This morning BC gold explorer Westhaven Ventures (TSX-V:WHN, OTC:WTHVF) delivered a stellar drill intercept grading 24.5 grams/tonne gold and 107.92 grams/tonne silver over 17.7 meters in hole SN18-14 from its summer 2018 drill program at its Shovelnose Project in southern British Columbia. Westhaven shares have been on a roll since announcing partial assays and visible gold in several holes on October 2nd.
While Westhaven has been gaining momentum for months, this morning’s news release takes the small Vancouver based explorer to another echelon with one of the most prospective early stage gold projects in all of Canada. Better yet, Westhaven is still yet to receive assays for the final 3 holes of its latest drill program (holes SN18-15 through SN18-17) and Westhaven reported significant visible gold and a 20 meter quartz vein in hole SN18-15.
Investors love exciting drill results and this morning that has translated into a nearly 100% rise in WHN shares. However, the upside potential at the Shovelnose Project is considerable considering that Shovelnose doesn’t have any of the usual infrastructure challenges that hinder modern day gold projects; Shovelnose has road access including being a few kilometers off the Coquihalla Highway, one of BC’s largest hydro power lines runs a few kilometers from Shovelnose, Shovelnose is 30 km south of the town of Merritt which helps Westhaven’s low all-in drilling costs of C$175/meter.
Energy & Gold has been following Westhaven closely since March, however, it feels like with this morning’s drill results we’ve turned the page from chapter 1 of the Westhaven story to chapter 2 – it’s still very early days and the fact that Westhaven has carefully managed its share structure (less than 80 million shares outstanding) means that the company is well positioned heading into chapter 2.
Westhaven will be starting its next phase drilling program at Shovelnose by the end of October and the company has already identified five targets including a step-out to the southeast, a step-out to the north, and overcuts planned for holes 14 and 15.
Every drill hole at the Shovelnose South Zone has gotten better and better, and it’s not hard to imagine that the best is still to come because Westhaven has just cracked the “Shovelnose nut” with its most recent drilling. There is another mag low to the east of holes SN18-14 and SN18-15 that Westhaven plans to target; the structure that led to Westhaven drilling 14 & 15 presents itself as a mag low on the geophysics.
From a technical chart perspective WHN shares are in full blast-off mode after forming a broad base during the last several years, not only is Westhaven at a new all-time high price today but today’s trading volume will also be another record for the stock:
WHN.V (Daily – 1 Year)
With new discovery plays that break-out to all-time highs there isn’t any price memory with which to analyze so it becomes more important to get some idea of what valuations could be reached. We have recently seen discovery plays rise to C$100 million+ market caps with just a few drill holes so a C$100 million market cap is certainly within the realm of reasonable for Westhaven at this early stage, which would equate to C$1.28 per share on a non-diluted basis and C$1.09 on a fully-diluted basis.
Disclosure: Author is long WHN shares at time of publishing and may buy or sell at any time without notice.
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