Commercial Production Declared at a High‑Grade Red Lake Gold Mine After December Ramp‑Up

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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:OTCQX; UJO:FSE) declared commercial production at its 100% owned Madsen Gold Mine in the Red Lake Mining District of Ontario, Canada, effective January 1, 2026. The milestone followed a December ramp-up that saw the mill average 689 tonnes per day, or 86% of the permitted 800 tpd capacity. According to the company, internal criteria were met, including 30 consecutive days of throughput above 65% capacity and overall operational stability.

In December, Madsen processed 21,389 tonnes of ore grading 4.94 g/t gold, with a recovery rate of 94.6%, producing 3,215 ounces. For Q4 2025, the mine produced 7,379 ounces from 49,162 tonnes at 5.06 g/t gold and 95% recovery.

The company reported pouring 7,200 ounces in Q4, selling gold at an average price of US$4,150 per ounce for total revenue of US$30 million. For the full-year 2025, West Red Lake Gold poured 20,000 ounces and generated US$73 million in sales at an average price of US$3,650 per ounce. Year-end cash and gold receivables stood at CAD$46 million.

President and CEO Shane Williams commented on the milestone, saying, "Achieving commercial production is a major milestone for any producer, and it comes after a strong December that saw tonnage, grade, recoveries, and production all perform to plan."

Looking ahead to Q1 2026, mill feed is expected to come primarily from the 4447 zone in South Austin, a high-grade area defined in 2025. Material from the zone has returned grades up to 8.9 g/t gold, and the company expects the average to exceed 6 g/t during the quarter.

Gold Sector Holds Strong Through Market Swings and Geopolitical Uncertainty

Gold is trading at US$4620 after geopolitical developments in Venezuela, according to a January 7 report by Cecilia Jamasmie at Mining.com. The move extended a rally from 2025, when gold reached a record US$4,547 per ounce. Average gold prices for the year rose 44% to US$3,450 per ounce, driven by geopolitical risks, a dovish Fed outlook, and a weaker U.S. dollar.

John Rubino, writing on January 8, attributed early-year pullbacks to index rebalancing after a strong 2025. Citing Bloomberg, he noted that "passive tracking funds are selling precious metals futures... due to last year's blistering rallies." Still, he pointed out that 2025 was gold's strongest year since 1979. HSBC's James Steel cited safe haven demand and policy uncertainty as key drivers, describing the rally as fueled by "a potent mix of safe haven and risk-off purchases, spurred in part by USD weakness, and policy uncertainty."

On January 9, Richard Mills of Ahead of the Herd echoed the bullish tone, calling 2025 a standout year for gold. He listed central bank purchases, higher ETF inflows, and geopolitical uncertainty as key demand factors. Mills reported that central banks bought 1,045 tonnes of gold in 2024, with Poland, India, and Turkey leading the way, and BRICS nations holding more than 6,000 tonnes in reserves.

Mills also noted structural supply issues in the sector, citing declining output and rising demand. Visual Capitalist data showed that Russia and China have each added more than 1,800 tonnes to their gold reserves since 2000.

Investor interest remained strong. ING reported that gold-backed ETFs added 222 tonnes in Q3 2025, nearing 2020's peak levels. Mills referenced a Kitco summary of Goldman Sachs analysis, which found that despite record prices in 2025, U.S. retail and institutional participation remained low — a situation analysts viewed as a "significant structural opportunity for continued price appreciation."

Mills added that the U.S. Federal Reserve cut interest rates three times in late 2025, lowering the range to 3.5%–3.75%. He argued that reduced central bank independence and fiscal pressures continue to support long-term gold demand. The CPM Group stated that "reduced faith in the U.S. central bank's independence already is and would continue to be very supportive of gold and silver investment demand."

Experts Highlight Operational Momentum and Production Growth at Madsen

On November 6, Jeff Clark of The Gold Advisor covered two recent updates from West Red Lake Gold Mines Ltd. Clark pointed to continued progress at Madsen and advancement at Rowan, calling both supportive of the company's growth plans.

He reported that Madsen's Austin Zone returned 11.2 meters at 26.16 g/t gold, including 2.0 meters at 131.7 g/t. Other results included 5.5 meters at 37.87 g/t and 8.0 meters at 10.55 g/t. Clark viewed the new zones as adding to the company's high-grade mining inventory.

Clark also highlighted the 5,000-meter drill program underway at Rowan, where the focus is on converting resources and upgrading inferred material. He referenced the July 2025 PEA, which outlined Rowan's NPV at CA$239 million and an IRR of 82% based on a US$3,250 gold price. He noted the results would feed into a combined pre-feasibility study with Madsen expected in Q3 2026.

Clark quoted CEO Shane Williams: "The Madsen mine ramp-up is progressing well, and drilling into new gold zones deeper in the deposit while we ramp up reinforces our view that Madsen will be a sustainable producing asset in Red Lake for many years to come."

On November 18, Craig Stanley of Raymond James Ltd. reaffirmed his Outperform rating on the stock and cited positive operational updates. Stanley reported a 24% increase in mined ore production at Madsen in October compared to September, noting multiple days above 1,000 tonnes, including a record 1,400 tonnes in a single day.

He attributed the increase to operational changes that prioritized ore trucking by storing waste underground. Stanley also noted that, since August, the mill has processed only direct-mined material, improving feed quality. He highlighted that a pre-feasibility study combining Madsen and Rowan is expected in Q3 2026 with a target production of 100,000 ounces per year.

Stanley also pointed to leadership additions, including Sean McCormack as Mine General Manager and Hayley Halsall-Whitney as Vice President of Operations. Additional roles filled include Chief Engineer, Mill Manager, and Senior Operations Manager.

West Red Lake: Building From a High-Grade Base

West Red Lake Gold's ramp-up at Madsen follows a structured development approach that includes a bulk sample, underground infrastructure, and a focus on grade reconciliation. According to the company's December 2025 investor presentation, the mine had produced 12,800 ounces in the first nine months of the year, with strong reconciliation between modeled and actual grades.

The company is now advancing the 904 Complex, a high-grade zone within Austin, and the shaft skipping project, expected to lower haulage costs by shifting to vertical transport of up to 350 tonnes per day.

In addition to the Fork and Rowan drill programs, the company continues to target near-mine and regional expansion. Fork, located near Madsen, contains a high-grade core grading 8–9 g/t gold and is undergoing a 3,000-meter program. Rowan, located 80 road kilometers away, is the focus of a 5,000-meter campaign and was projected in the PEA to deliver 35,200 ounces annually over five years.

The January 2025 pre-feasibility study valued Madsen at CA$496 million post-tax, assuming a gold price of US$2,640 per ounce, with average annual free cash flow of CA$94 million over six years. The mine plan is built around selective, high-grade stopes. 

Ownership and Share Structure¹

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$408.21 million, with a 52-week stock price range of CA$0.54-CA$1.18.