Gold Explorer Strikes 183.79 g/t in Ontario Breakthrough

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West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) announced new drilling results from the South Austin Zone at its 100% owned Madsen Mine in Red Lake, Ontario. The results demonstrated continued definition and expansion of high-grade gold mineralization within the underground resource area.

Among the key highlights, drill hole MM25D-11-4420-024 intersected 6.9 meters grading 36.85 grams per tonne (g/t) gold, including 3 meters at 81.23 g/t gold. Additionally, MM25D-11-4420-009 returned 2 meters grading 92.39 g/t gold, including a 1-meter interval at 183.79 g/t gold. Other significant intercepts included 15.45 meters at 8.79 g/t gold in hole MM25D-09-4300-002, 6.75 meters at 17.31 g/t gold in MM25D-11-4420-026, and 5 meters at 21.91 g/t gold in MM25D-11-4420-027.

The South Austin Zone currently hosts an Indicated mineral resource of 474,600 ounces at an average grade of 8.7 g/t gold, with an additional Inferred resource of 31,800 ounces at the same grade. These resources form part of the broader Madsen Mine mineral inventory, which includes 1.65 million ounces of Indicated resources and 0.37 million ounces of Inferred resources across multiple zones.

"The high-grade panel of gold mineralization the team is currently defining and expanding in South Austin has been delivering exceptional grades and thicknesses," said Shane Williams, President & CEO in the news release. "Archaean lode-gold vein systems like Madsen are well known for having pockets of mineralization that are often discrete, very high-grade, and require tight-spaced drilling to properly define. The success we are having in South Austin with the underground definition program underscores the importance of getting the drills deeper in the system and into high-priority areas of the deposit so that additional high-grade pockets and lenses can be discovered, drilled off, and integrated into the mine plan."

The drilling campaign targeted mineralized structures hosted within kilometer-scale planar deformation zones. These zones have undergone repeated reactivation and high-temperature metamorphism, forming complex geological features that require tightly spaced definition drilling to delineate accurately.

All core samples were processed at SGS Natural Resources' facilities and underwent fire assay, gravimetric, and metallic screen analysis as appropriate. The drilling program is part of WRLG's broader effort to refine resource confidence and support mine planning decisions.

Gold Sector Shows Steady Performance in 2025

As of mid-2025, both gold and bitcoin had gained 28%, reflecting increased investor interest in alternative assets amid broader market uncertainty. Yahoo! Finance reported on July 24 that this shift was driven in part by volatility in traditional markets. Roxanna Islam of TMX VettaFi pointed to elevated market instability as a key factor behind the trend. According to J.P. Morgan Asset Management, gold 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 the majority at US$102 billion and US$48 billion, respectively.

On August 4, FX Street reported that gold prices briefly declined to approximately US$3,360 following strength in the US dollar. However, the release of weaker-than-expected U.S. employment data and renewed trade concerns supported a rebound. The U.S. economy added 73,000 jobs in July, below expectations of 110,000, and the unemployment rate rose to 4.2%. Bart Melek of TD Securities remarked that the soft jobs report "give[s] a better probability that the Federal Reserve will cut [rates] later in the year," a development that could increase demand for gold as a safe-haven asset.

In the newsletter What is Chen Buying? What is Chen Selling?, Chen Lin wrote that West Red Lake Gold "reported very good progress" and noted that its shares were "rebounding nicely" following recent updates.

COMEX gold futures experienced sharp volatility during the week of August 5 following conflicting reports about U.S. tariffs on imported gold bullion.

According to Jesse Colombo on August 9, the futures market surged late Thursday after speculation emerged that gold bar imports could be subject to tariffs, contradicting earlier statements from the Trump administration. The initial spike reflected concerns that limited domestic supply would drive U.S. gold prices higher.

However, the move reversed quickly after the administration issued a statement on Friday afternoon clarifying that gold bullion imports would not face tariffs. The result was a rapid decline in COMEX gold futures, completing a round trip that left prices near their starting point. Colombo noted that while futures prices briefly rose as much as US$137 per ounce above the global spot price, the spot market showed minimal reaction, highlighting the localized nature of the disruption.

In a technical update dated August 10, analyst Clive Maund noted that gold had been consolidating within a large bull pennant pattern over the past four months. He identified resistance in the US$3,450 to US$3,500 range and stated that a breakout above the April high of US$3,500 could signal the start of a new upward move. Maund observed that the consolidation had reduced overbought conditions on the MACD indicator and allowed the 200-day moving average to converge with the price. Using SPDR Gold Shares (GLD) as a proxy, he described a developing cup-and-handle continuation pattern with increasing volume, including a notable spike on August 8.

On longer-term charts, Maund pointed out that gold has been trending higher since early 2024 and cited a multi-year cup-and-handle structure dating back to 2012 as indicative of continued bullish momentum. He also noted that silver was approaching a potential breakout above its 2011 highs, while recent gains in the U.S. dollar were characterized as a bear market rally limited by resistance.

Analysts Highlight Progress and Potential at West Red Lake Gold Projects

On June 6, Jay Taylor of Hotline remarked on West Red Lake Gold Mines Ltd.'s technical planning, 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 that this level of preparation could support strong profit potential at the company's projects.

In a July 24 commentary, Jeff Clark of The Gold Advisor pointed to institutional confidence in the Madsen Mine, citing Summit Royalty's acquisition of a 1% net smelter returns royalty from Sprott Resource Lending for US$9.9 million. Clark described the transaction as "a good sign from an institutional lender."

Clark provided a follow-up on August 7, reporting that West Red Lake Gold produced 3,800 ounces of gold in July from three separate pours at its Madsen operation, selling 3,595 ounces at an average price of US$3,320 per ounce for total revenue of US$12 million. He noted that the gold was primarily sourced from sill development ahead of planned stope mining, with an average mined grade of 8.9 grams per tonne blended with stockpiled material for a combined head grade of 5 grams per tonne. Clark added that drill hole spacing had been reduced from 20 meters to seven meters to support improved geological modeling. He also highlighted continued work on shaft utilization and cemented rock fill systems, as well as increased investor confidence, reflected in a 15% share price rise over five trading days.

Taylor Combaluzier of Red Cloud Securities reaffirmed a Buy rating on West Red Lake Gold in a June 26 research update, maintaining a CA$2.50 target price, which implied a 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 and transitioned to higher-grade stope material by June. This shift resulted in mill head grades rising from 3 g/t to an average of 6.5 g/t by mid-June. Mill throughput averaged 650 tonnes per day with gold recovery near 95%, approaching prefeasibility study benchmarks of 800 tonnes per day and 95.7% recovery.

Combaluzier also discussed integration potential for the Rowan and Fork deposits into a hub-and-spoke model centered on the Madsen infrastructure. In a July 9 note, he reviewed the Preliminary Economic Assessment (PEA) for the 100%-owned Rowan project, which outlined an underground mine producing approximately 35,000 ounces of gold annually over five years. The PEA was based on a diluted head grade of 8 g/t and 97% recovery, with initial capital costs of CA$70.4 million and total project costs of CA$176.2 million. The study projected an after-tax Net Present Value of CA$125 million using a 5% discount rate and a base case gold price of US$2,500 per ounce, with an internal rate of return of 41.9%.

Rowan's location within trucking distance of the Madsen mill was noted as a logistical advantage. Red Cloud's updated model included the revised resource estimate of 314,900 ounces grading 10.88 g/t in the Indicated and Inferred categories, and the firm reiterated its CA$2.50 price target.

In an August 7 update, Combaluzier again highlighted operational progress at Madsen, confirming that three gold pours in July yielded 3,800 ounces, of which 3,600 ounces were sold for US$12 million. He stated that milling throughput ranged between 500 and 800 tonnes per day, with recovery averaging 94%, consistent with prefeasibility study expectations. He noted continued sill development and the company's transition to stope mining in August as part of its ramp-up efforts.

Also on August 7, in the newsletter What is Chen Buying? What is Chen Selling?, Chen Lin wrote that West Red Lake Gold "reported very good progress" and noted that its shares were "rebounding nicely" following recent updates. He maintained a positive view of the company's operational momentum.

Focus on Definition and Operational Readiness

West Red Lake Gold has continued its focus on tightening drill spacing to enhance geological modeling and mitigate continuity risk. According to the company's investor materials, spacing has been reduced from approximately 20 meters to 7 meters in the South Austin Zone. This effort is part of a broader underground program that has completed over 90,000 meters of drilling to support mine planning and execution.

The company reported that results from its recent bulk sample, derived from six stopes across the Austin, South Austin, and McVeigh resource areas, closely aligned with model predictions. Across 15,170 tonnes processed, the sample returned an average grade of 5.72 g/t gold and a total gold content of 2,664 ounces, achieving 96.1% of the predicted value.

Infrastructure improvements have also been implemented to support ramp-up. WRLG has completed a 1.4-kilometer Connection Drift, lifted its tailings dam, and purchased 19 major pieces of underground equipment. The company reported gold production of 5,350 ounces from January to mid-June and mill throughput trials reaching 800 tonnes per day, with an average recovery rate of 95%.

According to the company's prefeasibility study, the Madsen Mine has a post-tax net present value (NPV) of C$496 million at a long-term gold price of US$2,640 per ounce. The base case scenario uses a gold price of US$1,680 per ounce and estimates average annual free cash flow of C$94 million over six years of production.

WRLG's definition drilling in the South Austin Zone continues to demonstrate its ability to identify additional high-grade areas that can be incorporated into future mine plans. These efforts contribute to both short-term operational readiness and longer-term resource optimization across the broader Madsen property.

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.