West Red Lake Gold Bulk Sample Learnings Demonstrate Potential for Increased Tonnage and Contained Ounces

West Red Lake Gold's analysis of its Madsen Mine bulk sample program indicates potential for increased tonnage and contained ounces by utilizing a higher gold price ($2,350/oz) in mine design, effectively lowering the cutoff grade and allowing for larger, more economic stopes. This approach, which encompasses multiple high-grade lenses and halo mineralization, facilitates the use of lower-cost long hole stoping methods and reduces access development costs, ultimately improving the mine's long-term profitability. The company is actively communicating these findings to investors, highlighting the benefits of larger mining shapes and clusters on operational efficiency and economic scale.

Analysis

West Red Lake Gold Mines (TSXV: WRLG) (OTCQB: WRLGF) has reported significant findings from its bulk sample program at the Madsen Mine, suggesting a strong potential for increased tonnage and contained gold ounces beyond original Pre-Feasibility Study (PFS) projections. The company is adopting a revised mine design approach using a gold price assumption of US$2,350 per ounce, substantially higher than the PFS's US$1,680 per ounce, yet still conservative compared to current market prices. This higher assumed gold price effectively lowers the resource cutoff grade, allowing for the inclusion of additional tonnes and the design of larger stopes that encompass both high-grade lenses and surrounding halo mineralization. Learnings from the bulk sample demonstrated the feasibility of mining these larger shapes and successfully utilizing long hole stoping methods, which are significantly lower cost compared to the cut-and-fill mining that was projected for 60% of the mining in the PFS. Furthermore, test mining confirmed the stability of old stopes, enabling resource extraction adjacent to these areas and unlocking previously inaccessible mineralization. These developments, including the ability to mine clusters of stopes as mining complexes, are anticipated to reduce mining costs, lower access development costs per tonne, and improve operational flexibility, thereby positively impacting the Madsen Mine's long-term profitability. The company has also strengthened its investor relations team with the appointment of Gwen Preston to better communicate these technical advancements.

Key Decisions for Investors

• Investors should assess the potential for enhanced project economics at the Madsen Mine, driven by the company's revised mine plan which leverages a higher gold price assumption of $2,350/oz and successful bulk sample results indicating increased viability of larger, lower-cost long hole stopes.
• Monitor upcoming operational updates from West Red Lake Gold for confirmation of increased tonnage, grade consistency, and realized cost savings, as these will be key to validating the projected improvements in profitability and resource extraction.
• Consider that while the reported test mining success and planned operational efficiencies present a positive outlook, the transition to this revised, scaled-up mining approach carries execution risks, and project success remains sensitive to gold price fluctuations, despite the company's conservative price assumption relative to the current market.