West Red Lake Gold Declares Commercial Production at Madsen Gold Mine

On January 12, 2026, West Red Lake Gold Mines declared commercial production at its 100% owned Madsen Gold Mine, effective January 1, 2026. This milestone was reached only seven months after the completion of the bulk sample. In December 2025, the mill averaged 689 tonnes per day (tpd), representing 86% of permitted capacity, with gold production reaching 3,215 ounces at a 94.6% recovery rate. The company reported that material from the high-grade 4447 area lifted mill grades to 8.9 g/t Au during December. For the full year 2025, the company poured 20,000 ounces of gold with total sales revenue of approximately $73 million USD. The company ended 2025 with $46 million CAD in cash and gold receivables.

The impact is Material - Positive. Declaring commercial production is the primary objective for any developer, and doing so within two years of acquiring a distressed asset is a significant execution win for management. - Operational De-risking: Achieving 86% of permitted capacity and 94.6% recovery confirms the plant's operational integrity. - Grade Performance: The successful extraction from the 4447 area (South Austin) confirms the "jewelry box" thesis, where high-grade pockets significantly enhance the average head grade, which is critical for the mine's economics. - Financial Position: Ending the year with $46 million CAD provides a buffer, though the company carries substantial debt. - Guidance: Expected mill feed grades in excess of 6 g/t Au for Q1 2026 suggests the high-grade zones will continue to drive immediate cash flow.

West Red Lake Gold Mines is focused on the Red Lake Gold District of Ontario. Its flagship project is the Madsen Gold Mine, which features a fully permitted 800 tpd mill, a 1,275-meter shaft, and extensive underground infrastructure. The company also owns the Rowan Property, which recently showed a positive PEA with an 81.7% IRR at $3,250 gold. The Madsen Mine is currently the sole driver of near-term value.