Nevada Gold Co. Shows a Highly Favorable Buying Opportunity

Source: Clive Maund 01/13/2025

Technical Analyst Clive Maund explains why he thinks Western Exploration Inc. (WEX:TSX.V; WEXPF:OTC) presents a highly favorable buying opportunity.

Although Western Exploration Inc.’s (WEX:TSX.V; WEXPF:OTC) stock hasn’t done much since we last looked at it, the company has continued to return favorable drill results from its 2024 drilling program at its Aura Project in northeastern Nevada, and this morning concluded the season’s favorable drill results with the news that Western Exploration reported the extension of high-grade mineralization at Gravel Creek. With this, every drill hole delivered consistent mineralization in terms of grade and width.

Before reviewing the company’s latest stock charts, we will swiftly overview the most important fundamentals using slides from the company’s latest investor deck. Please refer to the deck for more details, especially regarding the geology.

The first slide from the deck includes some general information about the company and also includes a map showing the location of the Project in Nevada and its extent and within it, the locations of the principal targets, Doby George and Gravel Creek / Wood Gulch.

Here is the MRE (Mineral Resources Estimate) as of October 2021:

More details on the project are shown below.

Very good gold grades have already been encountered at Gravel Creek.

There is scope for district scale expansion of the resource at Gravel Creek / Wood Gulch.

Meanwhile, at Doby George, a near-surface high-grade oxide deposit is being advanced.

Doby George will benefit from a low strip ratio, extensive high-grade mineralization, and depth potential.

Lastly, we look at the capital structure of the company via this slide, where we see that of the 45.4 million shares in issue, only 18% are available to retail investors. This clearly implies substantial leverage in the event that interest in the stock ramps up as expected.

Turning now to the stock charts for Western Exploration, we see on the 3-year chart that what we had earlier described as a Head-and-Shoulders bottom appears to have morphed into a Cup & Handle base, hence the delay in the stock advancing. The Head-and-Shoulders bottom still exists within it, and is still valid, and is embedded within the left part of the pattern, and is highlighted on the 15-month chart below.

The volume buildup from the middle of last year is viewed as bullish as it denotes a significant rotation of stock from weaker to stronger hands, with the new buyers less inclined to sell until they have turned a profit. A substantial part of this volume was upside volume, which is bullish, as made clear by the Accumulation line shown at the top of this chart.

Together, these factors imply that an upside breakout from the base pattern is pending, which means that the dip of the past couple of months has presented a buying opportunity.

The 15-month chart affords us another way of looking at the latter part of the base pattern, where we see that the Handle part of the Cup & Handle base is made up of a gentle uptrend.

We also see here that moving averages are in favorable alignment if it gets moving as soon as expected and that there is plenty of upside potential on the MACD indicator.

It is clearer on this chart that the dip of the past couple of months that has brought the price back to support near to the lower boundary of the gentle uptrend channel has presented a highly favorable buying opportunity.

Therefore, Western Exploration is an Immediate Strong Buy for all time horizons.

The first target is CA$1.46 – CA$1.50, which is the clear resistance you will see at the top of the base pattern. The net target is CA$2.30 – CA$2.40, which is the resistance you will see at the 2022 highs, which also fulfills the MINIMUM measuring implications of the base pattern.

Western Exploration’s website.

Western Exploration Inc.’s (WEX:TSX.V; WEXPF:OTC) closed for trading at CA$0.96, US$0.66445 on January 10, 2025.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Important Disclosures:

1. Western Exploration Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Western Exploration Inc.
3. Clive Maund: I determined which companies would be included in this article based on my research and understanding of the sector.
4. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Clivemaund.com Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.

( Companies Mentioned: WEX:TSX.V;WEXPF:OTC, )

Source: https://www.streetwisereports.com/article/2025/01/13/nevada-gold-co-shows-a-highly-favorable-buying-opportunity.html