TSXV:WRLG - Post Discussion
Post by
MarketMakerss on Aug 29, 2024 1:10pm
Gwen Preston on Latest High-Grade Drill Results
'West Red Lake Finds More High-Grade Gold -- PFS Coming Soon'
Insightful new interview with West Red Lake Gold's (WRLG.v WRLGF) VP of Investor Relations, Gwen Preston, regarding the company's latest update and recent high-grade drill results form the Austin and McVeigh Zones at the Madsen Mine: https://www.youtube.com/watch?v=KbuszVZwfos
The latest results include 17.77g/t Au over 5.5m and 7.35g/t Au over 12.12m at the Austin and McVeigh Zones where WRLG is aiming to build a high-confidence inventory to support the restart of production at the mine in H2 2025.
Capital and Investments
- Recent Funding: The company raised $100 million in the past year, primarily spent on projects necessary to prepare the mine for restart.
- Capex: The required capital expenditure (Capex) is expected to be small due to a predecessor company having already invested $350 million and significant spending already completed. This low Capex is expected to positively impact the internal rate of return (IRR).
Drilling and Production
- Drilling Success: Consistently reporting impressive drill results, which are critical for defining minable inventory and creating a "Stope book" for future operations.
- Restart Timeline: Pushing to restart the mine by 2025. They are conducting various projects, including tailing dam lifts, connection drifts, and infrastructure upgrades, to ensure the mine is ready for production.
Market Position
- Unique Position: One of the few companies that are near production in the gold mining sector, with a significant focus on efficiency and careful planning to avoid past mistakes.
- Pre-Feasibility Study: A pre-feasibility study (PFS) is expected in the coming months, which will provide detailed insights into the mine's operational costs and expected output.
Financial Strategy
- Final Capital Requirements: The company plans to raise approximately $50 million to cover the final stages of preparation and ensure sufficient capital through to commercial production, aiming to avoid undercapitalization and overpromising, issues that have plagued the project historically.
Future Outlook
- Potential for Overperformance: While the target is the second half of 2025, the company is striving to possibly accelerate this timeline and deliver earlier than expected.
Rapidly pushing the Madsen mine toward restart in 2025, WRLG is positioned as a unique player in the gold sector, gearing up for significant production alongside its exploration potential.
Latest News Release Detailing High-Grade Results: https://westredlakegold.com/west-red-lake-gold-intersects-17-77-g-t-au-over-5-5m-at-mcveigh-and-7-35-g-t-au-over-12-12m-at-austin-madsen-mine/
Posted on Behalf of West Red Lake Gold Mines Ltd.
Be the first to comment on this post