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.
Chris Parry recently focused on the flagship Record Ridge Project and shared his views on the company’s recent progress, impact for investors, and the journey ahead.
Before jumping into the chart, let’s talk about recent fundamentals.
Yesterday, West High Yield announced 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 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. However, the company yielded positive results in multiple intervals and zones.
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 caught the attention of investors when the stock price skyrocketed going from $0.22 to hit highs above $0.50. I even told readers about the stock ranging and basing after a long downtrend when it was at $0.22.
Chris Parry believes this was due to West High Yield finally breaking its long dormancy and starting to make some real progress on its projects.
Since December 2022, the stock has given up most of the gains even after an attempt to break out above recent highs at the beginning of 2023. $0.50 is a very important resistance zone that chartists should mark down.
A major support was broken at the $0.37 zone which has led to a deeper pullback. The stock currently is testing the important $0.29 zone. The $0.29 zone is seeing some buyers as evident by the large wick candle printed on April 4th 2023.
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.
In conclusion, we do have upcoming fundamental catalysts which could get the stock beginning a new uptrend from this support zone. With the mining permit expected to be granted soon and the resumption of the Midnight Gold Drilling Program, the company is poised for significant growth. For investors looking for a promising opportunity in the mining sector, West High Yield Resources should be on their radar.