5,000-Meter Drill Program Begins at High-Grade Red Lake Gold Project

1. West Red Lake Gold Mines Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. 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. 
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) has commenced a 5,000-meter diamond drill program at its 100%-owned Rowan Project in Ontario's Red Lake Gold District. The initiative follows the company's Preliminary Economic Assessment (PEA), published in July 2025, which outlined plans for an underground mine at Rowan with a projected average production of 35,230 ounces of gold per year over a five-year mine life at an average grade of 8.0 grams per tonne.

The drilling campaign, which is fully funded, will include both infill and conversion drilling. It focuses on Veins 001 and 004, which already contribute the majority of the project's indicated resources, as well as Veins 006b and 013, which are being evaluated for potential inclusion in future mine planning. The purpose of this program is to convert inferred resources to the Indicated category and gather data needed for a planned Pre-Feasibility Study (PFS) that will evaluate joint development of the Rowan and Madsen projects using shared infrastructure.

According to the company, Veins 006b and 013 were not included in the original mine plan due to limited sampling from historic drilling, which may have understated the mineral resource potential. The new HQ core drilling will address previous data gaps and could enable the inclusion of these veins in the PFS.

In a news release, President and CEO Shane Williams said, "The drilling at Rowan not only aims to increase confidence in the existing mineral resource but will also provide the physical core material needed to complete advanced metallurgical and geotechnical studies ahead of the planned combined PFS."

The Rowan project is moving toward Advanced Exploration status, with permitting targeted for 2027. West Red Lake Gold is pursuing designation under Ontario's "One Project, One Process" permitting framework, which aims to expedite regulatory timelines for qualifying mining projects.

Central Banks Steady the Course as Gold Surges in October

Gold's historic rally in October underscored the growing influence of central bank demand, global uncertainty, and shifting monetary dynamics. With prices up 123% over the past two years, according to commentary by Anthony Keane on October 10, gold outpaced most other asset classes during a time of declining interest rates, geopolitical instability, and heightened demand for finite resources.

Kyle Rodda of Capital.com noted that "the supply of money grows at a much faster pace than we can pull gold out of the ground," while Tony Catt of Catapult Wealth pointed to continued official sector accumulation, describing gold as "an asset class where there is a lot of central bank buying." UBS described sentiment as broadly optimistic, stating it was "hard to find anyone who isn't a gold bull." Even so, historical data from Dimensional Fund Advisors served as a reminder of gold's volatility, with positive annual returns occurring in just over half of the years since 1980.

Stanley rated the stock Outperform with a price target of CA$1.75 per share, representing a potential upside of more than 86% from the stock's price at the time of publication.

Despite a brief pullback reported on October 21 from Business Today, when gold futures slipped 0.24% to US$4,349.24 per ounce and silver dropped 1.72% to US$50.50, analyst Michael Maloney suggested this was a pause rather than a reversal.

He cited long-term concerns over currency debasement and sovereign debt, calling gold and silver "monetary anchors in a world adrift."

Seasonal demand provided further support. Festive buying in India during Diwali contributed to price strength in the final quarter, reinforcing gold's dual role as a cultural and financial safe haven.

On October 27, VON GREYERZ released a video discussion titled The 3 Foundations of Secure Gold Ownership, where partner Matt Piepenburg urged physical gold storage outside the traditional banking system. He pointed to Switzerland and Singapore as examples of stable jurisdictions and cautioned against the risks posed by legal frameworks like the EU's Bank Recovery and Resolution Directive, which allows depositor assets to be used in bail-ins. Piepenburg also emphasized the broader themes of financial repression, capital controls, and the increasing relevance of tangible assets in a digitizing world.

Strong Ratings Support Ramp-Up Strategy at Madsen and Rowan

On October 7, Matthew O'Keefe of Cantor Fitzgerald highlighted a 34% quarter-over-quarter increase in gold production during Q3 2025, with 7,055 ounces produced from 35.7 kilotonnes of ore at an average grade of 5.4 grams per tonne gold. He noted that key initiatives such as shaft skipping and underground waste storage were progressing on schedule and expected to support further increases in throughput and cost efficiency.

O'Keefe stated, "We continue to value WRLG on an equally weighted 0.8x NAV/6.0x 2026e CFPS basis, driving our price target of CA$1.80 per fully diluted share (unchanged). Our Buy rating is unchanged." He added that the stock continued to offer value, trading at a 0.4x NAV compared to peers trading between 0.8x and 1.0x.

Taylor Combaluzier of Red Cloud Securities issued a report on October 8, noting that West Red Lake had resumed operations at Madsen ahead of schedule and was actively ramping up production.

Combaluzier wrote, "Madsen is on track to reach targeted output levels in early 2026," and pointed to the company's underground waste storage improvements as a key operational advantage. The analyst also highlighted that 7,055 ounces of gold produced in the quarter were sold at an average price of US$3,456 per ounce, generating CA$33 million in gross proceeds.

He maintained a Buy rating and assigned a revised price target of CA$2.30 per share, based on a discounted cash flow model that incorporates both Madsen and Rowan. "The charity FT funds will support PFS-level work at Rowan, including infill drilling, engineering, and environmental work," he added.

On October 9, Craig Stanley of Raymond James cited the company's ongoing production ramp-up and strong assay results from the Austin Zone as positive indicators. Stanley highlighted intercepts including 7.75 meters at 139.45 grams per tonne gold, with a sub-interval of 2 meters grading 532.25 grams per tonne. He noted that the intercepts were aligned with existing plunge lines at depth and demonstrated strong continuity over 600 meters.

Stanley rated the stock Outperform with a price target of CA$1.75 per share, representing a potential upside of more than 86% from the stock's price at the time of publication.

Building Momentum Through Shared Infrastructure and Strategic Drilling

The Rowan drill program marks a pivotal step toward West Red Lake Gold's strategy of consolidating operations between Rowan and its nearby Madsen Mine. The planned combined PFS, expected in 2026, will assess the potential for an integrated development model, allowing for shared infrastructure and joint mine planning. According to company materials, the Rowan Project's toll-milling model PEA presented a post-tax net present value of US$125 million with a 42% internal rate of return, based on a gold price of US$1,800 per ounce.

Rowan is one of several near-term growth drivers in West Red Lake Gold's portfolio. As of June 30, 2025, the company reported CA$24 million in cash and indicated that its flow-through capital would help advance Rowan to pre-feasibility level by mid-2026. The permitting path has been outlined through to potential construction in 2028. Company materials also highlight that the Rowan vein system remains open at depth and along strike, with the highest-grade intercept — 70.8 grams per tonne gold over 8.3 meters — drilled during 2023, underscoring the project's expansion potential.

With permitting frameworks becoming more streamlined under Ontario's new regulatory approach, the Rowan project is positioned within a jurisdiction aiming to support responsible mine development. The work underway is intended to improve confidence in the resource model, clarify mine design scenarios, and provide the foundation for future operational decisions.

Ownership and Share Structure ¹

Strategic investor Sprott Resource Lending Corp. holds about 7% of West Red Lake Gold.  Institutions own about 12%, while management, insiders, and advisors hold around 2%. The remaining shares are held by retail investors.

The company's market capitalization is CA$362 million, with a 52-week stock price range of CA$0.52 - CA$1.18.