Vancouver, BC – TheNewswire - January 23, 2025 – Sponsored content disseminated on behalf of West Red Lake Gold. On January 21, 2025, West Red Lake Gold Mines (TSXV: WRLG) (OTCQB: WRLGF) reported definition drill results from the McVeigh Zone which contains an Indicated mineral resource of 79,800 oz grading 6.4 g/t Au, with an additional Inferred resource of 14,300 oz grading 6.9 g/t Au.

These results follow up on the significant intercepts previously announced on August 12, 2024 and August 27, 2024 from McVeigh - where drilling highlights included 106.99 g/t Au over 2.35 meters and 17.77 g/t Au over 5.5 m, respectively.

Definition drilling is an ongoing effort at the Madsen Mine testing various parts of the known deposit as West Red Lake Gold continues building an inventory of high-confidence ounces to support the restart of production, which is expected in mid 2025.

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“The McVeigh zone is a shallow and easily accessible portion of the Madsen deposit and will be a key focus area during early phases of mining,” stated Shane Williams, President & CEO in the January 20 press release.

“The tight spaced drilling we are completing at McVeigh coupled with our enhanced geologic model and understanding of the structural controls will enable the engineering team to produce a very robust and high confidence mine plan that will reduce both external and internal dilution during mining.”

External dilution is the unmineralized rock outside of the ore body that is also extracted during the mining process. Internal dilution occurs inside the ore body. Dilution reduces the gold grade of mined material; too much dilution has the potential to seriously damage the economics of a mine.

The way to manage this risk is to build an accurate and confident resource model, so mine engineers and then miners can target the goal effectively. At Madsen, the resource model gets the team part of the way there; the definition drill program, which adds significantly more data to the model, finishes the job.

The team is now testing the process through a bulk sample. Bulk samples allow the operations team to compare modelled resources to actual mined tonnes.

The test mining and bulk sample program has three goals:

1. To understand and practice before restart the best methods to mine safely, accurately, and efficiently in the various underground environments at Madsen. 

2. To create bulk samples that WRLG can batch process on mill startup to complete reconciliation calculations between expected and actual tonnes, grade, and ounces of mined material. 

3. To inform mineability decisions for mineralization near old stopes. There is still a significant amount of high-grade mineralization along the margins of historic stopes which is a product of the very selective mining practices that were in place when Madsen was originally mined.  

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According to a conservative Pre-Feasibility Study released earlier this month, the Madsen mine will generate $70 million/year in free cash flow @USD$2,200/ounce gold ($400/ounce lower than the current price).

This mine will tap a reserve averaging 8.2 g/t gold to produce approximately 70,000 oz. gold a year over 6 full production years, within a 7.2-year mine life.

The Internal Rate of Return (IRR) is 255%.

There are 1.2 million indicated ounces that remain outside the reserve count. More drilling has strong potential to convert some of those ounces, as does the practical application of a higher reserve cut-off price than was used in the study, which was US$1680 per oz.

“We are excited to deliver a PFS that solidifies Madsen as a rare high-grade gold mine starting production in 2025,” stated Williams. “We’ve built a realistic and achievable plan for this first mining opportunity at Madsen. We are confident we can deliver and that will justify returning the mine to production.”

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“In his 2025 outlook report, Eric Strand, founder of the boutique precious metals firm AuAg Funds, stated that he expects gold prices to surpass $3,000 an ounce this year,” reports Kitco News.

“We predict that gold will break the $3,000 level during the year and potentially finish even higher, with a realistic target of $3,300,” stated Strand in his report.

“Both Donald Trump and Elon Musk have built their empires on loans, lots of loans while driving full steam ahead,” wrote Strand. “This will likely be the scenario for the coming four years. Avoiding a ‘bust’ at all costs to create a positive ‘boom.’ The price for this will be monetary inflation. An inflation boom creates a financial environment where commodity prices, including gold, rise significantly.”

“The amount of money in the system is increasing without much real growth being created, which naturally means that each monetary unit becomes less valuable,” added Strand.

The Madsen deposits presently host an NI 43-101 Indicated resource of 1.65 million ounces of gold grading 7.4 g/t gold and an Inferred resource of 0.37 Moz of gold grading 6.3 g/t gold. [1.] [2.] [3.]

The technical information presented in this news release has been reviewed and approved by Will Robinson, P.Geo., Vice President of Exploration for West Red Lake Gold and the Qualified Person for exploration at the West Red Lake Project, as defined by NI 43-101 “Standards of Disclosure for Mineral Projects”.

Contact: guy.bennett@globalstocksnews.com

Disclaimer: West Red Lake Gold paid Global Stocks News (GSN) $1,750 for the research, writing and dissemination of this content.

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References:

1. SRK Consulting. (2021). Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for the PureGold Mine, Canada (West Red Lake Gold Mines, Ed.) [Review of Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for the PureGold Mine, Canada. 

2. Mineral resources are estimated at a cut-off grade of 3.38 g/t Au and a gold price of US1,800/oz. Please refer to the technical report entitled “Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for the PureGold Mine, Canada”, prepared by SRK Consulting (Canada) Inc., and dated June 16, 2023, and amended April 24, 2024. A full copy of the SRK report is available on the Company’s website and on SEDAR+ at www.sedarplus.ca 

3. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Please refer to the technical report entitled “Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for the PureGold Mine, Canada”, prepared by SRK Consulting (Canada) Inc., and dated June 16, 2023, and amended April 24, 2024. The Madsen Resource Estimate has an effective date of December 31, 2021 and excludes depletion of mining activity during the period from January 1, 2022 to the mine closure on October 24, 2022 as it has been deemed immaterial and not relevant for the updated report. A full copy of the SRK report is available on the Company’s website and on SEDAR+ at www.sedarplus.ca 

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