Today, West Red Lake Gold Mines (WRLG.v WRLGF) is up over 10% on 10x the average volume having reported the latest drill results from its 100% owned Madsen Mine which saw the intersection of 25.12g/t Au over 5.5m, 39.46 g/t Au over 2m and 18.60 g/t Au over 4m at the South Austin Zone.
The high-grade South Austin Zone currently contains an indicated mineral resource of 474,600 oz grading 8.7 g/t Au and an inferred resource of 31,800 oz grading 8.7 g/t Au.
Targeting definition within South Austin to continue building an inventory of high-confidence ounces for the eventual restart of the Madsen Mill, this drilling observed visible gold in two holes thus additional holes were added to the drill station to further define the high-grade zones up and down plunge.
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5.5m @ 25.12 g/t Au, from 24.0m to 29.5m, Including 1.0m @ 134.90 g/t Au, from 25.0m to 26.0m.
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3.0m @ 12.58 g/t Au, from 45.0m to 48.0m, Including 1m @ 37.40 g/t Au, from 45.0m to 46.0m; And 2.0m @ 39.46 g/t Au, from 64.0m to 66.0m, Including 1.0m @ 76.18 g/t Au, from 64.0m to 65.0m.
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4.0m @ 18.60 g/t Au, from 41.0m to 45.0m, Including 1.0m @ 55.69 g/t Au, from 43.0m to 44.0m.
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11.0m @ 6.75 g/t Au, from 47.0m to 58.0m, Including 1.0m @ 17.01 g/t Au, from 47.0m to 48.0m, Also including 1.0m @ 10.52 g/t Au, from 51.0m to 52.0m; Also Including 0.5m @ 18.68 g/t Au, from 54.0m to 54.5m, Also including 0.5m @ 14.37 g/t Au, from 56.5m to 57.0m.
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6.45m @ 10.43 g/t Au, from 36.0m to 42.45m, Including 0.75m @ 49.68 g/t Au, from 39.25m to 40.0m.
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3.0m @ 7.75 g/t Au, from 35.0m to 38.0m, Including 1.0m @ 17.73 g/t Au, from 35.0m to 36.0m.
Shane Williams, President & CEO, stated:
“The team has been making great progress de-risking the Madsen deposit with definition drilling as we continue to build up an inventory of high-grade and high-confidence ounces that will prove invaluable during the initial ramping up of mine production. The Mine Operations team is working in tandem with Geology to ensure the underground drills get to the highest priority areas of the deposit. The excellent results highlighted in this release are indicative of the upside that still exists at Madsen even within the current life-of-mine resource inventory.”
Since underground drilling resumed in early January 2024, WRLG has completed 1,996m of Expansion drilling and 2,716m of Definition drilling with a total of 56 diamond holes.
Sitting on top of highly prospective exploration targets in the world-class Red Lake Gold District of Ontario, Canada, the Madsen Gold Mine is WRLG's flagship project that is a fully permitted, debt-free gold mine with a brand-new 800+ tonne per day mill and an indicated resource of 1.65M oz of gold at 7.4g/t and 0.37M oz of gold at 6.3g/t inferred.
Boasting a robust, data-rich technical foundation, over C$350 million has been invested in the Mine to date with significant and expandable surface and underground infrastructure creating a deep value opportunity.
Despite the asset being previously valued at one billion dollars, WRLG acquired Madsen for pennies on the dollar due to previous mismanagement, with all the infrastructure in place as well as tailings and permitting.
Current Private Placement
This news comes on the heels of WRLG's previously announced private placement that was upsized from US$20M toUS$23M due to strong demand.
The net proceeds of the offering are expected to be allocated toward continuing to advance the development of a restart plan for the Madsen Gold Mine, as well as for working capital and general corporate purposes.
Notably, Frank Giustra, who already holds 11.07% of the outstanding Common Shares, indicated his intent to participate in the Offering by subscribing for 3,700 Units, representing US$3.7M in gross proceeds.
Posted on Behalf of West Red Lake Gold Mines Ltd.