Madsen Mine Reborn: West Red Lake Gold Declares Commercial Production

VANCOUVER, BC – January 12, 2026 – West Red Lake Gold Mines Ltd. has officially crossed the threshold from developer to producer, declaring commercial production at its 100%-owned Madsen Gold Mine in the legendary Red Lake Mining District of Northwestern Ontario. The milestone, effective January 1, 2026, marks a pivotal moment for the company and a significant new chapter for a mine with a rich history.

The announcement sent a positive signal to the market, with the company’s stock (TSXV: WRLG) climbing 5.8% in midday trading. This achievement validates the company's methodical strategy to resurrect the past-producing mine, positioning West Red Lake Gold as a new and promising operator in one of Canada's most prolific gold camps.

A Methodical Ramp-Up to Production

The declaration of commercial production was not a matter of flipping a switch, but the culmination of a disciplined and successful ramp-up period. The company exceeded its internal requirements for the milestone, which stipulated maintaining mill throughput at 65% or greater of permitted capacity for 30 consecutive days.

In December 2025, the Madsen mill processed an average of 689 tonnes per day (tpd), representing 86% of its permitted 800 tpd capacity. This operational stability, coupled with strong metallurgical performance, was key to the successful transition. Mill recoveries averaged an impressive 94.6% for the month, enabling the production of 3,215 ounces of gold.

“We are delighted to announce commercial production at the Madsen Mine, achieved only seven months after completion of the bulk sample,” said Shane Williams, President and CEO of West Red Lake Gold. “Achieving commercial production is a major milestone for any producer and it comes after a strong December that saw tonnage, grade, recoveries, and production all perform to plan.”

In his statement, Williams extended credit to the on-site team for delivering a “responsible and methodical mine ramp up” and expressed gratitude to the company’s partners, the Lac Seul and Wabauskang First Nations, and the Red Lake community for their continued support.

The performance in the fourth quarter of 2025 underscores the steady progress. The mine produced 49,162 tonnes of ore at an average grade of 5.06 grams per tonne (g/t) gold, recovering 7,379 ounces. This demonstrates a consistent increase in throughput from the quarter's average of 534 tpd, or 67% of permitted capacity.

Financial Footing and Market Response

The operational success is translating directly into a strong financial position. In the fourth quarter of 2025, West Red Lake Gold poured 7,200 ounces of gold, which were sold at a robust average price of US$4,150 per ounce. This generated total gold sales revenue of US$30 million for the quarter.

For the full year 2025, a period that largely encompassed the pre-commercial ramp-up, the company poured 20,000 ounces. These sales, at an average price of US$3,650 per ounce, brought in US$73 million in revenue. Critically, the company reported ending 2025 with a healthy balance sheet, holding CAD$46 million in cash and gold receivables. This financial cushion is expected to support its growth ambitions without immediate reliance on equity markets.

The market has responded favorably to the company's progress. West Red Lake Gold’s stock has seen an 83% increase year-over-year, trading near its 52-week high on the day of the announcement. While some analysts maintain a cautious outlook pending a longer track record of profitability, the successful launch into commercial production addresses a key risk factor and shifts the narrative from development-stage potential to tangible operational results.

Strategic Vision in a Storied District

The Madsen Mine is no stranger to production, having yielded approximately 2.5 million ounces of gold between 1938 and 1999. It is located in the Red Lake Gold District, a region that has produced over 30 million ounces of gold and is renowned for its high-grade deposits. However, the mine's more recent history includes a failed restart by a previous operator, Pure Gold, which ceased operations in 2021 amid cost overruns and operational challenges.

West Red Lake Gold, which acquired the asset in 2023, has been deliberate in its strategy to avoid past pitfalls. Management has emphasized a “smarter start,” focusing on sufficient definition drilling, securing access to multiple mining areas, and ensuring all infrastructure was fully prepared before commencing a measured ramp-up. This approach stands in contrast to the more aggressive timeline of its predecessor and appears to be paying dividends.

By establishing a foothold as a producer, the company now joins a neighborhood of industry heavyweights, including Evolution Mining, which operates the larger Red Lake Operations, and Kinross Gold, which is developing the major Great Bear project nearby. While West Red Lake Gold's current scale is smaller, its high-grade resource and defined growth path position it as an ambitious and noteworthy player in the district's ongoing renaissance.

High-Grade Ore and Future Growth

Looking ahead, West Red Lake Gold is poised to capitalize on the high-grade nature of the Madsen deposit. For the first quarter of 2026, the company expects mill feed to average in excess of 6 g/t gold, sourced predominantly from the 4447 area—a high-grade zone in the South Austin portion of the mine.

“The immediate impact of mining these jewelry box-type areas was realized when material from 4447 lifted the gold grade through the Madsen Mill to levels reaching 8.9 g/t Au in December,” Williams noted. “We look forward to pulling a majority of our ore tonnes from the 4447 area through Q1.”

The company's growth strategy extends well beyond simply reaching full capacity. The plan is to achieve sustained throughput at the permitted 800 tpd rate by mid-2026, but the team is already working on multiple fronts to expand the mine's potential. Active drilling at the nearby Fork deposit is intended to bring that mineralization into the mine plan this year. Concurrently, work is underway to delineate a new high-grade area known as the 904 Complex, which shows geological similarities to the productive 4447 zone.

Further initiatives include optimizing the mine's shaft to potentially increase tonnage significantly in the medium term. This multi-pronged strategy, combined with the future advancement of the company’s Rowan Property, underpins an ambitious vision to grow from an initial producer into a mid-tier company generating over 100,000 ounces per year, all while aiming to self-fund its expansion from operational cash flow.