West Red Lake Gold (WRLG.V) provided an update on the ramp-up activities on its Madsen gold mine in Ontario, where the mill processed 500-800 tonnes per day during the month of July. The recovery rate for the gold is also tracking well, with an average recovery of 94% of the gold.
The company is now mining from eight areas, but the focus remains on sill development to allow a focus on stop mining this month. Due to the relatively high amount of sill development, the mined material was ‘just’ 8.9 g/t gold (which is still fine, and it was helpful to see some of the sill tonnage came in at a higher grade than expected) and the mined material was mixed with the low-grade stockpile material, resulting in an average grade of 5 g/t for the mill feed.
This resulted in a gold production of approximately 3,800 ounces, of which 3,595 ounces were sold for total proceeds of just over C$16M.
Disclosure: The author has no position in West Red Lake Gold Mines other than the gold-linked notes. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
