West Red Lake Gold Mines Ltd WRLGF

US Federal Debt Increasing by $1 Trillion Every 100 Days

[MarketMakerss]

Amid US Federal Debt increasing by $1 trillion every 100 days, West Red Lake Gold Mines (WRLG.v WRLGF) is focused on maximizing exploration dollars and building high-grade and high confidence ounces to de-risking Madsen deposit and restart the Madsen Mine: https://finance.yahoo.com/news/west-red-lake-gold-wrlg-130130900.html

 

The Madsen Gold Mine

WRLG's flagship asset, the Madsen Gold Mine is debt free, fully permitted, with a brand-new 800+ tonne per day mill which cost $350 million to build, a tailings and water treatment facility.

 

Hosting an NI 43-101 Indicated resource of 1.65M oz of gold grading 7.4 g/t Gold and an inferred resource of 0.37Moz of gold grading 6.3g/t, Madsen was once valued at over a billion dollars, about 8x the current market cap of WRLG.

 

However the previous owner was under-capitalized with debt repayment obligations forcing the company to a quick-to-cash-flow mine model, a model that is expensive & inefficient, thus WRLG was able to acquire the asset for only US$6 million.

 

Notably, smart money is heavily invested in the project including Frank Giustra with 11.8% and Sprott with 23.4%.

 

Madsen Mine Restart Strategy:

1. De-risk Resources: In-fill & Expansion Drilling, UG Development
2. Restart Planning: Engineering, Mill Expansion Assessment, Optimization
3. Restart Execution: Assembling team, community relations, focus on operability and profitability

 

The South Austin Zone

WRLG's current focus at the deposit is the South Austin Zone which 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.

 

Focused on understanding the underlying geology of the asset ahead of restarting the mill, WRLG is conducting additional drilling to de-risk the deposit and hit recently hit high-grade intercepts with visible gold showing including 25.12g/t Au over 5.5m, 39.46 g/t Au over 2m and 18.60 g/t Au over 4m at the zone.

 

The Gold Market

Up 5% in the last week and 18% in the last 12 months, the profitability of a potential future mine at Madsen will be impacted by the price of gold, which is currently at all-time high of USD$2,186.

 

Currently, there is growing sentiment that the US accumulated debt is going to sink the value of the US dollar with US national debt is rising by $1 trillion about every 100 days.

 

Amid an inflationary environment, investing in hard assets like gold can be an effective strategy to protect and grow wealth. Plus, a key driver to bullish gold price momentum is de-dollarization by central governments which we have been seeing.

 

An Extraordinary Gold Story

"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."

As detailed by 321 Gold's latest editorial from Bob Moriarty, West Red Lake Gold Mines (WRLG.v WRLGF) provides an "Extraordinary Gold Story": https://www.321gold.com/editorials/moriarty/moriarty031124.html

"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."

 

For more information on WRLG and the strategy going forward, refer to this letter from Tom Meredith, Executive Chairman and Director of WRLG: https://twitter.com/westredlakegold/status/1767606651119431816?t=WI8lw8MoN5OqPfJMCKEOqg

 

Posted on Behalf of West Red Lake Gold Mines Ltd. 

[jake12116]

I get it with my sour post !!! however because of Sprott I'm down a small fortune,  sell this 1 billion dollar asset for a few million dollars  It's criminal