Significant Progress at Madsen Mine Operations
VANCOUVER, British Columbia -- West Red Lake Gold Mines Ltd. (“West Red Lake Gold” or the “Company”) (TSXV: WRLG) (OTCQB: WRLGF) is thrilled to announce noteworthy advancements regarding the Madsen Mine. Recently, the mill began processing low-grade material as part of preliminary steps leading to the anticipated processing of bulk sample material from Stope 1.
Mill Operations Resume Successfully
After undergoing 28 months of dry shutdown, the mill operations at Madsen Mine were successfully resumed on March 10. Before the restart, the dedicated mill team conducted thorough pre-commissioning efforts, including the replacement of essential components such as mill liners and discharge lines. They also cycled process water through the system to ensure optimal functionality.
On resuming operations, the mill encountered no issues and effectively processed material derived from a legacy low-grade stockpile for the initial five days. Subsequently, operations shifted to a more modern stockpile containing low-grade material. Next week, the mill is set to handle the first batch of material from Stope 1, paving the way for sequential processing of additional stopes as independent evaluators will confirm the reconciliations of expected versus actual metrics.
Impressive Workforce Expansion
A new accommodation facility at the Madsen Mine can now house up to 114 workers and features executive junior suites for optimal comfort. In line with its community commitment, approximately 60% of the workforce is sourced from the local area, helping to bolster the local economy. Recently, a Camp Opening Celebration was held, emphasizing the importance of providing comfortable living conditions for employees. This move aims to attract quality personnel and alleviate housing pressures in the community, significantly enhancing operational capacity.
Enhanced Underground Development Activities
Underground development at the Madsen Mine is ramping up significantly, with progress increasing from an average of 20 meters per day in January to a remarkable 23.8 meters per day in February. This enhanced pace is crucial for accessing mining areas efficiently, facilitating operational flexibility necessary for a successful underground mining operation.
It is vital that the team maintains their focus and coordination, achieving these development targets through dedicated teamwork.
Connection Drift Nearly Complete
In terms of infrastructure, major work continues on the Connection Drift, which is now 94% complete. Out of the total 1.4-kilometer distance, 1,380 meters have been finished, leaving just 84 meters to go. As is standard practice, a diamond drill rig was employed to ensure precision in aligning the progressing sections.
Financial Developments: Credit Facility Insights
In an exciting financial update, West Red Lake Gold has drawn down $7.5 million from the second tranche of a $15 million credit facility arranged with Nebari Natural Resources Credit Fund II LP. This credit facility, part of a larger $35 million arrangement, will finance the remaining costs tied to the Madsen Mine's restart as well as various corporate and exploration projects.
The terms of the facility include a repayment structure with a 50% fixed straight-line amortization starting 15 months after the first drawdown. Interest will be based on a floating rate tied to the Term SOFR reference rate, ensuring competitive borrowing conditions.
Qualified Technical Oversight
All technical information conveyed in this announcement has been meticulously reviewed and sanctioned by Maurice Mostert, P.Eng., who serves as the Vice President of Technical Services for West Red Lake Gold. His expertise ensures the reliability of the operational and development details provided about the Madsen Mine project.
About West Red Lake Gold Mines
West Red Lake Gold Mines Ltd. is a publicly traded mineral exploration entity, keenly focused on advancing the Madsen Gold Mine alongside a highly promising 47 km² land package located in Ontario's renowned Red Lake district. Known for producing over 30 million ounces of gold, this district houses some of the world’s most profitable gold deposits. The Company also owns the Rowan Property, which boasts coverage of 31 km² and includes three historic gold mines: Rowan, Mount Jamie, and Red Summit.
Frequently Asked Questions
What recent milestones have been achieved at Madsen Mine?
The mill has resumed operations, processing low-grade material and preparing for the bulk sample from Stope 1, marking significant progress toward production.
How has the workforce been impacted by the new accommodations?
The new camp can house 114 workers, with 60% sourced locally, boosting community engagement and support.
What is the current status of underground development?
Underground development rates have increased significantly, currently averaging 23.8 meters per day, improving operational flexibility.
When is the Connection Drift expected to be completed?
The Connection Drift is approximately 94% complete, with just 84 meters left to finish.
What financial steps has West Red Lake Gold taken recently?
The company has drawn down $7.5 million from a $15 million credit facility to support mine restart costs and operational needs.
