West Red Lake Gold shares jump on Madsen restart

West Red Lake Gold Mines (TSXV: WRLG) shares jumped on Thursday after the company approved the official restart of the idled Madsen mine in Ontario.

The board of directors approved management’s recommendation to immediately commence continuous mining activities, the company said on Thursday. The decision comes slightly ahead of the previously communicated mid-2025 target.

Shares of West Red Lake rose almost 6% during morning trading on the news, giving the Canadian miner a market capitalization of approximately C$285 million ($206 million).

Initial production at Madsen is expected to average 500 tonnes per day over the first two months, with a ramp-up planned for the second half of the year, the company said.

The mine was briefly restarted by its former owner, Pure Gold, in 2021, but closed after just a year due to high costs and inconsistent production. Before that, it produced 2.5 million oz. of gold at an average grade of 9.7 grams per tonne between 1938 and 1999. West Red Lake took over the project in June 2023.

Commenting on the milestone, CEO Shane Williams said: “We have pushed hard for two years to accomplish that feat and now, with major infrastructure projects complete and our bulk sample having delivered mined tonnes and gold grade aligned with modeled expectations, our approach has been validated and we are ready to mine on a continual basis.”

The Madsen mine forms part of a 47 km² land package that the company holds within the Red Lake gold district of Ontario. The northern part of the landholding is the Rowan property, which hosts three past-producing mines.