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West Red Lake Gold's Integrated PFS Puts a C$764 Million Value on Its Red Lake Plan

The combined Madsen and Rowan plan outlines 884,000 ounces over 10 years, a 2.2-year payback and about C$200 million in growth capital, with output topping 100,000 ounces a year from 2029.

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West Red Lake Gold's Integrated PFS Puts a C$764 Million Value on Its Red Lake Plan

Pre-feasibility studies rarely arrive with a soundtrack, but West Red Lake Gold Mines Ltd. (TSXV: WRLG; OTCQX: WRLGF) released its long-awaited integrated Red Lake study on the same morning gold surged on U.S. election results, and the headline figure did plenty of talking on its own: a C$764 million after-tax net present value for a combined Madsen and Rowan operation.

The study, prepared by SLR Consulting (Canada) Inc. with input from Fuse Advisors, Knight Piesold and Nordmin Engineering, folds the operating Madsen Mine and the high-grade Rowan deposit into a single 10-year plan built around the existing Madsen mill in northwestern Ontario. It outlines roughly 884,000 ounces of recovered gold over the life of mine, averaging 88,000 ounces a year, with output rising to an average of 108,000 ounces a year between 2029 and 2034 and peaking at 119,000 ounces.

The NPV uses a 5% discount rate and a long-term gold price of US$3,568 an ounce from 2030 onward, or a life-of-mine average of US$3,782 once higher near-term prices are included. The study also points to more than C$1 billion of cumulative after-tax free cash flow, a 2.2-year discounted payback, and an NPV of about C$1.0 billion if gold runs 10% above the base case in every year. Growth capital comes in at roughly C$200 million to develop Rowan and expand the Madsen mill and tailings facility, a modest cheque for a company building on a mill it already owns.

Rowan is the engine of the upgrade. The past-producing deposit, about 80 kilometres by road from Madsen, carries probable reserves of 1.01 million tonnes grading 9.23 g/t gold for 300,000 ounces. The plan calls for development in 2028 and first gold in 2029, with Rowan ore trucked to Madsen at about 500 tonnes per day instead of building a second mill, while the Madsen plant is upgraded to 1,350 tonnes per day. Combined probable reserves now total 4.41 million tonnes grading 6.79 g/t gold for 962,000 ounces, which the company says is an 85% increase in contained reserve ounces compared with its 2025 study.

President and CEO Shane Williams called the study "a defined base case at a point in time," adding that the priority is executing the plan consistently while growing the mining inventory as West Red Lake shifts from a single-asset operation to a multi-asset producer in Red Lake.

Costs are the number worth watching. The study pegs life-of-mine cash costs at US$1,795 an ounce and all-in sustaining costs at US$2,457 an ounce. That is not cheap, but it still leaves a comfortable margin against the study's own price deck, let alone today's gold price. Madsen's ramp-up has had its bumps. The Northern Miner reported last week that Red Cloud Securities analyst Ian Parkinson saw the company's October operating update as slightly negative because of its reliance on lower-grade remnant areas, and flagged this integrated study as the key catalyst for a shift toward higher-grade ore from previously unmined ground. On November 2, West Red Lake also signed a binding term sheet with Centalion for a credit facility of up to US$95 million and a gold offtake agreement, which The Northern Miner reported would refinance existing Nebari debt and support Madsen and potential development at Rowan.

There is upside the study leaves on the table, too. The mine plan excludes the Wedge, Russet and Mount Jamie deposits, the past-producing Starratt-Olsen mine and the Upper 8 zone, the Red Summit mine, and any depth extensions at Madsen and Rowan. Final permits for Rowan are expected by 2029, ahead of mine development, and a supporting NI 43-101 technical report will be filed within 45 days. The technical information was reviewed and approved by Will Robinson, Vice President of Exploration, and Hayley Halsall-Whitney, Vice President of Operations.

West Red Lake shares were up nearly 5% in Wednesday trading as gold climbed after Democrats won control of both chambers of Congress. Reuters quoted Greg Taylor, chief investment officer at PenderFund Capital Management, saying the result could push Washington to ease its trade stance, with some tariffs potentially rolled back. December gold futures rose more than US$116 to about US$4,057 an ounce by late morning, according to The Canadian Press.

For a company that has spent 2026 proving it can run a mine, this is the first time investors can see West Red Lake as a multi-asset producer on paper. The next chapter is making Madsen's real-world numbers rhyme with the spreadsheet.

Sources

Disclaimer

Neither the author of this article nor JuniorStocks holds equity, stock options, or any other financial positions in West Red Lake Gold Mines Ltd. (TSXV: WRLG; OTCQX: WRLGF) or any other companies mentioned in this publication. This content is published by JuniorStocks strictly for informational purposes, was prepared independently without company compensation, and utilized AI assistance for text editing, formatting, and generating accompanying media. While a high-grade, hub-and-spoke gold operation in Ontario's Red Lake district represents a compelling development story, this article does not constitute investment or financial advice. Investors are strongly advised to conduct their own thorough, independent due diligence and consult with a qualified financial professional before making any investment decisions.

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