Western Gold Reports Exploration Progress at its Stronchullin and Gossan Burn Prospects in the Knapdale District of Argyll, Scotland

Highlights:

• Deep overburden geochemical sampling has delineated four new anomalous zones of potential orogenic style quartz-gold-silver vein mineralization at the Stronchullin and Gossan Burn prospects, which will be drill targets in Q2 2021.
• Work at the Gossan Burn prospect has delineated cohesive base of till copper-lead-zinc-(gold) anomaly related to a Pyritic Schist unit coincident with a well-defined NNE-trending magnetic low, and strong IP chargeability anomalies possibly indicative of potentially better developed, base metal sulphide mineralisation at a depth of 100-300m below surface. It is planned to drill the priority anomalies in 2021.

Exploration at the Knapdale Property to date has been focused on a 15km² zone of anomalous gold-silver-copper-lead-zinc-arsenic-antimony-bismuth in drainage and rock chip geochemical samples extending south-southwest from the historic Stronchullin gold mine to the abandoned Abhainn Strathainn copper mine.

The mineralized trend is considered prospective for the discovery of high grade, orogenic style quartz-gold-silver veins and Besshi-style polymetallic VMS (Volcanogenic Massive Sulphide) deposits. See the Company's "NI 43-101 Technical Report, Geological Introduction to Knapdale Gold-Silver Project, Scotland" with an effective date of June 12, 2020 (the "43-101 Report"), which can be found on the Company's website or under the Company's SEDAR profile, for further information.

Harry Dobson, Chairman of the Board, commented:

"The Company is encouraged by results from the recently completed deep overburden geochemical sampling and Induced Polarisation survey and excited about the potential of the continual mineralisation between our two prospects from Stronchullin to Gossan Burn. The Company plans to aggressively drill test the recently defined targets during 2021."

All Figures referenced in this news release can be accessed on the Company's website at the following: https://www.westerngoldexploration.com/wp-content/uploads/Western-Gold-Release-02-December-2020-.pdf

Following recommendations set out in NI 43-101 Report, the Company commissioned a deep overburden, base of till sampling campaign over the mapped strike length of the Stronchullin vein system which was recently completed by BRG Geotechnical Services (Figure 2). Survey lines were orientated E-W at 100m separation and 20m sample intervals closing down to 10m in the vicinity of known veins. The survey covered the structurally favourable, sheared stratigraphic boundary between the Upper Erins Quartzite and the Stronchullin Phyllite. A total of 332 deep overburden samples were collected and assayed by ALS Geochemistry in Loughrea for gold, base metals and a comprehensive trace element suite.

The main Stronchullin vein structure is defined by a cohesive arsenic anomaly with strongly mineralized segments of the veins delineated by 90-1680 ppm arsenic (Figure 3). A coincident, coherent 24-229 ppb gold anomaly outlines the mineralized portions of the Stronchullin lode structure. Several strong, coincident gold-arsenic-antimony anomalies were defined by the survey:

1. A strong, extensive gold-arsenic-antimony anomaly extends southwest from Stronchullin Burn for approximately 500m and a cross strike width of 80m to a north trending fault zone intruded by a Tertiary dolerite dyke. Geochemical evidence from deep overburden sampling, outcropping veins and the distribution of high-grade quartz vein float indicate the presence of additional, sub-parallel auriferous vein structures 10-60m to the east of the main Stronchullin lode. The northern extension of the gold-arsenic-antimony anomaly terminates against Pleistocene marine and glacial deposits which overly the Dalradian lithological units and mineralized veins.
2. A pronounced gold-arsenic-antimony anomaly is developed on line L07 and extends southwest to Line L08. The anomaly area is underlain by thin alluvial cover and is 150m west of the Stronchullin Phyllite boundary with the Upper Erins Quartzite. The anomaly may delineate the strike extension of auriferous shear zone hosted quartz-gold veins developed in the footwall of the main Stronchullin lode structure.
3. The southern section of the Stronchullin lode on lines L10 and L11 is defined by a coherent gold-arsenic-antimony anomaly. Hole SD17-6 intersected the Stronchullin Phyllite – Upper Erins Quartzite boundary at 105m depth and terminated prematurely at 110m in a strong quartz-arsenopyrite-galena-stibnite stringer zone with anomalous gold-silver values indicative of proximity to a mineralized quartz vein.
4. A strong cohesive arsenic-antimony-lead anomaly at the southern end of the Stronchullin grid on Lines L16 to L18. The anomaly is open to the south and approximately 600m NNE along strike from a strong deep overburden gold anomaly at Gossan Burn. It is planned to extend the deep overburden sampling grid in order to confirm continuity between the Stronchullin and Gossan Burn mineralised quartz vein structures.

Following this the Company is planning eight diamond drill holes of 150-200m depth for an aggregate 1,355m to further evaluate the economic potential of the Stronchullin quartz-gold-base metal veins (Figure 2). This drilling should provide greater confidence in the continuity of the veins and structural controls on lode development. Sub-parallel auriferous quartz veins and shear zones developed in the structural footwall east of the main Stronchullin vein represent priority targets.

Gossan Burn Prospect

Copper mineralization occurs within a stratiform pyrite horizon developed over a strike length of 10km within the Upper Erins Quartzite of the Dalraian Argyll Group, and historically has supported small scale mining operations at Abhainn Strathainn (Figure 1). Exploration at the Gossan Burn prospect has identified a pyritic sericite schist and intercalated amphibolite unit 100-200m west of, and stratigraphically underlying the pyrite horizon. Copper-lead-zinc-cobalt-silver-gold bearing Besshi type VMS mineralization at Gossan Burn is amenable to delineation by deep overburden base of till sampling beneath the extensive peat bogs and glacial drift as it exhibits distinctive indicator and pathfinder element geochemical associations. See the 43-101 Report.

BRG Geotechnical Services recently undertook deep overburden geochemical sampling at Gossan Burn, extending the 2016 grid coverage (Figure 4). Survey lines were orientated NW-SE at 100m separation and 25m sample interval. A total of 88 deep overburden samples were assayed by ALS Geochemistry in Loughrea for gold, base metals and a comprehensive trace element suite. Two distinct geochemical targets have emerged at Gossan Burn, a potentially large, polymetallic Besshi type VMS mineralization and a younger phase of orogenic style quartz-gold-base metal veins comparable to the Stronchullin veins.

1. A number of strong, sub-parallel, cohesive, NNE trending copper-zinc-lead-arsenic anomalies have been defined over a 1200m strike length (Figures 4 through 6). The anomalies are sourced by quartz-sericite-pyrite schists and intercalated amphibolite units which are truncated by the Baranlongart Fault to the south and remain open to the north of Line 14. The copper-lead-zinc-arsenic anomalies appear to delineate at least two discrete mineralised horizons within the pyritic schists. Discrete gold (5-150ppb Au) and silver (0.30-2.20ppm Ag) anomalies are coincident with the main base metal anomalies and indicate potential precious metal enriched zones (Figure 7).
2. An erratic, strong deep overburden gold anomaly is related to orogenic style quartz-gold-base metal veins exposed in new road sections at Gossan Burn (Figure 7). The 15-584ppb gold anomaly outlines auriferous portions of the Gossan Burn vein structure and remains open to the north. It is interpreted to extend north-northeast towards the strong, cohesive arsenic-lead-antimony anomaly at the extreme southern end of the Stronchullin grid.

BRG Geotechnical Services also recently completed a 14km ground magnetic survey at the Gossan Burn prospect. The lines were oriented NW-SE orthogonal to the regional structural trend (Figure 8). The raw data is being quality checked, processed and imaged by Southern Geoscience Consultants in Australia. Initial review of the data suggests a subtle magnetic low coincident with the base metal anomalous pyritic sericite schists and intercalated amphibolite units at Gossan Burn probably reflecting the sericite and chlorite alteration accompanying the sulphide mineralization. The main faults zones are also recognizable in the imaged TMI data (Figure 8).

BRG Geotechnical Services also undertook a 9km time domain Induced Polarisation and Resistivity survey at the Gossan Burn prospect. A pole-dipole array was utilized with a 50m dipole reading from n=1 to n=6 on lines L1, L3, L5, L7, L9, L11 and L14 (Figure 8). A 100m dipole separation was adopted on lines L4 and L10 reading from n=1 to n=6. Induced Polarisation survey data has been quality checked by Southern Geoscience Consultants and is considered to be of good quality. Final interpretation will comprise identifying anomalies from 2D and 3D inversion models and pseudo-section plots in conjunction with magnetics, geology and deep overburden geochemical data and provide a sound technical basis for prioritisation of drill targets.

A review of the data has defined highly anomalous chargeability anomalies and coincident resistivity lows within a general subdued anomalous magnetic low. The coincident anomalies are generally spatially related with the base metal enriched pyritic schists. Chargeability anomalies are generally strengthening from n=4 to n=6 on the 50m dipole separation indicative of a depth to source of 100-150m depth. On the 100m dipole separation strong chargeability anomalies with coincident resistivity lows indicate the source is increasingly polarizable from n=2 to n=6 interpreted as being 100-300m depth. The main anomalous demonstrate reasonable line to line continuity defining a 1200m strike length of the chargeability anomalies which remain open at depth and along strike. Two interpreted pseudo-sections are shown in Figures 9 and 10.

Combined 2D IP-resistivity inversions of the pole-dipole data using the RES2DINV + Loke software package was undertaken by Southern Geoscience Consultants to develop pseudo-section plots of the measured and modelled (2D inversion) chargeability and resistivity. The models could not be geologically constrained and the modelling generally generated a chargeability source anomaly that coalesced rather than differentiate two potential sources in the graphitic Stronchullin Phyllite and the Pyritic Schist and in one instance transgressed a significant post mineralisation fault zone which is considered geologically unreasonable.

Drill targeting criteria will prioritise cohesive base of till copper-lead-zinc-arsenic-(gold) anomalies related to the Pyritic Schist coincident with the well-defined NNE-trending magnetic low, and strong IP anomalies at n=4 to n=6 possibly indicative of potentially better developed, base metal sulphide mineralisation occurring at a of depth 100-300m below surface. In this regard the Pyritic Schist unit between lines 02 to 07 and lines 09 to 11 are considered to represent the most prospective zones (Figure 11).

Review by Qualified Person, Quality Assurance and Quality Control

Mr. Patrick Waters, Consultant Professional Geologist is the Qualified Person as defined by National Instruction 43-101, responsible for the accuracy of scientific and technical information in this news release.

All analytical work has been completed at the ALS Geochemistry laboratory facility in Loughrea, Ireland. ALS Geochemistry is an internationally accredited lab and are ISO compliant (ISO 9001:2008, ISO/IEC 17025:2005). All drill core, rock chip and channel samples are prepared using the PREP 31B method and analysed for gold using the Au-AA23 procedure (20gm fire assay with AAS finish: Lower Detection Limit - 0.005ppm gold; Upper Detection Limit – 10ppm gold). Any samples that returned over-limit values (>10ppm gold) were analysed by the Au-AA25 Fire Assay procedure (0.01-100ppm gold). All drill core, rock chip and channel samples are analysed for silver, base metals and a comprehensive trace element suite using the ME-MS61L™ method following a four-acid digest.

All deep overburden, base of till samples, stream sediments and panned concentrate samples are analysed for low level gold (0.001-1ppm gold) using the AuME-TL43™ method utilising an aqua regia digest of a 25gm sample and ICP-MS finish for gold and a 46-element package including base metals and a comprehensive indicator element suite.

Commercially available OREAS Certified Reference Materials and Blanks are routinely inserted into sample dispatches every 25 samples. ALS Geochemistry also has its own QA/QC protocol using standards, blanks and duplicates.

About Western Gold Exploration

The Company is an exploration company that is listed on the TSX Venture Exchange under the symbol "WGLD". The Company is focused on the exploration of mineral properties in Western Scotland and discovering new opportunities in the Dalradian Belt, targeting historic mines with gold and copper occurrences in the area to develop an initial resource estimate. Preliminary prospects include the Stronchullin mine, Gossan Burn and Allt Dearg which are all located in the Knapdale District.

Additional information about the Company is available on SEDAR at www.sedar.com under the Company's profile.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to those that address potential quantity and/or grade of minerals, potential for minerals and/or mineral resources, timing and plans for any exploratory drilling and statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company that may be described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.

By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, as well as those risk factors discussed or referred to in the Company's Management's Discussion and Analysis for the period ended September 30, 2020 available at www.sedar.com, many of which are beyond the control of the Company. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Western Gold Exploration Ltd.



Contact
Ross McLellan, CEO, Phone: +44 1620 890159, Email: info@westerngoldexploration.com, Website: www.westerngoldexploration.com