West Red Lake Gold Mines Ltd WRLGF

WRLG's "Tactical Pursuit of Aggressive Growth"

[MarketMakerss]

The "Tactical Pursuit of Aggressive Growth" - West Red Lake Gold's (WRLG.v WRLGF) Gwen Preston joins the Gold Newsletter to introduce the company's aggressive growth strategy at the Madsen Mine: https://www.youtube.com/watch?v=dI1porCehfA

 

COMPANY OVERVIEW:

Share Structure and Market Cap:

• 264 million shares outstanding, 350 million fully diluted.
• Market cap around $170 million.

Production Plans:

• The company aims to start gold production in just over a year.
• Key asset: Madson Mine, acquired after Pure Gold’s bankruptcy due to operational issues.

Strategic Vision:

• Led by financier Frank Giustra, known for his timing in the gold market.
• Strategy: Revitalize the Madson Mine and pursue aggressive growth to build a mid-tier gold mining company.

 

MADSEN MINE DETAILS:

Historical Context:

• Operated from the 1930s to the 1970s, producing 2 million ounces of gold.
• Acquired by Pure Gold in 2015, who failed due to inexperience and operational mistakes.

Current State:

• Infrastructure: New mill, tailings facility, and permits in place.
• Purchase price: Acquired for $30 million, significantly below Pure Gold’s $350 million investment.

Challenges and Opportunities:

• Need for extensive infill drilling to accurately locate high-grade gold pods.
• Potential for significant resource expansion, particularly in the deeper 8 Zone with high-grade potential (200,000 ounces at 18 g/t).

 

OPERATIONAL PLANS AND PROGRESS:

• Continuous infill drilling to define reserves and increase confidence in the resource.
• Infrastructure improvements: Connecting drifts, installing a permanent primary crusher, and setting up a camp to reduce costs.
• Aiming for a pre-feasibility study by the end of the year, with production start targeted for mid-next year.

 

GROWTH AND ACQUISION STRATEGY:

• Focus on aggressive growth, leveraging Frank Giustra’s network and financial capabilities.
• Exploring additional operating mines and acquisition opportunities.

 

UPCOMING CATALYSTS:

• Completion of key infrastructure projects.
• Release of the pre-feasibility study to provide detailed production and cost estimates.
• Potential for increased resource confidence and expansion through ongoing drilling.

 

Positioning itself for substantial growth in a favorable gold market, WRLG is aiming to become a significant player in the gold mining industry with a strategic approach encompassing extensive drilling and infrastructure improvements to ensure a successful mine restart.

 

Posted on Behalf of West Red Lake Gold Mines Ltd.