Gold Miner Ramps Up in Ontario With Big Upside

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West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) provided an operational update on its Madsen Mine project in Red Lake, Ontario, reporting continued progress in ramping up mining and milling activities. The company restarted mill operations following a 40-hour shutdown related to a fatal underground incident on June 16. Mining resumed 12 hours later and has since ramped up based on personnel availability.

According to President and CEO Shane Williams in the company news release, "With the clear exception of the tragic underground incident, ramp-up at the Madsen Mine is progressing well." He noted that mill head grades improved in June as the operation transitioned from stockpiled bulk sample material to freshly mined ore. Mill throughput has averaged 650 tonnes per day with a consistent gold recovery rate of 95%.

Mining operations are currently focused on the South Austin and McVeigh zones, with additional stopes in the Austin area expected to be brought online in the coming months. From May 11 through June 15, the milled gold grade increased from approximately 3 grams per tonne (g/t) to an average of 6.5 g/t between June 12 and 15 as the share of stope material rose.

As of June 25, West Red Lake Gold has sold 5,250 ounces of gold in 2025 at an average price of US$3,330 per ounce, with another gold pour scheduled for the same day. The company continues to expand its underground equipment fleet, recently receiving a Caterpillar scoop loader and expecting further deliveries, including haul trucks, scoops, and bolters, between July and September.

Definition drilling has also advanced, with 38,393 meters completed year to date, including 19,904 meters in the second quarter. Recent efforts have focused on further delineating high-grade gold lenses in South Austin. All technical information has been reviewed and approved by Will Robinson, P.Geo., Vice President of Exploration and the company's Qualified Person under NI 43-101.

Record Highs and Rising Reserves: Gold's Resurgence in 2025

Matthew Piepenburg, writing for Thoughtful Money on June 19, linked the rise in gold prices during 2025 to increasing global debt and heightened geopolitical uncertainty. He noted that gold had reached over 75 all-time highs this year and referred to the metal as "a centrally rising tier-one global strategic reserve asset."

Piepenburg pointed to growing skepticism toward fiat currencies and what he described as a "weaponized U.S. Treasury system" as key factors supporting gold's elevated role in international finance. He also observed that gold had outperformed the S&P 500 in total return over the past 20 years and had become "the best performing asset of 2025."

Jeff Clark of The Gold Advisor commented on the company's near-term outlook. "I do expect West Red Lake Gold Mines Ltd. shares to continue to rise until first pour."

On June 20, Stockhead's Josh Chiat reported that gold had risen from below US$2,000 per ounce in late 2023 to more than US$3,350 by mid-2025, peaking above US$3,500 in April. Chiat noted that sovereign gold purchases had averaged roughly 1,000 tonnes annually over the past three years. Citing the World Gold Council's annual survey, he stated that "95% of central bank buyers expect central banks to increase their gold reserves this year," up from 81% the previous year. Shaokai Fan of the WGC added, "Nearly half of the central bank respondents intend to increase their own gold holdings in the coming year. . .  especially considering how many record-high prices we've hit so far in 2025."

An article published by Ahead of the Herd on June 23 examined gold's growing appeal as a safe-haven asset amid ongoing geopolitical risks. The article reported that gold had appreciated approximately 27% year to date, with contributing factors including armed conflict, inflation concerns, and a decline in confidence in U.S. financial leadership. The World Gold Council was cited again, noting that 43% of central bank reserve managers planned to raise their gold holdings in 2025, compared to 29% the year before. Additionally, 76% of respondents believed gold would comprise a larger portion of global reserves within five years.

The article also referenced declining demand for U.S. Treasury assets, highlighting New York Federal Reserve data showing a drop in custody holdings for foreign central banks to US$3.22 trillion — the lowest level since 2017. Meghan Swiber of Bank of America commented that "This flow likely reflects official sector diversification away from dollar holdings."

Strong Foundations and Targets Ahead

The company's current ramp-up follows a successful bulk sampling program, which demonstrated strong reconciliation between predicted and actual results. Across 15,170 tonnes, the reconciled gold grade was 5.72 g/t, nearly identical to the predicted 5.68 g/t, while gold recovery reached 95%. This validated WRLG's use of tighter drill spacing and selective mining methods.

West Red Lake Gold emphasized in its June 2025 presentation that the Madsen Mine is one of only four single-asset gold companies expected to enter production this year. The mine is currently permitted for 800 tonnes per day, with plans to seek amendments to raise capacity to 1,000 tpd in 2026. A pre-feasibility study has outlined US$94 million in annual free cash flow over six full production years at an average annual output of 67,600 ounces and a diluted head grade of 8.2 g/t gold. 

Recent engineering and drilling efforts have aimed to convert more indicated resources into reserves, potentially reducing mining costs through expanded use of longhole stoping. The company's current reserve base stands at 1.8 million tonnes grading 8.16 g/t for 478,000 ounces of gold. 

Looking ahead, new underground development will allow access to new high-priority targets in the McVeigh, Austin, and South Austin areas, while additional exploration drilling is planned for the Fork and Rowan deposits. These zones could be integrated into an expanded mine plan. Gold sales, existing equipment, and a previously arranged US$35 million debt facility continue to support ramp-up activities without the need for near-term principal repayments. 

With operations stabilized and key infrastructure in place, WRLG is positioned to build on its operational base in the second half of 2025.

Analyst Support Remains Strong Amid Positive Technical Milestones

West Red Lake Gold Mines Ltd. continued to receive positive analyst coverage as work advanced at the Madsen project in Ontario's Red Lake district. On May 7, Matthew O'Keefe of Cantor Fitzgerald reaffirmed a Buy rating and maintained a target price of CA$2.20 per share. With the stock trading at CA$0.69 at the time, the target reflected a potential upside of 219%. O'Keefe pointed to the 14,490-tonne bulk sampling program as a key step in validating the company's geological model. He wrote that the program "validated the geological model and demonstrated consistency in grade and mill recovery," and concluded that "the positive test results derisk the project further."

On May 30, Taylor Combaluzier of Red Cloud Securities also reiterated a Buy rating and raised his target price to CA$2.50 per share. At that time, the stock was trading at CA$0.84, implying a projected return of 198%. Combaluzier cited multiple strengths, including the company's "high-grade resource, existing infrastructure, deposit and mill expansion potential, the potential for further cost savings, and now the opportunity for near-term free cash flow." His valuation was based on a net present value of CA$315 million and an internal rate of return of 255% using a base case gold price of US$2,000 per ounce.

He added that a higher gold price environment — such as recent levels around US$3,300 per ounce — could allow for more flexible mining strategies. In particular, lower-grade zones could become viable using long hole stoping, a method that typically offers lower mining costs compared to cut-and-fill techniques. Combaluzier also pointed to the Rowan deposit as a strategic asset that could factor into long-term planning. He noted that Rowan contains 312,000 ounces at an average grade of 10.97 grams per tonne gold and "could be one of the first deposits used in a potential future hub and spoke model."

In a June 5 update, Jeff Clark of The Gold Advisor commented on the company's near-term outlook. "I do expect West Red Lake Gold Mines Ltd. shares to continue to rise until first pour," he wrote, while noting that the announcement was likely just weeks away. Clark advised caution for new buyers at current levels but added, "As a reminder, we'll look to take profits once the company does announce first pour; until then, let's enjoy the ride."

On June 6, Jay Taylor of Hotline emphasized the company's technical preparation, stating that "the thoroughness of West Red Lake Gold Mines Ltd.'s preproduction work has provided it with an understanding of its ore body that can enable it to adjust to different gold prices." He added, "I think that is going to make this a hugely profitable mine."

Ownership and Share Structure

Strategic investor Sprott Resource Lending Corp. holds about 8%. Institutions hold about 30%, management, insiders, and advisors hold about 10%, and the remaining shares are held by retail investors.

The company's market cap is CA$290 million. The 52-week range for the stock is CA$0.52 to CA$1.04.