Mine Delivers 73% Surge in Mined Ounces During Strong Second Quarter

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, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of West Red Lake Gold Mines Ltd.
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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) reported an operational update for the second quarter ended June 30, 2026, highlighting increased mining activity and gold production as the Madsen Mine in Ontario continued its production ramp up.

During the second quarter, mined tonnage increased 46% to 75,524 tonnes from 51,616 tonnes in the first quarter, while mined ounces rose 73% to 10,459 ounces from 6,033 ounces. The company said the increase reflected both higher mining rates and an increase in average mined grade.

Gold production totaled 8,576 ounces during the quarter, representing a 51% increase from 5,667 ounces produced in the first quarter of 2026.

Average mined grade increased to 4.3 grams per tonne gold from 3.5 grams per tonne in the previous quarter. Average underground mining rates rose 53% to 878 tonnes per day from 573 tonnes per day, while average mill throughput increased 47% to approximately 842 tonnes per day from 572 tonnes per day. Gold recovery remained at 95%.

West Red Lake Gold also reported that increased mine productivity enabled the company to build a surface stockpile of approximately 10,768 tonnes by the end of the quarter, representing an estimated 1,500 contained ounces of gold based on estimated grades.

Shane Williams, President and CEO, said in a company news release, "Q2 demonstrated that the development-focused strategy implemented during the first half of 2026 is translating into measurable operating improvements as mine sequencing advanced to unlock multiple stoping fronts and operational flexibility continued to improve."

Williams added that underground mining rates exceeded 1,000 tonnes per day from mid-quarter onward, allowing the company to build a surface stockpile equivalent to approximately half a month of mill feed inventory. He said, "Our ability to generate a stockpile of this size speaks to the operational efficiency of the team and our ability to mine at rates that exceed the currently permitted mill throughput of 800 tpd."

The company said operational performance continued to improve throughout the second quarter as it benefited from additional mining fronts, improved mine sequencing, increasing mining rates, and ongoing efforts to optimize mill throughput and overall operating efficiency.

The technical information in the news release was reviewed and approved by Will Robinson, P.Geo., Vice President of Exploration, and Hayley Halsall-Whitney, P.Eng., Vice President of Operations, who serve as Qualified Persons for the West Red Lake Project.

Gold Holds Ground Amid Shifting Economic Expectations

According to pricing published by JM Bullion on July 16, the spot price of gold stood at US$4,044.08 per ounce as of 6:03 a.m. EDT. The pricing data also showed gold at US$130.02 per gram and US$130,020.19 per kilogram, with the metal trading lower by US$23.47, or 0.58%, from the previous session.

Kitco News reported on July 15 that gold remained above the US$4,000-per-ounce level despite failing to break through resistance at US$4,100. Ole Hansen, Head of Commodity Strategy at Saxo Bank, said the market's continued consolidation was "still good news for the precious metal." He added, "While it is too early to conclude that the recent inverse relationship between oil and gold has broken down, the resilience around USD 4,000 indicates that investors are becoming less willing to sell aggressively into renewed inflation fears."

The Kitco report said softer U.S. inflation data provided support for gold prices, while renewed military conflict in the Middle East contributed to higher oil prices. Hansen also stated, "Gold continues to search for direction following a sharp correction since January," adding that the market was weighing "whether inflation or slowing economic growth, combined with a returning focus on fiscal debt concerns and currency debasement, will become the dominant macro theme during the second half of the year."

In a July 15 market commentary, Saxo Bank wrote that gold remained within a broad US$3,950 to US$4,200 trading range as investors balanced higher energy prices and inflation concerns against longer-term risks to economic growth. The report stated that "investor liquidation appears to have largely run its course, with ETF holdings stabilizing, while continued central bank purchases provide an important layer of underlying support."

Hansen wrote that, despite higher oil prices and renewed geopolitical tensions, "the resilience around US$4,000 indicates that investors are becoming less willing to sell aggressively into renewed inflation fears." He also noted that "gold's defensive qualities may once again become the dominant driver" if concerns about slower economic growth begin to outweigh inflation concerns. The Saxo commentary added that ETF holdings had broadly stabilized following the previous month's liquidation and that continued central bank purchases remained "an important structural source of demand."

According to AuAg Funds' 2026 outlook, gold mining companies entered the year with several favorable industry fundamentals, including gold prices remaining well above production costs, expanding operating margins, lower debt levels, greater capital discipline, rising dividends and continued merger and acquisition activity. The report also stated that many gold mining companies continued to trade at valuations that appeared attractive relative to prevailing gold prices and described the sector as relatively small and underinvested despite improved profitability.

Analysts and Market Commentators Reviewed Operations and Resource Update

On May 13, investor and newsletter writer Chen Lin commented on the company's operational update following its revised 2026 guidance. Lin wrote that the shares had "suffered dearly after the guidance for 2026" and said he had spoken with "quite a few people very familiar with WRLG operation." He stated that "the current mining operation is quite difficult as many good areas were mined out" and added that the company would need "to build a decline to mine at a fresh new area, which will likely take a year or so." Lin concluded, "That's the wait for this mine to 'turn around'. Investors need to be patient."

Cantor Fitzgerald analysts Matthew O'Keefe and Nicholas Lobo focused on the company's resource update in a June 9 research note covering the Rowan Project and the maiden mineral resource estimate for the nearby Mount Jamie deposit. The analysts wrote that the updated Rowan estimate reflected "the results of a highly focused 6,300 m resource conversion drill program."

According to the report, the Rowan Project's indicated gold resource increased 70% to 334,825 ounces grading 13.03 grams per tonne gold, while the inferred gold resource increased 52% to 179,013 ounces grading 15.31 grams per tonne gold. The analysts also noted that the maiden Mount Jamie estimate contained an indicated resource of 49,407 ounces grading 14.13 grams per tonne gold and an inferred resource of 35,791 ounces grading 11.97 grams per tonne gold.

Following the updated resource estimate, Cantor Fitzgerald maintained its Buy rating and CA$2.20 per share target price, stating, "We maintain our Buy rating and CA$2.20/share target price."

Madsen Mine Ramp Up Continues With Processing, Development, and Exploration Activities

The company said average mill processing rates reached approximately 842 tonnes per day during the second quarter. According to the operational update, processing rates are expected to increase to approximately 1,000 tonnes per day over the second half of 2026.

Management stated it remains focused on improving operational consistency, increasing production rates, and advancing self-funded development and exploration activities across the broader Madsen property.

According to the July 2026 corporate presentation, the company is advancing development across several mining areas, including the 4447 and 904 complexes, the eastern connection drift toward the Derlak complex, and the Fork satellite deposit. The presentation also states that the company is evaluating a hub-and-spoke strategy that would integrate future production from the Rowan satellite deposit with the Madsen mill.

The corporate presentation states that access to the 904 Complex and the Fork deposit is planned during the second half of 2026. It also outlines work on an updated pre-feasibility study proposed to combine Madsen and Rowan, advancement of the 13 Level East Drive toward Derlak, Phase 1 shaft refurbishment, and exploration activities at Starratt-Olsen and North Shore.

The presentation further states that the Fork deposit has completed a 3,200-meter drill program, with initial development expected to commence through the second half of 2026. The company also reported that the 904 Complex is being developed to support its 2027 mining profile, while ongoing drilling and underground development continue across multiple mining complexes at Madsen.

West Red Lake Gold said it will release its unaudited financial and operating results for the three and six months ended June 30, 2026, after market close on Aug. 25, 2026. Management plans to host a webcast discussing the results on Aug. 26, 2026.

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$300 million, with a 52-week trading range of CA$0.54 to CA$1.49.

Frequently Asked Questions (FAQ)

What did West Red Lake Gold report for the second quarter of 2026?

West Red Lake Gold reported higher mining activity and gold production at its Madsen Mine during the second quarter of 2026. Gold production increased 51% quarter over quarter to 8,576 ounces, while mined ounces rose 73% to 10,459 ounces. The company also reported increases in mined tonnage, mining rates, mill throughput, and average mined grade.

How much did gold production increase at the Madsen Mine?

Gold production at the Madsen Mine increased 51% during the second quarter of 2026, rising to 8,576 ounces from 5,667 ounces in the first quarter.

What were the Madsen Mine production results in Q2 2026?

The Madsen Mine produced 8,576 ounces of gold during the second quarter. The mine also recorded 75,524 tonnes of ore mined, an average mined grade of 4.3 grams per tonne gold, an average underground mining rate of 878 tonnes per day, and an average mill throughput of approximately 842 tonnes per day.

How many mined ounces increased during the quarter?

West Red Lake Gold reported mined ounces of 10,459 during the second quarter of 2026, representing a 73% increase compared with 6,033 ounces in the first quarter.

What was the average gold grade mined at the Madsen Mine?

The company reported an average mined grade of 4.3 grams per tonne gold during the second quarter of 2026, compared with 3.5 grams per tonne in the previous quarter.

What is the Madsen Mine surface stockpile?

West Red Lake Gold reported building a surface stockpile of approximately 10,768 tonnes by the end of the second quarter. The company estimated the stockpile contained approximately 1,500 ounces of gold based on estimated grades.

How fast is the Madsen Mine processing ore?

During the second quarter, the mill processed ore at an average rate of approximately 842 tonnes per day. The company stated that processing rates are expected to increase to approximately 1,000 tonnes per day during the second half of 2026.

Where is the Madsen Mine located?

The Madsen Mine is located in the Red Lake mining district of Ontario, Canada, and serves as West Red Lake Gold's flagship producing operation.

What did the CEO say about the second-quarter results?

President and CEO Shane Williams said the company's development-focused strategy during the first half of 2026 translated into measurable operating improvements. He also said mining rates exceeded 1,000 tonnes per day from mid-quarter onward, allowing the company to build a surface stockpile equivalent to approximately half a month of mill feed inventory.

When will West Red Lake Gold release its second-quarter financial results?

West Red Lake Gold said it plans to release its unaudited financial and operating results for the three and six months ended June 30, 2026, after market close on Aug. 25, 2026. Management also plans to host a webcast to discuss the results on Aug. 26, 2026.

What stock symbols does West Red Lake Gold trade under?

West Red Lake Gold trades on the TSX Venture Exchange under the symbol WRLG, on the OTCQX under WRLGF, and on the Frankfurt Stock Exchange under UJO.

What is West Red Lake Gold focused on at the Madsen Mine?

According to the company, its current focus includes improving operational consistency, increasing production rates, optimizing mill throughput, advancing self-funded development, and continuing exploration activities across the broader Madsen property.