Westhaven poised for 50,000-metre drill program in B.C.
Westhaven Gold Inc. [WHN-TSXV] has announced the planned start of drilling at the company’s Shovelnose gold and silver project in the Spence Bridge Gold Belt of southern British Columbia. Subject to the outcome of today’s special meeting of Westhaven sharholders to consider a previously announced transaction with Dundee Corp. [DC.A-TSX], the program is expected to be the start of an approximately $20 million, 50,000-metre program of resource definition and exploration drilling planned for Shovelnose in 2026
The announcement comes after Westhaven recently granted Dundee the right to acquire up to a 60% interest in a basket of Westhaven projects located in the Spences Bridge Gold Belt, including the Shovelnose, Prospect Valley, Skoonka Gold and Skoonka North prospects. Dundee agreed to earn the interest by spending $85 million. Dundee is making a commitment to invest at least $30 million within three years of the effective date of the agreement.
On Tuesday, Westhaven were unchanged at 22.5 cents. The shares trade in a 52-week range of 29 cents and 11 cents.
Westhaven has said the Shovelnose Gold Project and broader Spence Bridge Gold Belt could evolve into a multi-deposit, multi-generational gold mining camp in a region of British Columbia with exceptional infrastructure advantages and a long history of mine development.
Dundee’s interest in the projects, when earned, will be held through a newly incorporated subsidiary (JVCo). In addition, Dundee has also agreed to subscribe, on a private placement basis, for 12 million common shares of Westhaven priced at 25 cents each, for gross proceeds of $3.0 million. The financing is expected to close on December 31, 2026.
The agreement calls for an expected 2026 project expenditure of $20 million, money that will fund infill resources and technical drilling at the South Zone gold deposit, targeted exploration drilling at the Shovelnose property, an expanded environmental baseline program and the launch of project engineering studies in support of a pre-feasibility study.
The 2026 drilling plans at Shovelnose are supported by a multi-year notice of work authorization, allowing for 650 drill pads to be completed through January 30, 2029. Westhaven will remain operator of the projects until Dundee earns 50%.
In a press release on March 3, 2025, Westhaven reported the completion of an updated PEA at its 100%-owned 41,634-hectare Shovelnose property, which is located within the prospective Spences Bridge Gold Belt, which borders which borders the Coquihalla Hwy., 30 kilometres south of Merritt, B.C. The company said the PEA outlines a robust, low-cost, rapid pay-back, high-margin, 11.1-year underground gold mining opportunity and is based on updated mineral resources that include contributions from the South, Franz and FMN zones.
The PEA envisages average annual life-of mine gold production of 56,000 ounces.
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