Gold Developer Confirms 42% IRR at High-Grade Ontario Site in Newly Filed PEA

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West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) announced the filing of its independent Preliminary Economic Assessment (PEA) technical report for the 100% owned Rowan Project, located in the Red Lake Gold District of northwestern Ontario. The report, prepared in accordance with National Instrument 43-101 standards by Fuse Advisors Inc., is dated June 30, 2025, and supports the disclosure made in the company's July 8 news release. No material differences were noted between the PEA Technical Report and the previously disclosed summary.

According to the company's announcement, the Rowan deposit comprises 476,323 indicated tonnes grading 12.87 grams per tonne (g/t) gold, representing 195,746 contained ounces, and 410,794 inferred tonnes at 8.76 g/t gold for 115,719 ounces. The PEA evaluates a potential underground toll milling operation with a projected average annual production of 35,200 ounces of gold over five years. The economic highlights include a post-tax net present value (NPV) of US$125 million and an internal rate of return (IRR) of 42%, based on a gold price of US$1,800 per ounce and a capital cost estimate of US$70 million.

The technical content of the report was reviewed and approved by Mr. Will Robinson, P.Geo., Vice President of Exploration, and Mr. Maurice Mostert, P.Eng., Vice President of Technical Services for West Red Lake Gold Mines Ltd. Both are designated as Qualified Persons under NI 43-101.

Gold Sector Dynamics Highlight Stability Amid Currency and Debt Concerns

The gold sector continued to draw investor attention in August as concerns over global debt levels, inflation, and equity market instability underscored the perceived strength of the precious metal. According to Catherine Brock of Yahoo Finance, gold futures opened at US$3,359 per ounce on August 20, representing a 1.4% increase from the previous day's close. While this was slightly below the August 11 high of US$3,383.90, it reflected a broader uptrend, with prices up 34.2% year-over-year.

Yahoo Finance reported that investors remained cautious amid a downturn in major U.S. equity indices, with the Nasdaq Composite falling 1.4% and the S&P 500 down 0.5% on August 19. Gold, described as an "attractive safe-haven option," appeared to benefit from growing uncertainty in other asset classes. Brock also noted that gold prices could respond to expectations surrounding U.S. Federal Reserve policy, stating, "Gold also could show strength on any signs the Fed will lower interest rates in September."

Chen Lin wrote that the company "reported very good progress" and that its shares were "rebounding nicely" following recent updates. Lin maintained a favorable outlook on the company's operational trajectory.

Broader structural and geopolitical factors have continued to support gold's role as a strategic asset. In an August 19 piece for Goldfix, VBL wrote that since 1971, fiat currencies have lost more than 99% of their purchasing power against gold. He argued, "Gold, which is far more honest than policy makers, rises because paper money always dies under the weight of dishonest spending." Piepenburg emphasized the scale of global debt, citing over US$300 trillion in liabilities, and asserted that "debt destroys currencies, freedom, and nations."

The Von Greyerz Monthly Gold Briefing from August further underlined the divergence between paper-based assets and tangible stores of value. The report stated, "Storing analog 'pet rocks' in segregated/allocated accounts . . .  may not be modern or sexy . . .  but freedom and wealth preservation goals… are as timeless, honest and essential as the metals themselves." This sentiment aligned with broader skepticism over the stability of newer digital financial products such as stablecoins, which the report characterized as vulnerable due to their backing by U.S. Treasuries.

Experts Underscore Operational Strength and Development Milestones at West Red Lake Gold

On June 6, Jay Taylor of Hotline commended West Red Lake Gold Mines Ltd. for its thorough technical groundwork. He stated 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 noted that this level of preparation could enhance the company's ability to generate profit across a range of market conditions.

Jeff Clark of The Gold Advisor highlighted institutional support for West Red Lake Gold in his July 24 commentary. He pointed to Summit Royalty's acquisition of a 1% net smelter returns royalty on the Madsen Mine from Sprott Resource Lending for US$9.9 million, calling it "a good sign from an institutional lender."

In a follow-up on August 7, Clark reported that West Red Lake Gold produced 3,800 ounces of gold in July across three pours at its Madsen operation. The company sold 3,595 ounces at an average realized price of US$3,320 per ounce, generating US$12 million in revenue. He noted that the production was sourced primarily from sill development material blended with stockpiled ore, yielding a combined head grade of 5 grams per tonne. The average mined grade from sill material was 8.9 grams per tonne. Clark also observed that drill spacing had been reduced from 20 meters to seven meters to improve geological modeling, and pointed to continued development work on shaft utilization and cemented rock fill systems. He added that the company's recent updates had coincided with a 15% increase in share price over five trading days.

On August 14, Clark offered another update, stating, ""West Red Lake Gold Mines Ltd.'s underground definition program on its Madsen mine's South Austin zone continues to return high-grade hits. The headline hole at South Austin hit 36.85 g/t gold over 6.9m, for 254.2 gram-meters, a rich hole by any standard; there were more strong intercepts."

Taylor Combaluzier of Red Cloud Securities reiterated a Buy rating on West Red Lake Gold in a June 26 research note, maintaining a price target of CA$2.50. At the time of the update, shares were trading at CA$0.88, implying a potential return of 184%. He reported that ramp-up at the Madsen Mine began May 11 using lower-grade sill material and transitioned to higher-grade stope material by June. This transition resulted in mill head grades increasing from 3 grams per tonne to an average of 6.5 grams per tonne by mid-June. Combaluzier noted that mill throughput averaged 650 tonnes per day with gold recoveries near 95%, approaching prefeasibility benchmarks of 800 tonnes per day and 95.7% recovery.

Combaluzier also addressed the integration potential of the Rowan and Fork deposits into a hub-and-spoke model centered around Madsen. In his July 9 update, he reviewed the Preliminary Economic Assessment (PEA) for the Rowan project, which outlined a five-year underground mining operation producing approximately 35,000 ounces of gold annually. The study was based on a diluted head grade of 8 grams per tonne and a recovery rate of 97%, with initial capital requirements of CA$70.4 million and total project costs of CA$176.2 million. The after-tax Net Present Value (NPV) was estimated at CA$125 million using a 5% discount rate and a base case gold price of US$2,500 per ounce. The internal rate of return was projected at 41.9%. He noted that Rowan's proximity to the Madsen mill provided logistical advantages.

In an August 7 update, Combaluzier confirmed July production figures of 3,800 ounces of gold from three pours, with 3,600 ounces sold for total proceeds of US$12 million. He stated that milling throughput ranged between 500 and 800 tonnes per day with recovery averaging 94%, consistent with prefeasibility expectations. He also noted ongoing sill development and the transition to stope mining in August as part of the ramp-up phase.

Also on August 7, Chen Lin commented on West Red Lake Gold in his newsletter What is Chen Buying? What is Chen Selling?, writing that the company "reported very good progress" and that its shares were "rebounding nicely" following recent updates. Lin maintained a favorable outlook on the company's operational trajectory.

In an August 15 article, Robert Sinn of Goldfinger Capital highlighted West Red Lake Gold's strong July update from the Madsen Mine, where the company poured 3,800 ounces of gold and sold 3,595 ounces for US$12 million in revenue. Sinn noted that sill access development yielded better-than-expected grades, averaging 8.9 grams per ton, and that the mill operated at 500–800 tonnes per day with 94% recovery. VP of Corporate Communications Gwen Preston explained that the high grades were a surprise due to lower confidence in that part of the geological model, and that although the mine has reached 75% throughput, the company is holding off on declaring commercial production until more data informs longer-term grade expectations.

Sinn also emphasized the significance of the South Austin Zone, which Preston called the future of the Madsen Mine due to its strong high-grade mineralization. Mining in South Austin is expected to ramp up through late 2024 and early 2025, with development access as a near-term focus. Preston further discussed operational initiatives such as boosting shaft capacity and installing a Cemented Rock Fill plant to improve underground efficiency. On the capital markets side, the company is aiming for a main board listing in Canada and may pursue a major U.S. exchange in 2026.

Advancing Multiple Gold Assets Across Red Lake

West Red Lake Gold's latest investor presentation outlines several operational catalysts beyond the Rowan PEA. The company continues advancing its flagship Madsen Mine, located 80 kilometers from Rowan by road, with recent milestones including production ramp up, definition drilling, bulk sample reconciliation, and infrastructure development. The Madsen Mine has begun gold production, with 5,350 ounces produced between January and mid-June 2025. The mill averaged 650 tonnes per day, with gold recovery rates near 95%.

West Red Lake Gold is also investing in expanding its reserve base and improving operational efficiency. The company identified a high-grade core within the Fork deposit and has planned a 3,000-meter surface drill program targeting 130,000 to 150,000 tonnes at grades of 8 to 9 g/t gold. In addition to Rowan and Madsen, the company is pursuing exploration targets including the North Shore and Upper 8 zones. 

According to the company materials, the Rowan deposit represents an important component of its long-term development plan in the prolific Red Lake district, which has historically produced over 30 million ounces of gold. The filed PEA establishes Rowan as a potential near-term contributor to the company's production portfolio, supported by high-grade mineralization and relatively low capital intensity. 

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.