en.Wedoany.com Reported - West Point Gold Corp. (WPG:TSXV; WPGCF:OTCQX) has announced results from its property-wide target testing program at the Gold Chain project, including initial drill data from the Union Pass Fault corridor at the Bull 8 target. The company intersected a 21.4-meter interval grading 1.01 grams per tonne gold at Bull 8, a target located approximately 6 kilometers northwest of the Tyro area and outside the zone to be included in the initial mineral resource estimate.
The Union Pass Fault is a major regional structural feature, with multiple related faults mapped and sampled along its 12-kilometer strike length within the property. Initial drilling within the corridor focused on Bull 8, where historical pits and trenches exist. Surface mapping and sampling have identified an extensive northwest-trending zone of potential mineralization, including gold-bearing structures with grades exceeding 2 grams per tonne gold. West Point Gold completed six holes totaling 855.7 meters at Bull 8. Hole GC26-136 returned 21.4 meters of gold mineralization grading 1.01 grams per tonne from 71.6 meters to 93.0 meters, within a broad mineralized envelope with an estimated true width of 18 meters. Hole GC26-130 returned 12.2 meters of gold mineralization grading 0.41 grams per tonne from 6.1 meters to 18.3 meters, identifying a broad near-surface low-grade zone. All holes encountered gold mineralization, with extensive quartz veining, hydrothermal alteration, and anomalous gold grades observed throughout the 12-kilometer-long Union Pass Fault corridor.
Derek Macpherson, President and CEO of the company, stated that the significance of hole GC26-136 lies in its structural context rather than the gold grade alone. The Union Pass Fault corridor and the related Frisco Mine fault are major regional structural features, extending approximately 12 kilometers along strike within the Gold Chain claim block. The exploration success at Bull 8 supports the company's view that these structural features controlling the Frisco Graben played a significant role in the mineralizing events at Gold Chain. Hole GC26-136, the deepest hole in this drilling campaign, encountered gold grades up to 5.96 grams per tonne over a broader interval. Approximately 50 meters above this system, hole GC26-132 returned 7.62 meters grading 0.35 grams per tonne gold in the hanging wall contact zone and 9.14 meters grading 0.22 grams per tonne gold along the footwall.
To date, the ongoing drilling program at the Gold Chain project has completed 20,116 meters. Assay results from the Black Dyke, Tyro Main, and NE Tyro areas are pending, involving 35 holes totaling 7,697 meters.
In the global gold market, central banks collectively hold over 36,000 tonnes of gold, with reserve levels approaching those seen since the Bretton Woods system. According to the June 2nd edition of Rocks Daily by Red Cloud Securities, gold has surpassed U.S. Treasury bonds to become the world's second-largest reserve asset. Data released by the European Central Bank and cited by The Telegraph on June 2nd shows that gold accounted for 27% of central bank foreign exchange reserves in 2025, exceeding the 22% share of U.S. Treasuries. Amid geopolitical uncertainty, central banks continue to view gold as a key balance sheet asset. In April, 70% of surveyed central banks identified geopolitics as the most significant risk they faced that year. Although annual central bank purchases fell to 850 tonnes in 2025 from over 1,000 tonnes per year in the previous three years, rising gold prices have increased gold's overall share of total global reserves.
Market participants maintain ongoing interest in precious metals. In a June 2nd analysis, Stewart Thomson described gold as being in a consolidation phase after strong performance against fiat currencies in 2024 and 2025, noting that sideways trading periods can shift attention to gold's broader role in the monetary system. He also stated that gold and silver miners appear poised to demonstrate their greatness once again. However, precious metal prices face macroeconomic and geopolitical pressures. According to a Kitco report on June 3rd, gold and silver prices moved lower, pressured by rising crude oil prices, higher U.S. Treasury yields, and renewed military conflict between the U.S. and Iran weighing on the sector. Spot gold traded near $4,432.60 per ounce, down 1.24% on the day; spot silver traded near $72.76 per ounce, down 3.17%. Oil prices rose for a third consecutive session, with WTI crude settling at $96.02 per barrel and Brent crude at $97.81 per barrel, amid concerns over potential shipping disruptions in the Strait of Hormuz. While geopolitical tensions continue to support gold's safe-haven demand, rising energy prices, a stronger U.S. dollar, and higher Treasury yields pose headwinds for non-yielding assets. Kitco also reported that U.S. stocks fell as investors reacted to rising energy costs, higher yields, and increased uncertainty over developments in the Middle East.
Red Cloud Securities analyst Ron Stewart noted in an April 24th updated research report that recent drilling in the Tyro Main area continues to demonstrate the scale and continuity of mineralization within the Gold Chain project. Hole GC26-125 returned 1.0 gram per tonne gold over 184.4 meters, including 8.11 grams per tonne gold over 10.7 meters, representing the longest mineralized interval encountered on the claim block to date. Other results include hole GC26-116 returning 3.11 grams per tonne gold over 22.9 meters, and hole GC26-127 returning 0.8 gram per tonne gold over 88.6 meters. These results support the continuity of mineralization throughout the Tyro Main area and reinforce the interpreted vein geometry across the deposit area. Hole GC26-125, drilled parallel to the Tyro Main area, encountered continuous veins and veinlets; hole GC26-127, drilled adjacent and slightly perpendicular to GC26-125, returned comparable mineralization; hole GC26-116 was designed to test the full width of the area.
Stewart also discussed Phase 2 metallurgical test work released on April 22nd, which indicated that ultra-fine grinding is required for effective recovery of fine-grained disseminated gold mineralization. Based on the results, material ground to 0.075 millimeters achieved gold recoveries of 87% to 92%, with silver recoveries ranging from 55% to 83%. In contrast, high-pressure grinding roll material (sized to 6.2 millimeters) and conventional grinding material (sized to 12.5 millimeters) showed significantly lower recoveries after 168 hours of leaching. These results suggest that further metallurgical testing and optimization could further improve recoveries. The analyst noted that drill results are encouraging, with mineralization within the Tyro vein system traced for approximately 1.4 kilometers, and higher-grade enrichment zones identified in the northeastern part of the area. Ninety-four holes completed within the Tyro Main area yielded an average grade of 2.24 grams per tonne gold and an average width of 28.2 meters. As of the report date, the company had completed 16,504 meters of its planned 20,000-meter drilling campaign, with assay results from 24 additional holes pending.
Red Cloud Securities has not assigned a rating or target price for West Point Gold. The analyst identified the initial resource estimate for the Tyro Main area (expected in 2026) and drilling permits for Jefferson Canyon (also expected in 2026) as key upcoming milestones. Bob Moriarty of 321gold.com commented that West Point, with its fully funded 20,000-meter drilling program, is advancing the Gold Chain project step by step, possessing C$30 million in funding, and expects the company to announce a pending 43-101 resource report in 2026.
The initial resource estimate for the Gold Chain project is targeted for 2026. The company is conducting an ongoing 20,000-meter drilling program, with the Tyro Main area remaining the primary resource zone, and the initial resource drilling program is underway along the approximately 3.4-kilometer-long Tyro vein system. The company also highlighted recent infill drilling targets at Black Dyke and Sheep Trail, which have yielded gold intercepts from near-surface mineralization. Outside of Arizona, the company outlined exploration plans for its Nevada assets. At Jefferson Canyon, permitting activities are advancing under an exploration and option agreement with Kinross. At Baxter Spring, the company is undertaking data compilation, geological modeling, and integrated geochemical and structural interpretation, while permitting a planned 5,000-meter drilling program for 2026. As of March 31, 2026, the company had approximately US$27.8 million in working capital and confirmed additional in-the-money warrants estimated to be worth approximately US$9.9 million.
West Point Gold Corp. has a market capitalization of C$176.12 million, with 135.48 million shares outstanding, and a 52-week range of C$0.29 to C$2.17. Management and insiders hold approximately 6.3% of shares, institutions hold approximately 25.7%, and the remainder is held by retail investors.
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