WRLG's "Tactical Pursuit of Aggressive Growth" The "Tactical Pursuit of Aggressive Growth" - West Red Lake Gold's (WRLG.v WRLGF) Gwen Preston joins the Gold Newsletter to introduce the company's aggressive growth strategy at the Madsen Mine: https://www.youtube.com/watch?v=dI1porCehfA
COMPANY OVERVIEW:
Share Structure and Market Cap:
- 264 million shares outstanding, 350 million fully diluted.
- Market cap around $170 million.
Production Plans:
- The company aims to start gold production in just over a year.
- Key asset: Madson Mine, acquired after Pure Gold’s bankruptcy due to operational issues.
Strategic Vision:
- Led by financier Frank Giustra, known for his timing in the gold market.
- Strategy: Revitalize the Madson Mine and pursue aggressive growth to build a mid-tier gold mining company.
MADSEN MINE DETAILS:
Historical Context:
- Operated from the 1930s to the 1970s, producing 2 million ounces of gold.
- Acquired by Pure Gold in 2015, who failed due to inexperience and operational mistakes.
Current State:
- Infrastructure: New mill, tailings facility, and permits in place.
- Purchase price: Acquired for $30 million, significantly below Pure Gold’s $350 million investment.
Challenges and Opportunities:
- Need for extensive infill drilling to accurately locate high-grade gold pods.
- Potential for significant resource expansion, particularly in the deeper 8 Zone with high-grade potential (200,000 ounces at 18 g/t).
OPERATIONAL PLANS AND PROGRESS:
- Continuous infill drilling to define reserves and increase confidence in the resource.
- Infrastructure improvements: Connecting drifts, installing a permanent primary crusher, and setting up a camp to reduce costs.
- Aiming for a pre-feasibility study by the end of the year, with production start targeted for mid-next year.
GROWTH AND ACQUISION STRATEGY:
- Focus on aggressive growth, leveraging Frank Giustra’s network and financial capabilities.
- Exploring additional operating mines and acquisition opportunities.
UPCOMING CATALYSTS:
- Completion of key infrastructure projects.
- Release of the pre-feasibility study to provide detailed production and cost estimates.
- Potential for increased resource confidence and expansion through ongoing drilling.
Positioning itself for substantial growth in a favorable gold market, WRLG is aiming to become a significant player in the gold mining industry with a strategic approach encompassing extensive drilling and infrastructure improvements to ensure a successful mine restart.
Posted on Behalf of West Red Lake Gold Mines Ltd.