Westhaven Gold's Shovelnose Project: A Golden Opportunity in British Columbia's Underexplored Belt

Westhaven Gold Corp. (TSX-V: WHN) is positioned to capitalize on one of the most promising gold projects in Canada's underexplored Spences Bridge Gold Belt. With its Shovelnose Project, the company has delivered a compelling combination of robust economics, scalable mineralization, and strategic exploration upside. As summer drilling kicks off and the market braces for near-term catalysts, WHN emerges as a high-conviction investment in a sector primed for growth.

Why the Spences Bridge Gold Belt Matters

The Spences Bridge Gold Belt (SBGB), located in southern British Columbia, has a storied history of gold production, including historic mines like the Bridge River Camp. Yet, despite its potential, the region remains underexplored compared to other Canadian gold belts. Westhaven's Shovelnose Project spans ~61,500 hectares within this belt, with access to critical infrastructure—major highways, power lines, and rail—reducing development costs and timelines.

The Shovelnose Project: A Low-Sulphidation Epithermal Powerhouse

The project's core lies in its low-sulphidation epithermal gold-silver system, a type historically associated with high-grade, high-margin deposits. Recent drilling and geological mapping have confirmed the presence of multiple mineralized zones (South, FMN, Franz) and “step change” targets (Certes, Corral) that could expand the resource base.

Key highlights:
- Historical intercepts: Including 557 g/t Au over 1m (SN19-11) and 37.24 g/t Au over 23m (SN22-212), demonstrating the system's high-grade potential.
- Geological continuity: Over 186,000m of drilling since 2011 reveal a consistent mineralized corridor extending over 13km, with open-ended potential at depth and along strike.

PEA Metrics: A High-Return, Low-Capex Mine

The March 2025 Preliminary Economic Assessment (PEA) paints a compelling picture of Shovelnose's economic viability:
- Financials:
- After-tax NPV: C$454M at 6% discount rate.
- IRR: 43.2% (among the highest in the sector).
- Payback period: 2.1 years.
- Capital costs: C$184M initial, with an 11-year mine life producing 56,000 oz/year of gold.
- Cost efficiency: All-in sustaining costs (AISC) of US$836/oz, far below the current gold price (~US$2,000/oz), ensuring strong margins.

Summer Drilling: The Catalyst to Unlock Value

The company's summer drill program, targeting 5,000m of drilling, is a critical step toward resource expansion and validation of new zones. Key targets include:
1. Vein Zones 1-3: Collecting geotechnical and metallurgical data to refine mine design.
2. Certes & Corral: Testing underexplored areas where 2024 drilling intersected gold-bearing quartz veins, suggesting preserved epithermal systems.

The June 16 non-brokered private placement—raising C$3.16M with backing from Eric Sprott—funds this aggressive exploration, reducing dilution while advancing the project toward feasibility.

De-Risked Exploration & Upside Drivers

• Infrastructure advantage: Proximity to roads, power, and rail cuts costs and accelerates timelines.
• PEA validation: The study's high IRR and short payback period reduce project risk, attracting capital.
• Resource growth pipeline: Seven new pathfinder anomalies identified in 2023–2024 warrant drilling, with LiDAR data guiding target prioritization.

Investment Thesis: WHN as a Buy

Westhaven's Shovelnose Project checks all the boxes for a high-potential gold investment:
1. Leverage to gold prices: With a base-case gold price of US$2,400/oz, the project's NPV is highly sensitive to rising prices. A US$2,900/oz scenario boosts NPV to C$634M.
2. Near-term catalysts: Summer drilling results (Q3 2025) and potential resource upgrades could re-rate the stock.
3. Low execution risk: The PEA's advanced stage, coupled with strategic financing, positions WHN to move swiftly toward feasibility.

Risks to Consider

• Gold price volatility: A prolonged downturn below US$1,800/oz could pressure economics.
• Regulatory hurdles: Permitting delays or challenges in British Columbia's regulatory environment.

Conclusion

Westhaven Gold's Shovelnose Project is a rare combination of high-grade mineralization, robust economics, and a clear path to growth in a underexplored gold belt. With summer drilling and PEA validation set to deliver catalysts, and a stock price that hasn't yet reflected the project's potential (), now is an opportune time to establish a position. For investors seeking exposure to a gold project with asymmetric upside, WHN deserves serious consideration.

Recommendation: Buy WHN with a 12–18-month horizon, targeting a 50%+ upside if drilling hits its stride and gold prices hold above US$2,000/oz.