WRLG, IAU, EDV
West Red Lake Gold aka WRLG issued a PR describing the results of a PEA for its Rowan deposit, located a few dozen km NW of the Madsen gold mine WRLG is currently returning to production. Rowan is a 3100 ha property containing three past-producing gold mines. The main target is the Rowan Gold Zone, which hosts one of the p-p mines and is a vertical deposit which reaches surface with a 1200m strike length and remains open at depth.
The numbers in the PEA look good It posits a 5-year mine life with average production about 36k oz Au per year. The after-tax IRR is a healthy 41.9% and the capex is modest at around $70M. The PEA envisages toll milling the ore at one of many local mills. These numbers were generated using a base case of $2500/oz Au, while current gold prices generate an IRR of over 80%. In addition there are a number of untested opportunities to expand the gold inventory on the property.
The next steps include more drilling to increase and upgrade Resources, continuing environmental work to support permitting, and completing a PFBS by Q3 2026.
Madsen remains the main focus of WRLG, but it looks like Rowan could be a nice money spinner.
Message 35188536
As you'd expect from a company that recently released PEAs for five separate gold mines on their Nevada properties, i-80 Gold aka IAU has a lot going on. Today we get more details on what those efforts currently involve.
At their producing Granite Creek Underground mine, they continue to ramp up production, while the completion of an exploration drift at the South Pacific Zone, slated to become a major source of ore, means drilling is underway from both surface and underground.
Work continues to bring the Lone Tree autoclave, one of only three such mills in Nevada able to process sulfide ore, back into use. An internal feasibility study is underway for completion by year end and permitting is proceeding.
Archimedes Underground on the Ruby Hill property is slated to be the next mine in production. Permitting and drilling are underway. Drill results will be incorporated into a feasibility study expected H1 2027, but even before that is done production is expected around the beginning of 2027.
Cove Underground is slated to be third in line, starting production mid-2029. To that end, permitting is underway and a feasibility study will be released Q1 2026.
Permitting and feasibility work is also underway for two open pits, at Granite Creek and at Mineral Point on Ruby Hill.
The money and the plans are in place. Now it is a matter of execution.
Message 35188664
FWIW, RBC issued a new analyst report on miners which forecast that west African miner Endeavour Mining aka EDV will pay a special dividend this quarter, making the total Q2 divvy to 59 cents a share.
The IKN newsletter included an update on Mexico mine permitting under the new government. To summarize, things are finally moving but not very quickly, but will speed up as the new regulations become codified. And reading the tea leaves, avoid investing in any company with community relations problems in Mexico. |
