West Red Lake’s Madsen mine enters commercial production

West Red Lake Gold Mines’ (TSXV: WRLG) says its flagship mine in Ontario has officially reached commercial production, about seven months after its decision to restart the operation.

In a statement Monday, the Canadian gold miner confirmed that its Madsen mine in the Red Lake district of northwestern Ontario has been in commercial production since the new year.

The milestone was achieved after the mill at Madsen met the company’s operational requirements during the last month of 2025, as it operated at 86% of its permitted throughput of 800 tonnes per day and averaged 94.6% in gold recoveries, delivering gold production of 3,215 oz.

“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,” West Red Lake CEO Shane Williams said in a news release.

He added that the company “will continue to ramp up from this strong base,” which would result in the mill reaching its sustained permitted capacity by mid-2026.

West Red Lake Gold Mines gained 5.8% as of midday trading in Toronto, giving the company a market capitalization of C$436.4 million ($314.5 million). At C$1.10 a share, the stock is near its 52-week high of C$1.18.

Historic mine

Located in the Red Lake mining district, the Madsen mine was a historic gold producer dating back to World War II, producing a total of 2.5 million oz. between 1938 and 1999. The mine was briefly back online in 2021 by then-owner Pure Gold but was shut down after a year due to cost overuns.

In June 2023, West Red Lake took on the project and has since successfully completed test mining and major infrastructure projects. The decision to restart operations was announced last May, initially at 500 tonnes a day then ramping up through the year.

During 2025, the Madsen mine produced about 20,000 oz. of gold, including 7,000 oz. in the last quarter. 2026 guidance is expected sometime in the first quarter, the company said.

In addition to ramping up its production, Williams also noted opportunities to “continue creating value” at Madsen through additional exploration. “We are drilling at Fork with a view to bring that deposit into the mine plan this year,” he said, noting that the shaft is nearing operation and work to date has “revealed a path to potentially increase shaft tonnage significantly in the medium term.”

“We are starting to delineate a new high-grade area in Lower Austin called the 904 Complex that is similar to 4447, the high-grade area in South Austin that we advanced through definition drilling, mine design, and access development within eight months so that today we are mining this high-margin mineralization,” Williams said.