New 3,000 Meter Drill Program Begins Just Steps From a Restarted Red Lake Mine

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$3,000 and US$6,000.
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. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) has commenced a fully funded 3,000-meter surface diamond drill program at the Fork Deposit, located approximately 250 meters southwest of its 100% owned Madsen Mine in Ontario's Red Lake Gold District. The infill program is designed to upgrade resource confidence in a shallow, high-grade zone identified during a 2024 re-evaluation of the deposit.

Fork is one of several satellite deposits held by the company and currently hosts an Indicated mineral resource of 20,900 ounces grading 5.3 grams per tonne (g/t) gold, along with an additional Inferred resource of 49,500 ounces grading 5.2 g/t gold. The area targeted in the current program is a low-plunging zone of mineralization that previous studies show as having a 400-meter by 250-meter footprint. According to the company, the average thickness of this zone is estimated at approximately 2 meters based on existing core length intercepts.

West Red Lake Gold emphasized the near-surface nature of the mineralization, with planned drill holes averaging 170 meters in depth. The proximity to existing underground infrastructure at the Madsen Mine, particularly Level 3 of the McVeigh zone, provides logistical benefits for future development planning.

Shane Williams, President and CEO, stated in the company's news release, "The shallow nature of the deposit will allow for efficient definition drilling from surface and, with its high grades and proximity to existing underground development, it is easy to envision this core zone of Fork becoming part of the production pipeline at Madsen, based on successful infill drilling results."

Historical intercepts from Fork include 13.05 meters grading 13.97 g/t gold in hole RUM-08-49, including subintervals of 3.63 meters at 30.79 g/t gold and 1.97 meters at 32.55 g/t gold. Additional past highlights include 9.3 meters grading 8.14 g/t gold in hole PDM04-318 and 1.3 meters grading 50.48 g/t gold in hole RUM-08-68.

The Fork deposit is hosted in two primary shear zones and is structurally analogous to other mineralized zones in the area,. Gold is typically associated with deformed quartz veins and altered basalts along key lithologic contacts, with geochemical characteristics, including sodium depletion, similar to those observed at Madsen.

Gold Sector Trends Reflect Shifting Liquidity and Monetary Policy Expectations

A November 24 analysis from Bloomberg indicated that gold-backed exchange-traded funds (ETFs) experienced consistent inflows throughout 2025, with the exception of May. Even during market pullbacks, including in October, ETF holdings showed resilience, supported by renewed expectations of U.S. Federal Reserve rate cuts. According to the report, "A revival in Fed rate-cut expectations, as well as concerns about the central bank's shifting make-up, stand to give the metal fresh appeal."

In a separate report published the same day, Matthew Piepenburg discussed broader liquidity pressures as a contributing factor to ongoing demand for gold. Describing liquidity as "the oil levels in a basic engine," Piepenburg pointed to the divergence between overnight repo rates and the Federal Funds Rate as evidence of tightening financial conditions. He noted that gold appeared to be responding to these signals, referencing recent short-term funding operations totaling approximately US$125 billion that were injected by the Federal Reserve to stabilize repo markets.

On November 25, Reuters reported that spot gold prices remained steady at US$4,139.79 per ounce, following a 2% increase earlier in the week. The report linked price stability to weaker-than-expected U.S. retail sales data, which supported investor sentiment around potential interest rate cuts. Peter Grant, vice president and senior metals strategist at Zaner Metals, commented that recent Federal Reserve statements reinforced expectations for a possible rate cut in December. Additionally, Fed Governor Stephen Miran cited a weakening labor market as a rationale for easing policy. Analyst Ricardo Evangelista of ActivTrades noted that ongoing economic uncertainty, geopolitical instability, and dovish monetary expectations continued to underpin gold prices.

Analyst Coverage Highlights Operational Progress and Exploration Momentum at West Red Lake Gold

Analyst commentary from October and November underscored the operational and exploration advancements at West Red Lake Gold, as the company continued to ramp up production at the Madsen Mine and reported high-grade results from the Rowan project.

On October 7, Matthew O'Keefe of Cantor Fitzgerald reported that West Red Lake Gold produced 7,055 ounces of gold in the third quarter of 2025, representing a 34% increase over the previous quarter. The company processed 35.7 kilotonnes of ore at an average grade of 5.4 grams per tonne gold. O'Keefe noted the ongoing development of key infrastructure, including underground waste storage and shaft skipping, and described both initiatives as on schedule and expected to contribute to improved efficiency.

He maintained a Buy rating and a CA$1.80 per share price target, supported by an equal-weighted valuation model of 0.8 times net asset value and 6.0 times projected 2026 cash flow per share. O'Keefe also noted that the company was trading below peers, with a 0.4 times NAV multiple compared to a typical peer range of 0.8 to 1.0 times.

In a separate report dated October 8, Taylor Combaluzier of Red Cloud Securities confirmed that Madsen operations had resumed ahead of schedule and were tracking toward 2026 production targets. He emphasized that the implementation of underground waste storage freed up hauling capacity for ore transport, supporting operational flexibility.

Combaluzier stated that all 7,055 ounces produced in Q3 had been sold at an average realized price of US$3,456 per ounce, generating approximately CA$33 million in gross proceeds. He reiterated a Buy rating and raised his price target to CA$2.30 per share based on a discounted cash flow model that incorporates contributions from both Madsen and Rowan. He added that proceeds from flow-through financing would be directed to engineering and drilling work at Rowan ahead of pre-feasibility planning.

In his October 29 publication, Chen Lin of the What's Chen Buying? What's Chen Selling? newsletter addressed the company's share price performance relative to recent financings. He noted that the share price had declined significantly despite operational progress, stating that he had been purchasing shares as a result.

On November 6, Jeff Clark of TheGoldAdvisor.com commented on recent drilling at Madsen, describing it as supportive of the company's long-term growth strategy. He wrote that the results enhanced confidence in the presence of multiple well-defined high-grade zones that could support production expansion. Clark also cited the Rowan project as part of a broader plan to build a 100,000-ounce-per-year production platform.

Most recently, on November 10, Robert Sinn of Goldfinger Capital referenced the alignment of strong gold prices with the company's production ramp-up. He stated that current market conditions were favorable for the Madsen operation and emphasized the company's continued exploration activity, which he described as driven by confidence in the broader discovery potential at both Madsen and across the Red Lake District.

On October 9, Craig Stanley of Raymond James referenced continued ramp-up at Madsen as well as recent high-grade intercepts from the Rowan project's Austin Zone. Drill results included 7.75 meters grading 139.45 grams per tonne gold, with a subinterval of 2.00 meters at 532.25 grams per tonne. Stanley observed that the mineralization followed known plunge trends and extended vertically for over 600 meters. He issued an Outperform rating with a CA$1.75 price target, citing the combination of ramp-up execution and exploration success.

On November 18, Craig Stanley offered an update and highlighted steady operational momentum at West Red Lake Gold Mines Ltd. during the Madsen Mine restart. He reported that ore production increased 24% in October compared to September, aided by the September implementation of underground waste storage, which freed up trucking capacity for ore haulage.

Stanley noted that mining rates rose from 435 tonnes per day in July to 463 in August, with the mine exceeding 1,000 tonnes per day multiple times in late September and reaching a single-day peak of 1,400 tonnes. Since August, only directly mined material has been processed through the mill. The company is targeting a commercial production declaration and 2026 guidance in Q1 2026, with a pre-feasibility study combining Madsen and Rowan expected in Q3 2026.

He also pointed to infrastructure and leadership improvements, including progress on preparing the 24 Level shaft and the addition of senior hires from Wesdome's Kiena and Eagle River operations. Stanley reiterated an Outperform rating and CA$1.75 price target, citing operational progress, a strengthened technical team, and ramp-up visibility heading into 2026.

Drilling Toward Development Optionality

The current Fork drill program forms part of West Red Lake Gold's broader strategy to advance a hub-and-spoke model centered on the Madsen Mine. As detailed in the company's November investor presentation, the Fork deposit was identified as a priority near-mine target due to its high-grade core, shallow depth, and proximity to existing infrastructure. A long section presented in the corporate deck outlines the Fork vein structure and historic intercepts, with the current drill plan aiming to refine an estimated 130,000 to 150,000 tonnes at 8 to 9 g/t gold for a potential 33,000 to 43,000 contained ounces.

The Fork zone is also highlighted for its strategic location — within 250 meters of Madsen's underground workings — and is seen as offering "great optionality" for potential future integration into mine sequencing. The deposit is not currently included in the Madsen Mine's Pre-Feasibility Study, but the company notes that extension of underground development toward Fork could also facilitate broader exploration of the trend leading to the past-producing Starratt-Olson Mine. 

As the Madsen Mine progresses toward commercial production, the Fork program marks one of several initiatives aimed at expanding the resource base and extending mine life across West Red Lake Gold's district-scale property package. Future catalysts may include additional drilling at the Rowan and North Shore targets, along with updates on development work tied to shaft infrastructure and underground ore delivery systems already underway at Madsen.

Ownership and Share Structure ¹

Institutions own about 30% of West Red Lake Gold, while management, insiders, and advisors hold around 10%. The remaining shares are held by retail investors.

The company's market capitalization is CA$362 million, with a 52-week stock price range of CA$0.52 - CA$1.18.