West Red Lake Gold Mines Pours First Gold Bar and Reports Promising Drill Results

West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) has made significant strides in its gold production efforts, successfully pouring its first gold bar from the Madsen Mine mill cleanup and recovery program. This milestone is part of the company's broader strategy to restart operations at the high-grade Madsen Mine in Ontario's Red Lake District, aiming for gold production by 2025.

The Madsen Mine is a notable site within the Red Lake District, a region renowned for its rich gold deposits, having produced 30 million ounces of gold to date. The mine boasts a high-grade gold resource of 1.65 million ounces at 7.4 grams per ton (g/t) across 6.9 million tonnes (Indicated), and an additional 366,000 ounces at 6.3 g/t (Inferred). The site is well-equipped with significant infrastructure, including an expandable 800 tonne per day processing mill, underground development, and a water treatment plant.

The first gold bar was poured after the company recovered gold through the Madsen Mine mill cleanup and recovery program, initiated in late 2023. The program's initial phase yielded 415 ounces of gold, valued at approximately $750,000. In its second phase, the company processed additional material through a gravity circuit to separate coarse gold, which was then sent to a large-scale refinery to recover gold fines. The refinery at the Madsen mill was utilized to pour the recovered coarse gold into a gold bar on site, validating the operational readiness of the equipment after 18 months of inactivity.

Shane Williams, CEO of West Red Lake Gold Mines, emphasized the importance of this achievement: “Seeing the refinery in action was another check mark on our list of Operational Readiness requirements. Starting or restarting a mine requires reliable operations from multiple facilities and systems. With over 100 employees at site, constant underground development and drilling, and multiple capital projects underway or in planning, we are establishing the systems that support smooth mine operations.”

In addition to this milestone, West Red Lake Gold Mines Ltd. has reported promising drill results from its ongoing activities at the Madsen Mine. Recent findings include 16.69 grams per tonne gold over 8.0 meters and 7.48 grams per tonne gold over 12.0 meters at the South Austin Zone. This area currently holds an Indicated mineral resource of 474,600 ounces of gold with a grade of 8.7 grams per tonne, and an additional Inferred resource of 31,800 ounces grading 8.7 g/t gold.

In May, the company also announced significant drill results at the North Austin Zone, including 37.33 grams per tonne gold over 2.79 meters and 5.26 grams per tonne gold over 9.0 meters. These results suggest a new high-grade gold area extending the current Madsen resource to the northeast, with the drilling program aiming to further expand this zone.

These developments come at a time when gold prices are hovering below their recent high of $2,400 per ounce, influenced by record gold buying in China. Gwen Preston, VP of Investor Relations at West Red Lake Gold Mines, highlighted that Chinese consumers and retail investors are reconsidering their financial strategies due to inefficacy in traditional avenues like real estate, the stock market, and interest rates as well as the worst deflation in 15 years.

West Red Lake Gold Mines Ltd. is on track to meet its targeted restart timeline in 2025 and recently closed a public offering, raising approximately C$33 million. The company sold 31.9 million regular units and 11.2 million charity units, with Raymond James Ltd. leading the offering. This funding will support the company's ongoing operations and development projects.

For more information about West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF), visit their official page.