West Red Lake Gold shares jump on Madsen restart

West Red Lake Gold Mines (TSXV: WRLG) shares jumped after the company said it would restart 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 earlier than the previously communicated mid-2025 target.

West Red Lake rose 6.4% to 83¢ on the news Thursday afternoon in Toronto, giving the company a market capitalization of about C$287 million ($206 million). Fiore Group, the investment arm of longtime mining executive Frank Giustra, owns about 8% of West Red Lake.

Initial production 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 Madsen mine was briefly restarted by its former owner, Pure Gold, in 2021, but was shut down a year later due to high costs and inconsistent production. Before that, the historic mine 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.

Madsen, located in the Red Lake gold district of Ontario, is West Red Lake Gold’s flagship project and part of a 47 km² land package. The company also holds the Rowan property, which includes three past-producing mines.