Utilizing a long-term common gold worth of US$2,640, the Web Current Worth (NPV) of WRLG is estimated at $496 million. The re-rate from developer to producer sometimes takes an organization from 0.5X NAV to 1x NAV.
Canada, twenty seventh Feb 2025 – Sponsored content material disseminated on behalf of West Purple Lake Gold. On February 18, 2025, West Purple Lake Gold Mines (TSXV: WRLG) (OTCQB: WRLGF) introduced the submitting of its impartial pre-feasibility research (PFS) ready by SRK Consulting.
The reserve cut-off worth that was used within the PFS was US$1,680 per oz.
“Investors are surprised how conservative that number is,” Gwen Preston, VP of Communications instructed Man Bennett, CEO of International Shares Information (GSN). “But there’s a simple explanation.”
“SRK has internal guidelines for a PFS,” Preston continued. “The reserve cut-off price would be higher for a full Feasibility Study. The fact that we are going directly from PFS to production does not change SRK’s guidelines.”
Buried within the “Other Relevant Data” part of the 395-page technical report and famous within the Govt Abstract, is a chart that exhibits how the reserve depend might doubtlessly change at gold costs nearer to the present worth of US$2,900.
The SRK chart beneath reveals what tonnes from the useful resource would have made it into consideration for inclusion within the reserve at increased reserve gold worth minimize offs.
The primary blue column is the WRLG reserve as acknowledged within the PFS, on the US$1680 cutoff worth. This reserve was drawn from the second blue column, which exhibits the tonnes of the useful resource that have been thought-about for inclusion in reserve.
Entry improvement and different price elements have been then utilized to succeed in the reserve base proven within the first column. That’s why columns one and two have US$1,680 within the label, however totally different totals.
One takeaway is that entry improvement is essential at Madsen. It was the pressure that diminished potential reserve tonnes by half to get the precise reserve.
The opposite takeaway is that growing the reserve minimize off worth to US$2,400 boosts the useful resource tonnes thought-about for reserve inclusion by nearly 77% (3,072 to five,438 tonnes).
“The undiluted grade falls from 9.1 grams/tonne to 7.0 grams/tonne but there’s a big tonnage increase,” Preston instructed GSN. “At the current gold price, the reserves should be significantly higher.”
On February 25, 2025 WRLG introduced that it closed the general public providing of 23,628,000 charity flow-through items at a worth of C$0.8487 elevating simply over $20 million.
On February 26, 2025 WRLG reported definition drill outcomes from the high-grade South Austin Zone.
Mine re-start replace:
Bulk Pattern Program: plans to mine at the very least 10,000 tonnes of fabric from six stopes. WRLG prioritized components of the Madsen useful resource for extraction early within the mine life primarily based on grade, tonnage, and ease of entry.
Mill Startup for Bulk Pattern Processing: after 28 months of maintained dry shutdown, the mill is scheduled to restart imminently. First feed might be 3,000 tonnes of legacy low-grade materials to pack out the grinding mills. All operational readiness milestones have been met for the method plant.
The Connection Drift: it’s now 80% full, permitting WRLG to maneuver all materials on massive haul vehicles by means of the East Portal, which is located near the crusher and the mill.
Underground Improvement: from August 2024 to January 2025 the tempo of latest underground improvement elevated notably, with common every day meterage rising 23% every month.
Camp and Mine Dry Installations: finalconstruction permits for the Madsen Mine camp obtained from the Municipality of Purple Lake on January thirty first. Remaining set up work is now underway, which is primarily energy, water, sewer, and propane connections.
The Gold Sensitivity Value chart buried within the technical report signifies the quantity of meat that SRK doubtlessly left on the bone @US$1,680 reserve minimize off worth.
Utilizing a long-term common gold worth of US$2,640, the Web Current Worth (NPV) of WRLG is estimated at $496 million. The re-rate from developer to producer sometimes takes an organization from 0.5X NAV to 1x NAV.
WRLG’s present market cap is $214 million.
“West Red Lake Gold is one of only four single-asset companies putting a new gold mine into production in 2025,” Preston instructed GSN. “One is Artemis, which has arguably already been re-rated. Then there is Erdene in Mongolia, Robex in Guinea, and West Red Lake Gold in Ontario, Canada.”
“When investors rotate into gold, they look for large producers, growing producers, and new producers,” added Preston. “We are a strong candidate in the third category, operating in a Tier 1 Mining jurisdiction.”
The Madsen deposits presently host an NI 43-101 Indicated useful resource of 1.65 million ounces of gold grading 7.4 g/t gold and an Inferred useful resource of 0.37 Moz of gold grading 6.3 g/t gold. [1.] [2.] [3.]
The technical data offered on this information launch has been reviewed and authorised by Will Robinson, P.Geo., Vice President of Exploration for West Purple Lake Gold and the Certified Individual for technical disclosure on the West Purple Lake Mission, as outlined by NI 43-101 “Standards of Disclosure for Mineral Projects”.
Contact: man.bennett@globalstocksnews.com
Disclaimer: West Purple Lake Gold paid International Shares Information (GSN) $1,750 for the analysis, writing and dissemination of this content material.
Full Disclaimer: GSN researches and fact-checks diligently, however we can’t guarantee our publications are free from error. When compensation has been paid to GSN, the quantity and nature of the compensation might be disclosed clearly.
References:
- “NI 43-101 Technical Report and Prefeasibility Study for the Madsen Mine, Ontario, Canada”, ready by SRK Consulting (Canada) Inc. and dated January 7, 2025 (the “Madsen Report”). A full copy of the Madsen Report is on the market on the Firm’s web site and on SEDAR+ at www.sedarplus.ca.
- The Madsen Mine deposit presently hosts a Nationwide Instrument 43-101 – Requirements of Disclosure for Mineral Initiatives (“NI 43-101”) Indicated useful resource of 1.65 million ounces (“Moz”) of gold grading 7.4 g/t Au and an Inferred useful resource of 0.37 Moz of gold grading 6.3 g/t Au. Mineral assets are estimated at a cut-off grade of three.38 g/t Au and a gold worth of US$1,800/oz. Mineral assets as acknowledged are inclusive of mineral reserves. Mineral assets that aren’t mineral reserves don’t have demonstrated financial viability. The Madsen Useful resource Estimate has an efficient date of December 31, 2021 and excludes depletion of mining exercise through the interval from January 1, 2022 to the mine closure on October 24, 2022 because it has been deemed immaterial and never related for the up to date report. Please discuss with the technical report entitled “Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate for the PureGold Mine, Canada”, ready by SRK Consulting (Canada) Inc., and dated June 16, 2023, and amended April 24, 2024. A full copy of the SRK report is on the market on the Firm’s web site and on SEDAR+ at www.sedarplus.ca
- The Madsen Mine additionally comprises Possible reserves of 478 thousand ounces (“koz”) of gold grading 8.16 g/t Au. Mineral reserve estimates are primarily based on a gold worth of US$1,680/oz. Please discuss with the technical report “NI 43-101 Technical Report and Prefeasibility Study for the Madsen Mine, Ontario, Canada” out there on the Firm’s web site and on SEDAR+ at www.sedarplus.ca.
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