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December 7, 2023 – TheNewswire – Global Stocks News – In a press release dated December 5, 2023, West Red Lake Gold Mines (TSXV:WRLG) (OTC:WRLGF) reported drill results from the South Austin Zone at its 100% owned Madsen Mine located in the prolific Red Lake Gold District of Northwestern Ontario, Canada.
The gold price today is CND $2,750/ounce. According to the World Gold Council, in October, 2023 central banks added 42 tonnes of gold to their official reserves. That tonnage of gold is worth CND $3.7 billion.
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https://www.gold.org/goldhub/gold-focus/2023/12/central-banks-summer-buying-continues-october
Source: IMF IFS, respective central banks, World
Gold Council
*Data to 31 October 2023 where available.
The Red Lake District has produced over 30 million ounces of gold. WRLG’s 47 Km2 land package is 13 X 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 Frank Giustra in this WRLG video . “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. [ 1 ]
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The South Austin Zone currently contains an Indicated mineral resource of 474,600 ounces, grading 8.7 grams per tonne gold , with an additional Inferred resource of 31,800 oz grading 8.7 g/t Au .
The December 5, 2023 results demonstrate continuity of the South Austin Zone and highlight the resource growth potential that exists within this area.
December 5, 2023 Drill Program Highlights:
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Hole MM23D-07-4141-006 Intersected 1m @ 296.83 g/t Au , from 53.0m to 54.0m, and 3m @ 42.35 g/t Au , from 31.0m to 34.0, Including 1m @ 37.10 g/t Au , from 31.0m to 32.0m, also including 1m @ 84.34 g/t Au , from 33.0m to 34.0m.
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Hole MM23D-07-4141-017 Intersected 3.2m @ 47.44 g/t Au , from 40.6m to 43.8m.
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Hole MM23D-07-4141-012 Intersected 7m @ 21.62 g/t Au , from 36.0m to 43.0m, Including 1m @ 118.35 g/t Au , from 37.0m to 38.0m.
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Hole MM23D-07-4141-002 Intersected 8m @ 17.45 g/t Au , from 27.0m to 35.0m, Including 2m @ 55.87 g/t Au , from 30.8m to 32.8m, also including 0.6m @ 23.33 g/t Au , from 33.4m to 34.0m.
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Hole MM23D-07-4141-015 Intersected 5.3m @ 16.17 g/t Au , from 99.2m to 104.5m, Including 2.5m @ 28.84 g/t Au , from 102.0m to 104.5m.
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Hole MM23D-07-4141-020 Intersected 1m @ 56.14 g/t Au , from 19.0m to 20.0m.
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Hole MM23D-07-4141-003 Intersected 1m @ 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 @ 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 & 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.”
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WRLG CEO Shane Williams has designed, built and operated mines (open pit and underground) for Eldorado Gold and Rio Tinto. He has a stellar track record of moving mineral assets into production.
Major investors in the current project include Sprott Resource (23.4%), Frank Giustra (11.8%) and VanEck Gold Fund (6.5%).
“It's all about execution in this business,” stated Giustra , “The key lesson I've learned from building mining companies over the last several decades is to back a great management team with a great asset, invest early and be patient.”
“The current underground drilling program at the Madsen Mine is focused on further definition of near-term mining inventory ,” confirms WRLG, “as well as growth of the current mineral resource.”
References:
1. SRK Consulting. (2021). Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for the PureGold Mine, Canada (West Red Lake Gold Mines, Ed.) https://www.globenewswire.com/en/news-release/2022/08/10/2495601/0/en/PureGold-Announces-Updated-Mineral-Resource-Estimate-for-PureGold-Mine.html
guy.bennett@globalstocksnews.com
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