Since peaking at C$1.34 on Halloween day shortly after releasing assays for hole SN18-15 (46.20 meters grading 8.95 g/t gold and 65.47 g/t silver) shares of Westhaven Ventures (TSX-V:WHN, OTC: WTHVF) have spent the last six weeks consolidating within a range largely contained by C$.95 on the downside and C$1.10 on the upside. However, the price action of the last couple of days has indicated that WHN may be on the verge of decisively breaking out of this range-bound consolidation to the upside:
The multi-week consolidation has served to work off the extreme overbought condition that WHN reached at the end of October. Perhaps more importantly the dip below C$1.00 also served to shake out some ‘loose shares’ and place them in stronger hands. This is a very nice setup technically and all that’s left is for new highs to be confirmed by an acceleration in volume. Above the all-time high at C$1.34 my next upside target for WHN is C$1.80. Previous resistance at C$1.11 should now become support with a much bigger level of support down near C$1.00.
From a fundamental standpoint Westhaven could deliver assay results for holes SN18-16, 18-17, and 18-18 (the most highly anticipated hole of the group) any day. So far in its ‘phase 3’ drilling program at Shovelnose the company has completed 4 holes (SN18-18, 18-19, 18-20, and 18-21) and is in the process of drilling hole SN18-22, a 100 meter step-out along strike from SN18-14 (between SN18-12 and SN18-14). The company intends to drill one more hole (SN18-23) before breaking for the holidays for a couple of weeks, but that will depend upon how quickly they complete hole 18-22. Assays for SN18-19 (100 meter step-out to the southeast of SN18-15) are expected back in the next 2-3 weeks but could take until the first week of January due to the Christmas and New Year’s holidays.
This morning Westhaven announced that it had completed airborne and ground geophysics at its Shovelnose Project and added an interesting nugget about prominent magnetic lows to the east and southeast of the South Zone (where the company is currently drilling):
“The purpose of these programs was to increase magnetic coverage over the property and to help uncover and better define potential structural trends associated with a newly identified vein system that has wider sections of mineralization. A series of prominent southeast trending magnetic lows situated east and southeast of South Zone are of similar trend as to veining found at Tower and South zones, thus warrant further investigation.”
Disclosure: Author owns shares of Westhaven Ventures and may buy or sell at any time without notice.
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