West Red Lake Pre-Feasibility Study indicates 7-year life for Madsen Mine restart

By Kevin Vincent

“West Red Lake Gold has worked intensely over the last 16 months to de-risk the project and define a realistic, achievable plan for restarting the Madsen Mine,” said Shane Williams, President and CEO. “This PFS reflects a robust, high-grade operation with nearly $400 million in post-tax free cash flow over a 7-year mine life.

West Red Lake Gold Mines Ltd. has released the results of its pre-feasibility study (PFS) for the restart of its 100%-owned Madsen Mine project in the Red Lake Gold District of Northwestern Ontario. The PFS, prepared in accordance with National Instrument 43-101, highlights the strong economic potential and advanced readiness of the high-grade gold mine, which is set to restart production in Q2 2025.

PFS Highlights

• Post-tax NPV (5%): $315 million at a long-term gold price of US$2,200 per ounce.

• High-Grade Mine: Diluted head grade of 8.2 g/t gold.

• Average Annual Production: 67,600 ounces of gold over a 7.2-year mine life.

• Operating Costs: Total operating cost of US$919 per ounce; all-in sustaining cost (AISC) of US$1,681 per ounce.

• Strong Cash Flow: Average annual free cash flow of $69.5 million.

• Construction Status: 21 km of underground development and key infrastructure projects are near completion.

• Production Start Date: Q2 2025.

The PFS leverages 16 months of underground operations and previous mill activity, resulting in a study based on realized costs for most operating metrics.

“With low initial capital requirements and significant upside potential, Madsen is a rare opportunity in the high-grade gold mining space. Our next steps include advancing exploration to tap into the additional 1.1 million ounces of indicated resources outside the current mine plan and identifying new high-grade zones that could extend the mine’s life and enhance returns.”

Upside Potential

The Madsen Mine project currently hosts probable reserves of 1.823 million tonnes grading 8.16 g/t gold, containing 478,000 ounces of gold. The project also includes an indicated resource of 1.65 million ounces and an inferred resource of 366,200 ounces.

Opportunities to extend the mine’s life include:

1. Higher Gold Price Cut-Offs: Increasing the reserve cut-off price to US$1,900 per ounce could add two years to the mine plan.

2. Exploration of Distal Resources: Drilling untested areas could convert additional resources into reserves.

3. Inclusion of Other Deposits: Incorporating the Fork deposit and the recently discovered Upper 8 Zone into the mine plan could provide additional high-grade resources.

The mine plan currently utilizes only 800 tonnes per day of the mill’s 1,089 tpd capacity, offering further expansion potential.

Mining and Processing Overview

The Madsen Mine will operate as a mechanized underground operation, combining mechanized cut-and-fill (59%) and long-hole stoping (41%). Ore will be moved via a combination of ramp trucking and shaft skipping, supported by extensive dewatering and ventilation systems.

The processing plant, which includes crushing, grinding, and CIP recovery, is expected to achieve an average gold recovery of 95.7%. A hydraulic backfill system will pump tailings into underground stopes, providing an environmentally friendly tailings solution and enhancing geotechnical stability.

Next Steps

The PFS was prepared by a consortium of independent experts, including SRK Consulting and Mining Plus. The Company plans to advance bulk sampling, finalize mine rehabilitation, and begin production mining in Q2 2025. Exploration drilling will continue in 2025 to identify and define new high-grade zones near existing infrastructure.

About West Red Lake Gold Mines

West Red Lake Gold Mines Ltd. is focused on advancing the Madsen Mine and its 47 km² land package in Ontario’s Red Lake District. The company also owns the Rowan Project, which hosts indicated resources of 195,746 ounces at 12.78 g/t gold. With its strategic assets and robust development plan, West Red Lake Gold aims to become a leader in high-grade gold production in Canada.

Tags: Northern Ontario / Operational Updates / Gold / All Articles