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Disseminated on behalf of West Red Lake Gold Mines Ltd
Elevated gold prices could also have a significant impact on gold miners, particularly near-term producers like West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF)
West Red Lake Gold Mines is strategically moving forward to a restart and a targeted timeline for gold production in 2025 at its high-grade Madsen Mine in Ontario's Red Lake District, a region that hosts some of the world's richest gold deposits producing 30 million ounces of gold to date.1
The fully permitted Madsen Mine boasts a high-grade gold resource of 1.65 million ounces at 7.4 grams per ton (g/t) across 6.9 million tonnes (Indicated), and an additional 366,000 ounces at 6.3 g/t (Inferred). The property also includes significant infrastructure including an expandable 800 tonne per day processing mill, underground development and a water treatment plant.
West Red Lake Gold Mines Pours First Gold Bar from Madsen Mill Recovery Program
West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) just announced that it has poured its first gold bar from the gold recovered through the Madsen Mine mill cleanup and recovery program.
The gold recovery program, which was initiated in late 2023 after the company noticed significant gold-bearing material accumulated in parts of the mill, had already yielded 415 ounces of gold worth approximately $750,000 from the initial phase.
In a second phase the company cleaned additional parts of the mill. The milled material was passed through a gravity circuit to separate out the coarse gold; the material is now being sent to a large-scale refinery to recover the gold fines.
The company used the gold refinery at the Madsen mill to pour the recovered coarse gold into a gold bar on site, confirming that the equipment is operating smoothly after 18 months of inactivity.
“Seeing the refinery in action was another check mark on our list of Operational Readiness requirements,” said West Red Lake Gold Mines CEO Shane Williams. “Starting or restarting a mine requires reliable operations from multiple facilities and systems. With over 100 employees at site, constant underground development and drilling, and multiple capital projects underway or in planning, we are establishing the systems that support smooth mine operations. From my experience building and commissioning mines, I know what a difference it makes to a new operation to have such systems in place prior to start up.”
West Red Lake Gold Mines Reports High-Grade Drill Results
West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) also recently announced noteworthy drill results from its 100%-owned Madsen Mine, including 16.69 grams per tonne gold over 8.0 meters and 7.48 grams per tonne gold over 12.0 meters at the South Austin Zone in the Madsen Mine.
The high-grade South Austin Zone currently holds an Indicated mineral resource of 474,600 ounces (oz) of gold (Au) with a grade of 8.7 grams per tonne (g/t), and an additional Inferred resource of 31,800 oz grading 8.7 g/t Au.
The drilling aimed to define resources within South Austin to build a high-confidence inventory for the planned restart of production at the Madsen mine.
In May, West Red Lake Gold Mines announced drill results at the North Austin Zone at the Madsen Mine, including 37.33 grams per tonne gold over 2.79 meters and 5.26 grams per tonne gold over 9.0 meters.
The latest drill results at North Austin Zone indicate a new high-grade gold area extending the current Madsen resource to the northeast. The drilling program aims to expand this zone further down-plunge in that direction. The team is focusing on three main plunge lines (ore shoots) at North Austin. So far, the results have confirmed continuity of about 30 meters in at least one of these ore shoots, suggesting significant potential for further expansion.
These results come at a time when gold is hovering below its recent high of $2,400 per ounce, a price surge that has been significantly influenced by record gold buying in China.
Gwen Preston, VP Investors Relations with West Red Lake Gold, recently highlighted this revelation at the May Metals Investors Forum.2
She explained that consumers and retail investors in China are reconsidering their financial strategies, as traditional avenues like real estate, the stock market and interest rates are no longer effective and deflation reaches its worst in 15 years.
In April, China experienced robust wholesale gold demand, driven by a surge in investment despite weaknesses in the jewelry sector. Chinese gold ETFs had their strongest month on record.3
The other half to the equation is China’s central bank, which has continued its streak of consecutive purchases for 18 months despite high prices, adding 60,000 troy ounces of gold to its reserves in April.
West Red Lake Gold Mines is well-positioned to meet its targeted restart timeline in the second half of 2025, and recently closed a public offering of shares and charity units. The company sold 31.9 million regular units and 11.2 million charity units at prices of C$0.72 and C$0.89 per unit, respectively. This raised about C$33 million for the company. Raymond James Ltd. led the offering. Each unit includes a share of the company and a warrant to buy more shares later at C$1.00 each.
Click here for more information about West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF).
[1] https://www.theglobeandmail.com/investing/markets/stocks/WRLG-X/pressreleases/22442097/west-red-lake-gold-announces-sprotts-investment-of-us2631463/
[2] https://www.youtube.com/watch?v=vF2TDMMP2YU&t=516s
[3] https://www.gold.org/goldhub/gold-focus/2024/05/chinas-gold-market-april-investment-demand-remained-strong
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