West High Yield resources (WHY.V) is a company with the objective to bring into production one of the world’s largest, greenest deposits of high-grade magnesium. The Record Ridge magnesium deposit is located 10 kilometers southwest of Rossland, British Columbia has approximately 10.6 million tonnes of contained magnesium based on an independently produced preliminary economic assessment technical report.
Today, the Company provided a corporate update. West High Yield provided an update on the status of its mining permit progress for the Record Ridge magnesium deposit and on the status of its nearby Midnight Gold drilling program.
As of March 31st 2023, West High Yield has submitted all material information, mine site engineering designs, and corresponding reports requested by the British Columbia Ministry of Mines in response to its questions and comments from its amended permit application. West High Yield and its consultants are scheduled to meet with the Ministry in the near future to discuss the Ministry’s feedback on the requested material that has been submitted by the Company and to determine the next steps forward.
West High is also initiating a formal Request for Proposal (RFP) process to invite interested groundworks contracting companies with expertise in mine site development and on-site road construction to submit their bids. SRK consulting has already submitted engineering drawings for mine site development, and has held previous discussions with site development contractors and mining contractors.
The Company is requesting the submission of bids by June 30th, 2023. Once the mining permit is granted, the Company plans to expedite mine site development and begin mining the ore to fulfill the terms as contemplated in the Galaxy Magnesium LOI of December 6, 2021, which aims to sell Record Ridge ore @ USD$ 500/tonne and generate cash flow.
“The Company has been diligent in addressing all requests from the Ministry and remains vigilant in seeing the Record Ridge Permit process through to completion. The Company in conjunction with the Consultants, is working persistently to successfully complete the Permit process as soon as possible,” said Frank Marasco Jr., West High Yield’s Chief Executive Officer and President.
The Midnight Gold drilling program of 2022 yielded positive results in multiple intervals and zones. 800 metres could not be completed in the 2022 program due to weather that forced operations to cease earlier than expected.
The Company plans to resume the core cutting, logging, and assaying as soon as site access is safe and weather conditions allow, with an expected start date of May and completion in 4-6 weeks. The Company will be releasing additional gold drilling results from the Midnight Gold Drilling Program as they become available.
The stock is at a major support zone. We have given up most of the gains from the end of 2022. A major breakdown occurred at $0.37, when the stock broke below support. That breakdown has seen the stock gravitate towards the next support zone which is being tested right now.
The $0.29 zone is seeing some buyers as evident by yesterday’s large wick candle. The next few trading days will be crucial for the stock. Bulls want to see some sort of range develop, or more evidence of buying with large wick and green candles.
If this support breaks, then the next support comes in at the $0.23 zone. If the stock holds, I would look for a run to $0.37.
