West Red Lake Gold's Madsen Mine Update: Production Insights

West Red Lake Gold's Madsen Mine Operational Update

West Red Lake Gold Mines Ltd. (“West Red Lake Gold” or “WRLG”) (TSXV: WRLG) (OTCQB: WRLGF) is excited to share insights regarding its ongoing ramp-up efforts at the Madsen Mine.

During a bright month for operations, the Madsen Mine team successfully implemented strategies aimed at optimizing production efficiency. Shane Williams, President and CEO, remarked on the progress made, emphasizing the significance of ramp-up activities. This involves introducing new equipment, expanding access to key mining areas, and enhancing operational efficiency. In July, the mill demonstrated impressive performance, achieving an average recovery rate of 94%, processing between 500 and 800 tonnes per day. In a positive development, the mine was able to pour 3,800 ounces of gold during the month, thanks to exceptional gold grades observed in mined materials.

Production Highlights from July

The operations team completed essential sill development across eight key areas within the mine, including McVeigh, South Austin, and Austin. This development was crucial for focusing on stope mining in August. The mill feed incorporated both mined materials and lower-grade stockpiles, yielding an overall average grade of around 5g/t as it entered the mill. The mined materials carried a significantly higher average grade of 8.9 grams per tonne for gold.

Throughout July, the mine facilitated three gold pours, leading to the production of 3,800 ounces. An impressive 3,595 ounces were sold, generating approximately US$12 million in revenue.

Improving Stope Reconciliation Practices

At the core of West Red Lake Gold's mining approach is a refined drilling strategy. By tightening the drill spacing from 20 metres to 7 metres, the company can construct a more precise in-house resource model. This ensures that stope designs are based on a detailed understanding of the geological features of the Madsen Mine, which is known for its high-grade but often variable gold mineralization.

The company's focused strategy has resulted in close reconciliation between expected and actual gold grades and mined tonnes, underscoring the effectiveness of their operational methods.

Capturing Variability in Grade Performance

Stope areas are meticulously drill-tested, but sill access, which is essential for providing entry to ore, may not always benefit from the same level of detailed exploration owing to their geometry. This creates variability in grade expectations, highlighting the importance of chip sampling before mining commences. Weekly reports generated by the Production Geology team revealed significant accuracy in grade predictions, with many areas showing higher than anticipated gold grades.

Upcoming Projects to Enhance Operations

West Red Lake Gold is executing two significant projects meant to bolster the mine's ramp-up and operational stability through the remainder of the year. These initiatives will facilitate enhanced material movement and the effective storage of waste rock underground, both critical for efficient operations.

Shaft Renovation Efforts

The Madsen Shaft is undergoing a focused renovation process aimed at resuming material transportation. A comprehensive plan has been established, set to be implemented in phases. The first phase involves the installation of a new hoist rope and a 5-tonne skip, expected to be operational soon. This renovation is in line with prior restoration efforts aimed at ensuring the safety and efficiency of the shaft, which will ultimately allow the movement of an estimated 300-400 tonnes of material daily to the surface.

Cemented Rock Fill (CRF) Project

West Red Lake Gold has engaged a contractor for Cemented Rock Fill, which will aid in the effective backfilling of historic stopes with waste rock. This strategy not only optimizes mining operations but also significantly reduces surface transportation costs. Key mining areas are being evaluated to safely store waste rock, utilizing voids from previous mining to enhance efficiency.

According to William, the positive findings experienced during July, including higher than expected sill grades, will help the company maintain production targets while navigating the essential development activities necessary for long-term success.

As highlighted by Williams, the ongoing projects are positioned to alleviate operational pressures while ensuring adequate ventilation and equipment utilization, fundamental for fostering a thriving underground mining environment.

Technical details in this report have been verified by qualified experts associated with West Red Lake Gold, confirming the company’s commitment to upholding industry standards in mineral exploration and mining operations.

Frequently Asked Questions

What are the recent updates from West Red Lake Gold's Madsen Mine?

Recent updates highlight successful ramp-up operations, with July seeing high recovery rates and a notable average gold grade.

How much gold was produced in July?

In July, the Madsen Mine produced 3,800 ounces of gold, with a significant portion sold to generate substantial revenue.

What strategies is West Red Lake Gold using to enhance efficiency?

The company is focusing on two major projects: shaft renovations for improved material transportation and a Cemented Rock Fill project for waste management.

How is the gold mining process being optimized?

The mining operation is refining its drilling strategies and increasing access to high-grade zones, contributing to better stope reconciliation.

Who is responsible for the mining operations' technical aspects?

The operations' technical information is overseen by qualified professionals within West Red Lake Gold, ensuring adherence to industry standards.

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