TSXV:WRLG - Post Discussion
Post by
MarketMakerss on Mar 11, 2024 5:13pm
Bob Moriarty: WRLG's potential to be "500-1,000% higher"
Emphasizing its position to be among the best gold stories in the world, the editorial highlights WRLG's primary asset, a 800 TPD mill that cost $350 million to build in the heart of the Red Lake Gold district, the Madsen Mine.
Backed by famed Canadian investor Frank Giustra, WRLG took over Madsen in 2023 which came with a 2.1 million ounce gold resource alongside the mill and $350 million investment, however, WRLG paid only $6 million for the asset due to the previous owners mismanagement.
Focused on understanding the underlying geology of the asset ahead of restarting the mill, WRLG is conducting additional drilling to de-risk the deposit with the latest results intersecting 25.12g/t Au over 5.5m, 39.46 g/t Au over 2m and 18.60 g/t Au over 4m at the South Austin Zone, a high grade area that currently contains an indicated mineral resource of 474,600 oz grading 8.7 g/t Au and an inferred resource of 31,800 oz grading 8.7 g/t Au.
Adding to the previous positive results, the latest intersections are "indicative of the upside that still exists at Madsen even within the current life-of-mine resource inventory.” as stated by WRLG President & CEO Shane Williams
Additionally, WRLG holds the Rowan Gold Project which has a 43-101 resource of almost one million high-grade gold ounces located in close proximity to the Madsen Mill. WRLG is currently conducting a major resource definition and expansion program at the property, in addition to Madsen.
Notably, the close proximity enables the potential to feed Rowan's high-grade gold to the Madsen Mill in addition to the ore from Madsen.
"And something else everyone ignores at their peril. The WRLG purchase of Pure Gold brought with it a $273 million tax write-off. Madsen will go back into production when the time is right. It will make a profit. And the first $273 million will be tax-free."
"Here’s the math. At today’s price of the shares, WRLG is worth about $141 million. The same mine and mill, less Rowan with its 900,000 ounces of gold, used to be worth $1.15 billion. It cost $350 million to put Madsen into production under management that ended up running it into the ground. With current management and $2200 gold I see WRLG being worth 500 to 1,000 percent higher when investors wake up."
Current Private Placement
Last week, WRLG announced that its private placement was upsized from US$20M toUS$23M due to strong demand.
The net proceeds of the offering are expected to be allocated toward continuing to advance the development of a restart plan for the Madsen Gold Mine, as well as for working capital and general corporate purposes.
Notably, Frank Giustra, who already holds 11.07% of the outstanding Common Shares, indicated his intent to participate in the Offering by subscribing for 3,700 Units, representing US$3.7M in gross proceeds.
Posted on Behalf of West Red Lake Gold Mines Ltd.
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