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Speaker 1: NPV. Just at that twenty six hundred dollars, the twenty

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percent upside on the gold price, just on the financial model,

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not changing what tons you mind, but just on the

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financial model that MPV is five hundred million Canadian instead

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of the three fifteen. And again that's not changing, that's

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not adding the tons that we think we're going to

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be able to add economically, that we know we're going

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to add economically to mine. So yeah, there's there's a

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lot of room on this for this situation to run.

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Speaker 2: The Financial Survival Network now.

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Speaker 1: More than network, the Financial Survival Network.

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Speaker 2: Welcome. This is Financial Survival Network. I'm your host, Carrie Lutz.

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We are getting a major and I do mean major

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sponsor update from West red Lake Gold Mines and Communications VP.

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Gwen Preston is with us now. Gwen, the mill has restarted.

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Speaker 1: Correct, it has. I am on site right now, as

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you might be able to tell from the office that

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I'm sitting in. The mill is just up the hill

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behind me here. It was so exciting to get here

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at the beginning of this week and hear those mills turning,

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and then the next day I got to go up

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and walk around and look at it all, and I

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mean there's bubbles going through the aeration tank, and there's carbon,

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there's gold gathering on the carbon screens. It's gone. It's

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really really exciting.

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Speaker 2: It's like a big machine and it takes a long

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time to get it started, but once it starts, it

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keeps going. So before we get to anything technical stuff,

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what's happening in the community. First thing, we got to

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talk about record high goal prices. As we speak now,

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gold is thirty thirty USD and what does that mean

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for projected seventy thousand ounces per year production?

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Speaker 1: Yeah, so I mean it means great things, is the

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obvious answer. Technically, what can I talk about, Well, our

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prefeasibility study. You know that document has a twenty percent

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gold price upside case laid out. Twenty percent upside for

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the long term gold price in that study is only

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twenty six hundred dollars, so still four hundred dollars below

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the current gold price, and at twenty six hundred dollars,

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the free cash flow annually averages out at like ninety

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five million dollars. And of course that whole mind plan

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is based on a much lower gold price assumption. When

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they went through and decided which tons would be economic

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to mine. That was based on a sort of seventeen

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hundred dollars gold price assumption. So when you go back

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and look at what we're actually going to mine at

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a gold price environment that we're in right now, it

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really creates that The short version of a detailed story

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there is that it really enables a lot more continuity

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in the in the in the mineralization instead of having

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to work with small less of particularly high grade where

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those lenses are actually connected by some lower grade material.

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It makes a huge amount of sense in a gold

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market like this to also mine that lower grade material,

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and it means that we can use a lower cost

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mining method. So I got in the weeds a little

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bit there, but it's really important because this gold price

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environment not only does it mean that each ounce that

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we're produce is worth way more. I mean, our budget

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is based on selling gold at twenty five hundred dollars

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US and so you know we're making money from this,

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but we will make gold from this bulk sample and

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we are going to get significantly more than twenty five

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one hundred dollars per ounce from that. And then going

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forward for what this mine can be the gold price

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environment is just so exciting.

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Speaker 2: So in other words, your cutoff grade does way way

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lower because if you can get the higher grade going

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through that lower grade, who cares at three thousand dollars gold?

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Speaker 1: That's exactly right if you think of it as if

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we're mining six gram, eight gram, twelve gram whatever it

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is right here, and then another lens of it right here,

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and in a lower gold price environment you might do

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really selective mining and just take those two lenses. But

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in a higher gold price environment, you absolutely mind the

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whole block. And often at Madsen, the rest of that

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block also carries grade, maybe not six, eight or twelve grams,

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but it might carry one to three grams, And so

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it pays for itself because you've already done the work

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borne the cost of getting yourself over to that area,

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driving the tunnel over to that area, and then you

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get to use a lower cost mining method to take

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those tons out. So it really makes Madsin an easier mind,

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a more continuous mind when you're working when you're incremental

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cutoff grade, so the grade that you apply to the

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tons around the tons that you're already going to mine.

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When that incremental cutoff grade drops down, it really opens

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up a lot of opportunity.

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Speaker 2: Yeah, and as we know the there could be other

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pockets of the higher grade gold that you might have

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otherwise not found going through that lower grade because you know,

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there's not real consistency of grade throughout.

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Speaker 1: Absolutely, I mean, not only is there potential for positive

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surprises like you say, in that lower grade stuff, I

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mean the whole I've spent so much time with Jill,

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our chief geologist. Yesterday, I spent hours in her office

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just getting the latest download on everything. And you know,

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the pockets that they are just discovering, you know, here

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there outside of the resource, better in the resource. It's

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it's exciting. I mean, that's why you want, That's why

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you put the effort in to mine in Red Lake. Yeah,

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you got to do a lot of drilling because of

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this potty nature of the deposit, but of the mineralization

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in this region. But the reason you do it, the

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reason people have done it for twenty six million ounces

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of production already, is because you get those benefits, those

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surprises because the systems here are just are just really rich.

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Speaker 2: Absolutely so. Estimates initial estimates for actual tons grade ounces

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from bulk sample is that holding close.

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Speaker 1: To estimates, it is going very well. So, I mean

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we haven't put out a lot of information on exactly

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what we're mining and things like that. We've said that

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the bulk sample will be at least ten thousand tons,

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absolutely will be. It's going to be from six stopes

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that are in three different parts of the deposit. That's

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for sure. Each of those stope areas. When we put

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out the results, we're going to give you the tonnage

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and the grade for each of those areas. And one

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of the big things that I spent my time with

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Jill yesterday talking about is how that's going. And at

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this point we're just about to start putting the first

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stope through the mill, so in a week we internally

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will know how that reconcation reconciliation truly played out. At

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this point, what we have are the sampling of the

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samples of the mining. So you do sampling around, you

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do chip face is on the face, you do chip

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faces like as you go doing the mining, and then

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you also do muck samples. Muck is the terrible word

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that they use for the ore. They really need a

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more positive word. But anyways, they do muck samples, Like

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if the scoop is here, there's five different spots on

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the scoop where they sample, and so that gives you

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an estimate of the grade of that stope. And those

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estimates are coming in right where we want them to

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come in. So we're really excited to be that we

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will be able to issue strong reconciliation results. And you know,

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we will find out for sure over the coming weeks

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as we process these bulk samples through the mill.

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Speaker 2: Okay, so what's the timeline for full production? Would you say?

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Speaker 1: Yeah, so, well, we consistent with what we've been saying,

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which is that we will ramp up through the second

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half of the year. So right near maybe just a

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bit before the middle of the year is when we

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expect to start putting consistent monialization through the mill.

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Speaker 2: All right, so second half we have to look forward

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to it and financially enough money to see this through.

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Speaker 1: Yes, we do. So that financing that we did, you know,

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gave us that additional financial strength, a little bit more

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just capacity to do things, to ramp up faster, to

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do the things that we need to do. And then

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I will note this bulk sample is going to produce

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not a tiny amount of gold, right, just you can

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do some very ballpark estimates if we're mining ten thousand tons,

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take some even conservative estimates of what the grade is

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going to be in the recovery and whatnot. You can

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see that we're going to produce a reasonable amount of

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gold from this bak sample and then we're going to

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immediately sell it because that's the name of the game.

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So we are going to pull in a reasonable a

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reasonable amount of money from the bulk sample as well,

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which is just additional. So yes, we are we're comfortable

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that we have what we need on that front.

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Speaker 2: So cash flow is right around the corner.

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Speaker 1: Yes, it is absolutely oky.

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Speaker 2: So on some more benign or mundane issues, labor, community relations,

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you got to workforce camp set up in use and

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what's what's the feeling in the community.

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Speaker 1: Yeah, that's actually a cool question. So we did a

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grand opening of our of our camp just the other day,

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just two days ago, did a ribbon cutting for the camp.

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This is a one hundred and fourteen person facility. You have,

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of course a full kitchen and a gym and all

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of that. You know, in the recent iterations of the

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mads and nine, the prior operator and us, and I

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think in the Cloud days as well, there was never

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a camp and so the Mind has always relied on

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local workforce, which is fantastic, but also when bringing people

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in as employees, has had to rely on housing in

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the community. And it turns out when you also have

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Ken Ross ramping up their action their action at the

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Great Bear Project and other operators around, you know, there

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isn't actually you know, it puts a lot of pressure

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on housing in a five thousand person community, which is

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what Red Lake is. So we're really excited to not

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have that pressure on the community, to have people in

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comfortable conditions, and we want to attract good workers. This

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is a good Mind. We're really optimistic that we're going

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to run a good, solid mine for many years and

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we want the right people here. And so you know,

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setting up a nice, comfortable, clean camp where everybody gets

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their own bathroom and there's good food that actually really matters.

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It helps bring good people, and good people are pave

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the way for success.

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Speaker 2: It sounds like a good place to open up an

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Airbnb in the lake there, you know got me mine.

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Speaker 1: I mean a couple months ago when I was trying

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to arrange for various people to come and visit site.

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We couldn't even find hotel rooms for them. We had

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to like kick some of our contractors out to a

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community that's down the road so that we could steal

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their hotel rooms so that we could have people come

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and visit. Because that's how busy it was in the

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town of.

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Speaker 2: Red Lake, all right. So it looks like the stars

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of aligned. Gold prices near records added, near record highs.

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You got the money, the uh, the samples are conforming

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to the estimates, and everything is full sale ahead to

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full operation in the second half of twenty twenty five.

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Speaker 1: Absolutely, I mean I love spending time on site like

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I have this week. I sit in on the morning

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huddle and on maintenance meetings and all of that, and

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you just it really reinforces good reminder to me of

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something that I talk about a lot. It's like minds

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are complicated, and every layer of that machine matters. And

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so if you're having an issue with recruitment, if you're

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having an issue sort of down the chain with maintenance,

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if you're having an issue, these things have the potential

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to reverberate through the machine, and so it really takes

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experienced leadership and like focus to make sure that you

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address those to realize that those things are happening and

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to address them. And I'd say, this whole test mining

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and ramp up process that we've gone through, you can't

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put a price on the value of that opportunity for

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us because we've gone through that, we're currently we're still

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going through that. We're seeing the issues that crop up,

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and we're figuring out how to do better. And so

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we're doing that now instead of trying to manage that

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as we're in you know, ramp up towards commercial operations.

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So yeah, really exciting to see all the hard work

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that's going on here.

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Speaker 2: Yeah. Hey, I would love to see an update of

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the NPV to see what it is with these new

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gold prices. Even if you don't accept the current gold

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price but go eighty percent of it ninety percent, I'd

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love to see what the ENDPV would be now.

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Speaker 1: Yeah, I mean the NPV just at that twenty six

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hundred dollars, the twenty percent upside on the gold price,

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just on the financial model, not changing what tons you mind,

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but just on the financial model, that MPV is five

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hundred million Canadian instead of the three point fifteen, and

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again that's not changing, that's not adding the tons that

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we think we're going to be able to add economically,

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that we know we're going to add economically to mine.

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So yeah, there's there's a lot of room on this

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for this situation to run.

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Speaker 2: Yeah, and that's that's really fifteen percent below what the

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current gold price is, so that's going to make a

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big difference there. Anyways, appreciate your coming on, Glenn, and

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make sure you all go over to Westredlake Gold dot

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com sign up for notifications so you'll know exactly when

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the results come in for the sample bulk tonnage ticker

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symbols in the US w l r GF and of

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course in Canada w r LG Glenn. We'll talk to

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you soon and get a further update.

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Speaker 1: Thanks so much, Kerry, good to see you.

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Speaker 2: The Financial Survival Network