Gold Hits Over 200 G/T in Ontario Drill Program, Supporting Mid-Year Restart

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West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) has reported new high-grade gold intercepts from underground drilling at its 100% owned Madsen Mine in the Red Lake Gold District of Ontario. The results, released on April 1, 2025, include notable intervals such as 23.81 grams per tonne (g/t) gold (Au) over 5.4 meters (m), 30.16 g/t Au over 4.3m, and 12.43 g/t Au over 10.5m from the Austin Zone, one of several high-priority areas currently being targeted for mine restart.

The Austin Zone hosts an Indicated mineral resource of 914,200 ounces grading 6.9 g/t Au and an Inferred resource of 104,900 ounces grading 6.5 g/t Au. West Red Lake Gold recently filed a Pre-Feasibility Study (PFS) for the Madsen Mine in February 2025 and anticipates restarting gold production mid-year. The company has been conducting definition drilling to increase confidence in mineral resources and support mine planning. According to Shane Williams, President & CEO,  in the company's news release, "High grade panels in Austin, like the one highlighted in this update, are currently within the life-of-mine plan and are expected to deliver meaningful, high-margin tonnes during the first eighteen to twenty-four months of production."

The latest drilling campaign targeted continuity and tonnage in deeper areas of the deposit, which had not been accessed by previous operators. Significant intersections include 0.5m at 212.13 g/t Au (Hole 022), 1.1m at 106.10 g/t Au (Hole 050), and multiple multi-meter intervals exceeding 10 g/t Au. True thicknesses are estimated to be 70% or more of the reported downhole lengths.

All drill core samples were analyzed by SGS Natural Resources using fire assay and atomic absorption spectroscopy, with additional gravimetric or metallic screen analyses for samples with visible gold. The Madsen Mine is fully permitted and transitioning into active production. 

The broader Madsen deposit includes additional zones such as South Austin, McVeigh, and 8 Zone. The total Indicated resource at the mine is 1.65 million ounces at 7.4 g/t Au, with an Inferred resource of 0.37 million ounces at 6.3 g/t Au. The deposit also contains a Probable reserve of 478,000 ounces grading 8.16 g/t Au based on a US$1,680/oz gold price.

Gold Surges to Record Highs Amid Bullish Forecasts and Safe-Haven Demand

According to a March 26 update from GoldFix, Bank of America raised its forecast for gold to US$3,500/oz, stating, "We believe gold could rally to US$3,500/oz if investment demand increases by 10%." Goldman Sachs also revised its outlook, increasing its year-end 2025 target to US$3,300/oz, with a broader forecast range of US$3,250–3,520/oz. The bank added that "in extreme tail scenarios, gold could plausibly trade above US$4,200/oz by end-2025 and exceed US$4,500/oz within the next 12 months."

In a March 27 commentary, Egon von Greyerz wrote that US$3,000/oz had long been "an obvious magnet for gold" but was "not even a price where gold will consolidate." He pointed to long-term macroeconomic risks and stated that gold's performance had outpaced equities over the past 25 years, with the Dow-to-Gold ratio falling from 45 in 2000 to 14 in March.

O'Keefe maintained a Buy rating on the stock and reaffirmed Cantor Fitzgerald's one-year price target of CA$1.50 per share, representing a potential return of 159% from the trading price at the time of the report.

According to a March 31 report from Excelsior Prosperity, the June gold futures contract finished the session at US$3,150.30/oz, marking an all-time high on both the monthly and quarterly charts. Spot gold prices also reached new levels, ending March at US$3,123.72/oz and continuing higher in the next trading session to US$3,142/oz.

The report highlighted discrepancies in futures contract tracking across charting platforms but confirmed that "gold has been north of US$3,100/oz since March 27" on most major financial data services. By April 1, gold was trading near US$3,174/oz, with analysts noting the chart was "starting to go parabolic."

This closing performance capped off a historic quarter for gold, reflecting not only strong physical demand but also a broader shift in sentiment toward the metal as a safe-haven asset. The consistent gains in both futures and spot markets confirmed that gold had maintained upward pressure across different trading platforms, reinforcing confidence in its upward trajectory heading into the second quarter.

Reuters also reported on April 1 that spot gold had reached a new all-time high of US$3,148.88/oz, as investors sought safe havens amid uncertainty around U.S. trade policy and potential tariffs. "The fundamental backdrop remains strong for gold," Capital.com analyst Kyle Rodda stated, citing increased allocation to the metal and concerns over the dollar's reserve status.

Experts Signal Confidence in West Red Lake's Production Path and Financial Strength

West Red Lake Gold Mines Ltd. received multiple positive assessments from analysts and industry commentators as it continued to advance the Madsen Gold Mine toward full production. According to a March 5 report from Robert Sinn of Goldfinger Capital, the company demonstrated a solid financial position with CA$31 million in cash and access to an additional US$20 million in debt financing.

Sinn wrote that the Madsen operation was expected to become self-sustaining once it reached 400 tonnes per day, referencing data from the company's pre-feasibility study. He also noted that the CA$20 million financing round was significantly oversubscribed, which he viewed as a reflection of strong investor interest.

On March 10, Chen Lin of What Is Chen Buying? What Is Chen Selling? expressed further confidence in the company's financial trajectory. 

On March 10, Chen Lin of What Is Chen Buying? What Is Chen Selling? expressed further confidence in the company's financial trajectory. Lin stated that the recent financing could be the "last financing" needed before West Red Lake achieves positive cash flow. He added that he was personally acquiring shares from the open market at around CA$0.60, reinforcing his belief in the company's near-term prospects.

In a March 19 research note, Matthew O'Keefe of Cantor Fitzgerald reported that West Red Lake had restarted the mill at Madsen on March 10 and remained on track for a full operational restart by midyear. He described the ongoing processing of low-grade stockpiles as smooth and without operational issues, and highlighted that the upcoming bulk sample campaign was "an important de-risking exercise." O'Keefe maintained a Buy rating on the stock and reaffirmed Cantor Fitzgerald's one-year price target of CA$1.50 per share, representing a potential return of 159% from the trading price at the time of the report.

Upcoming Catalysts and Development Outlook

West Red Lake Gold's 2025 plan for Madsen includes multiple operational and technical milestones designed to transition the mine into steady-state production. The company's investor presentation outlines the completion of a bulk sample in March 2025, which is expected to validate the planned grade and tonnage from two key resource areas. Results are expected in April. 

The company has secured US$35 million in debt financing from Nebari and raised an additional US$27 million in equity in November 2024 to fully fund restart efforts. A pre-feasibility study that West Red Lake describes as a "base case" for what they expect to deliver at the Madsen Mine confirmed a mine life of 7.25 years, with average annual production of 67,600 ounces of gold and a diluted head grade of 8.2 g/t Au. Initial capital requirements stood at US$44 million in early January, and average all-in sustaining costs (AISC) are projected at US$1,681 per ounce. 

Key infrastructure projects include the recent on-schedule completion of the East Portal's Connection Drift, enabling access for 60-tonne trucks and eliminating daylight trucking restrictions. Additional capital projects completed in the last six months such as the tailings dam lift, camp construction, primary crusher installation, and shaft rehabilitation are intended to improve operational efficiency and reduce costs. 

A Preliminary Economic Assessment (PEA) is planned for later in 2025 to capture the potential of including the nearby Rowan project, which hosts 195,746 indicated ounces at 12.8 g/t Au plus 115,719 inferred ounces at 8.76 g/t Au.  

In addition, West Red Lake Gold is aiming to increase mill throughput beyond the current 800 tonnes per day (tpd) permit, based on historical performance of 1,089 tpd in 2020–2021. The mill's recovery rate is projected to remain at 95.7%, with the potential for increased daily output through permit amendments. -

West Red Lake Gold's operational strategy is underpinned by a "definition drilling-first" approach, reducing modeling risk by tightening drill spacing from 20 meters to 7 meters.

This effort supports stope design and short-term mine planning, which will be updated on a rolling 15-month basis. The focus on geostatistical modeling and proactive engineering is intended to reduce risks commonly associated with new underground gold operations.

With all major permits in place, infrastructure built or underway, and a conservative mine plan validated by a third-party technical report, the Madsen Mine remains a near-term gold production asset with expansion potential across the broader Red Lake land package.