West Red Lake Gold's Rowan Infill Results Strengthen Resource Conversion Case & Support 100,000 oz/yr Production Path

• West Red Lake Gold Mines released February 2026 drill results from its Rowan deposit, returning high-grade intercepts including 84.3 g/t Au over 1 metre from a targeted 38-hole infill campaign.
• The 6,300-metre program is specifically engineered to upgrade Inferred resources to Indicated status, a prerequisite for inclusion in feasibility-level reserve modeling and PFS-grade economic projections.
• Results from Veins 006b and 018 are being evaluated alongside the broader program targeting Veins 001 and 004, which underpin the majority of production tonnage in the existing Preliminary Economic Assessment.
• The infill program feeds directly into a combined Madsen–Rowan Pre-Feasibility Study targeted for Q3 2026, integrating Rowan's satellite resource with the adjacent, fully permitted Madsen Mill.
• These intercepts are structural data points in a resource conversion program that, if successful, could materially alter life-of-mine planning, capital allocation, and the valuation basis for the company's publicly disclosed 100,000-ounce-per-year production target.

Infill Drilling Program: Design, Targets & Geological Background

The current drilling campaign of West Red Lake Gold at Rowan is structured specifically for resource conversion. Each hole is positioned to reduce geological uncertainty between existing drill intercepts within defined vein corridors, allowing the geological team to model grade continuity at intervals sufficient for PFS-level confidence.

The February 2026 intercepts are concentrated in two satellite veins, 006b and 018, which lie proximal to the planned mine portal location. According to the February 18, 2026 press release, targeting these proximity-to-portal veins could advance high-grade ore availability by approximately six months relative to the base-case mine sequence, with direct implications for early cash flow and payback period calculations.

The bulk of the 38-hole program remains focused on Veins 001 and 004, which collectively account for the majority of PEA production tonnage. A historical intercept of 70.8 g/t Au over 8.3 metres from earlier drilling provides structural context, suggesting that the deposit's high-grade core may extend at depth in a pattern consistent with other Red Lake district systems.

Shane Williams, President and Chief Executive Officer of West Red Lake Gold, described the evolving understanding of the deposit's internal grade distribution:

"There's less of this remnant mining, there's more of the higher-grade material left, and that's where we're beginning to see it opening much better than in the earlier stage of the mining. As we advance we'll find more of these high-grade untouched areas."

Rowan Deposit: Location, Status & Current Resource Configuration

West Red Lake Gold holds two principal assets in the Red Lake district of northwestern Ontario: the Madsen Mine, a fully permitted underground operation with a 500-tonne-per-day processing facility, and the Rowan deposit, located approximately 80 kilometres by road from Madsen. Rowan is classified as an advanced exploration-stage asset with a completed Preliminary Economic Assessment (PEA).

Rowan's current mineral resource stands at 196,747 ounces Indicated at 12.78 g/t Au and 118,155 ounces Inferred at 8.73 g/t Au. The February 2026 drill results target Veins 006b and 018, with the broader infill program focused on upgrading the higher-tonnage Veins 001 and 004 that form the core of the PEA production schedule.

Inferred resources carry lower geological confidence than Indicated resources and cannot be included in reserve calculations used for feasibility-level economic modeling. The infill program's primary objective is to reclassify ounces from Inferred to Indicated status, enabling their inclusion in PFS reserve modeling and improving the reliability of production and economic projections. Advancement to Advanced Exploration permits at Rowan is targeted for 2027, subject to regulatory review and consultation, which would allow underground bulk sampling.

Madsen Mine: Operational Configuration & Commercial Production Status

The Madsen Mine achieved commercial production on January 1, 2026, as disclosed in the company's January 2026 Corporate Presentation. The milestone was defined by sustained operational stability and exceeding 65% of permitted daily mill throughput for 30 consecutive days,  a threshold that reflects integrated mine and mill performance, not mill readiness alone.

Shane Williams described the basis for the declaration:

"We entered commercial production in January 1st. This is a big milestone for the company... We've seen that consistent ramp-up now, and that gives me confidence that both the mine and the mill are ramping up, and is getting their systems in place. Both of those, together with a good recovery and operational stability, are usually the triggers for that commercial production."

The distinction carries analytical weight. A declaration grounded in integrated mine-and-mill stability, sustained throughput, and confirmed grade recovery is materially more informative than one based solely on equipment commissioning. The timeline from bulk sampling to commercial production spanned approximately seven months: the bulk sample ran from March through May 2025, the mine restarted in June 2025, and commercial production was declared on January 1, 2026.

Grade Reconciliation, Cost Structure & Financial Position

West Red Lake Gold completed more than 160,000 metres of definition drilling at Madsen prior to commercial production, with underground drilling ongoing as a continuous life-of-mine activity. The geological model underpinning this drilling program has since been validated against actual mining results.

Shane Williams addressed the reconciliation outcome:

"The team prepared an excellent presentation that showed all the stopes and areas we've mined today are spot on with the new updated resource model, and that shows the value of all the drilling we've done. That reconciliation is something that's very clear now, there's reconciliation on the model."

As disclosed in the January 2026 Corporate Presentation, the bulk sample achieved reconciliation of 95.5% on tonnage, 100.7% on grade, and 96.1% on gold ounces. High reconciliation rates across all three measures reduce the risk of production variability surprises, a factor that directly affects AISC (All-In Sustaining Cost) guidance reliability and cash flow predictability. AISC is a standardized metric encompassing direct mining costs, sustaining capital, and corporate overhead on a per-ounce basis.

The Madsen acquisition in June 2023, characterized explicitly in the company's own Corporate Presentation as the purchase of a distressed asset, was followed by the definition drilling program and subsequent bulk sample. The economic context has shifted materially since acquisition. Shane Williams noted the change in operating threshold relative to the prior operator:

"The previous operator, Pure Gold, had an average gold production rate of around 4,000 ounces to break even. We have the luxury of the gold price being doubled to what it was at that stage. That gives you a lot of leeway and time to ramp up. 2,000 to 2,500 ounces a month is paying all the bills at Madsen."

For FY 2025, the company recorded US$73 million in Total Gold Sales Revenue from approximately 20,000 ounces of gold production, as disclosed in the January 2026 Corporate Presentation. As of January 1, 2026, the company held CAD$46 million in cash, with the current Rowan drilling program fully funded. Shane Williams characterized the company's operational financial position:

"We're self-sufficient now. We're generating cash every month. That cash will be built up over the rest of this year; we don't expect any more need for cash now. It's self-generating."

Economic Framework: PEA Parameters, Hub-and-Spoke Logic & PFS Integration

Rowan's standalone PEA outlines capital expenditures of US$70 million, an Internal Rate of Return (IRR) of 42%, and a Net Present Value (NPV) of US$125 million at a base case gold price of US$1,800 per ounce, with average annual production of 35,230 ounces over the mine life and an average processing grade of 8.0 g/t Au. The processing grade reflects the average grade of material mined and processed over the five-year life of the PEA mine plan and differs from the in-situ resource grades, which are estimated at cut-off. NPV represents the discounted value of future cash flows; IRR is the rate of return at which the NPV equals zero.

The "hub-and-spoke" model routes Rowan ore to the Madsen mill for processing rather than constructing standalone infrastructure at Rowan. The economic rationale centers on avoided capital expenditure: Rowan avoids duplicating processing infrastructure, while the Madsen mill gains incremental throughput volume. The approximately 80-kilometre road trucking distance introduces a logistics cost variable that the forthcoming PFS will need to address explicitly.

The combined Madsen–Rowan PFS is formally targeted for completion in the third quarter of 2026, as disclosed in the January 2026 Corporate Presentation. PFS-level studies carry materially higher credibility than PEA-level assessments, incorporating tighter cost assumptions, updated reserve estimates, and more detailed engineering. The Madsen standalone PFS carries a US$496 million NPV. Integrated modeling may extend mine life and improve capital intensity metrics such as enterprise value per ounce (EV/oz).

Shane Williams addressed Rowan's role within the integrated district strategy in the February 18, 2026 press release:

"We continue to view Rowan as a key piece in our vision for creating a district-scale hub and spoke operation in Red Lake, and the assay results received to date from the current drilling program are further reinforcing our confidence in this high-grade satellite deposit.”

Williams added:

“While the current drill program at Rowan is focused on infill to prepare for the upcoming planned Pre-Feasibility Study, our Geology team sees excellent potential for continuing to expand this deposit."

Jurisdiction & Permitting Context

Ontario is a well-established mining jurisdiction with developed infrastructure, an experienced workforce, and a defined regulatory framework for advanced exploration and mine development. The provincial government has introduced a "One Project, One Process" permitting framework described in company materials as a recent initiative aimed at streamlining approval timelines, though investors should verify its current scope and implementation status directly against provincial government sources.

Madsen is fully permitted for its current 500 tpd operational scope. Rowan's path to underground bulk sampling is contingent on Advanced Exploration permits, targeted for 2027 subject to regulatory review and consultation. The defined permitting pathway reduces uncertainty relative to assets at earlier regulatory stages, though conditionalities outside the company's direct control apply.

The Investment Thesis for West Red Lake Gold

• The company's exposure to high-grade underground gold production in Ontario provides direct leverage to gold price appreciation, with a cost structure that remains viable across a broad range of commodity price scenarios.
• The fully permitted Madsen mill and declared commercial production status materially reduce development execution risk relative to peers still navigating permitting or construction phases.
• Positive grade reconciliation at 95.5% on tonnage, 100.7% on grade, and 96.1% on gold ounces supports the reliability of the geological model, reducing production variability risk and improving the credibility of forward guidance.
• The Rowan infill program, if successful in converting Inferred to Indicated resources, directly improves the credibility of the combined PFS and the defensibility of life-of-mine production projections.
• The hub-and-spoke integration model, if validated by PFS economics, provides a capital-efficient pathway toward the publicly disclosed 100,000 oz/year target without the full capital burden of standalone infrastructure development at Rowan.
• A CAD$46 million cash balance as of January 1, 2026 and a self-sustaining operating profile reduce near-term equity dilution risk at a stage when many development-stage peers continue to require external financing.

The 84.3 g/t Au intercept at Rowan, alongside structural confirmation across Veins 006b and 018, advances the geological case for resource conversion within a program designed to inform PFS-level reserve modeling. In isolation, a single high-grade intercept is a data point. In the context of a funded 38-hole infill campaign, demonstrated mill operability at Madsen, validated grade reconciliation, and a management team that has taken the asset from distressed acquisition to commercial production within approximately 30 months, these results carry analytical weight beyond the headline grade.

The combined Madsen-Rowan PFS, targeted for the third quarter of 2026, will serve as the primary near-term valuation reference for investors. Whether Rowan's contribution improves the integrated NPV, extends mine life, or enhances capital intensity ratios relative to the standalone Madsen study will determine how the market prices the company's production trajectory. For investors seeking exposure to organic near-term growth in the gold sector, West Red Lake Gold's current position, producing, cash-generative, and advancing a high-grade satellite asset toward PFS integration, represents a differentiated profile within the junior and emerging producer universe.

TL;DR

West Red Lake Gold (TSXV: WRLG) has reported high-grade drill results from its Rowan deposit in Ontario's Red Lake district, including an intercept of 84.3 g/t Au over 1 metre, as part of a funded 38-hole infill program targeting the conversion of Inferred resources to Indicated status. The results support the company's path toward a combined Madsen–Rowan Pre-Feasibility Study due in Q3 2026, underpinning its publicly disclosed 100,000 oz/year production target. With commercial production declared at Madsen on January 1, 2026, CAD$46 million in cash, and validated grade reconciliation, the company has transitioned from distressed acquisition to self-sustaining producer in approximately 30 months.

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