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March 28, 2024

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WEST HIGH YIELD

BC Ministry of Mines accepts West High Yield’s (WHY.V) mine permit submission

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.

 

In the first week of April 2023, West High Yield provided a corporate update including 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.

In that press release, the company stated:

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.

 

Today, West High Yield provided an update on the next milestone achieved for obtaining its industrial mining permit. The British Columbia Ministry of Mines, having completed the screening process of West High Yield’s Record Ridge Industrial Mineral Mine (RRIMM) permit application of February 14, 2019, accepted the Company’s screened Permit submissions and issued the “Terms of Reference and Work Plan” (TOR) required for the Company to proceed into the final review for the Permit.

The TOR and Proposed Workplan timeline indicates a starting date on May 24, 2023. A final recommendations report will be submitted by the committee to the statutory decision-makers for a potential final Permit decision as early as August 24, 2023.

West High Yield has submitted all material information, mine site engineering designs, and corresponding reports requested by the Ministry in response to its questions and comments of July 2022, stemming from its amended Permit application for the Project.

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 is elated to have been notified by the Ministry of its decision to advance to the technical review stage. This is a major milestone for the Company, and we will vigilantly continue to satisfactorily complete and/or exceed all remaining aspects of the final permit review process. After years of exploration, detailed analysis, engineering, economic evaluation, consultation, and environmental due diligence, we believe that the Project at Record Ridge has the potential to deliver much-needed critical minerals that underpin modern society. Upon satisfying all requirements set forth by the Ministry and obtaining the Permit, the Company will move forward in mining ore from RRIM with the hope of providing economic stability with a robust and industry-standard level of safety and environmental stewardship. We also understand the importance of engaging the community, indigenous groups, stakeholders, partners, consultants, shareholders, and employees to ensure that the benefits of the Project are shared by all. We look forward to moving with the next phase of the Project, and serving the current and future generations with the utmost responsibility,” said Frank Marasco Jr., West High Yield’s Chief Executive Officer and President.

 

A major milestone leading to de-risking and advancement. The mine is for a much needed critical minerals. A plan for an expedite mine site development to generate cash flow. You can see why Equity Guru founder, Chris Parry, called the combined price action and fundamentals of West High Yield the awakening of a sleeping giant. The excitement surrounding the company continues to grow.

 

My last technical analysis of the stock was written on April 6th 2023. This is how the chart looked then:

TradingView Chart

The title of the article is “West High Yield battles at support, new uptrend to begin?“. In my analysis, I mentioned that the $0.29-$0.30 zone is a major support zone. Where one should expect buyers to step in to battle the bears, and potentially lay the foundations of a new uptrend.

Here’s the stock chart today:

TradingView Chart

The stock did indeed bounce, and readers could have bagged a nice 67% gain from that support to the major resistance level at $0.50 in a matter of weeks.

Going forward, the $0.50 zone remains the major resistance or price ceiling. One just needs to look at recent price action to see that profits are being taken at this zone with the stock correcting on tests of the $0.50 level.

A break and close above $0.50 would be a major technical move that would attract the eyes of many technical analysts.

When it comes to support, our levels still stand, and I would watch the $0.375 zone in case of a deeper correction.

At time of writing, the stock is up 11.11% on the day and sits at a market cap just over $38.5 million.

 

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