West Red Lake Gold (TSXV: WRLG; OTCQB: WRLGF) has been cleaning up the mill at the past-producing Madsen gold mine, and the company has put an extra US$750,000 in its treasury thanks to the recovery of 415 oz. of gold. The project is 100%-owned by the company and located in the Red Lake gold district of northwestern Ontario.
Based on the results of work done late last year, West Red Lake is planning a second cleanup campaign to address the ball mills and semi-autogenous grinding (SAG) mills. The company has engaged a firm that specializes in gold mill cleanup and recovery. The program should be completed by the end of May. As much as another 2,500 oz. may be recovered.
Shane Williams, president & CEO, said, “Less than a year after acquiring the Madsen mine, we are already seeing real value being uncovered from this asset. Our immediate focus has been recovering gold throughout the Madsen processing plant with our second cleanup program nearing completion. With gold prices over US$2,300/oz., this material could be a potential one-off source of cash flow during 2024.”
The company said that the previous owner had reconciliation issues between the grade of mined ore and the milled ore at Madsen. West Red Lake launched a technical investigation to determine how much gold might be locked up in the mill. In certain locations on site, installation errors had created sizeable “gold traps”, resulting in a notable amount of gold remaining in these physical gold traps instead of making it through the mill.
Gold was found physically trapped in ill-fitting liners in the ball mill, in the SAG mills, and in uncleaned filters, all of which would certainly have impacted the previous operator’s reconciliation issues.
West Red Lake is taking measures to ensure that similar losses will not be repeated.
Learn more on www.WestRedLakeGold.com.
