"Very Important Part of the Mine Restart Plan" Amid a strong bull market for gold, West Red Lake Gold's (WRLG.v WRLGF) stands out as a strong contender in the heart of Ontario's prolific Red Lake district, as detailed in today's news release, "South Austin is a Very Important Part of the Mine Restart Plan": https://www.thenewswire.com/press-releases/1AqRFzvD4-west-red-lake-gold-south-austin-is-a-very-important-part-of-the-mine-restart-plan.html
A Golden Opportunity in Ontario's Red Lake District
WRLG recently reported promising drill results from its 100% owned Madsen Mine, an asset that boasts an NI 43-101 indicated resource of 1.65M oz of gold grading 7.4 g/t Gold, an inferred resource of 0.37Moz of gold grading 6.3g/t.
Significantly, WRLG secured the debt-free and fully permitted asset Madsen Mine for only $6M with a $273 million tax write-off and a new $350M 800+ tonne per day mill, despite its previous valuation of over a billion dollars, about 8x the current market cap of WRLG, due to previous mismanagement.
On track to be in production by the end of 2025, WRLG has been focusing on the high-grade South Austin Zone which currently contains an Indicated mineral resource of 474,600 ounces at 8.7 grams per tonne gold, along with an additional Inferred resource of 31,800 ounces at the same grade.
Notable highlights from South Austin include:
- 3.1 meters at 21.33 g/t Au, from 83.9 meters to 87.0 meters, including 0.5 meters at 32.74 g/t Au.
- 9.0 meters at 6.75 g/t Au, from 103.0 meters to 112.0 meters, including 0.9 meters at 27.91 g/t Au.
- 2.55 meters at 6.08 g/t Au, from 75.45 meters to 78.00 meters, including 1.0 meter at 11.08 g/t Au.
As stated by Will Robinson, WRLG's VP of Exploration:
"South Austin is an important part of the mine restart plan, There are 1.7 million ounces of Indicated gold in the Austin zone – higher confidence ounces at a solid grade of 7.4 g/t gold - South Austin adds to that.”
“Having development and access to this area is a huge benefit logistically because it means we can drill South Austin with short, efficient holes from almost any angle we desire.”
“We have similar hopes for the North Austin area. Together, we see good potential for these zones to be the foundation of a robust mine restart plan.”
Near Term Production & Long Term Growth
The strategy for the Madsen Mine restart consists of de-risking the resources, restarting planning and restarting execution.
As previously unveiled, WRLG's 2024 strategy for regional exploration activities across the Madsen Mine includes:
- Regional Mapping and Geochemical Sampling: Expected to commence in May 2023 with a focus on the Confederation Assemblage of rocks which has seen little exploration work since 2024
- Underground Drilling: Underground drills to continue to de-risk the resource and explore near-mine expansion opportunities
- Exploration Potential: Aim to better understand mineralizing controls & economic potential of the largely unexplored Confederation rocks which represent ~50% of the land package at Madsen
Strategically positioning itself to capitalize on the untapped value within the Madsen Property, WRLG emphasizes both near-term resource expansion and long-term exploration potential with a steady stream of positive results anticipated throughout 2024.
Posted on Behalf of West Red Lake Gold Mines Ltd.