The Madsen Mine in Ontario has officially restarted. West Red Lake Gold Mines (TSXV: WRLG) this morning declared that following a meeting of the board, the board has approved a recommendation to restart the mine immediately.
While plans had called for the mine to be restarted at the midpoint of 2025, the official restart has met that timeline early. Initial operations are expected to on average mine and process 500 tonnes per day for the first two months, before operations ramp in the second half of this year to the designed capacity of 800 tonnes per day.
At full operation, the Madsen Mine is expected to produce 67,600 ounces of gold annual at an all in sustaining cost of US$1,681 per ounce. Free cash is estimated at $94 million on an annual basis, based on a gold price of US$2,640 as per a pre feasibility study released by West Red Lake.
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“West Red Lake Gold acquired the Madsen Mine in June 2023 with the goal to use our team’s deep technical experience to unlock the abundant but at the time discounted potential of this mine. We have pushed hard for two years to accomplish that feat and now, with major infrastructure projects complete and our bulk sample having delivered mined tonnes and gold grade aligned with modeled expectations, our approach has been validated and we are ready to mine on a continual basis,” commented West Red Lake CEO Shane Williams.
West Red Lake Gold Mines last traded at $0.78 on the TSX Venture.
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