- Micro-cap West Red Lake Gold Mines (TSXV:WRLG) will restart its flagship Madsen mine in Ontario’s Red Lake district effective immediately
- West Red Lake Gold Mines is a mineral exploration company active in Ontario’s Red Lake district, which has produced over 30 million ounces of gold to date
- West Red Lake Gold Mines stock has added 21.88 per cent year-over-year but remains flat since acquiring Madsen in April 2023
Micro-cap West Red Lake Gold Mines (TSXV:WRLG) will restart its flagship Madsen mine in Ontario’s Red Lake district effective immediately.
According to a 2023 resource estimate, Madsen houses 1.65 million ounces indicated and 370,000 ounces inferred at a base case of US$1,800 per ounce, which is heavily discounted to the price of US$3,306 as of May 22.
The mine will process an average of 500 tons per today over the first two months, with a ramp-up planned through the end of 2025.
The board-approved decision follows two years of development work and comes in slightly ahead of schedule, setting the company up for near-term cash flow and potential share price momentum.
Leadership insights
“West Red Lake Gold acquired the Madsen mine in June 2023 with the goal to use our team’s deep technical experience to unlock the abundant but at the time discounted potential of this mine,” Shane Williams, West Red Lake Gold Mines’ president and chief executive officer, said in a statement. “We have pushed hard for two years to accomplish that feat and now, with major infrastructure projects complete, and our bulk sample having delivered mined tons and gold grade aligned with modeled expectations, our approach has been validated and we are ready to mine on a continual basis.”
“This restart decision is a major milestone that has been achieved by systematically de-risking the technical, operating and funding requirements of a sustainable high-grade gold operation at Madsen and I am very pleased to deliver this restart to all key stakeholders, including our shareholders and neighbours,” Williams added.
About West Red Lake Gold Mines
West Red Lake Gold Mines is a mineral exploration company active in Ontario’s Red Lake district, which has produced over 30 million ounces of gold to date. The company is developing its 47-square-kilometre Madsen gold mine and 31-square-kilometre Rowan property, the latter including three past-producing gold mines.
West Red Lake Gold Mines stock (TSXV:WRLG) last traded at C$0.78. The stock has added 21.88 per cent year-over-year but remains flat since acquiring Madsen in April 2023.
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