M&A activity on the rise, we believe WEX is emerging as a strong acquisition target.
We believe the company is exposed to the following key risks (not exhaustive):
