Western Exploration Inc. Sees Bright Future with Positive Economic Assessment

In a significant development for Western Exploration Inc., the exploration-stage company has announced a positive Preliminary Economic Assessment (PEA) for its Doby George resource at the Aura gold project. This promising news comes from the company’s flagship project located in Nevada’s prolific Elko County, marking a potential turning point for Western Exploration Inc., a company specializing in the acquisition, exploration, and development of natural resources within the materials sector.

The PEA results, which were released on May 8, 2025, highlight a robust economic outlook for the Doby George resource. The assessment reveals a base case after-tax Net Present Value (NPV) of US$70.7 million and an Internal Rate of Return (IRR) of 25.4%, assuming a gold price of US$2,150 per ounce. These figures are expected to soar to an NPV of US$211.2 million and an IRR of 62.2% if the gold price reaches US$3,000 per ounce. This optimistic scenario underscores the project’s potential profitability and its sensitivity to gold price fluctuations.

Further emphasizing the project’s viability, the PEA outlines a total life-of-mine (LOM) after-tax net cash flow of US$271.2 million over a five-year project life, assuming a gold price of US$3,000. This projection includes an average annual operating cash flow of US$112.1 million and a payback period of less than 18 months under the same gold price scenario. Additionally, the LOM all-in sustaining cost is estimated at US$1,197 per ounce at the US$3,000 gold price and US$1,152 per ounce at the base case gold price.

Despite these promising figures, it’s important to note that Western Exploration Inc. has faced challenges, as reflected in its financial fundamentals. The company, listed on the OTC Bulletin Board, has a market capitalization of US$26.1 million and a close price of US$0.575 as of May 4, 2025. The company’s 52-week high was US$1.08, while its low reached US$0.4684. Moreover, the company’s price-to-earnings ratio stands at -4.43, indicating that it has not yet reported a profit.

This positive PEA for the Doby George resource at the Aura project could be a pivotal moment for Western Exploration Inc., potentially attracting investor interest and providing a much-needed boost to its financial standing. As the company continues to explore and develop its natural resources, the results of this assessment may play a crucial role in shaping its future trajectory in the materials sector.