Interview Summary: CEO S. Williams Discusses Madsen Restart In an interview with Crux Investor, Shane Williams, CEO of West Red Lake Gold Mines (WRLG.v or WRLGF for US investors), shared insights into the company's near-term Madsen gold project in Ontario’s Red Lake district.
The project hosts 1.7M ounces of gold at 7.4 g/t in indicated resources and an additional 300,000 inferred ounces, supported by existing infrastructure such as a 1,200m shaft and a processing plant.
Production Strategy:
Initial production aims for 60,000–70,000 ounces annually at a rate of 800 tons per day, leveraging existing infrastructure while maintaining a measured approach to scaling up.
Geological Complexity:
Red Lake’s complex ore systems necessitate detailed drilling to identify high-grade, narrow veins, ensuring efficient mining and minimizing operational risks.
Updates Since the Interview:
New Ore Shoot Discovery: On November 21, 2024, WRLG reported the discovery of a new ore shoot at the Upper 8 Target. Drill results included:
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44.17 g/t Au over 1.3m
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20.63 g/t Au over 0.5m
The Upper 8 shoot shares geological similarities with the deeper, high-grade 8-Zone, which contains an indicated resource of 87,700 ounces at 18 g/t gold. The new zone is 30m wide and 130m along plunge, with visible gold and potential for further discoveries.
Pre-Feasibility Study (PFS): The PFS fo Madsen, in collaboration with SRK Consulting, is now expected in early 2025. It will include:
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Detailed mine plans covering the first 18–24 months.
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Operating cost insights based on underground mining experience.
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Optimized infrastructure sequencing
Workforce and Infrastructure: WRLG has enhanced worker retention by improving camp facilities in partnership with Horizon North. The new accommodations feature private restrooms and comfortable living conditions, addressing challenges posed by a tight labor market.
Exploration and Resource Growth: WRLG’s conceptual modeling suggests potential for additional high-grade zones between the Upper 8 and deeper 8-Zone, with further drilling planned in 2025.
Investment Thesis:
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High-Grade Resource: 2M ounces at 7.4 g/t in a tier-one jurisdiction.
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Restart-Ready Infrastructure: Significant cost savings due to existing facilities.
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Exploration Upside: New discoveries like the Upper 8 highlight resource expansion potential.
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Favorable Market Conditions: Robust gold prices around $2,500/oz support project economics.
WRLG’s cautious, methodical approach and recent exploration success position it well for near-term production and potential growth, making it a compelling investment in the high-grade gold sector.
Full interview here:
Posted on behalf of West Red Lake Gold Mines Ltd.