West Red Lake Gold Mines Ltd V.WRLG

Streetwise Reports on WRLG & 321Gold's Editorial

[MarketMakerss]

"In a market where the mob often buys at tops and sells at bottoms, contrarian investors seek undervalued gold stocks with extraordinary potential."

 

In summarizing 321Gold's latest editorial on an "Extraordinary Gold Story", Streetwise Reports highlights Bob Moriarty's call that West Red Lake Gold Mines (WRLG.v WRLGF) offers exceptional potential for hundred-fold returns: https://www.streetwisereports.com/article/2024/03/13/undervalued-opportunities-with-two-gold-stocks.html

"By focusing on undervalued gold stocks with exceptional assets and strong management teams, contrarian investors can position themselves for significant gains as the market recognizes their true value."

 

Focused on maximizing exploration dollars and building high-grade and high confidence ounces to de-risking its deposit, WRLG is executing on its plan to restart the debt free and fully permitted Madsen Gold Mine and its $350 million 800+ tonne per day mill.

 

The Madsen Gold Mine

Hosting an NI 43-101 Indicated resource of 1.65M oz of gold grading 7.4 g/t Gold and an inferred resource of 0.37Moz of gold grading 6.3g/t, Madsen was once valued at over a billion dollars, about 8x the current market cap of WRLG.

 

However the previous owner was under-capitalized with debt repayment obligations forcing the company to a quick-to-cash-flow mine model, a model that is expensive & inefficient, thus WRLG was able to acquire the asset for only US$6 million. Significantly, WRLG's purchase came with a $273 million tax write-off, thus the first $273 million in profits will be tax free.

 

Notably, smart money is heavily invested in the project including Frank Giustra with 11.8% and Sprott with 23.4%.

 

Madsen Mine Restart Strategy:

1) De-risk Resources: In-fill & Expansion Drilling, UG Development

2) Restart Planning: Engineering, Mill Expansion Assessment, Optimization

3) Restart Execution: Assembling team, community relations, focus on operability and profitability

 

The South Austin Zone

WRLG's current focus at the deposit is the South Austin Zone which 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.

 

Focused on understanding the underlying geology of the asset ahead of restarting the mill, WRLG is conducting additional drilling to de-risk the deposit and hit recently hit high-grade intercepts with visible gold showing including 25.12g/t Au over 5.5m, 39.46 g/t Au over 2m and 18.60 g/t Au over 4m at the zone.

 

An Extraordinary Gold Story

"Here’s the math. At today’s price of the shares, WRLG is worth about $141 million. The same mine and mill, less Rowan with its 900,000 ounces of gold, used to be worth $1.15 billion. It cost $350 million to put Madsen into production under management that ended up running it into the ground. With current management and $2200 gold I see WRLG being worth 500 to 1,000 percent higher when investors wake up."

 

For more information on WRLG, refer to the full 321 Gold editorial from Bob Moriarty: https://www.321gold.com/editorials/moriarty/moriarty031124.html

 

Posted on Behalf of West Red Lake Gold Mines Ltd.