Explosive Gold Momentum for Ontario Miner

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West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) provided an operational update for July 2025 on its Madsen Mine, located in the Red Lake District of Ontario. The company reported that ramp-up activities remain on track, with July production totaling 3,800 ounces of gold from a combination of mined material and low-grade stockpiles. Of that, 3,595 ounces were sold at an average realized gold price of U.S.$3,320 per ounce, generating U.S.$12 million in revenue.

Mining activities in July focused primarily on sill development across eight areas within the McVeigh, South Austin, and Austin zones. While sill mining is less efficient in terms of tonnage compared to stope mining, the mined material averaged 8.9 grams per tonne (g/t) gold. The average feed grade for the mill during July was approximately 5 g/t gold, with the mill achieving an average gold recovery rate of 94%.

The company noted positive grade reconciliation in July, highlighting close alignment between expected and actual grades in a stope mined at McVeigh. Sill grades in particular exceeded expectations. For example, 1,274 tonnes of material initially expected to be low grade averaged 9.56 g/t, while 1,171 tonnes classified as high grade averaged 21.82 g/t.

The company continues to implement its strategy of tightening drill spacing to approximately seven meters in order to refine its short-term resource model and improve predictability. "In July we saw the short-term resource model doing its job: stope grades reconciled closely to predicted model grades, and in fact exceeded planned grades in many cases," said Jill Christmann, Chief Geologist at Madsen Mine.

To support continued ramp-up and long-term operational efficiency, West Red Lake Gold is advancing two infrastructure initiatives. The first is the renovation of the Madsen Shaft, which will enable the mine to skip approximately 300 to 400 tonnes of material to surface daily. Equipment including a new hoist rope and skip has been procured, and preparations at the 11 level loading pocket are ongoing. This added shaft capacity is expected to supplement current material movement methods.

The second initiative is the Cemented Rock Fill (CRF) project, which aims to reduce surface waste removal by using backfill in historic underground voids. The company mobilized a CRF plant and operator in July and expects to begin backfilling in August. Over 70,000 tonnes of waste storage capacity has been identified near current mining areas, with another 102,000 tonnes available closer to surface.

Gold Remains Resilient in 2025 as Inflation and Volatility Sustain Demand

Gold-backed exchange-traded funds (ETFs) saw notable growth during the first half of the year. A July 18 report by Josh Chiat of Stockhead, citing World Gold Council data, showed global ETF holdings had increased 41% year-to-date, totaling 3,616 tonnes and U.S.$383 billion in assets under management. The Council stated that gold remains "well positioned to support tactical and strategic investment decisions in the current macro landscape."

Additional insights published by Yahoo Finance on July 24 noted that both gold and bitcoin had posted 28% gains year-to-date by mid-July. Roxanna Islam of TMX VettaFi pointed to heightened market volatility as a factor driving investor interest in alternative assets, including gold and bitcoin ETFs.

Jeff Clark of the Gold Advisor commented, "In a sign that West Red Lake Gold Mines Ltd.'s Madsen gold mine is a valued asset, private royalty and streaming company Summit Royalty announced it would spend $9.9M to acquire a 1% net smelter returns royalty on the project from Sprott Resource Lending. A good sign from an institutional lender."

According to J.P. Morgan Asset Management, gold ETF assets under management totaled U.S.$170 billion in April, with SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) leading the market at U.S.$102 billion and U.S.$48 billion, respectively.

Technical analysis from Captain Ewave on August 3 maintained a bullish outlook for gold, suggesting the metal is currently advancing within a longer-term upward wave structure. The firm's charting indicates that gold is moving higher in a multi-year wave (3) of 3, with a projected target of U.S.$4,298.80.

According to the analysis, gold may currently be in a bullish triangle consolidation phase known as wave $iv$, with a possible thrust higher in wave $v$ once complete. While the analysis allows for an extended formation, the overall structure remains positive.

The firm recommended maintaining long positions and using put options as a protective strategy, citing the potential for sharp gains following the current consolidation.

A report from FX Street on August 4 noted that gold prices edged lower to approximately U.S.$3,360 in early Asian trading, ending a two-day streak of gains. The decline followed a rebound in the U.S. dollar, which weighed on the price of the metal. However, weaker-than-expected U.S. nonfarm payrolls data and concerns over new trade tariffs may help limit further downside.

The U.S. added 73,000 jobs in July, well below the market forecast of 110,000, and the unemployment rate ticked up to 4.2%.

TD Securities' Bart Melek commented that the lower job numbers "give a better probability that the Federal Reserve will cut [rates] later in the year." Meanwhile, investor attention has shifted to potential impacts from new U.S. tariffs announced by President Trump, which could fuel additional safe-haven demand for gold in the near term.

Rowan PEA Highlights Strong Economics and Growth Potential

Jay Taylor of Hotline offered additional commentary on June 6, focusing on the company's technical preparation. He noted 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." Taylor concluded that the project could have strong profit potential as a result of this groundwork.

On July 24, Jeff Clark of the Gold Advisor commented, "In a sign that West Red Lake Gold Mines Ltd.'s Madsen gold mine is a valued asset, private royalty and streaming company Summit Royalty announced it would spend $9.9M to acquire a 1% net smelter returns royalty on the project from Sprott Resource Lending. A good sign from an institutional lender."

In a June 26 research update, Taylor Combaluzier of Red Cloud Securities reaffirmed his Buy rating on the company and maintained a target price of CA$2.50 per share. With the stock trading at CA$0.88 at the time, the target reflected a potential return of 184%. Combaluzier noted that West Red Lake Gold began its production ramp-up at the Madsen mine on May 11, initially using lower-grade sill material. As operations transitioned to stope material in June, the mill head grade improved from 3 grams per tonne (g/t) to an average of 6.5 g/t between June 12 and 15. Mill throughput averaged 650 tonnes per day with a gold recovery rate of 95%, approaching prefeasibility study benchmarks of 800 tonnes per day and 95.7% recovery.

Combaluzier also pointed to continued drilling activity and the potential integration of the Rowan and Fork deposits as part of a future hub-and-spoke strategy centered on Madsen. He stated that the company appeared well-positioned to benefit from the prevailing gold price environment as ramp-up efforts continued through the second half of 2025.

In a July 9 updated Red Cloud Securities research note, Combaluzier highlighted the release of a Preliminary Economic Assessment (PEA) for West Red Lake Gold's 100%-owned Rowan project, located in Ontario's Red Lake district. The study outlined a proposed underground operation producing approximately 35,000 ounces of gold annually over a five-year mine life, based on a diluted head grade of 8 grams per tonne and gold recoveries of 97%. Initial capital expenditures were estimated at CA$70.4 million, with total project costs of CA$176.2 million and an all-in sustaining cost of U.S.$1,336 per ounce. The project returned an after-tax Net Present Value (NPV) of CA$125 million using a 5% discount rate, and an internal rate of return (IRR) of 41.9% at a base case gold price of U.S.$2,500 per ounce. Combaluzier noted that Rowan's location within trucking distance of the company's Madsen mill supports potential integration under a hub-and-spoke model and maintained a Buy rating and CA$2.50 price target. Red Cloud's updated model incorporated Rowan's revised resource estimate, which includes 314,900 ounces at an average grade of 10.88 g/t gold in the Indicated and Inferred categories.

Operational Momentum and Development Initiatives

The company's July update follows earlier test mining success that demonstrated strong reconciliation between predicted and actual gold grades. A bulk sample processed between May and June 2025 achieved a 95% recovery rate and an overall grade performance closely aligned with internal modeling. According to company figures, the average grade across the 14,490 tonnes sampled was 5.72 g/t, resulting in 2,664 ounces of gold.

Infrastructure upgrades have been a major focus for the company. These include construction of a 1.4-kilometer underground connection drift, a 114-person camp, mine dry and operations facilities, and a four-meter tailings dam lift. West Red Lake Gold has also procured 19 pieces of underground equipment and implemented a new enterprise resource planning (ERP) system to support mine operations.

The investor presentation notes that the Madsen Mine currently has an average mill throughput of 650 tonnes per day, with trials reaching up to 800 tonnes per day. Recovery rates have held steady at approximately 95%. As mining transitions from sill material to stope ore, higher-grade feed has increased gold output.

West Red Lake Gold's operational strategy emphasizes efficiency, underground haulage optimization, and the use of established infrastructure to mitigate common start-up challenges. The mine's location, history, and development progress were cited as advantages, particularly in terms of permitting and regional access.

The company's prefeasibility study for Madsen outlines a base case Net Present Value (NPV) of C$496 million and estimated average annual free cash flow of C$94 million over six full production years, based on a gold price of U.S.$2,640 per ounce. As of March 31, 2025, West Red Lake Gold reported CA$18 million in cash and a fully diluted share count of approximately 517 million.

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.