Gold Explorer Hits 131.70 g/t in New Underground Drill Program
West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) reported multiple high-grade intercepts from underground drilling at the Madsen Mine in Ontario's Red Lake district. The latest results extend mineralization in the Lower Austin Zone and support ongoing development plans.
West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO) has reported a new series of high-grade gold intercepts from underground drilling at the Madsen Mine in Ontario's Red Lake district. The latest drill results were obtained from the 12-4860 station on the 12 Level, approximately 600 meters below surface, and continue to extend mineralization within the Lower Austin Zone.
Significant intercepts include 11.2 meters grading 26.16 grams per tonne (g/t) gold, including 2 meters at 131.70 g/t gold. Additional holes returned 3.55 meters at 37.87 g/t gold, 8 meters at 10.55 g/t gold, and 3.75 meters at 8.66 g/t gold. These results build on previously reported intercepts in the same area, which included 139.45 g/t gold over 7.8 meters and 74.70 g/t over 8.7 meters.
The Austin Zone hosts an Indicated resource of 914,200 ounces at 6.9 g/t gold and an Inferred resource of 104,900 ounces at 6.5 g/t gold. Underground drilling has focused on high-grade lenses within this zone, which management has identified as a near-term development target.
According to the company, drill data from the 12-4860 station suggests potential for up to 600 meters of continuity along the plunge of the high-grade mineralization, linking the Lower Austin Zone to the South Austin Zone. The company plans to continue aggressive drilling in this area to support further resource growth.
President and CEO Shane Williams stated in the news release, "The Madsen mine ramp up is progressing well, and drilling into new gold zones deeper in the deposit while we ramp up reinforces our view that Madsen will be a sustainable producing asset in Red Lake for many years to come. The site team is eager to get the underground drills to deeper parts of the system and is currently finalizing plans for development projects that will facilitate access to more distal portions of the resource for conversion drilling and future mine planning. We are staying aggressive in our exploration approach because we believe in the discovery potential at Madsen and within the Red Lake district."
Gold: A Safe Haven in a Changing Financial Landscape
According to a report published by Jeff Carlyle for Goldfix on October 28, gold continued to be viewed as the "currency of last resort," a role it has held for thousands of years. The report emphasized that while gold prices had decoupled from traditional valuation metrics such as real interest rates and the US dollar, institutional investors still recommended overweight exposure to the metal. The authors noted that gold's utility as a hedge against currency debasement, de-dollarization, and the search for diversification had driven demand, particularly from central banks responding to geopolitical tensions and shifts in global trade.
The report highlighted that after Western powers froze approximately US$300 billion in Russian central bank assets in 2022, many emerging market central banks began divesting from US Treasuries and reallocating reserves to gold. By early September, gold had surpassed US Treasuries in central bank reserve composition, holding a 27% share compared to Treasuries at 23%. The report added that this trend began in 2018 and intensified as gold became increasingly favored for its resilience and lack of counterparty risk.
Chen Lin of What's Chen Buying? What's Chen Selling? offered his opinion, stating, "I have been picking up shares."On November 2, Matthew Piepenburg of Von Greyerz described the recent volatility in gold prices as typical of bull market behavior, stating that "these type of moves are not at all unusual." He explained that investors who adopt a long-term view tend to hold gold for its strategic role rather than speculate on price swings. "We're saving in gold and spending in fiat," he said, underscoring the firm's philosophy that gold serves as a better long-term store of value than any fiat currency. Piepenburg attributed the growing appeal of gold to global debt burdens, rising deficits, and currency debasement, noting that "central banks now hold more gold than US Treasuries."
In a sector outlook published by Bloomberg on November 3, Marcus Ashworth examined why major US banks such as Citigroup were considering re-entering the gold storage business. The return to this space, dormant since the global financial crisis, reflected rising client demand for gold as a portfolio hedge and the profitability of storage services. Ashworth wrote, "This is a decades-long commitment. That tells you the major players think high gold prices are here to stay." He added that the physical gold market remained highly profitable and fundamentally different from other financial instruments, with the majority of trade occurring over-the-counter and supported by strong demand from central banks and private wealth clients.
Analysts Reaffirm Positive Outlook Amid Madsen Ramp-Up and High-Grade Results at Rowan
On October 7, Cantor Fitzgerald's Matthew O'Keefe reported a 34% increase in quarterly gold production at West Red Lake Gold Mines Ltd., totaling 7,055 ounces during Q3 2025. The production came from 35.7 kilotonnes of ore processed at an average grade of 5.4 grams per tonne gold. O'Keefe observed that key operational upgrades, including shaft skipping and underground waste storage, were advancing as planned and positioned to enhance throughput and reduce costs.
O'Keefe reiterated his Buy rating and CA$1.80 per share price target, based on an equally weighted valuation approach of 0.8x net asset value and 6.0x estimated 2026 cash flow per share. He added that the stock remained attractively priced relative to peers, trading at 0.4x NAV compared to a group range of 0.8x to 1.0x.
In a separate report dated October 8, Taylor Combaluzier of Red Cloud Securities noted that West Red Lake had restarted operations at Madsen ahead of schedule and was actively advancing toward its production goals. Combaluzier wrote that the Madsen mine was on track to reach targeted output levels in early 2026 and emphasized the operational benefits of the underground waste storage system.
He reported that all 7,055 ounces of gold produced in Q3 were sold at an average price of US$3,456 per ounce, resulting in approximately CA$33 million in gross proceeds. Combaluzier maintained a Buy rating and raised his price target to CA$2.30 per share, based on a discounted cash flow model that factors in both Madsen and Rowan. He noted that funds raised through charity flow-through shares would be used to advance pre-feasibility work at Rowan, including drilling, engineering, and environmental studies.
On October 9, Craig Stanley of Raymond James highlighted continued ramp-up progress at Madsen alongside strong drill results from the Austin Zone at Rowan. Notable assay results included 7.75 meters grading 139.45 grams per tonne gold, with a subinterval of 2 meters at 532.25 grams per tonne. Stanley noted that the mineralization followed known plunge trends and showed continuity over a 600-meter vertical extent.
Stanley rated the stock Outperform and set a price target of CA$1.75 per share, citing both operational momentum and exploration upside.
On October 29, Chen Lin of What's Chen Buying? What's Chen Selling? offered his opinion, stating, "West Red Lake Gold Mines Ltd. went down big, well below [the] last financing without warrants as the company made good progress. I have been picking up shares."
Depth, Expansion, and De-Risking Define West Red Lake Gold's Strategy
West Red Lake Gold's current operational focus at Madsen is on achieving commercial production through stable output, robust underground infrastructure, and improved access to deeper mineralization. The company completed a bulk sample program in 2025 using six stopes from three resource areas. The results demonstrated strong reconciliation between modeled and actual grades and supported an average recovery rate of 95% at the Madsen Mill.
To improve efficiency, the company has advanced several capital projects, including the construction of a 1.4-kilometer connection drift, dewatering down to Level 17, and development of underground waste rock storage. A shaft skipping system is expected to begin operation by the end of 2025, enabling material to be hoisted at a significantly reduced cost compared to trucking.
In addition to operational ramp-up, WRLG is actively defining new mineable zones. The company has completed more than 150,000 meters of definition drilling, with spacing tightened from 20 meters to 7 meters to reduce continuity risk and improve stope planning. This drilling has led to larger stopes and higher contained ounces in areas such as the 1099/1100 and 4447 South Austin stope complexes.
A 2025 Prefeasibility Study estimated a net present value of CA$496 million using a gold price of US$2,640 per ounce, with average annual free cash flow of CA$93 million over six full production years. The Madsen Mine's total Probable reserves stand at 478,000 ounces grading 8.16 g/t gold, and the processing facility is permitted to handle 800 tonnes per day.
Streetwise Ownership Overview*
West Red Lake Gold Mines Ltd. (WRLG:TSX.V; WRLGF:OTCQB; FRA:UJO)
*Share Structureas of 10/29/2025The company is also advancing its Rowan project, located 80 kilometers from Madsen. Rowan has an Indicated resource of 196,747 ounces at 12.78 g/t gold and an Inferred resource of 118,155 ounces at 8.73 g/t gold. A Preliminary Economic Assessment outlined a five-year mine plan with average annual production of 35,200 ounces, a post-tax internal rate of return of 42%, and an NPV of US$125 million.
Near-mine targets such as the Fork deposit and Upper 8 Zone are being explored as part of WRLG's strategy to grow production beyond the base case. The company has also identified broader district-scale potential at the North Shore target.
West Red Lake Gold's stated goal is to reach an annual production rate exceeding 100,000 ounces by 2029.
Ownership and Share Structure 1
Strategic investor Sprott Resource Lending Corp. holds about 7% of West Red Lake Gold. Institutions own about 12%, while management, insiders, and advisors hold around 2%. The remaining shares are held by retail investors.
The company's market capitalization is CA$362 million, with a 52-week stock price range of CA$0.52 - CA$1.18.
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Important Disclosures:
West Red Lake Gold Mines Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of West Red Lake Gold Mines Ltd. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.