In a video released today, West Red Lake Gold Mines' (Ticker: WRLG.v or WRLGF for US investors) VP of Investor Relations, Gwen Preston, outlined the company's new $68 million financing package aimed at fully funding the restart of their past-producing Madsen Mine in Ontario's Red Lake Gold District.
Key initiatives that will be funded by this financing package include definition drilling and significant capital projects such as:
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Connection drift between two sides of the underground mine
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Tailing dam upgrades
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Camp and maintenance facilities
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Underground development to access mineralization
The mine restart plan, backed by a total of $168 million raised so far, also includes working capital for production ramp-up.
West Red Lake expects the Madsen Mine to start production in 2025, aiming to leverage the current strong gold price environment as one of the few new gold mines expected to launch that year.
Notably, WRLG acquired the Madsen project for $6.5 million a year and a half ago—a bargain, given the property's previous $350 million in infrastructure investments.
Madsen currently has an indicated resource of 1.65 M ounces of gold at 7.4 g/t within 6.9 million tonnes and 0.37 M ounces of gold at 6.3 g/t within 1.8 million tonnes in the inferred category.
Full video:
Posted on behalf of West Red Lake Gold Mines Ltd.