West Red Lake Gold Mines Ltd.

Company Data | Introduction | Projects in Hand | Management
News Update | Chinese

Company Data

Introduction

West Red Lake Gold Mines is a publicly-traded developer focused on its flagship Madsen Mine in the Red Lake Gold District of Ontario. Madsen operated successfully from 1938 to 1972, producing 2M oz. gold from rock averaging 9 g/t gold. Arecent restart failed because that team's lack of experience building mines led to significant mining challenges and high operating costs. West Red Lake Gold's team, which has deep mining experience, bought Madsen because they saw the opportunity to remedy those errors and use access to capital and the project's established infrastructure and permits to rapidly turn Madsen into a high-grade Canadian gold mine.

“Our goal is to continue to build high-grade resources in one of the richest gold districts in Canada. Every mining company starts with one good mine.” – Frank Giustra, Major Shareholder

Projects in Hand

Madsen Gold Project

• The Company's fully-permitted, debt-free Madsen gold mine is in one of the richest greenstone belts in Canada
• The flagship Madsen asset commanded a peak value of over C$1 Billion under the previous company.
• Significant infrastructure in place with over C$350 million invested to date.
• Brand-new 800+ tonne per day mill, underground mine, tailings facility and water treatment plant
• Potential to unlock synergies with its near-by high-grade Rowan Deposit (195 koz Au @ 12.87 g/t₍₂₎)
• Potentially transferable Tax assets
• 1.7Moz at 7.4 g/t Au (Indicated) & 0.4Moz at 6.3 g/t Au (Inferred)₍₁₎
• Currently de-risking asset with systematic underground drilling to increase confidence in and expand the resource, underground development to support drilling and create flexibility and resilience when operations restart, and detailed restart planning including infrastructure projects to support efficient mine operations.
• Unlock value with robust new mine plan developed by experienced operators with strong shareholder support

High Grade 8-Zone

The Company's Potential Game Changer – more than twice the grade of the main resource, the 8 Zone sits at the bottom of the existing shaft and shares encouraging parallels with the High Grade Zone that transformed the nearby Red Lake Mine into a highly profitable operation producing over 500,000 oz. gold annually.

Mineral Resources

• 87,700 Oz at 18 g/t Au Indicated₍₁₎
• 18,200 Oz at 14.6 g/t Au Inferred₍₁₎
• Remains open up and down plunge

Drilling 8 Zone from underground planned in Q2 2024

Path Forward – Madsen Gold Project

Overall Focus:

• Define a critical mass of high-grade Resources
• Optimize project to focus on sustainable cash flowing operation
• Execute on the Vision

Rowan Gold Project

• 100% owned and operated by West Red Lake Gold Mines. Comprised of 3 past producing mines. (Rowan, Mt. Jamie, and Red Summit)
• Current indicated resources 195 koz Au at 12.87 g/t & inferred resources 115 koz Au at 8.76 g/t₍₂₎ at Rowan Mine. Au extending from surface to 500m depth – deposit remains open in all directions.
• Confirmed mineralized strike length of over 1.5 km and open
• Deposit is within 80 km trucking distance of the Madsen mill.
• NT Zone target with bulk tonnage potential similar to the Dixie project (Great Bear Resources)

(1) Mineral resources are estimated at a cut-off grade of 3.38 g/t Au and a gold price of US1,800/oz. Please refer to the technical report entitled “Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for the PureGold Mine, Canada”, prepared by SRK Consulting (Canada) Inc. and dated June 16, 2023, and amended April 24, 2024 (the “Madsen Report”). The Madsen Resource Estimate has an effective date of December 31, 2021 and excludes depletion of mining activity during the period from January 1, 2022 to the mine closure on October 24, 2022 as it has been deemed immaterial and not relevant for the purpose of the Madsen Report. A full copy of the Madsen Report is available on the Company's website and on SEDAR+ at www.sedarplus.ca.

(2) Mineral Resources are estimated at a cut-off grade of 3.8 g/t Au and using a gold price of US$1,800/oz. Please refer to the technical report entitled “Updated Mineral Resource Estimate for the Rowan Property, Ontario, Canada” dated April 26, 2024 and prepared for WRLG by Sims Resources, LLC. A full copy of the report is available on the Company's website and on SEDAR+ at www.sedarplus.ca.

Management

Management, Directors, and Advisors

Shane Williams​, B.Eng., M.Sc., President & Chief Executive Officer, Director

Prior to joining West Red Lake, Mr. Williams was the Chief Operating Officer for Skeena Resources where he was involved in advancing the past producing Eskay Creek Gold project towards a restart. Between 2013 and 2019 he was Vice President of Operations and Capital Projects at Eldorado Gold where under his leadership the Lamaque Gold project was brought from Preliminary Economic Assessment (PEA) to commercial operation in just 18-months. He also served as Project Director for Eldorado Gold for their Greek assets and was responsible for the development of both the Skouries and Olympias projects which together had a capex of over US$1B. Mr. Williams also has extensive open-pit development experience from his time working with Rio Tinto at the Iron Ore Company of Canada and at Kaunis Iron in Northern Sweden where he, as Project Director, was responsible for the successful staged development of this large, open-pit iron ore operation from early exploration into commercial operation over a rapid 3.5 year period.

Harpreet Dhaliwal, CPA, CA,Chief Financial Officer

Ms. Dhaliwal is a highly regarded and accomplished financial executive with 16 years of extensive experience in the resource sector. Most recently, Ms. Dhaliwal served as the Chief Financial Officer at NexGen Energy Ltd.

Will Robinson, P.Geo., Vice President of Exploration

Mr. Robinson is an exploration and mining professional with 19 years of industry experience, primarily in precious metals, planning and successfully implementing exploration programs at all stages of advancement, from remote grassroots field programs to advanced-stage resource development projects. Mr. Robinson was most recently Exploration Manager for Coeur Mining, Inc.

Jason Billan, MBA, Vice President of Corporate Development

Mr. Billan has spent 15 years in the mining sector, with an emphasis on corporate development, strategy, financing, and executive leadership. Most recently, Mr. Billan spent time at Wheaton Precious Metals International before being appointed CEO of Gatling Exploration in 2020, which rapidly advanced its Larder project in Ontario before being sold to mid-tier silver miner MAG Silver in 2022.

Gwen Preston, Vice President of Investor Relations

Maurice Mostert, P.Eng., Vice President of Technical Services

Derek Teevan, Vice President of Community Affairs

Jasvir Kaloti, Corporate Secretary

Tom Meredith, Executive Chairman, Director

Anthony Makuch, Director

Duncan Middlemiss, Director

Hugh Agro, Director

John Heslop, Director

Susan Neale, Director

Advisors

Robert Mcleod, Shawn Khunkhun, Frank Giustra, Gordon Keep, Alex Deluce, Ryan Weymark, Rob van Egmond

News Update

On October 18, 2024, West Red Lake Gold Mines Ltd. announced that it has agreed with Raymond James Ltd., to increase the size of its previously announced bought-deal financing. West Red Lake will now issue 36,232,000 units of the Company (“Units”) at a price of C$0.69 per Unit for gross proceeds of C$25,000,080 (the “Offering”). Each Unit is comprised of one common share (each a “Common Share”) and one common Share purchase warrant (each whole warrant a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of C$0.90 for a period of 36 months following the closing of the Offering.

The Company has also granted to the Underwriters an over-allotment option to purchase an additional 15% of the base Offering, for additional gross proceeds to the Company of up to C$3,750,012, to acquire Units, Common Shares and/or Warrants (or any combination thereof), at the Underwriters’ discretion, and shall be exercisable by the Underwriters, in whole or in part, for a period of 30 days from and including the closing date.

In all other respects, the terms of the Offering and use of proceeds there from will remain as previously disclosed in the original press release dated October 24, 2024.

On October 17, 2024, West Red Lake Gold Mines Ltd. has secured commitments totalling in excess of $68-million to finance the restart of its Madsen gold mine. Madsen remains on track to recommence production in 2025. The financing package is composed of the following:

• $35-million (U.S.) (approximately $48-million) loan facility with Nebari Natural Resources Credit Fund II LP, bearing interest of SOFR (secured overnight financing rate) plus 8 per cent, with a term of 42 months; a non-binding term sheet has been signed, and closing of the loan facility remains subject to entering into definitive documentation and due diligence;
• $20-million bought deal equity offering of 28,986,000 units of the company at a price of 69 cents per unit led by Raymond James Ltd.

"This finance package provides the capital anticipated to restart the Madsen mine, according to our detailed internal mine plan," said Shane Williams, president and chief executive officer. "Upon closing this $68-million package, along with existing cash on hand, we anticipate the company will be well positioned to complete the Madsen prefeasibility study, the ongoing test mining program, the pro-active capital projects under way at the mine site, and the restart and ramp-up of the mine, including working capital and corporate requirements.

"We worked closely with our partners to develop a finance package that addresses the balance of the capital required for Madsen, as currently estimated in our detailed internal mine plan, and preserves strong upside from the Madsen mine for West Red Lake Gold shareholders."

On October 08, 2024, West Red Lake Gold Mines Ltd. reported the drill results from its 100% owned Madsen Mine located in the Red Lake Gold District of Northwestern Ontario, Canada.

The drill results featured in this news release are focused on the high-grade South Austin Zone, which currently contains an Indicated mineral resource of 474,600 ounces (“oz”) grading 8.7 grams per tonne (“g/t”) gold (“Au”), with an additional Inferred resource of 31,800 oz grading 8.7 g/t Au.

These results follow-up on the significant intercepts previously announced on September 24, 2024, where drilling returned 49.39 g/t Au over 4.48 meters (“m”) and 18.46 g/t Au over 11.2m at South Austin.

The purpose of this drilling was definition within priority areas of South Austin to continue building an inventory of high-confidence ounces to support the restart of production at the Madsen mine, which is expected to commence in H2 2025. The Company expects to complete a pre-feasibility study in support of that restart goal in the coming months.

Shane Williams, President & CEO, stated, “The underground definition drilling program at Madsen has been very successful. The value added from this high confidence, tightly spaced drilling cannot be overstated. Having the opportunity to focus drills on defining an inventory of high confidence ounces well ahead of mine restart provides the team with a huge advantage and allows for incorporating the necessary optionality into the mining schedule ahead of restart, focusing on higher grade and higher tonnage portions of the deposit to help facilitate a smooth, sustainable ramp-up towards full production. It’s also particularly exciting that the team continues to encounter new, previously unrecognized zones of mineralization adjacent to the main deposit in South Austin supporting our belief that Madsen still holds plenty of upside as we continue accessing and drilling off deeper portions of the deposit.”

On October 07, 2024, West Red Lake Gold Mines reported initial drill results from the Upper 8 Target at its 100% owned Madsen Property located in the Red Lake Gold District of Northwestern Ontario, Canada. UPPER 8 HIGHLIGHTS:

• Hole WRL24-002 Intersected 4.1m @ 14.20 g/t Au , from 354.8m to 358.9m, Including 1.3m @ 44.17 g/t Au , from 357.0m to 358.3m.
• Hole WRL24-003 Intersected 1.85m @ 6.33 g/t Au , from 332.45m to 334.30m, Including 0.5m @ 20.63 g/t Au , from 333.8m to 334.3m.

The Upper 8 target is a shallower geologic analog to the well-known high-grade 8-Zone . It is hosted in ultramafic rocks approximately 750 meters up-plunge from the main 8-Zone deposit.

The 8 Zone currently contains an Indicated mineral resource of 87,700 ounces (“oz”) grading 18 grams per tonne gold , with an additional Inferred resource of 18,200 oz grading 14.6 g/t Au .

“For decades, the 8-Zone has been the shiny penny of the Madsen project,” Will Robinson, VP of Exploration told Guy Bennett, CEO of Global Stocks News (GSN). “Highlighted by previous operators, it is geologically similar to the High-Grade Zone that transformed The Red Lake Complex next door to us.”

“The Upper 8 Target sits in the same type of rocks as the 8-Zone, so naturally when we began putting together our regional surface drill program, it was flagged as an area of interest,” continued Robinson. “There is limited drilling in this area, but while reviewing the available data, the team discovered an anomaly that piqued our interest even further.”

On October 02, 2024, West Red Lake Gold Mines Ltd. has released the initial drill results from the Upper 8 target from its 100-per-cent-owned Madsen property, located in the Red Lake gold district of Northwestern Ontario, Canada.

The drill results featured in this news release are focused on the Upper 8 target, which is a shallower geologic analog to the well-known high-grade 8 zone. The Upper 8 target is hosted within the same lithologic unit (Russet Lake ultramafic) approximately 750 metres (m) up-plunge from the main 8 zone deposit. Its location in ultramafic rocks, its style of mineralization and its exceptionally high grades make the 8 zone geologically unique from the main Madsen deposit. The 8 zone currently contains an indicated mineral resource of 87,700 ounces (oz) grading 18 grams per tonne (g/t) gold (Au), with an additional inferred resource of 18,200 oz grading 14.6 g/t Au.

These are the first drill results announced from a continuing 10,000 m surface exploration drilling program designed to test a number of high-priority targets across the Madsen property. Details and target descriptions for this program were outlined in a previous news release dated Aug. 10, 2024. Upper 8 highlights:

• Hole WRL24-002 intersected 4.1 m at 14.20 g/t Au, from 354.8 m to 358.9 m, including 1.3 m at 44.17 g/t Au, from 357.0 m to 358.3 m.
• Hole WRL24-003 intersected 1.85 m at 6.33 g/t Au, from 332.45 m to 334.30 m, including 0.5 m at 20.63 g/t Au, from 333.8 m to 334.3 m.

On September 27, 2024, West Red Lake Gold Mines Ltd. will hold a town hall meeting in Red Lake to engage with community members about the company's plans at the Madsen mine and to recruit new employees.

West Red Lake Gold aims to restart the Madsen mine in 2025. In preparation, the Madsen site is very active: underground, there are two to three development crews active at all times alongside two definition drill rigs, while on surface there are multiple large capital projects happening alongside an exploration drilling program.

"We have been active at the Madsen mine site for over a year and are pushing to restart this mine in 2025," said Shane Williams, president and chief executive officer. "We are keen to host this town hall meeting so we can communicate our plans, hear feedback from the community and spread the word that we will be hiring for multiple positions over the next six months."

On September 26, 2024 West Red Lake Gold Mines reported definition drill results focused on the high-grade South Austin Zone.

“This definition drilling is part of the de-risking process ahead of the mine restart,” Will Robinson, VP Exploration told Guy Bennett, CEO of Global Stocks News (GSN). “We’re targeting the highest grade, highest tonnage areas, prioritising the drill stations based on that ranking.”

“A lot of the existing mineral resource at South Austin is built on historic drilling,” Robinson added. “We’ve been able to incorporate that data into the model because we have all the assay certificates, which is not typical for long-lived projects, but speaks to the quality and completeness of our database.”

“The tight drill spacing enables us to get a much clearer, more detailed picture of the gold grade distribution, allowing us to refine the local resource models ahead of mine design.”

South Austin Zone currently contains an Indicated mineral resource of 474,600 ounces @ 8.7 g/t gold , with an additional Inferred resource of 31,800 @ 8.7 g/t gold.

The purpose of this drilling was definition within priority areas of South Austin to continue building an inventory of high-confidence ounces to support the restart of production at the Madsen mine, which is expected to commence in 2025. The Company expects to complete a pre-feasibility study outlining its restart plans in Q4.

On September 19, 2024, A test mining and bulk sample program is now under way at West Red Lake Gold Mines Ltd.'s Madsen mine, adding a key derisking component to the efforts being made to prepare the mine for a targeted restart in 2025.

"Data and experience are invaluable in mining," said Shane Williams, president and chief executive officer of West Red Lake Gold. "Test mining will provide data on how best to mine at Madsen, bulk samples will allow us to compare modelled and actual mine resources, and the process will give our team another layer of operational experience. As we continue to push towards restarting the Madsen mine in 2025, I am very excited this program is under way."

On September 10, 2024, West Red Lake Gold Mines Ltd. has released drill results from its 100-per-cent-owned Madsen mine, located in the Red Lake gold district of Northwestern Ontario, Canada.

The drill results featured in this news release are focused on the high-grade Austin zone. The Austin zone currently contains an indicated mineral resource of 914,200 ounces grading 6.9 grams per tonne gold, with an additional inferred resource of 104,900 ounces grading 6.5 g/t Au.

The purpose of this drilling was definition within priority areas of Austin to continue building an inventory of high-confidence ounces to support the restart of production at the Madsen mine, which is expected to commence in the second half of 2025. The company expects to complete a prefeasibility study in support of that restart goal in the coming months.

Austin zone highlights:

• Hole MM24D-12-4791-020 intersected four metres at 54.19 g/t Au, from 32 m to 36 m, including one m at 215.61 g/t Au, from 33 m to 34 m.
• Hole MM24D-12-4791-026 intersected 3.53 m at 23.73 g/t Au, from 27.5 m to 31.03 m, including one m at 79.81 g/t Au, from 30.03 m to 31.03 m.

Shane Williams, president and chief executive officer, stated: "The deeper portions of the Austin zone are continuing to return very positive results as we advance the infill drilling programs and increase our confidence in these areas of the mine. Due to limited underground development, the two previous operators were only able to access portions of the Madsen deposit down to around nine level. We are very excited to continue accessing deeper portions of the deposit which were historically mined during a period when gold was only valued at $20 to $40 per ounce. This resulted in very selective mining practices targeting just the core of the system that left behind a lot of mineralization that would be considered high grade by current standards. With gold prices now in excess of $2,500 (U.S.) per ounce, we are taking full advantage of that remnant material and see a lot of upside at depth in Madsen."

On September 06, 2024, West Red Lake Gold Mines Ltd. has released the results of its annual general meeting of shareholders held on Sept. 5, 2024. The company elected seven directors to its board, namely, Tom Meredith, Shane Williams, Anthony Makuch, Duncan Middlemiss, Hugh Agro, John Heslop and Susan Neale.

The shareholders approved all other matters as proposed, including the appointment of MNP LLP, chartered professional accountants, as auditor of the company and approval of the company's stock option plan and the company's restricted share unit, performance share unit and deferred share unit compensation plan.

On September 05, 2024, West Red Lake Gold Mines Ltd. has received conditional approval from the TSX Venture Exchange to list the unsecured gold-linked notes and common share purchase warrants that were previously issued by the company in a private placement of units disclosed in news releases of March 20, 2024, and April 4, 2024. An aggregate of 27,165,631 notes, in an aggregate principal amount of $27,165,631 (U.S.), and 19,287,598 warrants were issued.

The company anticipates that the notes and warrants will commence trading on the TSX-V on or about Sept. 9, 2024, under the symbols WRLG.NT and WRLG.WT.A, respectively. The ISIN (international securities identification number) and the Cusip number of the notes are CA95556LAA94 and 95556LAA9, respectively. The ISIN and the Cusip number of the warrants are CA95556L1351 and 95556L135, respectively.

On September 04, 2024, West Red Lake Gold Mines Ltd. has provided an update on activities at the Madsen mine as the company advances toward its goal of a targeted restart in 2025.

Since acquiring the Madsen mine project last year, the company has completed a site-wide operational assessment to make informed decisions about what surface and underground upgrades would underpin a sustainable mining operation.

"I have led teams through many mine builds and each build reinforced the lesson that operational readiness is essential to a successful mine startup," said Shane Williams, president and chief executive officer. "Operational readiness spans the entirety of a mine, from infill drilling to stope and development planning to budgeting to maintenance and procurement systems to strong staffing and an active safety culture and much more.

"Since the Madsen mine was acquired with an abundance of infrastructure, our focus has been understanding what to add to increase efficiency and optionality. The team is doing impressive work on these key deliverables and I am pleased to provide this update on the work under way at site."

On August 22, 2024 West Red Lake Gold Mines Ltd. announced the start of a 2024 surface drilling program across its 100% owned Madsen Mine Property located in Ontario, Canada.

“After completing a thorough review of the available geologic data for the Madsen property, our team has generated some new exploration concepts and identified a number of highly prospective targets that share characteristics with known resource areas,” stated Will Robinson, VP of Exploration in the August 20, 2024 PR.

“We had originally planned to do follow up drilling at Rowan, where we have high confidence ounces and a strategy to grow the resource,” Robinson told Guy Bennett, the CEO of Global Stocks News (GSN). “But given the time it will take to get Rowan plugged into our production pipeline, we decided to allocate 2024 flow-through exploration dollars to areas closer to Madsen.”

On August 20, 2024, West Red Lake Gold Mines Ltd. has started a 2024 surface drilling program across its 100-per-cent-owned Madsen mine property located in the Red Lake gold district of Northwestern Ontario, Canada.

The company plans to drill up to 10,000 metres of NQ diamond drill core testing a number of high-priority targets across the Madsen property that were generated through a systematic evaluation of all available geologic data. Drill targets were selected based on: (1) their position along primary structural trends; (2) proximity to the Russet Lake and Venus ultramafic units; and (3) periodicity along strike of the main Madsen structural corridor relative to known mineralized splays (Fork, McVeigh and North Austin).

The company recently recognized this periodicity of known mineralized splays along the Madsen structural corridor through an evaluation of deposit-scale structural relationships. The average spacing between these known mineralized splays is approximately one kilometre. Interpretation of the regional aeromagnetic data set, which was flown in 2014, suggests that additional splays could be present along strike from Madsen to the northeast.

On August 12, 2024, West Red Lake Gold Mines Ltd. has released drill results from its 100-per-cent-owned Madsen mine located in the Red Lake gold district of Northwestern Ontario, Canada.

The drill results featured in this news release are focused on the high-grade Austin and McVeigh zones. The Austin zone currently contains an indicated mineral resource of 914,200 ounces (oz) grading 6.9 grams per tonne (g/t) gold (Au), with an additional inferred resource of 104,900 oz grading 6.5 g/t Au. The McVeigh zone currently contains an indicated mineral resource of 79,800 oz grading 6.4 g/t Au, with an additional inferred resource of 14,300 oz grading 6.9 g/t Au.

The purpose of this drilling was definition within priority areas of Austin and McVeigh to continue building an inventory of high-confidence ounces to support the restart of production at the Madsen mine, which is expected to commence in H2 2025. The company expects to complete a prefeasibility study in support of that restart goal in the coming months.

Shane Williams, president and chief executive officer, stated: "The team continues to make great progress with the underground definition drill program at Madsen. We always had high expectations for the Austin zone, which makes up the bulk of the existing resource, but to see this zone capable of producing gold grades in excess of 250 grams per tonne over meaningful widths is particularly exciting and underscores the upside that still exists within the main deposit. Additionally, the results coming out of McVeigh are quite positive. With a better understanding of the geologic model, structural controls and ore distribution in McVeigh, we are seeing renewed potential in this area."

July 9, 2024, West Red Lake Gold Intersects 13.40 g/t Au over 10m and 12.21 g/t Au over 3m at North Austin Zone – Madsen Mine

https://westredlakegold.com/west-red-lake-gold-intersects-13-40-g-t-au-over-10m-and-12-21-g-t-au-over-3m-at-north-austin-zone-madsen-mine/

June 25, 2024, West Red Lake Gold has appointed Jason Billan as vice-president, corporate development, effective June 24, 2024.

https://westredlakegold.com/west-red-lake-gold-strengthens-management-team-2/

June 13, 2024, West Red Lake Gold reported that a gold bar was poured using the refinery in the Madsen mill on June 8, 2024. The gold was recovered during the Madsen mill cleanup and gold recovery program (the “Gold Recovery Program”) at its Madsen Mine.

https://westredlakegold.com/west-red-lake-gold-pours-gold-bar-from-madsen-mill-cleanup/

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