West Red Lake Gold Mines Ltd. (“West Red
Lake Gold” or “WRLG” or the “Company”) (TSXV:WRLG) is
pleased to provide a project update and an outlook on project
advancement in the near to medium term for the Madsen Mine and
Rowan Mine projects located in the prolific Red Lake Gold District
of Northwestern, Ontario, Canada.
PATH FORWARD
- Additional 35,000 metre (“m”) drill program planned for Rowan
Property to commence in early 2024, adding second drill and to
include systematic in-fill drilling and expansion drilling of
high-grade zones and begin testing high priority drill targets at
Mt. Jamie, Red Summit and the NT Zone.
- Complete initial Preliminary Economic Assessment (the “PEA”) on
entire portfolio of Properties by Q2 2024 (based on drilling cutoff
date of Oct 1, 2023)
- Complete updated Mineral Resource Estimate (“MRE”) at Rowan by
Q4 2024 (to include all anticipated drilling up to Q3 2024)
- Complete 3,000 m drill program at Wedge, aimed to expand
deposit and complete MRE by Q4 2024
- Complete 38,000 m underground drill program at Madsen Mine by
Q4 2024
- Complete 3,200 m of underground development by Q4 2024 for
access and required infrastructure to support underground
drilling.
- Develop a connecting ramp between the East and West declines at
Madsen to increase waste hauling capacity from the West ramp which
previously crossed two public roads, further reducing operating
costs.
- Put the Madsen Mine back into production in 2025.
Shane Williams, President, and CEO commented:
“The team has done a fantastic job since the beginning of 2023,
achieving many major milestones in the relatively short life of the
re-vamped West Red Lake Gold Mines. In a difficult market we have
managed to complete key acquisitions, raise a considerable amount
of capital to fund our growing ambitions and assembled a team of
noteworthy professionals with a track record of success at both the
management and board levels. We have enjoyed a tremendous amount of
exploration success via the drill-bit at our Rowan project which we
hope to replicate at some very exciting targets in and around our
newly acquired Madsen Mine. The coming year will be a very active
time for the Company as we lay the groundwork to execute on our
vision to put the Madsen Mine back into production and continue to
unlock significant value for our shareholders.”
ROWAN PROPERTY
The 2023 drilling program at Rowan has been
incredibly successful thus far. As such, the originally planned
17,000 m of drilling at the Rowan Mine target was expanded to
25,000 m and the team is on track to complete all planned drilling
at Rowan.
Our understanding of the mineralization at Rowan
has been greatly enhanced and results continue to confirm internal
models and our exploration strategy continues to be validated by
the results achieved. The mineralized set of veins at Rowan
continues to deliver high-grade gold assays over significant widths
that are in-line with or exceed those modelled in the December 2022
resource estimate. A few notable highlights from 2023 drilling at
Rowan include:
- Hole
RLG-23-163B Intersected 8.3 m @ 70.80
grams per tonne (“g/t”) gold (“Au”) from 387 m to 395.3 m.
This interval also included 0.5 m @ 1,120.19 g/t
Au and represents the highest-grade intercept ever drilled
at the Rowan project.
- Hole RLG-23-149B Intersected 4.0 m @
50.52 g/t Au, from 299 m to 303 m.
- Hole RLG-23-153 Intersected 2.0 m @
66.66 g/t Au, from 235 m to 237 m
- Hole RLG-23-134 Intersected 8.0 m @
10.34 g/t Au, from 71 m to 79 m
- Hole RLG-23-156B Intersected 3.11 m @
21.84 g/t Au, from 275 m to 278.11 m
- Hole RLG-23-150 Intersected 4.2 m @
15.40 g/t Au, from 384 m to 388.2 m
- Hole RLG-23-154 Intersected 10.1 m @
6.27 g/t Au, from 214.9 m to 225 m
Our strategy at Rowan for the remainder of 2023
will be to continue increasing confidence in the 827,462 ounces
(“oz”) Inferred resource through systematic in-fill drilling. We
will also look to step out and expand the Rowan resource by
targeting mineralization outside of the current model and testing
the down-dip and down-plunge extensions of the high-grade
zones.
We plan on staying aggressive with the
exploration strategy at Rowan in 2024, which will include the
addition of a second drill early in the year to continue advancing
the Rowan Mine target, and to begin testing high priority drill
targets at Mt. Jamie, Red Summit, and the NT Zone. An additional
35,000 m of exploration drilling is planned for the Rowan Property
in 2024. An updated mineral resource estimate for Rowan is
anticipated to be completed in Q4 2024 and will include all
drilling through Q3 2024.
It is the Company’s belief that potential
synergies could exist between the high-grade Rowan deposit and our
flagship Madsen Mine. Early indications suggest that the gold
mineralization at Rowan could be amenable to gravity separation. As
such, the Company has initiated a metallurgical study at Rowan to
begin evaluating this opportunity, as well as a geotechnical study
to better characterize the rock mass properties within the
mineralized vein zones at Rowan.
Management maintains a high degree of confidence
in the merits of the Rowan deposit and has initiated necessary
baseline environmental and archaeological assessments to begin
moving the Rowan project towards an Advanced Exploration Permit
status – this permit will be required prior to collection of a bulk
sample at Rowan.
MADSEN SATELLITE TARGETS AND REGIONAL
EXPLORATION
After successfully completing the acquisition of
the Madsen Mine the exploration team undertook a detailed review of
the property. Several promising targets were identified and
prioritized with the Wedge target emerging as our highest priority
target.
Previous drilling highlights from the Wedge
target include.
- Hole PG17-486
Intersected 10.33 m @ 24.94 g/t Au, from 16.67 m
to 27 m
- Hole PG17-467
Intersected 16.6 m @ 17.49 g/t Au, from 11.45 m to
28 m
- Hole PG17-482 Intersected 14.4 m @
8.35 g/t Au, from 28 m to 42.4 m
- Hole PG19-643
Intersected 1 m @ 108.5 g/t Au, from 103 m to 104
m
Surface exploration and drilling began in early
September and the initial 3,000 m program is almost complete.
Drilling is primarily focused on extending the high-grade zones
defined at the Wedge Target. This new drilling will be used to
support an updated Mineral Resource Estimate at Wedge to be
completed by Q4 2024. Wedge currently hosts an Indicated resource
of 56,100 oz of gold grading 5.6 g/t Au and an Inferred resource of
78,700 oz of gold grading 5.7 g/t Au1. The target is 2 km southwest
of the Madsen Mine and is adjacent to the past-producing
Starratt-Olsen Mine which historically processed 823,554 tonnes
grading 6.16 g/t Au for ~163 koz of gold2. Drilling conducted at
the Wedge target and other satellite targets near mine will be
incorporated into an updated mineral resource estimate. We
anticipate the update to be completed by Q4 2024.
A detailed and systematic review of all
available exploration and geologic data for the Madsen property has
also been initiated. This information will be digitized and
compiled into working GIS and 3D modeling project files to allow
for target ranking and prioritization ahead of the 2024 season.
Most of the ground at Madsen remains underexplored and our geology
team is already seeing a lot of opportunity for new discoveries
across the district.
MADSEN PROJECT
Underground diamond drilling at Madsen has
recommenced. A 38,000 m program has been designed for the first 12
months and will be focused on infill and expansion of the
high-grade portions of the Austin and South Austin zones. We
anticipate this drilling to define an inventory of high-confidence
ore-grade (6-7 g/t Au) resource to serve as a starting point for a
future restart plan. Additionally, underground development work is
taking place at Madsen which will provide our team with the
necessary access and infrastructure required to support the
underground drilling program.
Mine design and scheduling for the first 12
months have been completed with subsequent phases to be determined
based on the findings of the initial underground drilling and
exploration program. The first development cuts have been taken at
Madsen to provide access to the areas where infill drilling has
already been planned. Mine design and scheduling consider the
requirements of the operations and geology teams to ensure a full
collaborative approach to advancing the project in a safe,
efficient, and timely manner. Over the next 12 months the Company
will complete approximately 3,200 m of underground development to
support engineering and geological programs. We do not intend to
conduct any stoping or commercial extraction for the next 12-15
months until the re-start strategy is significantly de-risked both
technically and financially.
The Company will also develop a connecting ramp
between the East and West declines. The current waste hauling at
Madsen from the West ramp crosses two public roads (into Madsen
town). This haul route is only allowed to be used during daylight
hours. A connecting ramp would increase the number of hours the
team can haul waste as well as eliminate double handling, thus
reducing operating costs. It will also provide for increased safety
for the surrounding community due to reduced traffic.
Additional and ongoing activities at the Madsen
Mine will include, but are not limited to, shaft dewatering, water
treatment and environmental monitoring.
MINERAL RESOURCE UPDATE AND
PEA
The West Red Lake team is committed to a timely
and successful restart that will maximize value for all our
stakeholders. As such the team has engaged SRK Consulting and put
in place the necessary programs required to complete a Preliminary
Economic Assessment. The PEA will look to unlock and deliver robust
economics by incorporating the Company’s entire portfolio of Red
Lake assets which is made up of our Rowan Project and Madsen Mine
with its accompanying satellite deposits.
Management firmly believes this approach is
in-line with its vision for the Red Lake district and a potential
Hub and Spoke model utilizing the Madsen processing facilities
provides plenty of optionality and opportunity to greatly bolster
the project economics.
West Red Lake intends to deliver this initial
PEA by the end of Q2 2024. To achieve that milestone by the
anticipated deadline the decision was made to establish an Oct 1,
2023, cut-off date for 2023 Rowan drilling data to be incorporated
into this PEA. As such, the updated Rowan mineral resource estimate
included in the upcoming PEA will be focused primarily on the
high-grade East Zone, which has been the focus of drilling at Rowan
so far in 2023 and is envisioned as the first area to be mined when
production from Rowan commences. The PEA will then be followed up
by a more comprehensive MRE update for Rowan by Q4 2024, which will
include all drilling at Rowan through Q3 2024.
RECAP OF FIRST THREE QUARTERS OF
2023
- Completed the successful acquisition of 100% of the Rowan Gold
Project from Evolution Mining
- Appointment of new CEO, Shane Williams, to lead the
Company.
- Strengthened Senior Management Team with addition of a new CFO
and new VPs of Exploration, Technical Services, Corporate
Development, and Community Relations.
- Increased board strength with key appointees including Tony
Makuch, Duncan Middlemiss, and Hugh Agro.
- Successfully completed the acquisition of our flagship Madsen
Mine asset while concurrently raising C$ 25M.
- Completed Phase 1 Exploration Program at Rowan project and
initiated expanded Phase 2 drilling campaign. Results from drilling
in 2023 have exceeded expectations and as a result the program was
expanded from the originally announced 17,000 meters to 25,000
meters. That expanded program is well underway.
- Initiated surface drilling campaign at Wedge target – 2km
southwest of Madsen Mine. The program consists of 3,000 meters of
drilling to upgrade and expand the existing resource at Wedge.
- Successfully completed flow-through financing of C$7 million,
to further strengthen treasury position.
- Underground development activities and shaft dewatering are
underway at Madsen Mine.
- SRK was awarded the contract to conduct Preliminary Economic
Assessment and work program has been initiated.
ABOUT WEST RED LAKE GOLD MINES
West Red Lake Gold Mines Ltd. is a mineral
exploration company that is publicly traded and focused on
advancing and developing its flagship Madsen Gold Mine and the
associated 47 km2 highly prospective land package in the Red Lake
district of Ontario. The highly productive Red Lake Gold District
of Northwest Ontario, Canada has yielded over 30 million ounces of
gold from high-grade zones and hosts some of the world's richest
gold deposits. WRLG also holds the wholly owned Rowan Property in
Red Lake, with an expansive property position covering 31 km2
including three past producing gold mines - Rowan, Mount Jamie, and
Red Summit.
ON BEHALF OF WEST RED LAKE GOLD MINES
LTD.
“Shane Williams”
Shane WilliamsPresident & Chief Executive
Officer
FOR FURTHER INFORMATION, PLEASE CONTACT:
Amandip Singh, VP Corporate DevelopmentTel:
416-203-9181Email: investors@westredlakegold.com or visit the
Company’s website at https://www.westredlakegold.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Certain statements contained in this news
release constitute "forward-looking statements". When used in this
document, the words "anticipated", "expect", "estimated",
"forecast", "planned", and similar expressions are intended to
identify forward-looking statements or information. These
statements are based on current expectations of management,
however, they are subject to known and unknown risks, uncertainties
and other factors that may cause actual results to differ
materially from the forward-looking statements in this news
release. Readers are cautioned not to place undue reliance on these
statements. West Red Lake Gold Mines Ltd. does not undertake any
obligation to revise or update any forward- looking statements as a
result of new information, future events or otherwise after the
date hereof, except as required by securities laws.
The forward-looking statements contained in this
press release are based on certain key expectations and assumptions
made by the Company, including expectations and assumptions
concerning: receipt of the necessary approvals, permits and access
to and sufficiency of capital. Readers are cautioned that the
foregoing list is not exhaustive of all factors and assumptions
which have been used.
Although the Company believes that the
expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because the Company can
give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by
their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include,
but are not limited to constraint in the availability of services,
commodity price and exchange rate fluctuations, changes in
legislation impacting the mining industry, adverse weather
conditions and uncertainties resulting from potential delays or
changes in plans with respect to projects or capital expenditures.
These and other risks are set out in more detail in the Company's
Management’s Discussion and Analysis for the quarter ended May 31,
2023.
1 Mineral resources are estimated at a cut-off grade of 3.38 g/t
Au and a gold price of US$1,800/oz. Please refer to the technical
report entitled “Independent NI 43-101 Technical Report and Updated
Mineral Resource Estimate for the PureGold Mine, Canada”, prepared
by SRK Consulting (Canada) Inc. and dated June 16, 2023. A full
copy of the SRK report is available on the Company’s website and on
SEDAR.
2
http://www.geologyontario.mndm.gov.on.ca/mndmfiles/mdi/data/records/MDI52K13NW00011.html
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/6df9da38-b1d2-451f-ac2e-a6c0f88459a8
Grafico Azioni West Red Lake Gold Mines (TSXV:WRLG)
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