West Red Lake Gold resumes Madsen after death

West Red Lake Gold Mines (TSXV: WRLG) has resumed operations at its Madsen Mine in Red Lake, Ont., following a two-day pause triggered by a fatal incident.

Operations were suspended on June 16 after an underground employee died, the company said on Wednesday. The mill resumed operations about 40 hours later, with mining restarting 12 hours after that. Ramp-up to full capacity is ongoing, dependent on workforce availability and compliance with safety protocols.

“With the clear exception of the tragic underground incident, ramp-up at the Madsen Mine is progressing well,” President and CEO Shane Williams said in a release. “Mill head grades increased in June as we transitioned from the mixed and generally lower-grade material that had been stockpiled during the bulk sample program, which we processed in May, into freshly mined material that should be more representative of average ore grades going forward.”

The worker was fatally struck by underground equipment, according to the Ontario Ministry of Labour. No additional details — such as the type of equipment, the specific circumstances or timeline — have been made public. 

Shares rose 7.6% in Toronto on Wednesday to 85¢ apiece, giving the company a $295-million market capitalization.

Additional production 

The mill has been averaging 650 tonnes per day with 95% gold recovery and has been tested at higher levels several times without issue, West Red Lake reported. Between June 12 and 15, the average milled grade rose to 6.5 grams gold per tonne from about 3 grams earlier in the month.

Since ramp-up began on May 11, operations have sourced ore primarily from the South Austin and McVeigh zones, with additional production planned from Austin stopes later this year. Ramp-up has involved processing stockpiled sill material.

West Red Lake has sold 5,250 oz. of gold year-to-date at an average price of $3,330 per oz., with another gold pour expected on Wednesday.

Underground drilling remains active, with 38,393 metres completed in 2025 so far, including 19,904 metres during the second quarter. Efforts have focused on high-grade targets within the South Austin zone.

The Madsen Mine is part of West Red Lake’s 47-sq.-km land package in Ontario’s Red Lake district, a region that has yielded over 30 million oz. of gold. The company also owns the Rowan Property, which hosts three historic gold mines.