Western Exploration Inc. (TSXV: WEX | OTCQX: WEXPF) announced on September 16, 2026, that cyanide leach metallurgical test work at its Gravel Creek deposit in Nevada achieved whole-ore gold and silver recoveries of 73.3% and 74.0% respectively from a combined gravity and flotation concentrate. The company states the results indicate Gravel Creek is not entirely refractory, opening the door to on-site processing options. Separately, Western confirmed it is fully permitted and bonded for 46 drill sites to support a resource expansion program with a stated goal of doubling the current Gravel Creek resource.

Key Points

  • Western Exploration Inc. (TSXV: WEX | OTCQX: WEXPF) is a Nevada-focused gold and silver developer advancing its 100%-owned Aura project.
  • Cyanide leach test work by McClelland Laboratories achieved 73.3% Au and 74.0% Ag whole-ore recoveries from Gravity/Float Concentrate after ultra-fine regrinding.
  • The company is fully permitted and bonded for 46 drill sites; a July 9, 2026 water lease with Nevada Gold Mines LLC provides up to 14 acre-feet of water per year.
  • Investors may watch for additional metallurgical test results on cyanide leach tails and updates on the resource expansion drill program.

Cyanide Leach Results Signal Processing Flexibility at Gravel Creek

McClelland Laboratories of Reno, Nevada conducted the test work, contracted by Western in June 2026, using coarse assay rejects from diamond drill holes WG458 through WG462. The composite weighed approximately 30 kilograms with a head assay of 5.49 g/t Au and 298 g/t Ag. Whole ore was ground to 80%-212µm, gravity concentrated, and the tailing reground to 80%-75µm before flotation. The combined gravity and flotation concentrate represented approximately 20% of whole ore weight and achieved rougher recovery rates of 97.2% Au and 96.8% Ag. The concentrate was then reground to greater than 95%-10µm and subjected to a 72-hour cyanide leach, yielding the headline recovery figures.

What the Metallurgical Breakthrough Means for Gravel Creek Processing Options

Prior test work, referenced in a Preliminary Economic Assessment technical report dated October 1, 2025, had established that high-grade sulphide concentrate could be produced through flotation and recommended follow-up cyanide leach testing. The current results confirm that cyanide leaching after ultra-fine regrinding is viable, suggesting multiple processing pathways exist for the deposit. CEO Darcy Marud stated in the release that the results indicate "the majority of the gold and silver in concentrate is actually recoverable by cyanide leaching after fine grinding," and that additional test work will continue on cyanide leach tails to improve overall recoveries. The company did not disclose specific capex figures in this announcement.

Gravel Creek Resource Expansion Program Drill-Ready Following Permitting Milestone

Western reports that 3D modelling and geophysical interpretation show the Gravel Creek deposit and Jarbidge extension coincide with a strong chargeability anomaly open to the northeast, northwest, and up dip, controlled by the Gravel Creek and South Gravel faults. The 46 permitted drill sites cover key extensions of both deposits and additional targets along the Tomasina Fault zone. A water lease signed July 9, 2026 with Nevada Gold Mines LLC, providing up to 14 acre-feet of water annually, combined with USFS drilling approval, means the program is described as ready to implement. The immediate share price impact was not clear from available public information.