WCE: Hits 27.4m at 1,314g/t silver - including a 0.35m interval… 33,106g/t silver (that’s bonanza grades)

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 3,908,000 WCE Shares at the time of publishing this article. The Company has been engaged by WCE to share our commentary on the progress of our Investment in WCE over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs. Any forward-looking statements are uncertain and not a guaranteed outcome.

Silver has roared back up ~26% off the lows it hit a couple of days ago - now back at US$88/oz.

(what a wild six trading sessions for silver....)

Our Investment West Coast Silver (ASX:WCE) owns 70% of the Elizabeth Hill Silver Mine - one of the highest grade silver mines to ever produce in Australia.

And they weren't kidding - yesterday, WCE announced one of the most outrageous high grade drill hits we have seen...

27.4m at 1,314g/t silver...

(source)

We occasionally see companies announce high silver grades (above 1,000 g/t) like this, but usually the interval is less than a metre.

WCE's is 1,314g/t silver across a 27.4m long interval.

Another thing we also don't see everyday, is the grade in that smaller 0.35m interval... 33,106g/t silver (~1,064 ounces per tonne).

WCE’s giant high grade intercept was near surface in and around the old mine workings at Elizabeth Hill.

(near surface hits are good - because all that precious silver is closer to the surface and cheaper to dig up)

We want to see WCE quickly start mining, processing and selling silver while it looks to be in a “new normal” of higher prices.

(there is a nearby processing plant that WCE has signed an MoU to access already - more on this in a second)

We are also looking forward to assay results for 76 aircore holes completed in November 2025 are due in mid February - a couple of weeks away.

(with the goal being to find a new "Elizabeth Hill look-a-like” ultra high grade discovery)

WCE still has ~20 regional Elizabeth Hill look-a-likes targets with some of those having been drilled over the last few months.

WCE will use the results from the aircore drilling to refine targets and prioritise follow up RC and diamond drilling.

When WCE’s Elizabeth Hill mine was operating over 20 years ago, it produced 1.2M ounces of silver with average production grades of ~2,194g/t silver...

(this was back when silver well below US$10 per ounce, today it is US$88 per ounce)

WCE’s project already has a non-JORC ~46.8kt @ 2,700g/t silver for 4.05Moz remnant resource. (source)

Here is where that hit yesterday came from relative to that remnant ore:

This hole was pretty close to previous holes (which also hit grades >1,000g/t silver), BUT yesterday’s hole (#14) seems to have found some pretty interesting high grade silver slightly deeper in the system.

(source)

Ultimately we are Invested in WCE to see it:

• Drill out, make near-mine discoveries next to the Elizabeth Hill mine and eventually bring the project back online (WCE ran two drill programs hitting silver near the old mine workings and is now moving to economic modelling).(source)
• Drill, discover and define Elizabeth Hill look-a-likes across its ~20 regional targets (WCE has drill results pending from its regional targets right now... more on those in a second).

This is the second round of drilling WCE’s has completed on the near surface silver at Elizabeth Hill.

Next, WCE is targeting a JORC resource that ties in the old non-JORC ~4.05M ounce remnant silver resource and all of the new drilling. (source)

4M+ ounces of silver would be worth >A$500M at today’s prices...

(noting of course it will cost money to dig up the silver, process it, and sell it)

WCE also plans to deliver a study assessing development options for the project.

Then the plan is to show the market how the mine could be restarted.

(remembering the mine last operated over 20 years ago and produced ~1.2M ounces of silver - which at today’s prices would be ~A$153M of silver).

In our last note we said:

“IF WCE keep hitting silver from surface it could build a case to restart mining on Elizabeth Hill - but this time potentially via some sort of big open pit instead of having to go underground” (source)

(the blue lines below are just for us to visualise what an open-pit would look like, we aren’t mining engineers and this may not even be possible)

We think yesterday’s results have added weight to a potential open pit development theory, especially now that WCE is moving into economic studies.

(source)

Lucky for WCE there is also a nearby plant that could be a processing solution for a quick to production development scenario...

WCE recently confirmed that an MoU had been signed with a nearby plant owner (Artemis Resources).

Artemis’ plant has been idle for some years now, so it would be beneficial for both companies to make use of it.

Another thing we mentioned in our last note were the “Hail Mary” holes WCE had planned to test for extensions at depth.

Those two holes hit silver mineralisation (some ~1m intercepts above 25g/t silver) which on its own probably isn't enough to call for extensions there yet...

BUT there are those high grade samples to the west (4m @ 223g/t silver) which could be somewhere WCE drills in the future:

(source)

WCE has more drill results pending

After yesterday’s results its all eyes on that JORC resource and development plan for the near surface silver WCE has been hitting with drilling (near the 4.05M ounce remnant resource).

Oh and we are still looking forward to assay results from all the aircore drilling WCE’s been doing.

WCE still has ~20 regional Elizabeth Hill look-a-likes targets with some of those having been drilled over the last few months.

Assays from those are pending right now and due in mid February.

(Source)

Speaking of regional targets...

Can WCE find an Elizabeth Hill repeat?

One of the main reasons we Invested in WCE was because we think the company can make repeat discoveries similar to Elizabeth Hill.

Here is one of the key reasons we listed in our initiation note back in August 2025:

Reason #8: Regional targets ranked, exploration starting soon

There is very limited modern exploration over WCE’s regional targets. WCE just identified ~12 high priority and 8 earlier stage regional targets. These are the targets where we are hoping to see a repeat of the high grades at Elizabeth Hill. Air-core/channel sampling to start on these very soon.

Source: “Why did we Invest in WCE” - WCE Investment Memo 2025

WCE’s project area sits on over a 180km2 area - most of which hasn’t been touched in decades.

WCE has so far run geophysical surveys (drone magnetics, transient electromagnetics and surface sampling), with these results coming back in October.

This narrowed down the existing ~20 targets to seven higher priority, near mine targets that span across ~2km of strike. (source)

And then run its first shallow aircore drill program (basically looking for spots of mineralisation that warrant coming back in and drilling with a heavier rig capable of testing down to bigger depths).

Assays from that first program are due in mid February. (source)

So in the coming weeks, when assays from those aircore holes come in, we should get a fairly strong idea of any high priority silver targets WCE can go after...

(Source)

Ultimately we think any discovery or operation resembling the old Elizabeth Hill mine could re-rate WCE’s valuation higher from where it is today - which forms the basis for our WCE Big Bet.

Our WCE Big Bet:

“WCE re-rates to a market cap of $300M by bringing the Elizabeth Hill mine back online OR making a new discovery that is as big (if not bigger) than Elizabeth Hill into a strong macro silver theme.”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our WCE Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

9 key reasons why we are Invested in WCE:

Here are the 9 reasons we Invested in WCE, from our initiation note back in August 2025.

Since then a fair bit has changed so we have included updates below some of the reasons.

1. We are bullish silver - We believe silver is heading to new all-time highs. A breakout could push prices well above US$50/oz, much higher than historic averages. Two of our top four positions in our Portfolio are silver companies right now.
   
   UPDATE - Since we made our Investment back on August 8, the silver price increased from just under US$40 to a high of ~US$120, currently sitting near ~US$90.
   
2. WCE’s project was one of Australia’s highest-grade silver mines - WCE’s project had historic production of ~1.2M ounces of silver at average grades of ~2,194g/t silver. A typical high grade project has grades around ~100g/t silver...
   
3. WCE’s project sits on a granted Mining Lease - this gives WCE optionality with respect to getting its project back into production. IF the silver price gets high enough, WCE can get its project into production quicker than other greenfields assets.
   
4. Historic production had cheap, simple processing - Historic mining used simple gravity processing because the ore contained visible silver nuggets easily separated from the surrounding rock. No need for chemicals or any other complex (expensive) processing routes.
   
5. Near mine exploration upside - WCE’s project hasn’t been systematically drilled for over 25 years. We think there is potential to make new discoveries near the old Elizabeth Hill Mine - with lookalike targets along strike.
   
   UPDATE - WCE has now run two diamond drill programs in and around Elizabeth Hill. Now the company's moving to wrap a JORC resource around the project before considering development options.
   
6. Already hit very high grade silver in the first few drillholes - WCE has already hit a 21m intercept with silver grades of ~1,047g/t silver (including a 1m intercept grading 15,071g/t silver). Post-results, WCE’s share price has gone from ~4c to a touch a high of 17.5c. (Remember past performance is not indicative of future performance.)
   
   UPDATE - WCE has followed up with similar results, like yesterdays hit - 27.4m at 1,314g/t including that smaller 0.35m interval... 33,106g/t silver (~1,064 ounces per tonne).
   
7. WCE has 10 assays pending right now - WCE still has 10 assays pending from its first drill program, any strong results (similar to what came in from the first hole) into a rising silver price could be good for WCE in the short term.
   
   UPDATE - WCE has completed a first and second deeper drilling programs here with assays received that has included some outstanding results of high grade, long intercepts near surface.
   
8. 20 regional targets ranked, exploration starting soon - There is very limited modern exploration over WCE’s regional targets. WCE just identified ~12 high priority and 8 earlier stage regional targets. These are the targets where we are hoping to see a repeat of the high grades at Elizabeth Hill. Air-core/channel sampling to start on these very soon.
   
   UPDATE - WCE has results from aircore drilling due in mid February that was done on some of the regional targets plus testing near the mine to the north and the south.
   
9. Record 145kg native silver nugget came from WCE’s mine - this is more a bonus reason really, it doesn’t drive the Investment decision but it certainly got our attention onto the project when we saw it in real life at the Perth Mint.

(Source: our photo from the Perth Mint of the largest Australian native silver nugget in existence - from WCE’s project)

What’s next for WCE?

Results from aircore drilling on regional targets 🔄

Next we want to see results from the drilling WCE’s been doing across its regional targets (with a shallow aircore rig).

Results from those holes are expected this month.

(source)

More near-mine and regional exploration 🔄

We want to see the results of the geophysics and air core drilling that is now complete to further define near-mine and regional targets, assays for this are due by the end of February (source):

(Source - WCE announcement 22 August 2025)

Update on processing negotiations 🔄

In a prior exploration update, WCE said it was in discussions with Artemis Resources who own the Radio Hill processing plant, ~20km away.

Recently WCE confirmed that these negotiations have progressed to a MOU to look further into processing ore at this plant.

The plant has been idle for some years now and was previously being refurbished by Artemis but due primarily to a fall in nickel prices, has not been utilised for several years so there exists a conveniently located opportunity.

What are the risks?

In the short term the two key risks to our WCE Investment is “Exploration risk” and “Commodity Price risk”.

WCE still has aircore drill results pending from its regional targets.There is a risk WCE finds nothing that is considered economically viable and the company’s share price re-rates lower.

Exploration risk

There is no guarantee that WCE’s upcoming drill programs are successful. WCE may fail to find economic deposits of silver.

Source: What could go wrong? - WCE Investment Memo 8 August 2025.

Right now the silver price is trading near its all time highs.

WCE’s primary commodity exposure is silver, so any fall in the silver price could mean WCE’s share price moves lower.

Commodity price risk

The performance of commodity stocks are often closely linked to the value of the underlying commodities they are seeking to extract. Should silver prices fall, this could hurt the WCE share price.

Source: What could go wrong? - WCE Investment Memo 8 August 2025.

Other risks

Like any stock market investment, investing in WCE carries a range of additional risks that could affect the value of the company, some of which cannot be foreseen (this is the nature of risks).

Here we aim to identify a few more risks.

WCE’s primary project is centred on an historic silver mine, and there is no guarantee that drilling will lead to new economic discoveries or that remnant mineralisation can be extracted profitably.

As a junior explorer with a ~$80M market cap, WCE remains a speculative investment. Even with recent drilling success, the current valuation may already be factoring in future upside.

Like all small-cap explorers, WCE is reliant on capital markets to fund exploration. Any future capital raise may be done at a discount and dilute existing shareholders.

Finally, while WA is considered a safe mining jurisdiction, there are always regulatory, environmental, heritage and permitting risks which could delay or impede development.

Investors should carefully consider these risks and seek professional advice tailored to their personal circumstances before investing.

Our WCE Investment Memo

In our WCE Investment Memo, you can find the following:

• What does WCE do?
• The macro theme for WCE
• Our WCE Big Bet
• What we want to see WCE achieve
• Why we are Invested in WCE
• The key risks to our Investment Thesis
• Our Investment Plan