Business
West Red Lake Gold (WRLG.V) CEO Message Part 2: Previous Challenges, Forward Plans
(TheNewswire) September 11, 2023 – TheNewswire – Global Stocks News – ...
About this update from West Red Lake Gold Mines Ltd
[{"type":"text","content":"West Red Lake Gold (WRLG.V) CEO Message Part 2: Previous Challenges, Forward Plans\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n September 11, 2023 – TheNewswire – Global Stocks\nNews – On September 10, 2023 West Red Lake Gold Mines (TSXV:WRLG)\n(OTC:WRLGF) CEO Shane Williams sent\n \n \n \n \n part two of seven\ncommunications\n \n \n \n \n to WRLG\nshareholders.\n \n \n \n \n Williams has designed, built and operated mines around\nthe world - for Skeena Resources, Eldorado Gold and Rio Tinto.\n \n \n \n \n \n \n \n \n \n By Shane Williams –\n \n \n CEO of West Red Lake Gold Mines\n \n \n \n \n Thank you for your interest in West Red Lake Gold Mines\n(WRLG.V).  This is Part 2 of seven messages I am sending to WRLG\nshareholders to share my insights about the project and to state\nclearly our business objectives.\n \n \n \n \n Our flagship Ontario asset, The Madsen Gold Mine, was\nonce valued at $1 billion. In the spring of 2023, we acquired it for\n$6.5 million cash, 28.5 million shares, while granting the seller a 1%\nNet Smelter Royalty.\n \n \n \n \n I am often asked: “How is it possible to purchase a\nfully permitted gold mine with a new 800+ tonne per day mill so\ncheaply?”  There is a simple answer: when the mine was briefly in\nproduction it was “sub-economic” - which is a fancy way of saying,\n“It didn’t make money.”  That put off a lot of potential\nbuyers.\n \n \n \n \n After three months’ due diligence we discovered that\nthe problems with the mine were caused by a compounding series of\nfinancial and operational decisions, not the mineral asset\nitself.\n \n \n \n \n The previous operators took on debt with repayment\nterms that forced them into an early production date with the lowest\ncapex possible. This meant neglecting delineation drilling, leasing\nequipment that should’ve been purchased, and targeting a\nclose-to-surface lower grade zone.\n \n \n \n \n Covid protocols also created a headwind for the\nprevious operator.\n \n \n \n \n My technical team has reviewed every available\nfinancial, engineering, geological and metallurgical document relating\nto the Madsen project.\n \n \n \n \n We have made a decision to optimiz...