As highlighted in a recent article on Crux Investor, West Red Lake Gold Mines (Ticker: WRLG.v or WRLGF for US investors) is rapidly advancing towards the restart of gold production at its Madsen mine in Ontario’s prolific Red Lake district, a region well-known for its high-grade gold deposits.

WRLG has dedicated 15 months to de-risking the project after prior challenges faced by previous operators, ensuring a more grounded approach with a focus on proven data.

WRLG has the advantage of leveraging around $350 million in sunk capital from prior investments, which include a mill that once operated at 1,000 tonnes per day (above its 500 tpd design), a tailings facility, and extensive underground infrastructure. 

This reduces the financial burden of restarting the mine, allowing the company to prioritize critical areas for a smooth operational launch.

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WRLG’s team has been actively working on underground development and drilling, with 120 personnel on-site. 

This operational experience provides accurate data on cost factors such as drilling and fuel, boosting confidence in the upcoming pre-feasibility study (PFS), which is expected to be finished by the end of the month.

This report is anticipated to provide clarity on the mine’s potential economics and establish a strong foundation for the company’s restart strategy. 

In a show of market confidence, WRLG recently secured $29 million in funding, primarily from new investors, even in a challenging financing climate. 

This capital supplements the $150 million raised since the current leadership assumed control, reinforcing the company’s financial position to execute its restart strategy effectively.

With economic uncertainty driving gold’s safe-haven appeal and rising operational costs across the sector, WRLG’s ability to leverage existing infrastructure positions it favorably in the market. 

The Madsen mine, with its significant past investment and strategic revitalization under seasoned leadership, presents a promising opportunity for investors seeking exposure to a high-grade asset in a low-risk environment.

Full article: https://www.cruxinvestor.com/posts/west-red-lake-gold-mines-poises-for-successful-restart-of-madsen-mine

Posted on behalf of West Red Lake Gold Mines Ltd.