Southern BC gold explorer Westhaven Ventures (TSX-V:WHN, OTC:WTHVF) delivered stellar drill results Monday morning with the announcement of assays for holes SN19-09, SN19-10, and partial assays for hole SN19-11. While hole SN19-11 returned 2.98 meters of 176.33 grams/tonne gold and 131.43 grams/tonne silver, including 1.00 meter of 521 grams/tonne gold and 381 grams/tonne silver in Vein Zone 1, Westhaven chose to highlight a 52.22 meter intersection of Vein Zone 2 in hole SN19-10 as the headline to Monday morning’s news release:
Prior to Monday’s news the market hadn’t been paying much attention to Vein Zone 2 at the Shovelnose gold property as it had yet to generate comparable drill intercepts to Vein Zone 1 (which has returned multiple broad intersections of 10+ g/t gold). With the news that hole SN19-10 intersected 52.22 meters of 5.13 grams/tonne gold, including 18.5 meters grading 11.39 grams/tonne gold, the picture suddenly changes and the potential for Vein Zone 2 to host a significant number of high grade gold ounces becomes a very real possibility.
It’s common for epithermal gold deposits to consist of multiple, high grade gold veins as is evidenced at mines such as Sumitomo’s Hishikari Mine in Japan or Newmont Goldcorp’s Cerro Negro in Argentina. Management is confident that there are more veins to be found yet at Shovelnose.
Westhaven CEO Gareth Thomas inspecting the core for hole SN19-10 which ended up intersecting high-grade gold over more than 50 meters in the Second Vein Zone at Shovelnose.
Westhaven CEO Gareth Thomas offered the following thoughts on the potential for Westhaven to continue expanding the scale and grade of the South Zone at Shovelnose:
“The high-grade gold intercepts in Vein Zone 2 extend the scope of expanding the South Zone. Drilling continues to explore the extent and demonstrate the continuity of two parallel vein zones approximately 125 metres apart. The goal of the current drill program is to keep extending these parallel zones, along with the strike length, and to target the preferred horizons where the gold precipitates out. The summer drill program, employing two rigs, is ongoing and 12 holes have been completed totaling approximately 5,000 metres. Assays will be released regularly as the program progresses.”
Westhaven reported partial assays for hole SN19-11 which included a one meter intercept grading 521 grams/tonne gold and 381 grams/tonne silver. The portion of hole SN19-11 that would have intersected Vein Zone 2 is still pending assays. Perhaps most importantly is the fact that Vein Zone 2 is still open to the north/northwest and could theoretically hold as many ounces as Vein Zone 1.
Westhaven has completed roughly 5,000 meters of drilling over 12 holes during the current phase of drilling at Shovelnose. The drillers will complete 1-2 more holes before taking a week long break before drilling resumes again.
Westhaven’s exploration manager Peter Fischl is encouraged by the broad high-grade intersection of the Second Vein Zone in hole SN19-10 and Westhaven management firmly believe they are on the brink of finding more vein zones at Shovelnose, and that the best holes still have yet to be drilled. Investors can expect a steady flow of news including regular updates with drill results over the coming months.
Westhaven CFO Shaun Pollard (left) listening to Exploration Manager Peter Fischl explain the current phase of drilling at Shovelnose.
The chart technicals have recently tracked Westhaven’s surging fundamental momentum and WHN shares are back above their rising 200-day moving average, at the highest levels since early April:
WHN.V (Daily – One Year)
After the recent rally the C$.75 level should now serve as support. Upside levels of interest are important support/resistance near C$1.00 followed by C$1.20 and then the all-time high at C$1.43.
Disclosure: Author is long WHN.V shares at the time of publishing and may choose to buy or sell at any time without notice.
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