Western Exploration plans 2026 work at Doby, Gravel

Executive Summary

• Western Exploration Inc. outlined its 2026 exploration and development program for the Doby George and Gravel Creek projects within its Aura project in Nevada, with all engineering, drilling, and permitting work for 2026 and 2027 fully financed.
• At Doby George, the company is advancing engineering and permitting activities with the U.S. Forest Service, targeting a mine plan submission in Q2 2026, a prefeasibility study (PFS) by Q1 2027, and a full environmental study by mid-2027.
• At Gravel Creek, the company is utilizing USGS studies and AI-driven geochemical modeling to refine geological models and accelerate resource expansion, aiming to double the current resource estimate of over 800,000 ounces of gold and 14 million ounces of silver.

Key Details

• Doby George Project (Aura Project):
  • Consultants: Kappes, Cassiday and Associates (KCA) and Stantec Consulting Ltd. engaged for development planning.
  • Permitting Timeline: Baseline studies and permitting commenced; mine plan of operations to be submitted to the U.S. Forest Service (USFS) in Q2 2026.
  • Engineering & Studies: Prefeasibility study (PFS) expected by Q1 2027; full environmental study expected by mid-2027.
  • Drilling: Infill and expansion drilling to convert inferred resources and expand oxide mineralization by year-end 2026.
  • Site Development: Plans prepared to utilize private fee land to potentially accelerate site work, including power and water development, in 2027.
• Gravel Creek Project:
  • Resource Estimate: Current resource exceeds 800,000 ounces of gold and 14 million ounces of silver.
  • USGS Study: U.S. Geological Survey conducting a study on the genesis and formation of the deposit, expected to complete in March 2026 to aid in understanding ore controls.
  • AI & Modeling: Artificial intelligence evaluation of alteration and geochemistry to be completed by end of March 2026.
  • 3D Modeling: GeoMax of Denver, Colo., will incorporate new data into a comprehensive 3-D model to refine geological models and accelerate discovery targeting.
  • Drill Plan: Updated model and concurrent drill plan anticipated to be ready in May 2026.
  • Goal: Accelerate discovery process to outline a drill plan capable of doubling the Gravel Creek resource.
• 2025 Preliminary Economic Assessment (PEA) for Doby George:
  • Basis: Open-pit, heap-leach gold operation.
  • Base Case ($2,150/oz Au):
    • After-tax Net Present Value (NPV): $70.7 million (discounted at 5%).
    • Internal Rate of Return (IRR): 25.4%.
    • Life-of-Mine Cash Flow: ~$271 million over a 5-year mine life.
    • Average Annual Operating Cash Flow: ~$112 million.
    • Preproduction Capital: ~$115 million.
    • Payback Period: <18 months (in higher-gold-price scenario).
    • All-In Sustaining Costs (AISC): $1,152 – $1,197 per ounce.
  • Upside Case ($3,000/oz Au):
    • After-tax NPV: $211.2 million.
    • IRR: 62.2%.
• Technical Personnel:
  • Mark Hawksworth: General Manager, Qualified Person (NI 43-101).
  • Travis Manning (KCA): Processing design, costs, metallurgy, recovery, cash flow.
  • Michael S. Lindholm (Respec): Geology, database, mineral resource estimate.
  • Kyle Murphy (Respec): Open-pit design, mine planning, scheduling, costing.

Notable Quotes

• "We are on our way to permitting at Doby George with contracts in place for engineering, baseline studies and permitting with the USFS. Plans are being prepared to take advantage of the private fee land and potentially accelerate site work (including power and water development) in 2027." — Darcy Marud, President and CEO
• "At Gravel Creek, we have taken a discovery made by Western Exploration to a resource of more than 800,000 ounces gold and 14 million ounces silver. The current work with our partners is designed to accelerate the discovery process and outline a drill plan to double the Gravel Creek resource." — Darcy Marud, President and CEO