Ontario Gold Miner Delivers Solid Madsen Ramp-Up Results

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West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) announced July gold sales of CA$16.4 million during ongoing ramp-up activities at its Madsen Mine in Red Lake, Ontario. The company produced 3,800 ounces of gold from three pours during the month, selling 3,595 ounces at an average price of US$3,320 per ounce.

President and Chief Executive Officer Shane Williams said in a company news release that July's progress reflected continued operational improvements. "Mine ramp-up is about adding equipment, developing access to high-priority mining areas, and increasing operational efficiency until the mine consistently produces the targeted daily tonnage at the targeted grade," he stated.

July operations included sill development and mining in eight areas across McVeigh, South Austin, and Austin, with mined material averaging 8.9 grams per tonne gold. Vice-President of Technical Services Maurice Mostert told Global Stocks News that the company's drilling density had reduced operational risk and, in some cases, expanded mineralized zones beyond initial expectations. Chief Geologist Jill Christmann reported that stope grades matched or exceeded model predictions in many cases.

Two ongoing projects are supporting the ramp-up. The first is a three-stage shaft renovation designed to resume "skipping" material to surface, which is expected to increase daily hoisting capacity by 300 to 400 tonnes once the initial stage is complete. The second is a cemented rock fill program to backfill historic stopes, enabling waste rock to be stored underground and improving haulage efficiency.

The company noted that its prefeasibility study used a gold price of US$1,680 per ounce to design a mine plan focused on small, high-grade stopes. The current mine design applies a consensus long-term price of US$2,350 per ounce, resulting in larger stopes and operational efficiencies.

Gold Sector Maintains Steady Demand in 2025

On July 24, Yahoo! Finance reported that both gold and Bitcoin had each gained 28% by mid-year, reflecting increased interest in non-traditional assets. Roxanna Islam of TMX VettaFi linked the trend to heightened market volatility. Data from J.P. Morgan Asset Management showed that gold-backed exchange-traded funds (ETFs) held US$170 billion in assets as of April, with SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) accounting for US$102 billion and US$48 billion, respectively.

According to FXStreet, gold prices briefly declined to about US$3,360 on August 4 following strength in the U.S. dollar. Weaker-than-expected employment data and renewed tariff concerns later supported prices. The U.S. economy added 73,000 jobs in July, compared with forecasts of 110,000, while unemployment rose to 4.2%. TD Securities' Bart Melek said the lower job numbers "give a better probability that the Federal Reserve will cut [rates] later in the year," which could enhance gold's role as a store of value.

On August 8, CNN reported that gold prices in New York experienced volatility after the release of a U.S. Customs and Border Protection letter indicating that one-kilogram and 100-ounce gold bars imported from Switzerland could be subject to reciprocal tariffs. The White House later described the tariff reports as "misinformation" and said it would issue an executive order to clarify the matter. Gold futures briefly rose more than 1% to a record high above US$3,500 per troy ounce before settling near US$3,460 in the afternoon. UBS strategist Joni Teves said such tariffs could significantly increase import costs, noting that much of the refining capacity is in Switzerland, which faces a 39% U.S. tariff.

Analysts See Strong Returns Ahead for West Red Lake's Rowan Project

On June 6, Jay Taylor of Hotline commented on West Red Lake Gold Mines Ltd.'s technical groundwork, noting 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 that this preparation could support strong profit potential for the project.

Reporting on July 24, Jeff Clark of The Gold Advisor pointed to institutional interest in the company's Madsen gold mine, citing Summit Royalty's agreement to purchase a 1% net smelter returns royalty on the project from Sprott Resource Lending for US$9.9 million. Clark described the transaction as "a good sign from an institutional lender."

In his August 7 What is Chen Buying? What is Chen Selling? newsletter, Chen Lin said West Red Lake Gold Mines Ltd. "reported very good progress" and that its shares were "rebounding nicely" following recent events. Chen referenced strong operational updates from the company and maintained a positive outlook on its recovery.

In an August 7 update to the earlier report, Jeff Clark of The Gold Advisor reported that West Red Lake Gold Mines Ltd. produced 3,800 ounces of gold in July from three pours at its Madsen Mine, selling 3,595 ounces at an average price of US$3,320 per ounce for revenues of US$12 million.

Clark noted that July's production came from sill development work ahead of stope mining in August, with mined tonnage averaging 8.9 g/t gold blended with low-grade stockpile material for a combined average of 5 g/t.

He added that the company has reduced drill hole spacing from 20 metres to seven metres to improve geological modeling and continues to advance shaft utilization and cemented rock fill projects aimed at boosting operational efficiency. Clark stated that shares had risen more than 15 percent over the past five trading days, supported by gold price strength and investor optimism about converting Madsen's high-grade gold into cash flow.

In a June 26 research update, Taylor Combaluzier of Red Cloud Securities reaffirmed a Buy rating on West Red Lake Gold with a CA$2.50 target price, representing a potential 184% return from the CA$0.88 trading price at the time. He noted that production ramp-up at the Madsen mine began on May 11 with lower-grade sill material before transitioning to stope material in June, which increased the mill head grade 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 highlighted ongoing drilling and the potential integration of the Rowan and Fork deposits into a hub-and-spoke model centered on Madsen. He said the company was well-positioned in the current gold price environment as ramp-up continues into the second half of 2025.

In a July 9 update, Combaluzier discussed the Preliminary Economic Assessment (PEA) for the 100%-owned Rowan project in Ontario's Red Lake district. The PEA outlined an underground operation producing about 35,000 ounces of gold annually over a five-year mine life, based on a diluted head grade of 8 g/t and gold recoveries of 97%. Initial capital costs were estimated at CA$70.4 million, with total project costs of CA$176.2 million and an all-in sustaining cost of US$1,336 per ounce. The after-tax Net Present Value (NPV) was calculated at CA$125 million using a 5% discount rate, with an internal rate of return (IRR) of 41.9% at a base case gold price of US$2,500 per ounce.

Combaluzier noted that Rowan's location within trucking distance of the Madsen mill supports integration under a hub-and-spoke approach. Red Cloud's updated model incorporated Rowan's revised resource estimate of 314,900 ounces at an average grade of 10.88 g/t gold in the Indicated and Inferred categories, and the Buy rating with a CA$2.50 target was maintained.

In an August 7 update, Taylor Combaluzier commented on West Red Lake Gold Mines Ltd.'s progress at its 100%-owned Madsen mine in Ontario's Red Lake Gold District. "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," he wrote. Combaluzier reported that West Red Lake Gold completed three gold pours in July, totaling 3,800 ounces, of which about 3,600 ounces were sold for US$12 million, averaging US$3,320 per ounce. He noted that milling operations during the month processed between 500 and 800 tonnes per day with an average gold recovery of 94 percent, figures consistent with the prefeasibility study. Combaluzier also highlighted ongoing sill development and the company's plans to commence stope mining in August as part of its continued ramp-up toward commercial production.

In his August 7 What is Chen Buying? What is Chen Selling? newsletter, Chen Lin said West Red Lake Gold Mines Ltd. "reported very good progress" and that its shares were "rebounding nicely" following recent events. Chen referenced strong operational updates from the company and maintained a positive outlook on its recovery.

Operational Positioning For West Red Lake

West Red Lake Gold's investor materials highlight several factors supporting its ongoing ramp-up at Madsen. According to the company, definition drilling has reduced spacing from approximately 20 meters to seven meters, improving geological modeling accuracy and grade continuity. Bulk sample reconciliation from 2024 demonstrated a strong correlation between predicted and actual grades, which the company said confirmed its mining approach.

Capital investments have included completion of a 1.4-kilometer connection drift to improve underground haulage, a tailings dam lift, dewatering to Level 17, and acquisition of additional underground equipment. Mill trials have reached 800 tonnes per day, the facility's permitted capacity, with average gold recovery of 95%.

In addition to Madsen, the company holds the Rowan and Fork deposits in the Red Lake district, both of which have defined high-grade resources. The Rowan project has a preliminary economic assessment outlining potential toll milling of 35,200 ounces per year for five years. West Red Lake has also identified near-mine and regional drilling targets, including the Upper 8 and North Shore zones, as part of its broader district exploration strategy.

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.