West Red Lake Gold (WRLG.V) Intersects 47.44 g/t Gold over 3.2 Meters in the South Austin Zone as Central Banks Purchase 42 Tonnes of Gold
vancouver, British Columbia
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December 07, 2023 08:00 AM Eastern Standard Time
December 7, 2023 – TheNewswire – Global Stocks News – In a press release dated December 5, 2023, West Red Lake Gold Mines (TSXV:WRLG) (OTC:WRLGF) reported drill results from the South Austin Zone at its 100% owned Madsen Mine located in the prolific Red Lake Gold District of Northwestern Ontario, Canada.
The gold price today is CND $2,750/ounce. According to the World Gold Council, in October, 2023 central banks added 42 tonnes of gold to their official reserves. That tonnage of gold is worth CND $3.7 billion.
https://www.gold.org/goldhub/gold-focus/2023/12/central-banks-summer-buying-continues-october Source: IMF IFS, respective central banks, World Gold Council*Data to 31 October 2023 where available.
The Red Lake District has produced over 30 million ounces of gold. WRLG’s 47 Km2 land package is 13 X bigger than NYC’s Central Park.
At its peak, the asset was valued at over a billion dollars, 7X the current market cap of WRLG. In the spring of 2023, WRLG acquired the asset for $6.5 million cash, 28.5 million shares, while granting the seller a 1% Net Smelter Royalty.
“I've never seen an acquisition this attractive,” stated Frank Giustra in this WRLG video. “The quality of the infrastructure here is absolutely perfect. It's first class. It's brand new. You couldn't create this today with less than $700 million. It would take you years, probably a decade. It's like buying a new car you could walk into and you have that new car smell.”
The company’s flagship asset - The Madsen Gold Mine – is debt free, fully permitted, with a brand-new 800+ tonne per day mill, a tailings and water treatment facility. [1]
The South Austin Zone currently contains an Indicated mineral resource of 474,600 ounces, grading 8.7 grams per tonne gold, with an additional Inferred resource of 31,800 oz grading 8.7 g/t Au.
The December 5, 2023 results demonstrate continuity of the South Austin Zone and highlight the resource growth potential that exists within this area.
December 5, 2023 Drill Program Highlights:
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Hole MM23D-07-4141-006 Intersected 1m @ 296.83 g/t Au, from 53.0m to 54.0m, and 3m @ 42.35 g/t Au, from 31.0m to 34.0, Including 1m @ 37.10 g/t Au, from 31.0m to 32.0m, also including 1m @ 84.34 g/t Au, from 33.0m to 34.0m.
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Hole MM23D-07-4141-017 Intersected 3.2m @ 47.44 g/t Au, from 40.6m to 43.8m.
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Hole MM23D-07-4141-012 Intersected 7m @ 21.62 g/t Au, from 36.0m to 43.0m, Including 1m @ 118.35 g/t Au, from 37.0m to 38.0m.
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Hole MM23D-07-4141-002 Intersected 8m @ 17.45 g/t Au, from 27.0m to 35.0m, Including 2m @ 55.87 g/t Au, from 30.8m to 32.8m, also including 0.6m @ 23.33 g/t Au, from 33.4m to 34.0m.
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Hole MM23D-07-4141-015 Intersected 5.3m @ 16.17 g/t Au, from 99.2m to 104.5m, Including 2.5m @ 28.84 g/t Au, from 102.0m to 104.5m.
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Hole MM23D-07-4141-020 Intersected 1m @ 56.14 g/t Au, from 19.0m to 20.0m.
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Hole MM23D-07-4141-003 Intersected 1m @ 53.97 g/t Au, from 76.0m to 77.0m.
On November 21, 2023, WRLG reported drill results from the North Austin Zone which included an intercept of 10.28m @ 27.15 g/t gold.
“The impressive results reported thus far from South Austin and North Austin represent growth to the existing Madsen resource inventory and underscore the high-grade expansion potential that still exists at the Madsen deposit,” stated Shane Williams, President & CEO or WRLG. “We fully intend to continue unlocking this value as drilling continues.”
“These outstanding drill results demonstrate the high-grade nature and continuity of the South Austin Zone,” Will Robinson, V.P. of Exploration for WRLG told Guy Bennett, the CEO of Global Stocks News. “Our team believes that further exploration and expansion potential exists down-plunge from the area highlighted in this update, which could add additional high-grade, near-mine ounces to the South Austin resource.”
WRLG CEO Shane Williams has designed, built and operated mines (open pit and underground) for Eldorado Gold and Rio Tinto. He has a stellar track record of moving mineral assets into production.
Major investors in the current project include Sprott Resource (23.4%), Frank Giustra (11.8%) and VanEck Gold Fund (6.5%).
“It's all about execution in this business,” stated Giustra, “The key lesson I've learned from building mining companies over the last several decades is to back a great management team with a great asset, invest early and be patient.”
“The current underground drilling program at the Madsen Mine is focused on further definition of near-term mining inventory,” confirms WRLG, “as well as growth of the current mineral resource.”
References:
1. SRK Consulting. (2021). Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for the PureGold Mine, Canada (West Red Lake Gold Mines, Ed.) https://www.globenewswire.com/en/news-release/2022/08/10/2495601/0/en/PureGold-Announces-Updated-Mineral-Resource-Estimate-for-PureGold-Mine.html
