West Red Lake Gold Mines Ltd · TSXV:WRLG
West Red Lake Gold Mines — Investor Presentation (April 2023)
34 slides from West Red Lake Gold Mines's investor presentation, April 2023
Slide 1: Focused On High Grade Gold In Canada's Red Lake District
Focused On High Grade Gold In Canada’s Red Lake District TSX-V: WRLG OTC: WRLGF
Slide 2: Vision
VISION “Our goal is to continue to build high-grade resources in one of the richest gold districts in Canada.” - Frank Giustra Major shareholder TSX-V: WRLG OTC: WRLGF westredlakegold.com 2
Slide 3: Value Proposition – Acquisition of Madsen Gold Mine
VALUE PROPOSITION – ACQUISITION OF MADSEN GOLD MINE • Acquisition of the fully-permitted, debt-free Madsen gold mine in one of the richest greenstone belts in Canada • Brand-new 800+ tonne per day mill, underground mine, tailings facility and water treatment plant • Significant tax-loss provisions t
Slide 4: Transaction Consideration and Equity Financing
TRANSACTION CONSIDERATION AND EQUITY FINACING Acquisition Consideration Concurrent Financing C$25M Equity Raise 28.46M Shares C$6.5M 153.6M at $0.35/share 7% TSX-V: WRLG OTC: WRLGF WRLG.V Evolution Mining Closing Price (April 17, 2023) $0.60 14% 52 Week High/Low $0.625/$0.31 Accilent Capital 10% Man
Slide 5: Transformative Acquisition
TRANSFORMATIVE ACQUISITION >$1 Billion >$350M $273M Tax Assets C$16.5M Acquisition Flagship asset commanded over The Madsen project has had $273M dollars in C$16.5M total consideration is $1 Billion in peak market over $350M in investment transferrable tax assets to an all-time low valuation capital
Slide 6: What Went Wrong?
WHAT WENT WRONG? The primary theme that underpinned Pure Gold’s failure with the Madsen Project was their pursuit of a sale – this drove a majority of their decision-making that was not aligned with the successful operation of the asset, including: 1. Project Financing – Pure Gold took on debt and f
Slide 7: Path Forward
PATH FORWARD De-Risk Resource Restart Planning Restart Execution • Complete additional in-fill drilling • Complete engineering trade-off • Only initiate re-start once the Project focused on near-term, high-grade studies to evaluate mining methods, is sufficiently optimized zones ore transportation o
Slide 8: Target Asset Overview
TARGET ASSET OVERVIEW Madsen Mine Madsen Land Package Proposed Acquisition ❖ As a flagship asset the project commanded ❖ Strategically located 47 km2 land ❖ Cash consideration of C$6.5M a peak market capitalization of > C$1 package in Red Lake District next door Billion to major operators such as Ba
Slide 9: Significant Infrastructure – Over $350M Invested to Date
SIGNIFICANT INFRASTRUCTURE – OVER $350M INVESTED TO DATE UG Equipment Double Ramp Access 1,275 Metre Deep Shaft Expandable 800+ tpd Mill Excess Tailings Capacity Water Treatment Plant TSX-V: WRLG OTC: WRLGF westredlakegold.com 9
Slide 10: Brand New Mill
BRAND NEW MILL • Standard gold CIP flowsheet with significant gravity recovery • Mill constructed and commissioned in 2020 • 800 tpd Mill, permit constrained to 1,089 tpd with expandability potential up to 1,500 tpd with modest investment • Mill achieved 95% gold recovery during first two-years of o
Slide 11: Asset Map
ASSET MAP Dec-2022 MRE 2Moz @ 7.2 gpt Au (Ind+Inf) • Existing Resource in Red • Regional Targets in Yellow TSX-V: WRLG OTC: WRLGF westredlakegold.com 11
Slide 12: Near-Mine Expansion Potential
NEAR-MINE EXPANSION NEAR-MINE EXPANSIONPOTENTIAL POTENTIAL High-grade, near-mine expansion opportunities exist down-plunge and along strike from current resource areas Derlak TSX-V: WRLG OTC: WRLGF westredlakegold.com 12
Slide 13: Upgrade and Expand Higher Grade/Tonnage Portions of Resource
UPGRADE AND EXPAND HIGHER GRADE/TONNAGE PORTIONS OF RESOURCE Zone Tonnes (t) Au (g/t) Ounces Au 423 koz @ 9 gpt Au 2 64,223 5.3 10,943 4 181,785 8.5 49,676 5 266,749 8.1 69,464 LOWER GRADE 6 180,053 12.8 74,094 7 200,493 5.9 38,030 8 306,726 8.3 81,846 9 306,312 7.4 72,873 HIGHER GRADE 10 258,917 9
Slide 14: Summary
SUMMARY Consolidation of • Two Deposits hosting combined, high grade gold resources which remain open for expansion and discovery Red Lake Assets • Combined Land Package of nearly 80 km2 of highly prospective and underexplored ground next door to major operators including Barrick, Kinross, and Evolu
Slide 15: Next Steps – The Madsen Gold Project
NEXT STEPS The Madsen Gold Project Improve ongoing costs Initiate regional exploration Growth investigate accretive associated with maintaining the program focused on discovering opportunities in the area, organically Madsen site in alignment with additional gold ounces grow the existing resource ba
Slide 16: Rowan and Madsen Projects
ROWAN AND MADSEN PROJECTS 0.9 Moz Au at 9.2 g/t Inferred 0.9 Moz resource at Rowan provides additional high-grade feed to Madsen Mill Production Timeline from Rowan would be greatly accelerated with Madsen Mill Madsen is within trucking distance from Rowan – two main options for haulage Sufficient t
Slide 17: Rowan Mine
ROWAN MINE Price of gold: $1600: $US Exchange rate US$: CDN $0.78; Block cutoff grade: 3.8 gpt Au; Numbers may differ due to rounding Tonnes Grade g/pt Au Contained oz. Au Inferred Resource 2,790,700 9.2 827,462 100% owned and operated by West Red Lake Gold Mines Rowan Deposit, NT Zone & Structural
Slide 18: Near-Mine Expansion Potential – Regional Geology
WESTNEAR-MINE RED LAKEEXPANSION GOLD – REGIONAL POTENTIAL GEOLOGY Madsen Mine TSX-V: WRLG OTC: WRLGF westredlakegold.com 18
Slide 19: Near-Mine Expansion Potential – Property Geology
WESTNEAR-MINE RED LAKEEXPANSION GOLD – PROPERTY POTENTIAL GEOLOGY Mt Jamie Rowan Red Summit NT Zone TSX-V: WRLG OTC: WRLGF westredlakegold.com 19
Slide 20: Near-Mine Expansion Potential – Property Structure
WESTNEAR-MINE RED LAKEEXPANSION GOLD – PROPERTY POTENTIAL STRUCTURE Mt Jamie Rowan Red Summit NT Zone Regional Structures D2 E-W Faults TSX-V: WRLG OTC: WRLGF westredlakegold.com 20
Slide 21: Rowan Longitudinal Section
WESTNEAR-MINE RED LAKEEXPANSION GOLD – ROWAN LONGITUDNAL SECTION POTENTIAL [1] December 2022 Block Model – Blocks Displayed at 3 g/t Au cutoff Au (g/t) Section Looking North [1] Mineral Resources are estimated at a cut-off grade of 3.8 g/t Au and using a gold price of US$1,600/oz. Please refer to th
Slide 22: 2023 Exploration Plan & Targets
2023 EXPLORATION PLAN & TARGETS 1 Q2 2023 • Re-processing and Re-Interpreting historic data • Property wide High-Resolution LiDAR survey • 7000m of oriented core diamond drilling 2 H2 2023 • Data interpretation • Property wide mapping and sampling • Geologic and Structural modelling • Enhanced targe
Slide 23: 2023 Exploration Plan & Targets
2023 EXPLORATION PLAN & TARGETS Red Summit Target Mt. Jamie Mine Rowan West Large Diorite stock NE of historic Red Untested, segment of the Mt. Jamie Intersection of the 10,000 vein (south Summit Mine. Located in flexure of a structure where it intercepts a strike extent of the Rowan No. 1 Vein) maj
Slide 24: Thank You
THANK YOU Suite 3123 - 595 Burrard Street Investor Relations: 416-203-9181 x4600 Vancouver, BC V7X 1J1 Canada Email: investors@westredlakegold.com Office: 604-609-6110 TSX-V: WRLG OTC: WRLGF
Slide 25: Appendix
Appendix TSX-V: WRLG OTC: WRLGF
Slide 26: Highly Experienced Management Team and Board
HIGHLY EXPERIENCED MANAGEMENT TEAM AND BOARD Chairman & CEO CFO VP Exploration VP Corporate Development Tom Meredith Jasvir Kaloti Will Robinson, P. Geo Amandip Singh Directors P.Eng - Director P.Geo - Director Director P.Geo - Director Ryan Weymark John Heslop Susan Neale Robert van Egmond Special
Slide 27: Mineral Resource Statement
WESTNEAR-MINE RED LAKEEXPANSION GOLD - MINERAL POTENTIALRESOURCE STATEMENT Mineral Resource Statement – Madsen [1] Classification Deposit - Zone Tonnes Gold Grade (g/t) Gold Troy Ounces Madsen - Austin 4,147,000 6.9 914,200 Madsen -South Austin 1,696,000 8.7 474,600 Madsen - McVeigh 388,700 6.4 79,8
Slide 28: Schedule A – Statutory Rights of Rescission (1 of 2)
SCHEDULE A – STATUTORY NEAR-MINE RIGHTS OF RESCISSION (1 of 2) EXPANSION POTENTIAL Statutory Rights of Action for Damages and Rescission In certain circumstances, investors resident in certain provinces and territories of Canada are provided with a remedy for rescission or damages, or both, in addit
Slide 29: Schedule A – Statutory Rights of Rescission (2 of 2)
SCHEDULE A – STATUTORY NEAR-MINE RIGHTS OF RESCISSION (2 of 2) EXPANSION POTENTIAL Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia and Québec Investors Notwithstanding that the Securities Act (Alberta), the Securities Act (British Columbia), the Securities
Slide 30: Schedule B – Risk Factors (1 of 5)
SCHEDULE B – RISK NEAR-MINE FACTORS EXPANSION (1 of 5) POTENTIAL The Transaction may be terminated in certain circumstances Each of the parties to the Transaction has the right to terminate the Transaction in certain circumstances. Accordingly, there is no certainty, nor can WRLG provide any assuran
Slide 31: Schedule B – Risk Factors (2 of 5)
SCHEDULE B – RISK NEAR-MINE FACTORS EXPANSION (2 of 5) POTENTIAL Exploration, Development and Operating Risks Mining exploration and operations generally involve a high degree of risk. WRLG’s business is subject to all the hazards and risks normally encountered in the exploration, development and pr
Slide 32: Schedule B – Risk Factors (3 of 5)
SCHEDULE B – RISK NEAR-MINE FACTORS EXPANSION (3 of 5) POTENTIAL Regulatory Risks Regulatory Risks and Uncertainties Mining activities are subject to extensive laws and regulations governing prospecting, development, production, exports, taxes, labor standards, occupational health and safety, water
Slide 33: Schedule B – Risk Factors (4 of 5)
SCHEDULE B – RISK NEAR-MINE FACTORS EXPANSION (4 of 5) POTENTIAL Market and Other Risks Volatility in the Market Price of the Company’s Securities WRLG’s common shares are listed on the TSX-V. Securities of mining companies have experienced substantial volatility in the past, often based on factors
Slide 34: Schedule B – Risk Factors (5 of 5)
SCHEDULE B – RISK NEAR-MINE FACTORS EXPANSION (5 of 5) POTENTIAL Insurance In the course of exploration, development and production of mineral properties, certain risks, and in particular, unexpected or unusual geological operating conditions and other environmental occurrences may occur. It is not
West Red Lake Gold Mines — Investor Presentation (April 2023) on 6ix