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There is a silver lining to today’s gold-market gloom.
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Eventually, market conditions are going to shift back to something resembling normal valuations, once either a deepening recession or skyrocketing debt-service costs force the Fed to halt its rate hikes.
The silver lining is simply this:
With just a return to normal for the gold market environment, companies with proven, valuable deposits could see their share prices jump like drill-hole plays that hit rich paydirt.
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One of the best of these bargains seems to be Westhaven Gold (WHN.V; WHNWF.OTC).
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Consider this: A recent maiden resource estimate on Shovelnose put its indicated resources at 841,000 ounces of 2.47 g/t gold equivalent and its inferred resources at 277,000 ounces of 0.94 g/t gold equivalent.
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In a better market, a million-ounce resource like that would have Westhaven trading at multiples of its current market cap.
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And, as you’re about to see, the company has drills turning (or about to turn) on both its flagship Shovelnose project and its highly prospective Skoonka project.
In short, Westhaven is trading at levels that should make it a slam dunk for a re-rating when the gold market improves…and it has the upside of generating high-grade drill hits — and new discoveries — along the way.
Take a look at why the latter factor is so exciting....
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Parallels To A World Class Deposit
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In showing Shovelnose to various interested parties, a consistent refrain has come back: “This project looks like Pajingo.”
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Pajingo is a high-grade gold resource in Australia that has produced more than 3.4 million ounces since 1996.
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As you can see from the long sections below of Pajingo and Shovelnose, the latter project looks very similar to the former, with mineralization laid out along strike like pearls along a string.
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| Click image to enlarge.
Geologists who have visited Shovelnose (lower panel) have noted its similarities with the Pajingo gold mine in Australia (upper panel), home to 3.4 million ounces of production.
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What Shovelnose needs is for Westhaven to fill in the gaps along strike in the current mineralization with more drilling.
And indeed, it is in the process of doing just that, with holes due soon from the gap between the FMN and Franz zones. The company also plans to drill the gap between FMN and the Tower MIK target.
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More Drills Results On The Way
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Westhaven has been nothing if not ambitious with its drill program at Shovelnose, completing 40,000 meters in 2021 and working on another 40,000 meters in 2022.
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The company just raised C$4.3 million that will fund its drilling efforts through the end of the year.
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And given the world-class, high-grade hits Shovelnose has already turned in with these drilling programs, there’s every reason to expect more good news on the results front in the remainder of the year.
Those world-class hits include:
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• The discovery hole in October 2018 that returned 17.7 meters of 24.5 g/t gold and 107.9 g/t silver from the now resource-hosting South zone
• The highest-grade gold-silver intercept ever drilled on the property in 2022, with 23.0 meters of 37.2 g/t gold and 209.5 g/t silver from the FMN zone
• 3.13 meters of 45.2 g/t gold and 195.6 g/t silver at the Alpine target
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Best of all, the entire area drilled to date at Shovelnose is but a small part of the overall land package. And the surface signs of more targets are everywhere.
It may host a million ounces of gold equivalent now, but Shovelnose shows all signs of getting bigger from here. Much bigger.
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Following Up On Another Big Hit
In The Spences Bridge Gold Belt
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If the established resource and unlimited upside at Shovelnose weren’t enough to whet one’s interest in Westhaven, consider that the company is about to start drilling at a second high-potential asset.
It’s called Skoonka, and it’s another great project that Westhaven owns in British Columbia’s Spences Bridge Gold Belt.
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| By October, Westhaven Gold will have drills turning on Skoonka, another of Westhaven’s Spences Bridge Gold Belt projects.
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A key target Westhaven will focus on at Skoonka is the JJ zone, where previous drilling by Almadex Minerals outlined a zone with a strike of 750 meters and a depth of 250 meters.
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Notably, the highlight hole from that effort compares favorably with the big hits at Shovelnose. The best interval graded 20.2 g/t gold and 7.4 g/t silver over 12 meters.
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With the zone open along strike and at depth, this target will be one to watch as the drills begin turning in the days just ahead.
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An Undervalued Resource-Stage Play...
Plus The Potential For Drill-Hole Homeruns
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Bottom line: The risk-reward profile for Westhaven Gold is very squarely in new investors’ favor.
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• Shovelnose has an undervalued, million-ounce deposit with a great chance of becoming a multi-million-ounce behemoth.
• Drills are turning to provide more potential high-grade hits from Shovelnose in the latter part of the year.
• Drills will turn soon at Skoonka on a target that has returned world-class assays of its own.
• Westhaven Gold is a resource-stage play that has a great chance of multiplying in value with just a shift to normal valuations in the gold sector.
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And if those drill programs turn up more world-class results from Shovelnose or Skoonka (or both), the sky’s the limit for this aggressive junior gold company.
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