West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) has resumed production at its Madsen Gold Mine in Red Lake, Ontario, according to an updated research note by Craig Stanley of Raymond James on October 9.
The mill produced 7,055 ounces of gold in the third quarter of 2025, up from 5,260 ounces in the second quarter, the analyst noted.
Management anticipates declaring commercial production and providing 2026 guidance in the first quarter of 2026, he said.
Results From Austin Zone
On the day of the note, the company released assay results from underground drilling in the Austin Zone.
Austin is the largest zone at Madsen, with a total resource of 1 million ounces (Moz) at 6.86 grams per tonne gold (g/t Au), including an indicated 914,000 ounces at 6.9 g/t Au. It is the second-largest zone by reserves, with 184,000 ounces at 7.37 g/t Au.
Highlights from today’s announcement include:
- 7.75 meters at 139.45 g/t Au, including 2 meters at 532.25 g/t Au
- 8.7 meters at 74.7 g/t Au
- 7.45 meters at 18.31 g/t Au
True thickness is expected to exceed 70% of the downhole thickness, the analyst wrote.
The holes were drilled from the 12 Level at approximately 600 meters depth. The high-grade intercepts align with a similar plunge line as those in South Austin, suggesting up to 600 meters of continuity.
The most recent assays from South Austin, announced in August, include 6.9 meters of 36.85 g/t Au, 2 meters of 92.39 g/t Au, 15.45 meters of 8.79 g/t Au, and 6.75 meters of 17.31 g/t Au.
Valuation
Stanely rated the stock Outperform with a CA$1.75 per share target price, a more than 86% return from the CA$0.94 per share at the time of writing.
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Important Disclosures:
- 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.
- 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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