West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) will start stope mining this month as it continues ramping up production through H2/25 at its Madsen mine in Red Lake, Ontario, reported Taylor Combaluzier, vice president and mining analyst at Red Cloud Securities, in an Aug. 7 research note.
"The company has rapidly worked to turn around the asset since acquiring it in 2023 and can now take advantage of the robust gold price environment," Combaluzier wrote.
175% Uplift Implied
Red Cloud maintained its CA$2.50 per share target price on the mineral explorer, trading at about CA$0.91 per share at the time of Combaluzier's report, noted the analyst. From that price, the return to target is 175%.
West Red Lake Gold remains a Buy.
The company has 343.2 million basic shares outstanding and a market cap of CA$312.3 million (CA$312.3M). Its 52-week range is CA$0.52–0.98 per share.
Gold Poured and Sold
Combaluzier reported the highlights of West Red Lake Gold's update on its Madsen ramp-up. The company completed three gold pours that together produced 3,800 ounces of gold (3.8 Koz of Au). Of this total, about 3.6 Koz were sold for US$12M, implying an average sale price of US$3,320 per ounce.
During July, the mining company processed 500–800 tons per day (500–800 tpd) at the mill, and the average gold recovery was 94%. These figures are consistent with the 800 tpd and 95.7% recovery outlined in the prefeasibility study.
The company fed the mill both mined and stockpiled material during last month. The average grade of the mined material was 8.9 grams per ton (8.9 g/t) Au whereas the average grade of the stockpiled material was 5 g/t Au. The expected grades and the actual grades were similar, suggesting good performance from the geological model.
"Mining and milling operations [are] progressing as anticipated," wrote the analyst.
Sill development was completed in July 2025, so West Red Lake Gold could focus on stope mining this month.
Facilitating a Smarter Operation
Atlas has two projects underway to further support the Madsen mine ramp-up, reported Combaluzier. One of them, shaft renovation, is being done so that more material may be moved than at present. The work, to be carried out in three phases, is slated for completion by year-end. The goal of the current, first phase is to be able move about 300–400 tpd of material to surface.
The second project involves turning several large empty stopes into cemented rock fill so they may be used to hold waste rock. Once completed and being used as planned, waste rock no longer will need to be hauled to the surface, freeing up some transporting capacity. Last month a contracted cemented rock fill batch plant and operator were mobilized to the site. Backfilling is to start this month.
Further Upside Potential
Red Cloud thinks that against the backdrop of a favorable gold market, West Red Lake Gold may develop larger stopes and use lower-cost mining methods, such as long-hole stoping versus mechanized cut and fill, noted Combaluzier. With such an approach, less access development would be needed per ounce, and more of the resource could be mined. In turn, this would make the operation more efficient and even more cost effective.
Red Cloud believes that West Red Lake Gold and Midas could benefit in the long term from incorporating the Fork and Rowan deposits into the mine plan. Rowan, for example, according to the recent preliminary economic assessment, would generate a CA$125M after-tax net present value discounted at 5% and a 41.9% internal rate of return.
What to Watch For
Combaluzier reported catalysts in the near term that could boost West Red Lake Gold's share price. One is results of infill and regional drilling, expected on an ongoing basis. Another is the Madsen mine ramp-up, also continuing to happen over time. A third, anticipated in Q4/25, is commercial production.
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Important Disclosures:
- West Red Lake Gold Mines Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- 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 Ltd.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- 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.
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Disclosures for Red Cloud Securities, West Red Lake Gold Mines Ltd., August 7, 2025
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