Global contained ounces at West Red Lake Gold Mines’ (TSXV: WRLG) Rowan project in northwestern Ontario grew more than 120% in a resource update, while an initial resource for the nearby Mt. Jamie site gave it 85,000 oz. of global contained yellow metal.
The Rowan update outlines 754,514 indicated tonnes grading 13.03 grams gold per tonne for 334,825 contained oz., a 70% rise over the previous resource from last year, West Red Lake reported Tuesday. Inferred resources are estimated at 360,323 tonnes grading 15.31 grams gold for 179,013 oz., a 52% rise in contained metal and almost double the earlier grade of 8.73 grams gold. Rowan is about 80 km northwest of the company’s Madsen mill, which is about 1,400 km northwest of Toronto.
“The high-grade resource at Rowan represents a robust satellite deposit for the Madsen mill, in-line with WRLG’s long-term hub-and-spoke growth strategy where the Madsen mill and infrastructure act as a central processing hub for multiple high-grade deposits across the Red Lake District,” Cantor Fitzgerald analyst Matt O’Keefe said in a note on Tuesday.
Upcoming PFS
The resource update underscores Rowan’s high grades while adding more than 500,000 contained oz. to the project. The company plans to integrate the update into a combined Madsen-Rowan prefeasibility study expected in the second half of the year. The Rowan property hosts three historical mine sites.
“Rowan is among one of the highest grade undeveloped gold projects situated in a Tier-1 mining jurisdiction and continues to demonstrate the potential to become an important long-term source of high-margin ounces,” West Red Lake CEO Shane Williams said in a release.
Just 2 km west of Rowan, the Mt. Jamie target now hosts 108,775 indicated tonnes grading 14.13 grams gold for 49,407 contained oz., and 92,972 inferred tonnes at 11.97 grams gold for 35,791 oz. of contained metal.
Satellite potential
Mt. Jamie could become an additional high-grade satellite project in West Red Lake’s district portfolio, the company said.
The update for Rowan incorporated 6,300 metres of drilling since last year’s resource.
Rowan and Mt. Jamie both offer strong expansion potential, with mineralization open at depth and along strike. Several vein zones show strong continuity beyond the currently modelled domains.
Madsen, which reached commercial production in January, is forecast to produce 35,000 to 45,000 oz. this year. Most of the amount is expected in the second half of the year.
Shares of the company gained more than 1% to 63¢ on Tuesday mid-day, for a market capitalization of $260.1 million (US$186.2 million). The stock has traded in a 12-month range of 62¢ to $1.49.
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