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Gold Co. to Keep Ramping Up Mine Operations Through H2/25

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Source: Taylor Combaluzier 07/01/2025

West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) is well-positioned to “take advantage of the robust gold price environment,” noted a Red Cloud Securities report.

West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) will continue to ramp up processing and production through H2/25 at its 100%-owned Madsen mine in Red Lake, Ontario, reported Taylor Combaluzier, vice president and mining analyst, Red Cloud Securities, in a June 26 research note.

“The company has rapidly worked to turn around the asset since acquiring it in 2023 and can now take advantage of the robust gold price environment,” Combaluzier wrote.

Red Cloud maintained its CA$2.50 per share target price on the emerging gold producer, trading at the time of Combaluzier’s report at CA$0.88 per share, the analyst noted. From that price, the return to target is 184%.

West Red Lake Gold remains a Buy.

Recap of Ramp-Up So Far

Combaluzier reported that the company started its ramp-up on May 11, initially feeding the mill sill material that had been stockpiled during the bulk sampling program. This material, of lower grade than stope material, was mined during level access development.

West Red Lake Gold began incorporating stope material in early June. As this higher-grade material has been used, the mill head grade has improved. The average gold grade increased to about 6.5 grams per ton (6.5 g/t) between June 12 and 15 from about 3 g/t between June 1 and 2. (The average life-of-mine head grade in the prefeasibility study [PFS] is 8.16 g/t gold, for about 67,600 ounces per year of gold production over 7.25 years.)

West Red Lake Gold primarily has been sourcing mined tons from South Austin and McVeigh and will continue to do so throughout the year. These two zones host about 25% and about 5% of Madsen’s Indicated and Inferred contained metal. Mill throughput has averaged 650 tons per day (650 tpd), and gold recoveries have averaged about 95%. These figures compare to ones outlined in the PFS of 800 tpd and 95.7%.

Recently West Red Lake Gold shut down the mine for 40 hours and the mill for 52 because of a fatality but since has resumed operations.

Along with ramping up, the company has been drilling, too, aiming to expand and define high-grade lenses at South Austin. So far this year, it has completed 38,393 meters (38,393m) of definition drilling. Of this total, 19,904m were done in Q2/25.

Thoughts About Madsen

Combaluzier shared Red Cloud’s expectations for Madsen in the future. One is that throughput and recoveries should increase as mining ramps up.

With a favorable gold market, West Red Lake Gold should be able to develop larger stopes and use lower-cost mining methods, specifically cheaper longhole stoping versus more expensive mechanized cut and fill. This way, the company could mine more of the resource and need less access development per ounce, thereby resulting in more efficient mining and reduced costs.

Longer term, West Red Lake possibly could incorporate the Fork and Rowan deposits into the mine plan. Rowan may be one of the first deposits to act as a spoke to the Madsen hub in a potential hub and spoke model. Like Rowan, Fork hosts potentially mineable high-grade tons near workings and near surface as well.

As far as economics of Madsen, according to the PFS, at a US$2,200 per ounce gold price, the project should generate an after-tax net present value discounted at 5% of CA$315 million (CA$315M), an internal rate of return of 255% and a less than one-year payback.

What to Watch For

Combaluzier noted three key catalysts for West Red Lake Gold. More results of infill and regional drilling are to come and will be reported on an ongoing basis. Progress with the Madsen mine ramp-up is to continue. Commercial production is slated for Q4/25.

Stock Specifics

Combaluzier reported that West Red Lake Gold has 343.5 million (343.5M) basic shares outstanding and 533.20M diluted shares outstanding. Its market cap is CA$302.3M. Its 52-week range is CA$0.52–0.98 per share.

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Important Disclosures:

  1. West Red Lake Gold Mines Ltd is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  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
  3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Disclosures for Red Cloud Securities, West Red Lake Gold Mines Ltd., June 26, 2025

Disclosure Requirement Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Canadian Investment Regulatory Organization (CIRO). Red Cloud Securities registration as an Investment Dealer is specific to the provinces of Alberta, British Columbia, Manitoba, Ontario, Quebec, and Saskatchewan. We are registered and authorized to conduct business solely within these jurisdictions. We do not operate in or hold registration in any other regions, territories, or countries outside of these provinces. Red Cloud Securities bears no liability for any consequences arising from the use or misuse of our services, products, or information outside the registered jurisdictions. Part of Red Cloud Securities Inc.’s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services. Red Cloud Securities Inc. has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document. Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report. Company Specific Disclosure Details Company Name Ticker Symbol Disclosures West Red Lake Gold Mines Ltd. TSXV:WRLG 1,2 1. The analyst has visited the head/principal office of the issuer or has viewed its material operations. 2. The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit. 3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services for the issuer. 4. In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or an analyst involved in the preparation of the research report has provided services other than in the normal course investment advisory or trade execution services to the issuer for remuneration. 5. An analyst who prepared or participated in the preparation of this research report has an ownership position (long or short) in, or discretion or control over an account holding, the issuer’s securities, directly or indirectly. 6. Red Cloud Securities Inc. and its affiliates collectively beneficially own 1% or more of a class of the issuer’s equity securities. 7. A partner, director, officer, employee or agent of Red Cloud Securities Inc., serves as a partner, director, officer or employee of (or in an equivalent advisory capacity to) the issuer. 8. Red Cloud Securities Inc. is a market maker in the equity of the issuer. 9. There are material conflicts of interest with Red Cloud Securities Inc. or the analyst who prepared or participated in the preparation of the research report, and the issuer. Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions. Recommendation Terminology Red Cloud Securities Inc. recommendation terminology is as follows: • BUY – expected to outperform its peer group • HOLD – expected to perform with its peer group • SELL – expected to underperform its peer group • Tender – clients are advised to tender their shares to a takeover bid • Not Rated or NA – currently restricted from publishing, or we do not yet have a rating • Under Review – our rating and target are under review pending, prior estimates and rating should be disregarded. Companies with BUY, HOLD or SELL recommendations may not have target prices associated with a recommendation. Recommendations without a target price are more speculative in nature and may be followed by “(S)” or “(Speculative)” to reflect the higher degree of risk associated with the company. Additionally, our target prices are set based on a 12-month investment horizon. Dissemination Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on www.redcloudsecurities.com via login and password. Analyst Certification Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

( Companies Mentioned: WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO, )


Source: https://www.streetwisereports.com/article/2025/07/01/gold-co-to-keep-ramping-up-mine-operations-through-h2-25.html


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