[Video Enhanced] West Red Lake Gold Hits New High-Grade Lens in Lower Austin

The most recent news release (October 14, 2025) reports high-grade drill results from the Lower Austin Zone at the Madsen Mine, highlighting a significant intercept of 139.45 g/t Au over 7.75 meters at approximately 600 meters depth. This is the first effort with tight-spaced drilling in this deeper part of the Austin Zone since the 1950s/early 60s. Management describes this as the company's second "jewelry box" discovery, indicating potential for additional high-grade lenses similar to those found in South Austin, suggesting significant ounce and tonnage potential at depth. The current gold price (reported at $4,100/ounce) is significantly higher than the $1,680/ounce used in the Pre-Feasibility Study (PFS), which implies a lower cutoff grade, more overall ounces, and potential for larger stopes leading to lower mining costs.

This news is immediately preceded by the Q3 2025 financial and operational update (October 9, 2025), which announced C$33 million in Q3 gold sales from 7,055 ounces poured at an average grade of 5.4 g/t. This represents a 34% increase in production over Q2 2025. The company projects a 35-40% production increase in Q4 and targets commercial production in early 2026. Key operational improvements include commencing underground waste rock storage and rehabilitating the historic shaft for material movement (expected by November). The release also reiterated Madsen's mineral resources and probable reserves (1.65 Moz Indicated, 0.37 Moz Inferred, 478 koz Probable Reserves).

A C$40.65 million public offering was closed on September 23, 2025, providing capital for Madsen ramp-up, growth, working capital, and advancing the Rowan project to pre-feasibility by mid-2026. The Rowan Project itself had a positive Preliminary Economic Assessment (PEA) announced in July 2025, projecting 35,230 oz average annual production with an 81.7% after-tax IRR at US$3,250/oz gold, with a PFS targeted for Q3 2026.

Earlier events in 2025 include the official restart of the Madsen mine on May 22, the final drawdown of the US$35 million Nebari credit facility on May 14, and positive bulk sample reconciliation results on May 7, confirming that mined grades were 0.7% above predicted. The company clarified on May 10, 2024, that Madsen only had mineral resources (not reserves), a statement later superseded by the Probable Reserves reported in the January 7, 2025, PFS.

The most recent news (October 14, 2025) regarding the high-grade drill intercept in the Lower Austin Zone is highly material and a significant positive development. An intercept of 139.45 g/t Au over 7.75 meters is exceptional, especially given the context of the Madsen deposit's overall indicated resource grade of 7.4 g/t Au.

The characterization of this as the "second 'jewelry box' discovery" (following similar success in South Austin) is a crucial aspect. This indicates the repeatable nature of discrete, very high-grade lenses of gold mineralization within the Madsen orebody. Such discoveries are transformative for mine economics, as they can significantly enhance the overall head grade, lower per-ounce costs, and extend the mine life well beyond what is currently outlined in the PFS (which was based on more conservative gold prices and existing resource models). The fact that this area has not seen tight-spaced drilling since the 1950s/60s highlights the untapped potential at depth, adding substantial organic growth opportunities within the existing mine infrastructure.

This discovery directly supports and de-risks the company's objective of achieving commercial production in early 2026 by immediately adding high-confidence, high-margin ounces to the near-term mine plan. It validates the company's aggressive and systematic exploration strategy. The current gold price environment, reported at an exceptional $4,100/ounce (significantly above the $1,680/ounce used for PFS reserve calculation), further amplifies the economic leverage of these high-grade findings, making previously uneconomic or marginal material highly profitable.

Coupled with the positive Q3 production results, operational improvements, and successful financings, this "game changer" drill result reinforces the company's trajectory towards becoming a major, high-grade gold producer in the Red Lake district. It provides strong evidence of the long-term potential and resource quality, which could attract further investor interest and potentially lead to an upward re-rating of the company's valuation.

West Red Lake Gold Mines Ltd. (TSXV: WRLG, OTCQB: WRLGF) is a Canadian gold exploration and development company focused on its assets in the prolific Red Lake Gold District of Northwestern Ontario. The company is actively transitioning into a gold producer.

Flagship Project: Madsen Gold Mine * Location: Red Lake Gold District, Ontario, Canada. * Ownership: 100% owned, acquired on June 19, 2023, from Pure Gold Mining Inc. * Infrastructure: Madsen is a fully permitted underground gold mine featuring a modern 800-tonne-per-day (tpd) processing facility (expandable to 1,089 tpd, with +95% recoveries). It includes a 1,275-meter shaft, dual ramp access to 525 meters below surface, extensive underground development, operational tailings and water treatment facilities, and access to low-cost provincial hydro grid power. * Resources & Reserves: * Indicated Mineral Resource: 1.65 million ounces (Moz) of gold grading 7.4 g/t Au (effective December 31, 2021). * Inferred Mineral Resource: 0.37 Moz of gold grading 6.3 g/t Au (effective December 31, 2021). * Probable Mineral Reserves: 478 thousand ounces (koz) of gold grading 8.16 g/t Au (effective June 30, 2024, from PFS). * Development Status: The mine officially restarted operations on May 22, 2025, targeting commercial production in early 2026. Significant progress has been made on capital projects such as the 1.2 km Connection Drift (completed March 2025), a 114-person camp (operational March 2025), a new primary crusher (commissioned November 2024), and shaft rehabilitation. Definition drilling is ongoing, consistently yielding high-grade intercepts in zones like South Austin, Austin, Lower Austin, and McVeigh. A mill cleanup program has also recovered trapped gold, providing supplemental cash flow. * Pre-Feasibility Study (PFS): A positive PFS for Madsen was released on January 7, 2025, demonstrating robust economics with a C$315 million after-tax NPV5% and a 255% IRR at a US$2,200/oz gold price. It projects an average annual production of 67,600 ounces over a 6-year mine life, with an average AISC of US$1,681/oz.

Other Key Project: Rowan Property * Location: Wholly owned, 80 km by road from the Madsen Mine. * Resources (Updated MRE, March 1, 2024): * Indicated Resource: 195,746 oz @ 12.78 g/t Au. * Inferred Resource: 115,719 oz @ 8.76 g/t Au. (Note: The inferred resource was significantly reduced from 827,462 oz in the 2022 MRE due to conversion to indicated and more rigorous modeling standards). * Preliminary Economic Assessment (PEA, effective June 30, 2025): Projects 35,230 oz/year average annual production over a 5-year mine life, with a diluted head grade of 8.0 g/t Au and an 81.7% after-tax IRR at a US$3,250/oz gold price. It envisions a toll-milling operation, potentially utilizing the Madsen mill. A Pre-Feasibility Study is targeted for mid-2026.