Impact: Neutral
West Red Lake Gold (WRLG) provided an update on development activities at its 100%-owned Madsen Mine in the Red Lake Gold District of Northwestern Ontario. We anticipate the forthcoming PFS results (Q4/24) to be robust given the study should utilize real costing, final engineering and a detailed mine plan. This is being supported by past-operating data (operated only two years ago), test mining, an ongoing definition drill program, and a detailed mine design for the first 18 months (>100k oz Au). WRLG plans to have 24 months of stope-defined mineable inventory prior to restart. We believe West Red Lake is making good progress toward restarting the Madsen Mine (targeted for mid-2025). Given its high-grade resource base, deposit and mill expansion potential, existing infrastructure, and relatively short timeline to production, we continue to believe that Madsen offers the potential for near-term cash flow (read initiation report).
