West Red Lake gold production rose 51% in Q2 at Ontario mine
West Red Lake Gold Mines Ltd. [WRLG-TSXV] has announced second quarter, 2026, financial and operating results from its Madsen Mine, which is located in the Red Lake mining district in northwestern Ontario.
The company said gold production in the second quarter jumped 51% to 8,576 ounces from 5,667 ounces in the first quarter. All-in sustaining costs (AISC) decreased 30% to US$3,284 an ounce, compared to US$4,678 an ounce in the first quarter, bringing Q2 AISC within the company’s 2026 guidance range of between US$2,800 and US$3,600. After generating $9.7 million of positive free cash flow during Q2, the company ended the quarter with approximately $31.2 million in cash and cash equivalents.
Meanwhile, revenue increased 17% in Q1 to $49 million, generating $20.1 million of income from mine operations, a 31% increase from Q1. Adjusted net earnings increased 98% to $12.6 million, compared with $6.4 million in Q1.
The shares eased lower on the news, falling 3.23% or $0.03 to 90 cents. The shares trade in a 52-week range of $1.49 and 59 cents.
West Red Lake Gold is executing a hub-and-spoke growth strategy. The Madsen mill and infrastructure are intended to serve as a central processing hub for multiple past-producing high-grade deposits across the Red Lake District.
This multi-asset approach is designed to provide greater operational flexibility, expand margins, extend mine life, and support a larger production profile over time.
Three months ago, West Red Lake Gold CEO Shane Williams said the company was accessing higher-grade non-remnant mining areas and predicted an increase in revenue, mine income, gold sales and production.
“West Red Lake Gold demonstrated that progress, with improvements across both the operating and financial performance of the Madsen Mine. Gold sales increased by 34% to 8,260 ounces,” the company said.
“Our focus for the balance of 2026, is on consistent execution while continuing to invest in underground development and infrastructure to build production inventory and greater operating flexibility,’’ it said.
Non sustaining growth capital expenditures totaled $6.32 million in Q2, primarily related to the continued advancement of the Fork Deposit access drift and the Madsen shaft refurbishment project, positioning West Red Lake Gold to access additional mining areas while supporting future production growth, increased hauling capacity and improved operating flexibility.
The company said higher mining rates relative to mill throughput allowed it to establish a surface stockpile during the quarter, containing approximately 10,768 tonnes of ore. This stockpile provides additional flexibility between underground mining and mill processing, the company said.
One of West Red Lakes’s key spokes is the satellite Rowan Project which is positioned within trucking distance of the Madsen mill.
On August 19, 2025, West Red Lake announced the filing of its independent preliminary economic assessment (PEA) technical report for the wholly-owned Rowan project.
The PEA envisages average annual production of 35,230 ounces annually over a five-year mine life with an average mining rate of 385 tonnes per day.