Summary of Gwen Preston's Presentation on West Red Lake Gold (WRLG.v WRLGF) from the Rule Symposium
Presenting at the 2024 Rule Symposium, West Red Lake Gold's (WRLG.v WRLGF) Gwen Preston, VP of Investor Relations, discussed the company's recent developments and the acquisition of the Madsen Mine: https://www.youtube.com/watch?v=i1hm7o5Hpxc
Background and Acquisition:
- West Red Lake Gold acquired the Madsen Mine, a significant asset with a history of gold production.
- The mine was previously operated by Pure Gold, which invested $350 million but went bankrupt. West Red Lake acquired it for $6.5 million, a 1% NSR, and a 20% stake in the company.
- The Madsen Mine has 1.7 million ounces at 7.4 grams per ton, extensive underground development, and well-designed infrastructure.
Challenges and Strategy:
- Pure Gold failed due to insufficient drilling, leading to inaccurate resource models and diluted grades.
- West Red Lake Gold is addressing this by extensive drilling to ensure high confidence in the location of gold within the mineralized envelope.
- Two drills are operating 24/7 to better define the resource and identify new high-grade zones.
Current Focus and Future Plans:
- The focus is on the Aguilar target, extending the resource and improving understanding of the mineralization.
- Infrastructure improvements are underway, including building a camp to house workers and optimizing ore transportation.
- A pre-feasibility study (PFS) is planned to set realistic production targets, aiming to restart the mine in the second half of next year.
Potential and Exploration:
- The Madsen Mine offers significant exploration potential, particularly at depth. The company aims to explore deeper zones once production is stable.
- The eight Zone, a high-grade area at depth, is a key target. If successfully explored, it could significantly enhance the mine's output.
Leadership and Team:
- The team, led by Shane Williams, has extensive experience in mine construction and operation. This expertise is crucial for the successful restart and operation of the mine.
Investment Perspective:
- West Red Lake Gold offers a compelling investment opportunity due to its high-grade resource, extensive infrastructure, and the potential for significant growth.
- The transition from construction to production typically yields higher valuations, making the company an attractive option for investors.
In conclusion, Gwen Preston emphasized the strategic approach of extensive drilling and infrastructure improvements to ensure a successful mine restart. Poised to benefit from a rising gold environment, WRLG has with plans to deliver consistent results and expand the resource base going forward, making it one to watch.
Posted on Behalf of West Red Lake Gold Mines Ltd.