Gold Miner Restarts High-Grade Ontario Mine

SEATTLE (Scrap Monster): West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) has announced the official restart of its wholly owned Madsen Mine in the Red Lake district of Ontario. The company's board of directors approved the decision on May 21, marking a significant operational milestone that arrives slightly ahead of the previously communicated mid-2025 target.

"The restart decision is a major milestone that has been achieved by systematically derisking the technical, operating, and funding requirements of a sustainable high-grade gold operation at Madsen," said President and CEO Shane Williams in a company news release. Williams noted that the restart follows two years of work focused on unlocking the mine's potential, originally acquired in June 2023.

The restart follows the successful execution of a bulk sample program, which confirmed the company's geological model. Across 14,490 tonnes of material mined, the reconciliation of tonnage, gold grade, and gold ounces closely matched expectations. According to WRLG, the overall reconciliation across the Austin, South Austin, and McVeigh zones was 95.5% for tonnage and 96.1% for total gold recovered, with mill recovery averaging 95%.

WRLG plans to initially process 500 tonnes per day, increasing throughput in the second half of 2025. The mine's mill, which previously operated during the 2020–2022 period, is permitted for 800 tonnes per day and is being ramped up gradually.

The company is positioning Madsen as a rare example of a new gold mine entering production in 2025. According to its January 2025 prefeasibility study, the project carries a post-tax net present value (NPV) of US$496 million using a long-term gold price of US$2,640 per ounce. The mine is expected to generate US$94 million in average annual free cash flow over six years of full production, supported by a diluted head grade averaging 8.2 grams per tonne (g/t) of gold and an all-in sustaining cost (AISC) of US$1,681 per ounce.

Madsen's probable mineral reserves total 1.82 million tonnes grading 8.16 g/t for 478,000 ounces of contained gold, based on a gold price of US$1,680 per ounce. The company has also secured significant funding to support the restart, including US$35 million in debt financing and US$20 million raised through a February equity placement. As of February 26, WRLG reported having CA$31 million in cash on hand.

 Courtesy: www.streetwisereports.com