West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQX; UJO:FSE) declared commercial production at its Madsen mine in Ontario's Red Lake Gold District as of the start of 2026, reported Taylor Combaluzier, vice president and mining analyst at Red Cloud Securities, in a Jan. 13 research note.
"We are encouraged that it was able to achieve commercial production in just over seven months after restarting operations," Combaluzier wrote. "West Red Lake Gold has rapidly worked to turn around the asset since acquiring it in 2023 and can continue to take advantage of a robust gold price environment."
105% Return Suggested
Red Cloud reiterated its CA$2.30 per share target price on the Vancouver, British Columbia-based mining company, trading at the time of Combaluzier's report at about CA$1.12/share, noted the analyst. From that price, the return to target is 105%.
West Red Lake Gold is still a Buy.
The company has 392.4 million basic shares outstanding. Its market cap is CA$437.5 million (CA$437.5M). Its 52-week range is CA$0.52–1.18/share.
Madsen Production Results
Combaluzier reported Madsen's production results for 2025, for Q4/25, and for December 2025. During 2025, West Red Lake Gold poured 20,000 ounces (20 Koz) of gold at Madsen. The company generated US$73M from gold sales at an average price of US$3,650 per ounce (US$3,650/oz). At year's end, the producer had about CA$46M in cash and gold receivables.
In Q4/25, the Madsen mine produced 49,162 tons of ore, or an average of 534 tons per day (534 tpd), achieved at an average grade of 5.06 grams per ton (5.06 g/t) gold. The mill recovered 7.379 Koz of gold, reflecting a 95% recovery rate. The miner poured 7.2 Koz of gold then sold it at an average price of US$4,150/oz, generating US$30M in revenue.
West Red Lake Gold ended Q4/25 and the year 2025 "on a strong note," wrote Combaluzier. In December, its Madsen mine produced 21,389 tons of ore. This is equivalent to an average of 689 tpd and represents 86% of the mine's 800-tpd permitted throughput capacity. Production in December was 3.215 Koz of gold, achieved at an average grade of 4.94 g/t. Mill recovery was 94.6%.
Combaluzier reiterated Madsen's economics as outlined in the prefeasibility study. The after-tax net present value discounted at 5% is CA$315M, and the internal rate of return is 255%, at US$2,200/oz gold. Payback is less than a year.
To generate these figures, this mining operation must produce 67.6 Koz of gold, with an average head grade of 8.16 g/t, over a 7.25-year life of mine.
What 2026 Might Bring
This year, Red Cloud expects West Red Lake Gold to keep ramping up Madsen to its permitted capacity and the process to continue going smoothly, wrote Combaluzier. Mill feed is expected to come from a higher-grade zone in South Austin, the 4447 area. In Q1/26, the miner plans to feed the mill an average of greater than 6 g/t gold and release its 2026 production guidance.
Additionally, West Red Lake Gold could advance the Madsen project in one or more ways this year, noted the analyst. One is by incorporating the Fork deposit into the mine plan, which the company aims to do. Completing the shaft and realizing the potential benefits, significantly increased shaft tonnage, is another way. A third way is by delineating a new higher-grade area, the 904 Complex in Lower Austin, similar to the 4447.
What to Watch For
The two main catalysts ahead for the company are the results of infill and regional drilling and the continued ramp-up of Madsen, both expected on an ongoing basis, noted Combaluzier.
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Important Disclosures:
- West Red Lake Gold is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of West Red Lake.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for Red Cloud, West Red Lake Gold Mines Ltd., January 13, 2026
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