Raymond James initiated coverage of West Red Lake Gold (WRLG.v WRLGF) with an Outperform rating and C$1.40 price targt - Focused on restarting production at the Madsen Gold Mine, WRLG's combination of underground drilling and test mining are key de-risking events for restoring the market's confidence in the deposit that operated for decades before recent issues according to the firm: https://x.com/DuaneHope5/status/1806370442535653691
Located in Ontario's Red Lake District, the Madsen Gold Mine boasts 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.
Previously owned by the now-defunct PureGold, WRLG secured the debt-free and fully permitted 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.
With another 50,000m of drilling planned over the next year, WRLG is focused on methodically understanding the geology behind the deposit and is working on a pre-feasibility study to detail the mine restart plan, targeted for release in early 2025, ahead of the projected Madsen Mine restart in the second half of 2025.
For more information, refer to this Commodity Culture interview with WRLG's CEO Shane Williams, regarding gold market trends that investors should watch, the potential for institutional money entering the sector and more on the company's plan: https://www.youtube.com/watch?v=fEZkH5XpShg
Posted on Behalf of West Red Lake Gold Mines Ltd.