Drilling marks the path for a mine reboot in Red Lake
Sharing insights into the company's cautious approach to restarting the Madsen Mine in northwestern Ontario, Shane Williams, president-CEO of West Red Lake Gold Mines detailed the company's strategic plan and long-term vision for the project: https://www.timminstoday.com/local-news/drilling-marks-the-path-for-a-mine-reboot-in-red-lake-9441801
Strategic Approach to Restarting Madsen Mine
- Careful Evaluation: Despite the significant gold resource on the property, WRLG is taking a patient approach to restarting the Madsen Mine and is focused on reducing operational risks by conducting thorough infill drilling to better understand the ore body.
- Infill Drilling Focus: Over 50,000 metres of infill drilling have been completed, with another 50,000 metres planned. This drilling is not for exploration but to gain a detailed understanding of the ore body's structure, crucial for effective mining.
Madsen Mine Overview
- Gold Resource: The historic Madsen Mine property holds a 2 million-ounce gold resource, including 1.7 million ounces indicated and 300,000 ounces inferred, averaging 7 grams per tonne.
- Existing Infrastructure: The site includes valuable infrastructure, such as a 1,200-metre shaft, which is key for accessing deep gold deposits.
Addressing Red Lake's Geological Challenges
- Complex Geology: Challenging nature of the Red Lake gold systems, characterized by deep, high-grade veins that are difficult to mine. Understanding these complexities is vital to avoid losing control of the ore body, as happened with Pure Gold Mining.
Financial Strategy and Future Plans
- Funding and Drilling: Since acquiring the Madsen Mine, West Red Lake has raised $100 million, with plans to raise an additional $50 million to $70 million for the mine’s restart. The funds are being used primarily for extensive drilling, which Williams believes will pay off significantly when mining begins.
- Production Timeline and Scale: The company aims to restart production in the second half of 2025, targeting an annual output of 60,000 to 70,000 ounces of gold, in line with the existing mill’s processing capacity of 800 tonnes per day.
Emphasizing that while Madsen may not be a large-scale operation initially, WRLG's Williams said the focus is on establishing a solid operational base. Once this is achieved, the company may explore opportunities for future growth.
Latest News Release Detailing High-Grade Results: https://westredlakegold.com/west-red-lake-gold-intersects-17-77-g-t-au-over-5-5m-at-mcveigh-and-7-35-g-t-au-over-12-12m-at-austin-madsen-mine/
Posted on Behalf of West Red Lake Gold Mines Ltd.