Gold Producer Uncovers 1,016 g/t Gold at Madsen Mine

1. West Red Lake Gold Mines 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, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of West Red Lake Gold Mines.
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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) announced promising drill results from its wholly-owned Madsen Mine in the Red Lake Gold District of Northwestern Ontario, according to a February 25 release.

President and Chief Executive Officer Shane Williams expressed enthusiasm about the ongoing drilling at the 904 Complex in lower Austin, which is revealing significant potential at depth.

"We view the 904 Complex in a similar light as the 4447 area in South Austin — where drilling in 2025 uncovered very high-grade lenses of gold mineralization and now constitutes a significant portion of the ounces in our 2026 mine plan," Williams said in the release. "We are implementing the same strategy at 904 where drilling will continue to define this area during 2026 to bring into consideration for mine design and production in early 2027. An additional benefit to the lower Austin 904 Complex is that most of this 200-by-200-meter panel, as it’s currently defined, has seen very little mining historically leaving the main mineralized zone mostly intact — this is expected to allow for larger stopes and more efficient development and extraction from this high-grade area."

He continued, "The results received to date in 904 are highly encouraging and we look forward to advancing the drills deeper in this priority area of the mine."

Recent drilling results from this area, conducted from stations on the 13 Level of the Madsen Mine at approximately 650 meters depth, include notable intercepts such as 26.16 grams per tonne gold (g/t Au) over 11.2 meters and 139.45 g/t Au over 7.8 meters. These results suggest the potential for discovering additional high-grade gold lenses similar to those found in the South Austin zone during the 2025 campaign, the company said.

Highlights from the Austin 904 Complex:

• Hole MM26D-13-4950-008: 4.75 meters at 219.73 g/t Au, including 1 meter at 1,016.57 g/t Au.
• Hole MM25D-13-4773-002: 3 meters at 148.36 g/t Au, including 2 meters at 222.26 g/t Au.
• Hole MM26D-13-4950-012: 2.5 meters at 133.13 g/t Au, including 1.3 meters at 155.66 g/t Au.
• Hole MM25D-13-4880-004: 5 meters at 36.06 g/t Au, including 1.8 meters at 92.56 g/t Au.
• Hole MM25D-13-4773-016: 3.15 meters at 41.90 g/t Au, including 0.75 meters at 171.96 g/t Au.

Highlights from South Austin:

• Hole MM26D-13-4688-017: 2.45 meters at 14.89 g/t Au, including 1.7 meters at 150.64 g/t Au.
• Hole MM25D-13-4773-024: 7.85 meters at 27.24 g/t Au, including 1 meters at 189.48 g/t Au.
• These results underscore the potential for further high-grade discoveries in the main Austin Zone, with the lower Austin area expected to remain a key focus for drilling at Madsen throughout the rest of 2026, the company said.

Visible Gold on Core Exteriors

The mineralized domains at the Madsen Mine, including the Austin structures, are situated within extensive, kilometer-scale alteration and deformation corridors that have been repeatedly reactivated during periods of gold mineralization, deformation, and metamorphism, West Red Lake noted in the release. At the deposit level, the Austin, South Austin, North Austin, and McVeigh Zones are locally folded and structurally altered by transposition and rotation into the S2 Foliation. This intense deformation, combined with the high temperatures of amphibolite facies metamorphism, has led to significant recrystallization and the formation of a skarn-like mineral assemblage composed of diopside, amphibole, quartz, and biotite.

All major gold mineralization on the property is known to have occurred early, relative to the most significant deformation (D2) and metamorphic events, the company said. The North Austin Zone exhibits 'mine-style' alteration and mineralization, with multiple mineralized domains extending over a 0.5 km strike length. Mineralization remains open at depth and along the northeast strike.

In drill core or underground face exposures, gold-bearing zones at the Madsen Mine are typically identified by fine grains of free gold within strong alteration and veining, the release noted. High-grade intervals often contain visible gold on the exterior of drill cores, although there are instances where high-grade assays revealed visible gold only within the interior cut surface of the core samples. Besides free gold, pervasive silicification, along with quartz-carbonate or diopside veining, are key indicators of high-grade zones within the mineralized structure.

The current underground drilling program at the Madsen Mine aims to further define near-term mining inventory and expand the existing mineral resource. The focus has been on the more continuous and higher-grade sections of the Austin and South Austin Zones, and this strategy is expected to continue through 2026, the company said.

Reaching Commercial Production a 'Significant Milestone' for Company

Matthew O'Keefe from Cantor Fitzgerald commented on January 12 that the company's announcement of reaching commercial production was "a significant milestone," highlighting the transition from construction and commissioning to stable operations. He noted that the company poured 20,000 ounces of gold and achieved US$73 million in sales, maintaining a Buy rating with a CA$2.50 price target.

On January 13, Taylor Combaluzier of Red Cloud Securities reaffirmed a Buy rating with a CA$2.30 target. He reported fourth-quarter production of 7,379 ounces at an average grade of 5.06 g/t Au with a 95% recovery rate, and mentioned that the company ended the year with CA$46 million in cash and receivables. Combaluzier pointed to "ongoing infill and regional drilling assays and continued ramp-up of the Madsen mine" as important near-term developments.

In the January 13 edition of What Is Chen Buying? What Is Chen Selling?, Chen Lin noted that "WRLG.v, the up-and-coming producer, reached commercial production," and mentioned the company had "40+ million in the bank," indicating a challenging period for the company. He added that "the next key news is free cash flow from operations" and suggested the company could become "an easy takeover target if their share price does not appreciate fast from here," though no formal rating or price target was given.

Robert Sinn, in a January 14 article, stated that the Madsen Mine achieved commercial production as of January 1, with the mill processing an average of 689 tonnes per day in December, which is 86% of the permitted throughput. He reported "3,215 ounces of gold [were] poured" and noted recent gold sales were "north of US$4,600/oz," without providing a rating or target price.

"Another week, another solid set of assays from drilling at West Red Lake Gold's Rowan deposit in Ontario's Red Lake District," wrote Jeff Clark and Daniel Flynn in a February 19 update on the company for The Gold Advisor.

Recent drilling results from Vein 006b at the Rowan project have shown promising gold grades, with Hole RLG-25-198 yielding 1 meter at 84.3 g/t gold and Hole RLG-25-201 producing 5.5 meters at 14.42 g/t gold. While these results don't quite reach the high of the 141.5 gram-meter hit from Vein 013, they still play a crucial role in advancing WRLG's development plans, the authors noted.

Rowan is located about 80 kilometers from Madsen. The company's strategy involves developing Rowan as part of a hub-and-spoke model, with Madsen serving as the central hub and Rowan providing high-grade satellite feed. To achieve this, WRLG is conducting extensive drilling to upgrade resources and expand key veins, particularly Veins 006b and 013, in preparation for a combined Pre-Feasibility Study (PFS) for Rowan and Madsen.

The latest results from Vein 006b, along with previous findings from Vein 013, confirm high grades and continuity, boosting confidence that these veins can be included in future resource updates and the PFS, Clark and Flynn wrote. This is significant for two reasons: expanding the number of mineable veins could enhance overall project economics, and consistent high-grade results across a broader area suggest the deposit remains open for further growth with additional drilling.

The market is likely awaiting larger catalysts before making significant moves. WRLG's stock rose about 1% on the news.

The Gold Advisor recommendation remains a "BUY," as the recent results strengthen the case for WRLG's growth potential. Vein 006b is emerging as a potential high-grade contributor to the future mine plan, reinforcing Rowan's role as a long-term value driver.

"As a reminder, WRLG’s longer-term goal is to build a 100,000 oz/year production platform in Red Lake. That, among other things, makes the stock a Buy," they concluded. "With a 15% pullback since the last batch of assays, shares offer an attractive entry point ahead of key catalysts. Jeff maintains a full position."

The Catalyst: US$6,300 Gold by End of the Year?

JP Morgan forecasts that demand from central banks and investors will push gold prices to US$6,300 per ounce by the end of 2026. The bank has also revised its long-term gold price forecast to US$4,500 per ounce, as noted by Peter Nurse writing for Investing.com on February 24.

President Donald Trump's introduction of a universal tariff has given a lift to mining stocks, which had previously fallen following their earnings reports. According to a report by Paolo Confino for Investor's Business Daily on February 23, this new policy, implemented after the Supreme Court struck down many of Trump's earlier tariffs, has driven investors toward safe-haven assets like gold, boosting the share prices of mining companies. As a result, miners such as Barrick Mining, Agnico-Eagle, Kinross Gold, and Newmont saw their stocks rise after initially dropping post-earnings. On Monday, gold prices rose by about 3%, while silver gained approximately 7%.

Gold prices continued to rise on Wednesday, recovering from the previous day's decline as investors assessed the impact of the newly implemented U.S. tariffs and anticipated upcoming U.S.-Iran talks. By 08:50 a.m. ET, spot gold had increased by 0.8% to US$5,185.90 per ounce, and U.S. Gold Futures were up by 0.5% to US$5,203.62 per ounce. This rebound followed a 1.6% drop on Tuesday after four consecutive sessions of gains.

The U.S. introduced a temporary 10% global import tariff on Tuesday, with plans to increase it to 15%, heightening uncertainty around global trade and inflation. This tariff action followed a Supreme Court decision that invalidated previous extensive duties, prompting Washington to reintroduce tariffs under a new legal framework.

Geopolitical tensions remain a focus, with the U.S. and Iran scheduled for a third round of talks on Thursday in Geneva regarding Tehran’s nuclear program, Nurse wrote. A slightly weaker U.S. dollar has also supported gold prices, making dollar-priced metals more attractive to international buyers. However, expectations of sustained high U.S. interest rates have limited gold's gains. Two Federal Reserve officials indicated on Tuesday that there is little inclination to change the central bank’s policy stance in the near term, reinforcing a higher-for-longer rate outlook that typically impacts non-yielding assets like gold.

Ownership and Share Structure¹

Institutional investors hold approximately 30% of West Red Lake Gold's shares, with insiders and advisors holding another 10%. The remaining 60% is held by retail investors. The company's current market cap is CA$518.75 million, with a 52-week trading range of CA$0.54 to CA$1.49.