[Video Enhanced] West Red Lake Gold 2025 US$73 million Gold Sales in Rear View Mirror as 2026 Commercial Production Begins
Production Milestone Reached at Madsen as Revenues Hit US$73 Million During Ramp-Up Phase
West Red Lake Gold Mines (WRLG) has officially declared commercial production at its 100% owned Madsen Gold Mine, effective January 1, 2026. This milestone was achieved just seven months after the formal restart of the mill in May 2025. The company met its internal criteria for commercial production by maintaining mill throughput at or above 65% of permitted capacity (800 tonnes per day) for 30 consecutive days during December 2025.
Key operational metrics for December 2025: - Average mill throughput: 689 tonnes per day (tpd), representing 86% of permitted capacity. - Gold production: 3,215 ounces. - Mill recovery: 94.6%. - Feed grade: ~5 grams per tonne (g/t) gold.
2025 Ramp-up totals (full year): - Gold production: 20,147 ounces. - Average gold sales price: US$3,650/oz. - Total gold sales revenue: US$73 million. - Year-end liquidity: CAD$46 million in cash and receivables.
The declaration of commercial production is a material positive event that fundamentally shifts the company’s risk profile from a developer/ramp-up play to a cash-flow-generating producer.
- Operational De-risking: Meeting throughput targets at 86% of permitted capacity suggests that the "jewelry box" high-grade zones (like area 4447) are reconciling well with geological models. This was a critical failure point for the previous operator, PureGold.
- Financial Strength: Generating US$73 million in revenue during a ramp-up year is exceptional. WRLG benefited significantly from a rising gold price environment (averaging US$3,650/oz sales). Ending the year with CAD$46 million provides a buffer against the typical operational "friction points" that occur in the first year of steady-state mining.
- Strategic Execution: Management has delivered on its 22-month roadmap, including the completion of the 1,448-meter connection drift, the workforce camp, and the primary crusher installation. The methodical approach (7-meter definition drill spacing) appears to be yielding the predictability required to avoid the pitfalls of the past.
West Red Lake Gold Mines is a Canadian gold producer focused on the Red Lake Gold District of Ontario. Its flagship asset is the 100% owned Madsen Gold Mine, which includes a 1,089 tpd mill (permitted for 800 tpd) and extensive underground infrastructure. The company also owns the Rowan Property (80km away), which it intends to develop as a satellite feed source for the Madsen mill. WRLG acquired the Madsen project out of a CCAA process in 2023, effectively purchasing an asset with over CAD$350 million in existing infrastructure.