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Westward Gold Drilling for Carlin Style DepositBob Moriarty It’s just my gut feeling but I am seeing more and more resource stocks waking up from their slumber each day. The overall stock market continues its plunge into depths never seen before by average investors but stocks go up and stocks go down. For now resource stocks should go up and the general market will continue down. We had a short correction in resources but that’s a good thing and it looks as if it is over. An interesting company came to me a month ago with some high potential projects in Nevada searching for Carlin Style Deposits in the Cortex trend. They said they had some unusual news being released shortly and it was true. The company is named Westward Gold (WG-C) and they released that news two weeks ago. Westward has entered into a financial deal with EMX Royalty where EMX is putting $300,000 into a private placement into the company at what was a 25% premium when it was announced. They are picking up 3 million shares at $.10 and 3 million warrants at $.15 good for three years. In addition EMX is providing a drill and drill crew to complete two to three test holes targeting a Wenban sub-unit five believed to be the feeder source for the existing 173,000 ounce 1.2 g/t Au historic resource at Toiyabe in the Cortex trend. The drill has been mobilized and drilling commenced. The program will complete within sixty days. Assays are expected in the May/June timeframe. Depending on what they hit, there could be an additional Phase II drill program in the summer. The deal with EMX has some subtle nuances. I highly encourage potential investors to read the press release carefully. Basically EMX is picking up some rights to purchase existing NSRs on Toiyabe. If the drill program hits, those rights will be valuable. If the drill program doesn’t hit, they will have no real value. EMX is highly experienced in Nevada in the Cortez and Carlin Trends. They seem to like the three projects of Westward Gold and that should be worth something. At the current price Westward Gold has a market cap of about $9.5 million. On the plus side, they have an existing 173,000-ounce historic resource that should be worth something but needs expanding. And they have a drill program paid for that has that potential. While the stock is not expensive, it is also not cheap. I suspect investors will wait to see what the drill program proves or doesn’t prove. I was a buyer of Westward Gold in the open market and I still hold those shares. Westward is an advertiser and that makes me biased. Please do your own due diligence. Westward Gold Inc ### Bob Moriarty 321gold Ltd |
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