WRLG focused on tapping into the rich potential of the Red Lake Gold District by advancing its flagship Madsen Gold Mine and satellite Rowen Gold Project.
WRLG's acquisition of the Madsen Gold Mine stands out as a significant achievement, especially considering the substantial investment made by previous owners in its infrastructure, totaling $350 million. WRLG secured the mine for a comparatively modest sum of $6.5 million and NSR/contingent payments of ~$30 million. The acquisition also included approximately $270 million worth of tax losses, further enriching the deal's value.
WRLG plans to utilize the Madsen mine as a central processing facility, employing a hub-and-spoke model to streamline operations and enhance efficiency. This strategic approach allows the company to process both current deposits and potential future discoveries effectively.
In late 2023, WRLG initiated the Gold Recovery Program, which aimed to clean up the Madsen mill and recover gold. The preliminary phase of the program yielded promising results, with the recovery of 415 troy ounces of gold, amounting to approximately $750,000 in proceeds. Encouraged by this initial success, the company embarked on a more comprehensive second phase of the program in early 2024.
The second phase of the Gold Recovery Program targets the ball mills and semi-autogenous grinding (SAG) mills, essential components of the processing plant.
With a focus on enhancing efficiency and maximizing recovery, WRLG anticipates the potential recovery of at least 2,500 ounces of gold from the cleanup efforts. To facilitate this phase, the company enlisted the expertise of a specialized firm in gold mill cleanup and recovery.
The discovery of substantial gold trapped within the mill circuits shed light on installation errors and inefficiencies that contributed to the previous owner's reconciliation challenges. Addressing these issues, the WRLG Madsen Mine team is implementing adjustments to optimize mill workings and processes, aiming to prevent similar losses in the future.
WRLG is also gearing up for an extensive exploration campaign, with plans to conduct 50,000 meters of drilling over the next 12-15 months. This initiative aims to gather essential data to support a comprehensive pre-feasibility study for the project, reflecting WRLG's commitment to thorough exploration and strategic development.
https://westredlakegold.com/west-red-lake-gold-unlocks-significant-value-from-madsen-mill-cleanup/
Posted on behalf of West Red Lake Gold Mines Ltd.