Get ready for a gold rush unlike any we’ve seen before.
Gold Price – 10 Years
Record high of ~$2,431.55 per ounce in April 2024
Data Source: Trading Economics1
Smart investors aren’t surprised.
After all, this has all happened before.
History repeats itself. And each time, gold maintains its safe haven status as the ultimate hedge.
The catalysts have been in the making for years.
From the short-term drivers: High Inflation2, Fed Rate Cuts3 and Geopolitical Conflict4. to the long-term catalysts: Central Bank Buying5, the Inverted Yield Curve6 and Debt & Money Printing.7
Source: Forbes8
And despite the recent rally, gold is far from its next peak.
Recent highs are only up about 27% from the 2020 gold run, while past gold bull runs had much bigger price gains:9
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- 1969-1980: 684%
- 1999-2011: 425%
- 2015-2020: 55%
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Clearly there’s still a lot of upside potential for gold.
And while gold itself is a solid investment, the real opportunity lies in gold mining stocks, which are incredibly undervalued and massively oversold.
This could mean significant gains for savvy investors who get in early, especially in hotspots like Canada’s Red Lake district.
Just ask Kinross Gold, who made a billion-dollar investment in the region.10
But Kinross is huge, expensive, and doesn’t have anywhere near the upside potential of a junior miner targeting near-term gold production in the region, like West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF).
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In a Class of Their Own Among Junior Gold Miners
West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) only formed in early 2023 but has already been recognized by the TSX Venture Exchange as a 2024 Top 50 Company in the Mining category.11
West Red Lake Gold Mines is moving toward gold production with a targeted restart in 2025 at its Madsen Gold Mine in Canada’s Red Lake Gold District.
The nearly 80 km2 (31 sq mile) land package sits on highly prospective exploration targets, in a world class gold district, and contains what Mining.com’s staff has called one of the world’s highest-grade, undeveloped gold projects.12
The mine is fully permitted, has historic production of 2.5 million ounces of gold,13 and represents a significant high-grade resource of 1.65 million ounces of gold at 7.4 g/t in 6.9 million tonnes (Indicated) and 366 Koz at 6.3 g/t Au (Inferred).14
This company has heavyweight investors backing it, including legendary industry financier Frank Giustra, who sees big things to come for the gold market and particularly West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF), in which he owns an 11% stake.15
West Red Lake Gold Mines’ (TSXV:WRLG) (OTCQB:WRLGF) leadership team is stacked with industry pros from billion-dollar gold producers, like Eldorado Gold, Coeur Mining, Detour Gold/Agnico Eagle Mines, Endeavour Mining, and Barrick Gold.
The company’s CEO, Shane Williams, was COO of Skeena Resources when it advanced the past producing Eskay Creek Gold project toward a restart. One of their Directors, Anthony Makuch, was CEO of Kirkland Lake Gold when it increased annual gold production by over 340% from 315 Koz to over 1.4 Moz.16
West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) is cashed up to advance Madsen following a US$27.1-million upsized issuance of gold-linked notes in March 17 and a recently closed C$33-million financing led by Raymond James.18
The company just outlined its 2024 development plans, which includes infrastructure updates to support safe and efficient operations when a restart decision is made, as well as an ambitious underground drilling campaign in 2024, with two diamond drills set to cover 39,000 meters to define the known resources and target expansion opportunities.19
11 Criteria
for a Standout Gold Stock Opportunity
1
Strong Market: we’re seeing record-high gold prices with signs of major bull run
2
World-Class Location: High-Grade Red Lake Gold District with 30 Moz produced to date20
3
Top-Tier Assets: fully permitted Madsen Mine with past production of 2.5 Moz gold21
4
High-Grade Resource: 1.65 million ounces of gold at 7.4 g/t in 6.9 million tonnes (Indicated)22
5
Advanced Infrastructure in Place: including a brand-new 800 tpd mill
6
Near-Term Path to Production: With permits are in place, near-term production is targeted for 2025 at Madsen Mine
7
Upcoming Catalysts: mine restart plan will generate lots of news flow
8
Backed by Prominent Investors: VanEck Gold Fund (6.5%), Sprott (23.4%), Frank Giustra (11.8%)
9
Robust Financial Foundation: $33M upsized private placement just closed23
10
Experienced Leadership: capital markets experts and industry pros from billion-dollar gold producers
11
Fully Permitted: All required permits are in place, setting up a quick return to activities.
Riding the Golden Runway Toward a Targeted 2025 Restart
When it comes to finding the right gold opportunity, it’s essential to look at where that company is at with the project.
Are they pre-discovery? Has the company made a major discovery? Is the mine being constructed?
To choose the right stock at the right time, you often have to look no further than the Lassonde Curve.
Source: Visual Capitalist24
As you can see, it typically takes ten to fifteen years of consultation, exploration, permitting, planning and financing to bring a mine into production. It also costs hundreds of millions of dollars in most cases.
But perhaps the most shocking part of the Lassonde Curve is the massive dip that takes place following a big discovery.
The fact is, unless an investor is in it for the long run, very few want to wait for years as a company moves through the feasibility and development phases.
Press Releases
- West Red Lake Gold Intercepts 44.17 g/t Au over 1.3m and 20.63 g/t Au over 0.5m at Upper 8 Target – Madsen Property
- West Red Lake Gold Intersects 49.39 g/t Au over 4.48m and 18.46 g/t Au over 11.2m at South Austin – Madsen Mine
- West Red Lake Gold Starts Test Mining and Bulk Sample Program at Madsen Mine
- West Red Lake Gold Intersects 54.19 g/t Au over 4m and 23.73 g/t Au over 3.53m at Austin – Madsen Mine
- West Red Lake Gold Intersects 17.77 g/t Au over 5.5m at McVeigh and 7.35 g/t Au over 12.12m at Austin – Madsen Mine
That is, if the company even reaches that point.
Not many investors realize this, but less than 1 in 10,000 projects will become a producing mine.25
That’s what makes West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) stand out among the masses.
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This company isn’t starting a project from scratch.
West Red Lake Gold Mines’ confirmed the Mineral Resource Estimate for the Madsen Mine through an independent report from SRK Consulting, which includes:26
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- 1.65 million ounces of gold at 7.4 g/t in 6.9 million tonnes (Indicated)27
- 0.37 million ounces of gold at 6.3 g/t in 1.8 million tonnes (Inferred)28
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AND all of the infrastructure already in place including a brand new and expandable 800 tonne per day (tpd) processing mill.
The Madsen Mine also has a brand new double ramp access underground, a 1,275-meter (4,183-foot) deep shaft, and water treatment plant.
In short, West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) has bypassed a lot of the lengthy steps needed to put a mine into production.
Now, all the company has to do is complete a handful of infrastructure projects at the Madsen Mine, which are already well underway.
West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) expects to complete these key milestones over the next six to 12 months, putting the company on a clear path towards its goal of a targeted restart in 2025.29
West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) has continued to de-risk the asset’s resource by completing additional in-fill drilling focused on near term, high-grade zones.
West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) is on an accelerated path towards its target of producing gold in 2025. This effort will generate a lot of significant catalysts and milestones to announce to the market. Here are just some of what the mine restart plan includes:30
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- Pre Feasibility Study (PFS) by Q1 2025
- Consistent underground drilling, completing another 38,000 meters (125,000-feet) in Q4 2024
- Ongoing underground development through 2024, including a 1,200-meter haulage way connecting the two sides of the mine and new development to support drilling and prepare for mining
- Targeting a Madsen Mine restart in H2 202531
- Optimizing the project to focus on sustainable cash flowing operation
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West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) recently announced significant drill results from its 100%-owned Madsen Mine, including 16.69 g/t gold over 8.0 meters and 7.48 g/t gold over 12.0 meters at the South Austin Zone. This zone has an Indicated resource of 474,600 oz at 8.7 g/t gold and an Inferred resource of 31,800 oz at the same grade. The drilling aims to solidify resource confidence for the planned production restart.32
Additionally, in May, drill results at the North Austin Zone included 37.33 g/t gold over 2.79 meters and 5.26 g/t gold over 9.0 meters, indicating a new high-grade area extending the resource northeast. The team is focusing on expanding this zone further down-plunge, with promising continuity observed in initial results.
Gearing Up for Major Growth
You don’t have to look far to find success stories about mining companies that have seen substantial share price increases as they progressed from exploration to development and into production.
One prime example is Artemis Gold, which saw its share price rise significantly with the advancement of its Blackwater Gold Project in Canada. Acquired in 2020, the project progressed through feasibility studies and permitting before going into full-scale construction in early 2023.33 Since then, the stock has increased more than 105% and could go higher still as Artemis completes its first phase of construction and pours its first gold bar, which is expected in the second half of 2024.34
G Mining Ventures is another company that experienced notable valuation increases with the Tocantinzinho Gold Project in Brazil. The project moved towards production with the commencement of construction in late 2022, drawing investor interest.35
There is also Perseus Gold, which began to experience stock price appreciation leading up to its first gold pour at its Yaouré Gold Mine in Côte d’Ivoire in December 2020 and through 2021 and 2022 as it ramped up production, demonstrating the market’s positive response to advancing towards production.36
As you can see from the chart below, these stocks have experienced major growth during this phase, signaling that West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) could be headed in the same direction as it moves rapidly towards a targeted restart.
Hidden Treasures at the Madsen Mine
As West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) moves forward with a targeted restart at Madsen, the company has also been conducting a mill cleanup and gold recovery program which has yielded some fantastic results.
In May, the company reported significant progress in its cleanup and gold recovery operations, having discovered significant amounts of previously unaccounted for gold. This initiative has already yielded 415 ounces of gold worth approximately $750,000 from the initial recovery phase. Encouraged by the results, West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) began a more thorough cleanup in early 2024, with the goal of “recovering a substantial amount of gold that was locked up in the milling circuit” by the end of May.40
Then in June, West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) poured its first gold bar from the gold recovered from the mill cleanup and recovery program.
Proven Ability to Identify & Capitalize on Value-Adding Opportunities
Acquiring the past-producing Madsen Mine was transformational for West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF).
From 1935 to 1971, the Madsen Mine produced 2 million ounces of gold at an average grade of 9.7 g/t. In 2014, Pure Gold Mining Inc. bought the mine. Pure Gold defined high-grade resource zones, got the mine fully permitted and built the infrastructure. The company also poured first gold by the end of 2020 and started commercial production in August 2021.41
As the mine’s potential continued to unfold, Pure Gold was the darling of the market for a few years, hitting a $1.15-billion-dollar market cap in its heyday.
The problem was, Pure Gold prioritized a sale for the mine rather than its successful operation and its $1 billion valuation made the company an expensive takeover target. Those priorities created challenges at the mine site and so, despite the asset’s tremendous value, the company ran out of money waiting for a buyer.
Then, Frank Giustra and his team put together a bid and West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) strategically scooped up the asset in June 2023 for just C$6.5 million cash, 40.73 million WRLG shares, a 1.0% secured Net Smelter Royalty, and US$6.8M deferred consideration.42
Check out this video to learn why Jay Martin thinks West Red Lake Gold is the “deal of the decade.”
Money in the Bank & Skin in the Game
company’s financial stability and growth potential:
-
-
- Accilent Capital Management (5.1%)
- VanEck Gold Fund (6.5%)
- Sprott Resource Lending Corp. (23.4%)
- Legendary industry financier Frank Giustra (11.8%)
- Other institutional investors (16%)
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Their management and consultants have 4.3% ownership, which shows they’re also convinced West Red Lake Gold Mines (TSXV:WRLG) (OTCQB:WRLGF) is a smart investment.
Leadership That’s Done This Before
West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) has the advantage of leadership that’s learned from past successes how to march the company forward to success.
11 Reasons
Why West Red Lake Gold Mines (TSXV: WRLG) (OTCQB:WRLGF) Should Be On Your Radar
1
Strong Market: we’re seeing record-high gold prices with signs of major bull run
2
World-Class Location: High-Grade Red Lake Gold District with 30 Moz produced to date43
3
Top-Tier Assets: fully permitted Madsen Mine with past production of 2.5 Moz gold44
4
High-Grade Resource: 1.65 million ounces of gold at 7.4 g/t in 6.9 million tonnes (Indicated)45
5
Advanced Infrastructure in Place: includes brand-new 800 tpd mill & water treatment facility
6
Near-Term Path to Production: targeting 2025 restart of Madsen Mine
7
Upcoming Catalysts: mine restart plan will generate lots of news flow
8
Backed by Prominent Investors: VanEck Gold Fund (6.5%), Sprott (23.4%), Frank Giustra (11.8%)
9
Robust Financial Foundation: $33M upsized private placement just closed46
10
Experienced Leadership: capital markets experts and industry pros from billion-dollar gold producers
The ultimate gold bull run has already started. That’s a major wind at the back of West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) as they move their Madsen Mine toward its 2025 restart. The headlines from new gold price records and the company’s milestones should attract a lot of market attention.
If you’re interested in outstanding gold mining opportunities, keep a close eye on West Red Lake Gold Mines Ltd. (TSXV:WRLG) (OTCQB:WRLGF) as it may start to run away.
SUBSCRIBE FOR TRADING INSIGHTS AND ALERTS. STAY AHEAD.
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Get this company's corporate presentation now. Subscribe to download!
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