Speaker 1: And we're probably one of the only projects coming into
production in Canada in particular, you know, and coming into
production on a rising gold prize that midnext year gold
would be three thousand and that's a perfect time now
when you get an uplift, as you know, from moving
from explorer to developer and then to producer, and that's
a perfect time to get in on the story and
follow the story as we're successful to run up the project.
Speaker 2: The Financial Survival Network now more than ever, the Financial
Survival Network. And welcome. This is Financial Survival Network.
Speaker 3: I'm your host, Carrie Lutz, bringing you a major update
from our sponsor at West red Lake Gold Mines and
CEO president Shane Williams with us now, Hane, appreciate you
coming on now. I know it's the end of the year.
You've got so many things going on and you're trying
to wrap things up that your PFS is coming out.
Speaker 2: Can you just bring us up to date on the
mind restart.
Speaker 1: Yeah. Yes, as we get towards that back end of
the year, we're really focused on, you know, getting ready
for that restart. There's a lot of parallel activities. We
just had a press we're doing a kind of a
monthly now construction update. We released another one this morning.
People can see the level of antensity. There's parallel activities ongoing.
Speaker 4: So we're really coming to the peak of that.
Speaker 1: Restart activities now as we get in towards Christmas and
into the new year. We've been doing obviously most of
this year, we've done a lot of drilling out of definition.
We went and got a lot of projects capital approach,
and they're all really coming together now.
Speaker 4: Towards the back end of the year and into the
first quarter.
Speaker 1: So yeah, busy and exciting times, Western Lake.
Speaker 3: Can you give us an approximate date here, and not
to pin you down and I don't want you to
be over promised and not be able to come, but
give us an approximate date range.
Speaker 4: Yeah, So the plan is towards.
Speaker 1: The middle of next year, you know, the middle of
next year Q one. We have finished off all our
capital projects. We're starting some test mining, to do some
test mining, et cetera on a bul example, and then
once they're in place, our pfense is coming out in
early January, you know. And so those three activities together
set us up nicely for restart, which would be into
middle to the back end of next year twenty twenty five.
Speaker 3: So you've done this before. This is nothing new for you. You're
not learning on the job here. But every mind has
its own particular challenges, its own things that make you
run to pull out your hair. What are the challenges
been here? The biggest challenges to you?
Speaker 1: Yeah, I've done this five times, Carrie. This is my
fifth mind restart, so there's been a lot of a
lot of it.
Speaker 4: And you're right, everyone has its own unique challenges. For me,
we been lucky.
Speaker 1: A lot of it is getting understanding of your learning,
the lessons of the of the of the previous operator.
Speaker 4: You know, that's key. You know a lot of that,
a lot of that.
Speaker 1: It took a long time to get into the detail
and understand what were the key boxes that they that
need needed to be addressed for us to be successful,
and that's taken quite a while. The majority of it
was around that drilling understanding of the your body, getting
that level of definition, So that's really been the technical challenge.
Speaker 4: Everything else was.
Speaker 1: Really reasonably okay. You know, they have a good mill,
they have a good infrastructure on site, but it was
really the understanding of your body and spending the time
and the detailed effort to really understand that and now
get the mining kind of going. They've been the real
technical challenges as well in in the area on the project.
Speaker 2: So the devil's always in the details.
Speaker 4: Right, Yeah, it's always in the detail. I I compared
it to it like an orchestrat.
Speaker 1: There's a lot of different moving parts and individual things
have come together at the right time to be successful
on a mind and.
Speaker 3: You've got to be watching all those players make sure
that they're all on the same page playing the same tune, right, Yeah.
Speaker 4: They all have to be playing the same tune.
Speaker 3: Nine.
Speaker 1: They all have to be in sync, you know, so
they all come together. As I said, the number of
Capitol projects, we underground development, we've underground drilling obviously, we've
financing raising the financing in parallel, it all really has
to come together to that mid next year sort of
restart process.
Speaker 3: And right there and in the meantime, you haven't been
standing still. You're still doing exploration work and got a
nice nice intersect on the Upper eight target. Yeah.
Speaker 1: I think that's a story that you know, we focused
on this year around the restart to the risking et cetera.
Speaker 4: But I think that's a story that we're going to
push a little bit more.
Speaker 1: There's huge exploration upside associated with Madson that's never.
Speaker 4: Really been done, and so this was one area that.
Speaker 1: The team focused on this uperade. As people probably aware
of the Lower eight, it was a very high grade
zone within Red Lake and within within the mats and
mind and the team I found in that there are
a number of these high grade zones throughout the mine
and one of them is this operade zone and we've
we've had quite a few good hits there and the
team are continuing to drill. So I expect this to grow.
And remember it's a high graded part of the your body,
and so high grade makes a big difference in these minds,
as your viewers would probably know, and so that makes
a big difference from an announced profile and the ability
to grow and push the project larger.
Speaker 3: Yeah, I know, we got some intersects twenty one plus grams,
fifty two, twenty three and they're meaningful.
Speaker 4: Yeah, they're meaningful.
Speaker 1: You know, you get a twenty five gram sort of
overbody and you're bringing in that material the mats and
overall at about a seven gram you're getting an overall
average grade of ten to eleven grams, a very high
grade mine in Canada today.
Speaker 4: How to be up there on the top high grade
mines in Canada.
Speaker 1: And that generates huge cash flow in the current market
prices today. Right.
Speaker 3: So meantime, you mentioned you're finishing up the capital projects here.
I think I'd never heard this term before connection drift,
but it makes total sense. So you're kind of unifying
the two ramps that are there now, the east and
the west.
Speaker 1: So yeah, they were kind of operated as individual two
and if you think of it like two individual mines,
underground mines that were kind of operated individually and or
had to be hauled all the way to surface and
then transported across by different trucks across surface trucks. And
so the connection of those from an underground perspective opens
up huge possibilities. Not only does it allow efficient movement
of ore, but it also allows exploration in that area
between the two mines, and there's a lot of prospectivity
between those two areas that never really had access to
get the drills. So I know our team and our
mind side team and geo team are very excited about
that the ability to drill those but also from an
efficiency point of view, it does open up a lot of.
Speaker 3: Opportunity, right, and so that there's where the mill is constructed,
there appears to be a big target under the mill.
Speaker 4: Yeah, there is. There's a lot.
Speaker 1: There's a lot of targets in that area and in
numerous different areas, and this connection drift allows access to
some of those areas, allows that to open up those
areas and that take those targets close to the infrastructure
and close the surface.
Speaker 3: So you got your primary crusher in and that's always
a good sign because that always happens towards the end
of the process, right before the restart, right.
Speaker 1: Yeah, well it's the first part of the chain of processing.
And so you know, we, as I said, in parallel
with our d risking approach, focused on stage approach. And
so the first part that was we bought that crusher.
The previous operator had leased a crusher and they were
running with a contractor. We went down and bought that crusher.
And now what we're doing is we've commissioned it. We're
getting it ready. We're getting it ready for oor or
testing it. We're getting meaning simplayers or for our planned restart.
Speaker 3: So you just did a major financing, so I assume
a lot of the money in the treasury that can
see you through the production.
Speaker 4: Yeah, we did an equity raise recently.
Speaker 1: We've just also agreed on a prelimited time sheet with
a group calling a BARI for a debt facility.
Speaker 4: So between the two.
Speaker 1: Of those that would give us enough of the money
to move into pre cash flow in the project.
Speaker 3: So kind of, I think the market's not really perceiving
how close you are to production, how meaningful that production.
Speaker 2: Is going to be.
Speaker 3: What do you say when you well, it's the end
of the year, there's tax laws, selling, we know, the
whole thing goes on. It's an annual ritual. But maybe
it's a good time to be looking at the West
red Lake.
Speaker 1: Yeah, it's a I mean, yeah, Texas setting is a
big thing. Obviously in Canada, stocks come under pressure.
Speaker 4: But I agree the market really doesn't know.
Speaker 1: You know, we've had a number of project restarts in
Canada recently, you know, last year and year before, but there's.
Speaker 4: Very few coming up this year.
Speaker 1: You know, because gold had been down for a number
of years, you know, there wasn't that focus. So into
twenty twenty five, there's very few restarts and we're probably
one of the only projects coming into production in Canada
in particular, you know, and coming into production on a
rising gold price. That mid next year gold could be
three thousand, and that's a perfect time now when you
get an uplift as you know, from moving from explorer
to developer and then to produce her and that's a
perfect time to get in and the story and follow
the story as we're successful to rump.
Speaker 3: Up the project and the gold prices have been cooperating.
I mean, we hit twenty seven hundred and you know,
now we pulled back a little bit, but it's still
in a bull trend.
Speaker 1: It's still in a bull trend, and particularly for producers.
As you know, producers a big producers now are making
lots of free cash flow. You know, they're producing for
aices of fifteen hundred, all is that twoenty six hundred.
There's a lot of margins still there. So as we
move into that production phase, there's also going to be
a lot of marriage for ourselves at the lower end
of the production and that will generate lots of cash
flow for Western Lake.
Speaker 2: Shareholders for sure, and what annual production you have any
any how, your.
Speaker 1: Production would be around seventy thousand ounces a year, you know,
seventy thousand ounces a year producing aisse of around fourteen hundred.
You know, that's a lot of marriagin in today's cold
price environment.
Speaker 3: That's almost a fifty percent margin there, it's a fifty
percent margin.
Speaker 1: And will you take a fifty percent margin on free
cash flow and do to metrics, we're very undervalued for
what potentially in six or eight months could be a
completely different story.
Speaker 3: Yeah, especially ounces in the ground here that it's very
meaningful when you're close to production, right, very meaningful.
Speaker 4: We've over you know, we've won.
Speaker 1: We we'll have over one by seven million ounces of
reserves at high grade your seven gram sort of material.
That's very there's not many minds a canon at that
high grade and underground minds.
Speaker 2: That's for sure. Well, sure, Oshane, thank you for the update.
Speaker 3: Really appreciate you taking time out from this busy time
of year. I suggest you go over to Westredlakegold dot
com sign up for notifications. Ticker symbols w l RGF
in the US and w r LG in Canada. Will
be touching base with you in the coming months. Shamee,
happy and healthy to you and your family.
Speaker 1: Excellent, Thank you very much, carrying a look forward to
thank you.
Speaker 2: The Financial Survival Network