West Red Lake Gold Hits Paydirt with High-Grade Intercepts at Madsen Mine

In the heart of Canada's Red Lake Gold District, West Red Lake Gold Mines Ltd. has struck gold—literally. The company recently announced drill results from its 100% owned Madsen Mine, revealing high-grade gold intercepts that could significantly boost the mine's future production and profitability. The Austin Zone, in particular, has shown impressive results, with intercepts such as 23.81 g/t Au over 5.4 meters, 30.16 g/t Au over 4.3 meters, and 12.43 g/t Au over 10.5 meters. These findings are not just numbers on a page; they represent a potential gold rush for the company and a testament to its strategic drilling efforts.



The recent drill results from the Austin Zone at the Madsen Mine are a stark contrast to previous drilling data. For instance, Hole MM25D-12-4848-005 intersected 10.5 meters at 12.43 grams per tonne (g/t) gold, including 0.6 meters at 106.06 g/t Au and 0.7 meters at 49.53 g/t Au. Similarly, Hole MM25D-12-4848-050 intersected 4.3 meters at 30.16 g/t Au, including 1.1 meters at 106.10 g/t Au. These results are notably higher than some of the previous drilling data, such as Hole MM25D-12-4848-001, which had no assays greater than 3 g/t Au.

The implications of these results are significant. Shane Williams, President & CEO of West Red Lake Gold, stated, "It’s a huge advantage that our team has been active underground at the Madsen mine for almost two years, because we have been able to get drills to many high priority areas of the deposit ahead of mine restart. This includes deeper portions of the resource that possess very attractive tonnage and grade profiles - many of these deeper areas were never accessed by the two previous operators." The high-grade panels in Austin, like the ones highlighted in this update, are currently within the life-of-mine plan and are expected to deliver meaningful, high-margin tonnes during the first eighteen to twenty-four months of production. This suggests that the mine has the potential to produce impressive grades over significant widths, which will support the restart of production and enhance profitability.

Furthermore, the Pre-Feasibility Study (PFS) for the Madsen Mine, filed on February 18, 2025, reinforces the rationale for restarting the mine. The PFS highlights a post-tax net present value (NPV) of $315 million at a long-term gold price of US$2,200 per oz, with an average annual production of 67,600 oz. gold per year over 6 years of full production. The strong free cash flows and high-grade mine profile, with a diluted head grade averaging 8.2 g/t gold, indicate that the recent drill results are likely to contribute to a robust and profitable operation.

However, the restart of production at the Madsen Mine is not without its challenges. Operational, financial, and geological risks abound. The mine has been inactive for some time, and there may be challenges in accessing and developing the mine. The company has already completed 21 km of modern underground development since 2019, which provides good mining access and represents significant time and cost savings. This proactive approach helps mitigate the risk of delays and additional costs associated with mine access.

Financial risks include the substantial initial capital investment for the restart. However, the company has already completed most of the capital projects needed for restart, which reduces the financial burden. The PFS indicates a post-tax net present value (NPV) of $315 million at a long-term gold price of US$2,200 per oz, which reinforces the financial viability of the project. Gold prices can be volatile, affecting the project's financial performance. The company's high-grade mine with an average head grade of 8.2 g/t gold provides a buffer against price fluctuations, as higher grades can offset lower prices.

Geological risks include the possibility that the estimated resources may not materialize as expected. The company has conducted extensive drilling, including 58,000 metres of definition drilling, to define 18 months of mineable inventory on a stope-by-stope level. This detailed work reduces the risk of geological surprises. The mine's success depends on maintaining high grades and tonnages. The Austin and South Austin zones have shown impressive grades over significant widths, with intercepts such as 10.5m @ 12.43 g/t Au in the Austin Zone and 10.6m @ 114.26 g/t Au in the South Austin Zone. Continued exploration and drilling will help in identifying and expanding high-grade zones.

In summary, the recent drill results from the Austin Zone at the Madsen Mine are a promising sign for the company's future production and profitability. The high-grade intercepts, combined with the company's proactive approach to mine development and extensive drilling efforts, indicate a strong foundation for long-term success. However, the restart of production at the Madsen Mine is not without its challenges, and the company must navigate operational, financial, and geological risks to ensure long-term success. The recent drill results, along with the company's strategic planning and execution, suggest that the Madsen Mine has the potential to be a significant contributor to the company's future growth and profitability.