Gold Miner Reveals High-Grade Breakthroughs at Ontario Project

1. West Red Lake Gold Mines Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
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West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) is preparing to release a series of closely watched announcements tied to its Madsen gold project in Red Lake, Ontario.

During a recent call with Streetwise Reports, Vice President of Communications Gwen Preston emphasized that the upcoming bulk sample results represent "the most important piece of news the company will put out since buying the project."

The bulk sample, collected from three areas within the Madsen resource, will be detailed in a series of news releases beginning at the start of May. The first will report on planned versus actual mined tonnage and grade. Preston explained that success delivering expected tonnes and grade would  "validate the entire thesis" behind WRLG's acquisition of the asset, particularly in comparison to the previous operator's challenges.

A subsequent release will share operational learnings from test mining. This includes the ability to safely mine adjacent to historical workings — an open question prior to this test phase.

"The answer is, we can mine right up against them, and they stay where they are, which is great," said Preston. She added that the mining team enters production with "six months of getting ourselves used to mining," helping reduce start-up risks.

An important operational shift is also emerging at Madsen. The company is modifying the high cut-off grade of 4 grams per tonne used in its Pre-Feasibility Study (PFS). Instead of adhering strictly to narrow high-grade stopes, WRLG will incorporate adjacent zones of slightly lower-grade material, enabling the use of more cost-effective longhole stoping methods. "We won't be quite at the 7.8 grams per tonne that is the PFS average through the first two-thirds of that mine plan," Preston noted, "but it's by choice and for better economics."

Looking ahead, WRLG expects to release another set of definition drill results in mid-May, which will follow up on the area of South Austin that delivered one of the best intercepts ever drilled at Madsen on February 26: 114.26 g/t gold over 10.3 meters, including 1,609 g/t gold over 0.7 meters, and 77.9 g/t gold over 3 meters. Definition drill results inform near-term mine planning and potential reserve growth.

Preston also addressed questions about the potential impact of cross-border trade conditions, clarifying that WRLG is largely insulated from tariff disputes between Canada and the U.S. "We will sell our gold in the province for Canadian dollars," she said. "We're not going to get hit with tariffs directly because we will not sell directly to America."

Gold's Surge Reflects Systemic Shifts in Global Finance

Gold continued to command attention in global markets through April as its price trajectory reinforced the metal's position as a core asset in an increasingly fragmented financial system. On April 22, Reuters reported that spot gold briefly touched a record high of US$3,500.05 per ounce before easing to US$3,372.68 by late afternoon trading. While the pullback was attributed in part to U.S.-China trade optimism and a stronger dollar, analysts maintained that macroeconomic pressures continued to support the broader uptrend. Bob Haberkorn of RJO Futures noted, "Comments… hinting towards a possible thaw in the trade war with China, was really when [gold] started to sell off."

In the Reuters report, Jim Wyckoff, senior analyst at Kitco Metals, added that rising U.S. equity markets and a firming dollar presented temporary headwinds, but emphasized that the long-term outlook for bullion remained strong. Despite the daily drop, gold's year-to-date gain stood at 29 percent as of that session, marking its 28th all-time high of the year.

Paul O'Brien of Velocity Trade Capital gave West Red Lake an Outperform rating and set a target price of CA$1.25.

According to an April 23 update from GoldFix, JPMorgan officially forecasted gold to reach US$4,000 per ounce by the second quarter of 2026, with an interim target of US$3,675 by late 2025.

The bank attributed this expected growth not just to inflationary concerns, but to more systemic pressures, including sustained central bank accumulation, rising recession probabilities, and increasing global monetary fragmentation. "Gold is being repriced not on transitory price shocks but on structural fracture," the report stated. It also highlighted a quarterly net gold absorption forecast of 710 tonnes from central banks and investors throughout 2025.

In a separate commentary published on April 23, newsletter writer Stewart Thomson underscored that technical retracements in the gold market were expected and provided potential buy zones. He noted that gold's recent gains followed a breakout from a multi-year pattern, describing the current environment as "stagflationary times" that are historically favorable for the sector. Thomson's analysis also placed the upper boundary of gold's next wave between US$4,000 and US$5,000 based on Elliott Wave theory.

Looking Deeper: Madsen's Next Moves and Expansion Vision

With initial bulk sample validation expected in the coming weeks, West Red Lake Gold's strategy for the Madsen Mine is centered on methodical ramp-up and scalable expansion. The company's investor materials underscore a phased approach focused on near-term gold production while unlocking longer-term upside.

According to the company's April investor presentation, WRLG's PFS supports a mine restart with a forecasted US$496 million post-tax Net Present Value using a US$2,600/oz long-term gold price. Gold production is projected at 67,600 ounces annually for six full production years, with average head grades of 8.2 grams per tonne and gold recovery of 95.7%. The estimated All-In Sustaining Cost (AISC) stands at US$1,681 per ounce

WRLG has spent 22 months investing heavily in operational readiness, including key capital projects such as the 1.4-km Connection Drift, an underground highway that was completed in March 2025, and a new on-site camp.

Additionally, WRLG is looking at assessing the Rowan deposit, located approximately 80 kilometers from Madsen, as a source of toll mining material. The deposit at Rowan is higher grade than the average at Madsen – Rowan's indicated resource stands at 12.8 g/t gold – and so it is interesting to consider if Rowan could potentially contribute to the Madsen mine, permitting dependent.

Beyond Madsen and Rowan, further upside is supported by WRLG's control of additional targets, including the Fork deposit and Upper 8 Zone, which remain underexplored. The company's technical teams are conducting detailed definition drilling to tighten geologic models from 20-meter to 7-meter spacing, a strategy to reduce continuity risk and increase resource confidence.

WRLG's strategy is underpinned by its fully permitted status, strong safety record, and significant sunk capital from previous operators - over US$350 million in infrastructure investments - setting the stage for near-term production with long-term growth potential.

Analysts Highlight Progress and Revaluation Potential at West Red Lake Gold

Analyst coverage of West Red Lake Gold Mines Ltd. has intensified in recent weeks as the company advances toward its first gold pour at the Madsen project in Ontario.

On March 19, Cantor Fitzgerald analyst Matthew O'Keefe issued a Buy rating and a one-year target price that implied a 114% return. In his research note, O'Keefe cited construction progress, including 94% completion of the 1.4-kilometer connection drift, acceleration in underground development, and operational readiness supported by a new 114-person camp facility.

On March 27, Chen Lin of What is Chen Buying? What is Chen Selling? projected further upside if the company executes as expected, stating that West Red Lake Gold "should be a couple of dollar stock," and that its warrants "should be 10x at least."

On April 3, Jeff Clark of The Gold Advisor reiterated a Strong Buy recommendation, describing the company as being on the "preproduction golden runway." Clark noted that the stock could benefit from both the broader upward movement in gold and the start of production at Madsen.

Most recently, on April 14, Paul O'Brien of Velocity Trade Capital gave West Red Lake an Outperform rating and set a target price of CA$1.25.

Ownership and Share Structure

Strategic investor Sprott Resource Lending Corp. holds about 8%. Institutions hold about 30%, management, insiders, and advisors hold about 10%, and the remaining shares are held by retail investors.

The company's market cap is CA$200.28 million. The 52-week range for the stock is CA$0.52 to CA$1.04.