TSXV:WRLG - Post Discussion
Post by
MarketMakerss on Apr 30, 2024 4:49pm
Madsen & Rowan Property Exploration Strategy
Historically performing well during times of uncertainty, gold stands as a steadfast investment choice, performing as a safe haven as well as a hedge against inflation. Thus far, we've see gold hit record highs this year, and popular predictions from experts are seeing the metal approach $2,500 per ounce and even breaking $2,600 per ounce.
A Golden Opportunity in Ontario's Red Lake District
In the heart of Ontario's prolific Red Lake district lies a promising gold asset, the Madsen Gold Mine, owned by West Red Lake Gold (WRLG.v WRLGF).
With 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, the Madsen mine is WRLG's flagship asset and is on track to be in production by the end of 2025.
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.
Furthermore, WRLG holds the Rowan Mine Deposit, additionally located in Red Lake Gold District with an indicated resource of 476,323 tonnes grading 12.78g/t Au and an inferred resource of 410,794 tonnes grading 8.76g/t Au.
Near-Term Production & Long-Term Growth
Yesterday, WRLG unveiled its 2024 strategy for regional exploration activities across its both the Madsen Mine and its Rowan Property.
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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
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Underground Drilling: Underground drills to continue to de-risk the resource and explore near-mine expansion opportunities
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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
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Surface Drilling: Fully funded program expected to begin in early June with up to 15,000m of surface drilling focused on growth and expansion of the existing high-grade mineral resource
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New Target Generation: Regional mapping & geochemical sampling across property starting in June 2024 to generate new targets for potential future drill testing
Updated Rowan Property MRE
As detailed in Red Cloud's latest release, WRLG announced a material decrease in total resources at the Rowan Deposit in its updated MRE. While initially this will have a mildly negative impact, the long term and main focus is on the Madsen Mine:
"In our view, this updated MRE is a material downgrade in total resources at Rowan that will likely negatively impact the stock in the short term. That said, Rowan is only a satellite deposit and investor focus should be on Madsen. We believe the updated MRE is more realistic and geologically sound than the previous estimate given the complex vein system at Rowan. Over the long term, the more conservative, updated MRE should provide a strong foundation upon which WRLG could add additional Au resources through drilling and serve to support a future economic study."
Strategically positioning itself to capitalize on the untapped value within the Madsen and Rowan Properties, 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.
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