Drilling Hits 16.16 g/t Gold over 1.5 Meters Just 1.1 Kilometers From Producing Mine

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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; UJ0:FSE) reported assay results from the first five holes of a 12-hole surface drilling program at the historic, past-producing Starratt-Olsen Mine, approximately 1.1 kilometers southwest of the Madsen Mine in Ontario. The results were announced on September 10, 2026, as the company continues to advance its Madsen hub-and-spoke strategy.

Hole WRL26-054 intersected 1.5 meters grading 16.16 g/t gold from 121.15 meters to 122.65 meters, including 0.85 meter grading 24.60 g/t gold from 121.15 meters to 122.00 meters. Hole WRL26-055 intersected 4.5 meters grading 5.16 g/t gold from 114.0 meters to 118.5 meters, including 1.5 meters grading 10.94 g/t gold from 116.5 meters to 118.0 meters.

"The results received from this first pass of modern drilling at the past-producing Starratt-Olsen Mine are highly encouraging," stated Will Robinson, VP of Exploration. "We have successfully demonstrated that Madsen-style mineralization of notable grades and thickness remains proximal to the historically mined areas."

The summer program consisted of 4,100 meters of oriented HQ diameter diamond drilling in 12 holes. Drilling targeted up-and-down-plunge extensions to previously mined panels, with work investigating unmined portions of previously defined mineralization and testing for new sub-parallel lenses. The program marked the first focused drill-testing effort in the main areas of historic mining at Starratt since mining ceased in the 1950s.

Robinson said the initial program was designed to test the upper portions of the Starratt system from surface. He also cited underground drilling and chip samples near the shaft bottom that returned gold grades above 10 g/t and a 2016-era drill hole that returned 2 meters at 27.3 g/t gold and 3 meters at 104.1 g/t gold with numerous occurrences of visible gold.

The exploration team was examining potential access to that area from the Madsen 16 Level exploration drive, which was advanced toward Starratt at a depth of 800 meters during the late 1930s, and comes within 200 meters of the main down-plunge extension.

Starratt-Olsen entered production in September 1948 and operated for eight years, producing 163,990 ounces of gold. Starratt was the second-largest historical gold producer at the Madsen property, producing approximately 164,000 ounces of gold between 1948 and 1956 at an average grade of 6.17 g/t gold.

The drilling work was reported as West Red Lake Gold continued production at Madsen. The company's second-quarter 2026 results showed gold production of 8,576 ounces, up 51% from the first quarter, while gold sales increased 34% to 8,260 ounces.

The company's hub-and-spoke strategy is centered on the Madsen mill and infrastructure serving as a processing hub for multiple deposits. In addition to Starratt-Olsen, the company identified Fork and Rowan as parts of that strategy. Rowan's updated June 1, 2026 Mineral Resource Estimate included 335,058 indicated ounces grading 13.04 g/t gold and 179,029 inferred ounces grading 15.31 g/t gold.

Gold Holds Above US$4,300 as Rates and Central Bank Buying Shape the Market

BullionVault reported on September 16 that gold had rallied after an earlier decline as crude oil prices fell and government bond yields eased ahead of the Federal Reserve's interest-rate decision. The metal had fallen to a five-week low earlier in the week before rebounding, while the market weighed interest-rate expectations against other sources of demand.

Precious metals strategist Nicky Shiels said the gold market and broader interest-rate market had been reflecting different expectations for monetary policy. "Gold is saying the Fed should hike once within 6 months; broader market is saying it should hike twice," Shiels said, according to BullionVault. She added, "Real policy rates are barely positive against 3.7% [inflation]," and said, "The hiking cycle isn't restrictive, it's catching up."

BullionVault also cited Metals Focus, which described competing forces affecting the gold market. "[While] a more hawkish interest rate outlook has weighed on investor interest," the consultancy said, "healthy buying by central banks during July-August has provided important support to gold prices."

Cantor Fitzgerald analyst Matthew O'Keefe reiterated a Buy rating and CA$2.20 price target on West Red Lake Gold Mines Ltd. on August 28.

Following the Federal Reserve's rate increase, The Wall Street Journal reported that gold's direction had become increasingly tied to the pace of U.S. interest-rate increases.

According to the report, MUFG's Soojin Kim wrote that "Inflation and elevated Treasury yields limit gold's upside despite geopolitical and safe-haven providing support." The report said the Fed had raised rates after higher energy prices and stronger-than-expected underlying inflation added to price pressures.

Trading Economics subsequently reported on September 17 that gold had risen above US$4,300 per ounce as oil prices eased, reducing inflationary pressures. Gold was quoted at US$4,346.80 per ounce, up 1.95% on the day and 19.30% over the previous year. The source noted that the metal had remained under pressure following the Federal Reserve's 25-basis-point rate increase, which brought the federal funds rate to 3.75% to 4%.

Trading Economics described gold as "one of the most widely followed precious metals" and said it was "often regarded as a safe-haven asset during periods of economic uncertainty, inflation, and geopolitical risk." It also noted that demand had been driven by financial markets, jewelry consumption, and industrial use, while investment demand represented a major component of the global gold market.

Madsen's Q2 Results Show Improved Output and Costs

Cantor Fitzgerald analyst Matthew O'Keefe reiterated a Buy rating and CA$2.20 price target on West Red Lake Gold Mines Ltd. on August 28, following the company's second-quarter results and continued ramp-up of the Madsen Mine. The target represented a 134% return from the August 27 closing price of CA$0.94.

O'Keefe pointed to higher production and lower unit costs during the quarter. Madsen produced 8,576 ounces of gold, up 51% quarter over quarter, while sales increased 34% to 8,260 ounces. Mill throughput averaged 842 tonnes per day, up 47%, with approximately 95% recovery. The company ended the quarter with a surface stockpile of approximately 10,768 tonnes as mining rates exceeded mill processing rates, while processing was expected to increase to approximately 1,000 tonnes per day in the second half.

Cash costs declined 23% sequentially to US$2,000 per ounce, below the company's 2026 guidance range of US$2,400 to US$3,100 per ounce. AISC fell 30% to US$3,284 per ounce, within guidance of US$2,800 to US$3,600 per ounce. Free cash flow improved to positive CA$9.7 million from negative CA$6.1 million in the first quarter.

With first-half production totaling 14,243 ounces, O'Keefe wrote that West Red Lake Gold was "on track to meet full-year guidance, with output still weighted to H2/26." Full-year production guidance remained unchanged at 35,000 to 45,000 ounces.

O'Keefe also highlighted the Madsen shaft refurbishment, the Fork access ramp, additional assay results from Starratt-Olsen and the 904 complex, and an updated pre-feasibility study combining Madsen and Rowan as upcoming items to monitor. Phase One of the shaft refurbishment had been completed, demonstrating ore and waste hoisting at approximately 200 tonnes per day, while Phase Two equipment was on site with installation underway.

The analyst maintained his valuation using an equally weighted 0.6x NAV and 6.0x estimated 2027 cash flow per share methodology. "We expect WRLG's valuation multiples to expand as the company establishes and meets its production and cost guidance over the course of 2026 and 2027," O'Keefe wrote.

Jeff Clark, Daniel Flynn, and Sharyn Alexander reviewed West Red Lake Gold's second-quarter performance in an August 27 report for The Paydirt Prospector, focusing on changes in production, sales, revenue, cash flow, and operating costs following the company's first-quarter results.

Second-quarter gold production increased 51% from the first quarter to 8,576 ounces, while gold sales rose 34% to 8,260 ounces. Revenue increased 17% to CA$49.0 million, adjusted EBITDA climbed 54% to CA$22.1 million, and free cash flow reached positive CA$9.7 million.

Operating costs also declined during the quarter. Cash costs fell 23% to US$2,000 per ounce, while all-in sustaining costs decreased 30% to US$3,284 per ounce. That compares with the first-quarter AISC of US$4,678 per ounce. The writers attributed the improvement to higher volumes of ore mined and processed, increased gold sales, and fixed costs being distributed across more ounces.

"It's good to see the benefits of the ramp-up begin to shine through," Clark, Flynn, and Alexander wrote. They said they wanted to see Madsen reach an annualized production rate of 60,000 ounces, which was expected during the second half, before serving as the base for a larger Red Lake operation targeting 120,000 ounces annually with the addition of Rowan, Fork, and Austin.

The Paydirt Prospector reported that West Red Lake Gold shares gained 4.2% following the results and had risen 37% over the preceding month, while remaining approximately 34% below their pre-guidance level. The publication moved WRLG to a Hold and identified the next quarterly results, progress on the Madsen pre-feasibility study, and development of the satellite deposits as items to monitor.

Investor and newsletter writer Chen Lin had provided an earlier assessment on May 13 following the company's revision to its 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."

Lin described challenges associated with the existing mine workings, writing that "many good areas were mined out." He said the company would need "to build a decline to mine at a fresh new area, which will likely take a year or so."

"That's the wait for this mine to 'turn around,'" Lin wrote. "Investors need to be patient."

From Madsen Ramp-Up to Additional Mining Fronts

West Red Lake Gold's September 2026 corporate presentation set 2026 post-commercial-production guidance at 35,000 to 45,000 ounces, with approximately 60% weighted toward the second half of the year. Commercial production at Madsen was declared in January 2026. The presentation identified access to the 4447 and 960 complexes, development at Fork, and work on additional underground areas as part of the 2026 program.

The company identified the 904 Complex and Fork as areas scheduled to enter the production profile in 2027. The presentation also called for material underground development, scaling shaft haulage capacity, continued resource expansion drilling, and further advancement of the 13 Level East Drive to open additional mining fronts.

At the 904 Complex, the company described a 200-meter by 200-meter non-remnant underground complex within Madsen that is in exploration and development for the 2027 production profile. The stated work was intended to define multiple high-grade, near-infrastructure lenses with minimal historic workings. The presentation listed 2026 drilling intercepts, including 215.46 g/t gold over 5.35 meters on April 13 and, from February 25 drilling, 219.73 g/t gold over 4.8 meters, 148.36 g/t gold over 3 meters, and 133.13 g/t gold over 2.5 meters.

Fork was also included in the company's near-term development work. A 3,200-meter drill program had been completed, and the presentation stated that initial development was underway through the second half of 2026, with Fork expected to enter the 2027 production profile. Fork is located 250 meters from the existing Madsen infrastructure.

The Fork resource was listed at 20,900 indicated ounces grading 5.3 g/t gold and 49,500 inferred ounces grading 5.2 g/t gold. The presentation also identified a high-grade core target of 130,000 to 150,000 tonnes grading 8 to 9 g/t gold for 33,000 to 43,000 ounces of gold.

At Madsen, the 13 Level East Drive was planned to advance approximately 500 meters in 2026. The presentation stated that the drive was intended to provide another mining front and drill access for expansion east of the current Mineral Resource Estimate. The broader roadmap also included advancement of the drive toward the Derlak complex, while Phase 1 of the Madsen shaft refurbishment had already been completed.

Exploration identified in the presentation included Starratt-Olsen. At Madsen, deep exploration was identified as a priority, with the 13 Level East Drive providing deeper drill platforms. The presentation also described the Upper 8 discovery, where 15 of 17 initial holes returned gold. Listed results included 1.3 meters grading 44.17 g/t gold and 0.5 meter grading 20.63 g/t gold.

Rowan represented another work stream in the company's plans. It's June 1, 2026, Mineral Resource Estimate listed 335,058 indicated ounces grading 13.04 g/t gold and 179,029 inferred ounces grading 15.31 g/t gold. The permitting process had started, and the project is located 80 kilometers by road from the Madsen mill. The PEA-stage mine plan described production of 35,200 ounces of gold per year for five years, potentially without requiring a mill or tailings facility at Rowan.

The completed 6,300-meter Rowan drill program targeted veins 001, 004, 006b, and 013. The program was designed to support mine design, geotechnical work, and metallurgical work for a planned combined pre-feasibility study. The company's broader roadmap described an updated pre-feasibility study proposed to combine Madsen and Rowan.

For the longer-term Rowan schedule, the presentation targeted development and a production ramp-up in 2029. It also described a proposed hub-and-spoke configuration involving multiple complexes and mines feeding the Madsen mill.

Ownership and Share Structure¹

Institutional investors hold approximately 30% of West Red Lake Gold's shares, with management and insiders holding another 10%. The remaining 60% is held by retail investors.

The company's current market cap is CA$323 million, with a 52-week trading range of CA$0.59 to CA$1.49.