West Red Lake Gold drills 3.2 metres of 47.44 g/t gold at Madsen Mine, Ontario
West Red Lake Gold Mines Ltd. [TSXV-WRLG; OTC-WRLGF] reported drill results from the South Austin Zone at its 100%-owned Madsen Mine located in the Red Lake Gold District of Northwestern Ontario.
The Red Lake District has produced over 30 million ounces of gold. WRLG’s 47 Km2 land package is 13X bigger than NYC’s Central Park.
At its peak, the asset was valued at over a billion dollars, 7X the current market cap of WRLG. In the spring of 2023, WRLG acquired the asset for $6.5 million cash, 28.5 million shares, while granting the seller a 1% Net Smelter Royalty.
“I’ve never seen an acquisition this attractive,” stated mining executive Frank Giustra. “The quality of the infrastructure here is absolutely perfect. It’s first class. It’s brand new. You couldn’t create this today with less than $700 million. It would take you years, probably a decade. It’s like buying a new car you could walk into and you have that new car smell.”
The company’s flagship asset – The Madsen Gold Mine – is debt free, fully permitted, with a brand-new 800+ tonne-per-day mill, a tailings and water treatment facility.
The South Austin Zone currently contains an Indicated mineral resource of 474,600 ounces, grading 8.7 g/t gold with an additional Inferred resource of 31,800 oz grading 8.7 g/t gold.
These results demonstrate continuity of the South Austin Zone and highlight the resource growth potential that exists within this area.
Drill Program Highlights: Hole MM23D-07-4141-006 intersected 1m at 296.83 g/t Au, from 53.0m to 54.0m, and 3m of 42.35 g/t Au, from 31.0m to 34.0, including 1m at 37.10 g/t Au, from 31.0m to 32.0m, also including 1m of 84.34 g/t Au, from 33.0m to 34.0m.
Hole MM23D-07-4141-017 intersected 3.2m at 47.44 g/t Au, from 40.6m to 43.8m. Hole MM23D-07-4141-012 intersected 7m at 21.62 g/t Au, from 36.0m to 43.0m, including 1m at 118.35 g/t Au, from 37.0m to 38.0m.
Hole MM23D-07-4141-002 Intersected 8m at 17.45 g/t Au, from 27.0m to 35.0m, including 2m at 55.87 g/t Au, from 30.8m to 32.8m, also including 0.6m at 23.33 g/t Au, from 33.4m to 34.0m.
Hole MM23D-07-4141-015 intersected 5.3m at 16.17 g/t Au, from 99.2m to 104.5m, including 2.5m at 28.84 g/t Au, from 102.0m to 104.5m.
Hole MM23D-07-4141-020 intersected 1m at 56.14 g/t Au, from 19.0m to 20.0m. Hole MM23D-07-4141-003 intersected 1m at 53.97 g/t Au, from 76.0m to 77.0m.
On November 21, 2023, WRLG reported drill results from the North Austin Zone which included an intercept of 10.28m at 27.15 g/t gold.
“The impressive results reported thus far from South Austin and North Austin represent growth to the existing Madsen resource inventory and underscore the high-grade expansion potential that still exists at the Madsen deposit,” stated Shane Williams, President and CEO or WRLG. “We fully intend to continue unlocking this value as drilling continues.”
“These outstanding drill results demonstrate the high-grade nature and continuity of the South Austin Zone,” Will Robinson, V.P. of Exploration for WRLG told Guy Bennett, the CEO of Global Stocks News. “Our team believes that further exploration and expansion potential exists down-plunge from the area highlighted in this update, which could add additional high-grade, near-mine ounces to the South Austin resource.”
Major investors in the current project include Sprott Resource (23.4%), Frank Giustra (11.8%) and VanEck Gold Fund (6.5%).
“The current underground drilling program at the Madsen Mine is focused on further definition of near-term mining inventory,” confirmed WRLG, “as well as growth of the current mineral resource.”