West Red Lake Gold Delivers Robust PFS for Madsen Mine with $315M NPV & Strengthened Operations Team

• West Red Lake Gold announced positive pre-feasibility study (PFS) results for Madsen Gold Mine with $315M after-tax NPV and $70M average annual free cash flow.
• Madsen Mine PFS is based on high-grade 8.16 g/t gold reserves, with significant resource upside potential.
• Construction and capital investment to mine startup for Madsen Mine is substantially complete, with first gold production targeted for Q2 2025.
• Hayley Halsall-Whitney has been appointed Vice President Operations, bringing over 20 years experience driving operational excellence at Canadian mines.
• West Red Lake Gold is well-positioned to optimize Madsen Mine and grow production with expanded reserves and resources.

West Red Lake Gold Mines Ltd. (TSXV:WRLG) is a publicly traded mineral exploration and development company focused on advancing its flagship Madsen Gold Mine. The project encompasses the Madsen Mine and an associated 47 km² highly prospective land package in the prolific Red Lake Gold District of Northwest Ontario, Canada. The Red Lake district has historically yielded over 30 million ounces of gold from high-grade zones, hosting some of the world's richest gold deposits. West Red Lake Gold also holds the wholly owned Rowan Property in Red Lake, with a 31 km² land position covering three past producing gold mines.‍

Madsen Mine PFS Highlights Strong Free Cash Flow

West Red Lake Gold recently announced positive pre-feasibility study (PFS) results for the imminent restart of its 100% owned Madsen Mine. The PFS outlines an economically robust, high-grade underground gold mine with an after-tax net present value (NPV) of $315 million at a 5% discount rate and long-term gold price of US$2,200 per ounce.

The study is based on a diluted head grade of 8.16 g/t gold, derived from a mineral reserve estimate of 1.823 million tonnes grading 8.16 g/t gold for 478,000 ounces. These reserves support an initial 6 years of full production at 800 tonnes per day, within a 7.2-year total mine life. Average annual gold production is estimated at 67,600 ounces, peaking at 73,200 ounces in year 6.

With average total operating costs of US$919 per ounce and all-in sustaining costs (AISC) of US$1,681 per ounce, the Madsen Mine PFS projects strong margins and free cash flow generation. The operation is expected to yield $69.5 million in average annual free cash flow from full production years 1-6, for cumulative after-tax free cash flow of $391 million over the life of mine.

Substantially Complete Construction Enables Near-Term Production

A key advantage of the Madsen Mine is the substantial construction and capital investment that is already complete, significantly de-risking and accelerating the path to production. Over $35 million has been invested in the project since 2019, developing extensive surface and underground infrastructure.

During 2023 and 2024, the Company continued infrastructure projects needed for the restart, including a 4-meter tailings dam raise, purchase of a new primary crusher and underground mining fleet, construction of a 1.2 km underground connection drift, and new camp and mine dry facilities. The modern infrastructure in place includes a ramp accessible portal, over 21 km of underground development, a 1,275-meter shaft with refurbished hoist, an 800-tpd process plant, tailings facility, and other essential components.

With this construction substantially complete and a bulk sample currently being mined, the PFS outlines a clear path to first gold production in Q2 2025, with the mill slated for startup in March to process the initial bulk sample.

Resource Growth & Conversion

The Madsen Mine PFS reserves of 1.823 million tonnes at 8.16 g/t gold represent only a fraction of the project's broader mineral resource base. The indicated resource stands at 6.9 million tonnes grading 7.4 g/t gold for 1.65 million ounces, with inferred resources adding 1.8 million tonnes at 6.3 g/t gold for 366,200 ounces.

West Red Lake Gold sees strong potential to grow the resource base and convert additional resources to reserves through exploration and infill drilling. Reserves were constrained to a conservative US$1,680 per ounce gold price, excluding large portions of the existing resource. Raising the cut-off price to US$1,900 per ounce would expand reserves to support an estimated two additional mine life years.

The company also plans exploration drilling to test gaps and extensions of known resources near existing mine infrastructure. This includes the Fork and Russet deposits, recently discovered high-grade 8 Zone extensions, and depth extensions of the main Madsen deposits. Mineralization remains open for expansion in several directions.

Strengthened Leadership

To optimize Madsen Mine performance, West Red Lake Gold announced the key appointment of Hayley Halsall-Whitney as Vice President Operations. Ms. Halsall-Whitney is a Professional Engineer with over 20 years of experience driving operational excellence at Canadian mining operations.

Her impressive track record includes serving as General Manager at Wesdome Gold Mines' Eagle River Mine from 2020-2024. During her tenure, she led the operation to record production in 2021 through intense focus on health & safety, maintenance, technical services, finance, and human resources across the underground and open pit mine and mill. Ms. Halsall-Whitney championed major initiatives in safety, reserve growth, unit cost reductions, capital deployment optimization, contract governance, and equity & diversity.

Shane Williams, President and CEO of West Red Lake Gold, commented:

"I am delighted to welcome Hayley to our team. With bulk sample mining underway, two-thirds of planned operations staff in place including strong mine site leads, bulk sample processing planned for March, and first production targeted mid-year, the Madsen Mine is at the point where an experienced leader fully focused on optimizing all aspects of underground mining is essential to smooth startup and reliable, optimized operations. Such leaders are rare in today's mining industry, so we are thrilled that Hayley saw the opportunity we see in the Madsen Mine and chose to join our team."

Key Takeaways

The positive PFS results confirm the Madsen Gold Mine as an economically robust, high-margin gold project poised for near-term re-start. With an after-tax NPV of $315 million (5% discount rate) and projected $69.5 million annual free cash flow from an initial 6 years of full production, the study points to a highly profitable future operation.

West Red Lake Gold appears well-positioned to execute on the PFS plan and deliver first gold in Q2 2025. The project benefits from extensive existing infrastructure, substantially complete construction, and a clear path to production. The appointment of Hayley Halsall-Whitney as an accomplished mining executive to lead operations bodes well for the seamless commissioning and ramp-up of the mine.

For investors, the Madsen Gold Mine offers a compelling proposition -- a near-term path to production and cash flow from a high-grade, low-cost operation in a world-class jurisdiction. With further opportunities to optimize production, convert resources to reserves, and make new high-grade discoveries, West Red Lake Gold has potential to grow well beyond this initial mine plan.