West Red Lake Gold Announces Integrated PFS Delivering C$764 Million Post-Tax NPV and Annual Gold Production of 100,000 Ounces Once Rowan Enters Production

West Red Lake Gold Mines Ltd. (WRLG) has released the first integrated Madsen-Rowan Pre-Feasibility Study, effective September 1, 2026. The plan outlines a 10-year mine life producing approximately 884 koz of recovered gold. Production averages 88 koz/year over the life of mine, rising to an average of 108 koz/year between 2029 and 2034 before peaking at 119 koz/year. Rowan is scheduled to begin gold production in 2029, with ore trucked approximately 80 km to the Madsen mill.

Base-case economics utilize a long-term gold price of US$3,568/oz, generating an after-tax net present value (NPV) at 5% of C$764M and cumulative after-tax free cash flow exceeding C$1B. The study highlights significant sensitivity to gold price fluctuations: at 10% higher gold, NPV rises 31% to C$1.0B; at 10% lower gold, NPV falls to C$522M; and at 20% lower gold, NPV falls to C$272M.

Operational metrics include a life-of-mine (LOM) cash cost of US$1,795/oz and an all-in sustaining cost (AISC) of US$2,457/oz. The combined average diluted head grade is 6.8 g/t Au, split roughly 6 g/t at Madsen and 9 g/t at Rowan, with an average recovery of 94.7%. Capital intensity is notable, with growth capital expenditure (capex) at C$200.4M, sustaining capex at C$773.0M, and closure/reclamation costs at C$42.0M, bringing total capex to approximately C$1.015B excluding working capital.

Combined Probable reserves stand at 4.41 Mt at 6.79 g/t Au for 962 koz contained gold, representing an 85% increase in contained reserve ounces versus the 2025 PFS. Madsen carries 662 koz at 6.06 g/t, while Rowan carries 300 koz at 9.23 g/t. The study excludes Wedge, Russet, Mount Jamie, and Starratt-Olsen from the mine plan and does not capture depth extensions at Madsen or Rowan. A supporting NI 43-101 technical report is to be filed within 45 days and is not yet available.

West Red Lake Gold Mines Ltd. (WRLG) has released a pre-feasibility study (PFS) that quantifies the long-term asset value of its integrated Madsen-Rowan plan for the first time. The study outlines an after-tax net present value (NPV) of C$764 million, which contrasts with the company’s current market capitalization of approximately C$219 million, or roughly 0.29x NPV. On an enterprise basis, adding approximately C$74.6 million of net debt results in an enterprise value (EV) of roughly C$294 million, or about 0.38x the base-case NPV.

The PFS highlights a substantial increase in reserves, with 962,000 ounces of contained gold versus the prior 2025 PFS reserve base, representing an 85% increase by the company’s own comparison. This expansion extends the mine plan to 10 years and supports a higher-grade combined feed profile. However, the headline production rate of 100,000 ounces per year is an average for the 2029-2034 period rather than a near-term figure. For 2026, the company is guiding for 27,000 to 32,000 ounces, following a 26% midpoint cut. Additionally, third-quarter grade was reported at 3.8 grams per tonne, compared to the PFS life-of-mine assumption of 6.8 grams per tonne.

The study was telegraphed for the second half or third quarter of 2026, meaning its existence was not a surprise to the market. The stock had already fallen approximately 42% from the Q2 results period to the last close before this release, and dropped about 23% from the October 26 close to the October 30 low following the guidance cut. Because the PFS was released after the last price in the data set, the chart does not yet reflect a market reaction. The release serves as a genuine positive for long-term net asset value but does not resolve near-term operational credibility issues, particularly regarding capex, permitting, grade, and funding assumptions.

West Red Lake Gold Mines Ltd. (TSXV: WRLG; OTCQX: WRLGF) is a gold miner focused on the Red Lake Gold District in northwestern Ontario, Canada. The company’s flagship Madsen Mine is 100% owned and fully permitted, having achieved commercial production on January 1, 2026. The Madsen mill serves as the central processing hub, currently permitted at approximately 800 tpd and designed for expansion.

Rowan is a 100% owned, high-grade satellite deposit located about 80 km from Madsen. It is planned as an underground mine with ore trucked to the Madsen mill, a strategy that avoids the need for a standalone Rowan mill and tailings facility. The company’s portfolio also includes the Fork, 904 Complex, Austin, South Austin, McVeigh, 8 Zone, Derlak, Russet, Wedge, Mount Jamie, Starratt-Olsen, and Red Summit properties. West Red Lake controls approximately 47 km2 at Madsen and 31 km2 at Rowan.

Management is led by President and CEO Shane Williams, with Will Robinson serving as VP Exploration and Hayley Halsall-Whitney as VP Operations. The technical team has been rebuilt with underground mining experience, though the company’s operating record remains short.