Read the story here. Advertise at Before It's News here.
Profile image
By Streetwise Reports (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

High-Grade Gold Mine Restart Set for 2025 With Promising Drill Results

% of readers think this story is Fact. Add your two cents.

Source: Streetwise Reports 06/26/2024

West Red Lake Gold Mines Inc. (WRLG:TSXV; WRLGF:OTCQB) announced plans to restart the high-grade Madsen gold mine in the second half of 2025. Find out how this affects previous plans for the mine.

West Red Lake Gold Mines Inc. (WRLG:TSXV; WRLGF:OTCQB) announced plans to restart the high-grade Madsen gold mine in the second half of 2025. This announcement follows a comprehensive 12-month drill program aimed at confirming and extending multiple high-grade zones at the Madsen project.

Shane Williams, CEO of West Red Lake Gold, has consistently emphasized a patient, methodical approach to resuming production at the dormant Madsen Mine. “It’s 18 to 24 months before we even think about switching the thing back on,” Williams stated in an interview with Northern Ontario Business last year. WRLG is currently working on a pre-feasibility study detailing the restart plan, targeted for release in early 2025.

The company has several projects underway or imminent, including the construction of a 1,200-meter haulage way, the installation of a permanent primary crusher, the initiation of a test mining program, and the procurement of infrastructure to support the workforce and mining operations. WRLG plans to have two diamond drills operating regularly, with a program totaling up to 39,000 meters throughout 2024.

The Gold Sector

The gold sector continues to demonstrate robust performance and significant potential, driven by various macroeconomic factors and strategic decisions by central banks worldwide.

According to the World Gold Council’s 2024 Central Banks Gold Reserves Survey, “Four in five central banks plan to increase their gold holdings in the next 12 months.” This trend is reinforced by the strategic value that gold provides in the current global economic landscape.

Shaokai Fan, WGC global head of central banks and head of Asia-Pacific, highlighted the factors driving this trend in a June 19 Stockhead report: “Extraordinary market pressure, unprecedented economic uncertainty, and political upheavals around the world have kept gold front of mind for central banks. Many of these institutions have become more aware of the asset’s value as a way to manage risks and diversify their portfolios.” Despite the rising gold prices, central banks remain committed to gold. Fan notes, “Despite record demand from the official sector in the last two years coupled with climbing gold prices, many reserve managers still maintain their enthusiasm for gold.”

Bob Moriarty of 321Gold concluded that “With current management and US$2200 gold, WRLG could be worth 500% to 1000% more as investors wake up to its potential.”

The survey further indicated that “57% of central banks believe gold will account for a higher proportion of global reserves within five years, up from just 38% a year back.”

This increasing commitment is underscored by the substantial acquisitions made in recent years, with central banks adding a record 1,082 tonnes of gold in 2022 and nearly matching this with 1,037 tonnes in 2023.

Technical analyst Clive Maund provided additional insight into the gold market’s resilience and strategic importance. In his June 11, 2024, report, Maund stated, “We were wholly unfazed by gold’s sharp drop last Friday, realizing that in the larger scheme of things, it was just a ‘storm in a teacup.’” He emphasized the fundamental strength of gold, noting, “Gold and silver are — and must be — the go-to assets.”

Maund saw any short-term dips in gold prices as opportunities, asserting, “In the environment that we are now in, any significant drop by either gold or silver or by better gold or silver stocks is simply an opportunity to buy or to add to positions.” He also highlighted the enduring value of gold and silver as protective assets: “If you want to preserve your capital, you have to own them, or other assets with intrinsic value like copper and platinum, but gold and silver are best because they are the most fungible, meaning they are easily exchanged or traded.”

Maund’s analysis reinforced the positive outlook for the gold sector, concluding that “Friday’s drop was merely a ‘storm in a teacup’ that did no technical damage at all and made the sector even more attractive.”

Company Catalysts

West Red Lake Gold Mines is actively advancing its plans to restart the Madsen gold mine with a comprehensive approach to ensure long-term success.

Jill Christmann, WRLG’s chief geologist, confirmed the company’s deliberate strategy in the press release, stating, “The mill turns on when it’s ready to turn on.” This strategy aligns with Shane Williams’ expertise in moving mineral assets from development to production on schedule and within budget.

The pre-feasibility study, set for an early 2025 release, is a critical component of WRLG’s restart plan. Projects include connecting the East and West portals to improve logistics and ventilation, installing a permanent primary crusher, and initiating a test mining program to assess various mining methods. These initiatives are designed to de-risk the Madsen project further.

VP of Exploration Will Robinson emphasized the importance of building confidence in the Madsen resource ahead of the pre-feasibility study. “We are keen to continue building confidence in the Madsen resource with definition holes ahead of our prefeasibility study,” Robinson stated. The resource definition drilling aims to increase resource confidence across all known domains, while expansion drilling will test high-caliber targets close to existing infrastructure.

A Possible 500% Increase

In a June 16 analysis, Technical Analyst Clive Maund praised the company for its recent drill results. “West Red Lake just came out with very good drill results from its Madsen Mine at Red Lake in Ontario this morning,” Maund noted, emphasizing the promising outcomes from their drilling activities. He further stated, “The results were good and it is looking attractive here after its recent losses have brought it back into buying territory.” This indicates that the company’s stock is currently at an attractive price point for investors following its recent performance dip.

Based on this analysis, Maund rated West Red Lake as “an even better buy now than when it was pointed out in the email alert last week” and concluded with a strong endorsement, “It is rated an IMMEDIATE STRONG BUY FOR ALL TIME HORIZONS.”

Bob Moriarty of 321gold also provided a highly favorable outlook on West Red Lake on June 20. He identified the company as having exceptional potential for significant returns, stating, “West Red Lake Gold Mines Inc. and New Found Gold Corp. could provide returns of 500% to 1000% as investors recognize their value.”

Moriarty described the company as “West Red Lake Gold: A Steal of a Deal,” emphasizing the strategic acquisition of the Madsen mine and mill from Pure Gold. “West Red Lake Gold Mines Ltd. acquired the Madsen mine and mill from Pure Gold in a deal that was a steal. The acquisition included a 2.1-million-ounce gold resource and an 800 TPD mill that cost over US$350 million to build,” he noted. [OWNERSHIP_CHART-5614]

Highlighting the financial advantages of this acquisition, Moriarty pointed out, “Despite this, WRLG’s market cap is only US$141 million, a fraction of the US$1.15 billion Pure Gold was once valued at.” Additionally, the deal came with substantial tax benefits: “The Pure Gold purchase came with a US$273 million tax write-off, meaning that when Madsen returns to production, the first US$273 million in profits will be tax-free.” Moriarty concluded that “With current management and US$2200 gold, WRLG could be worth 500% to 1000% more as investors wake up to its potential.”

Ownership and Share Structure

According to Reuters, 2.30% of the company is held by management and insiders.

Advisor Frank Giustra owns 9% as a strategic investor and insider, and Sestini & Co. Pension Trustees Ltd. owns 1.58%, with 4.26 million.

26.06% is with institutions. Sprott Resource Lending Co. has 18.58%, with 50.03 million shares. Van Eck Associates Corp. has 4.46%, with 12 million shares, and Accilent Capital Management Inc. has 2.94%, with 7.91 million.

The company’s market cap is reflective of its ongoing drilling success and strategic expansion efforts. The 52-week range for the stock is US$0.3096 to US$0.75​.

Sign up for our FREE newsletter at:

Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of West Red Lake Gold Mines Inc.
  2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  3. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

( Companies Mentioned: WRLG:TSXV;WRLGF:OTCQB, )


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Lion’s Mane Mushroom Nootropic

Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, But it benefits growth of Essential Gut Flora, further enhancing your Vitality.

Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity.

Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins.

Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system.

Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome.

Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function.

Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Load more ...




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.