Shane Williams, President and CEO of West Red Lake Gold Mines (TSX.V:WRLG – OTCQB:WRLGF), joins us review some of the recent high-grade gold intercepts returned from the South Austin Zone of the Madsen Gold Mine in Red Lake, Ontario; and how this ties into the larger development plan to put this mine back into production in the next 2 years.
On March 4th, the press release announced 25.12 g/t Au over 5.5 meters, 39.46 g/t Au over 2 meters, and 18.60 g/t Au over 4 meters at South Austin Zone. We discussed how these results at the South Austin Zone, compliment the growing area of focus and other recent high-grade gold intercepts at the North Austin Zone and Austin Zone. Shane outlined that this larger Austin area also has quite a bit of development work going on underground by the team at West Red Lake Gold, to further derisk the area and better understand how it could be properly exploited in a mine restart production scenario. The company is working towards an updated Pre-Feasibility Study for later this year.
We review the potential to keep growing resources at depth at Madsen with both this South Austin Zone, and also refocusing on some prior work at the 8-Zone and drilling planned for that area later this year. Underground drilling will allow the exploration team to follow up on these areas with more accuracy, and more cost-efficient holes, rather than trying to drill from surface as prior operators had done. There will be a lot of exploration work and metallurgical testing completed at the Madsen Gold Project this year, further derisking and delineating the project, to optimize a potential mine restart next year.
We also touched up on the recent company increasing the size of its previously announced private placement of units to US$23,000,000; where each Unit will contain gold-linked notes in the aggregate principal amount of US$1,000 and 710 common share purchase warrants. Each whole warrant will entitle the holder to purchase one common share of the Company at an exercise price of C$0.95 per share for a period of 60 months following the closing of the Offering. This will bring the company’s treasury up to over $30million CAD, to give the company the financial means to advance it’s various exploration and development initiatives.
If you have any follow up questions for the team over at West Red Lake Gold please email us at Fleck@kereport.com and Shad@kereport.com.
- In full disclosure, Shad is a shareholder of West Red Lake Gold Mines at the time of this recording.
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