West Red Lake Gold Mines Ltd. Advances Rowan Project with Positive PEA and Exploration Plans
- West Red Lake Gold Mines' Rowan Project shows strong potential with a PEA projecting over 35,000 ounces of gold annually.
- The PEA indicates a 42% after-tax IRR and a $239 million NPV, highlighting economic viability.
- Planned drilling aims to upgrade resources and explore new targets, enhancing the Rowan Project's growth prospects.
West Red Lake Gold Mines Advances Rowan Project with Positive PEA
West Red Lake Gold Mines Ltd. announces a significant milestone for its 100%-owned Rowan Project located in the Red Lake Gold District of northwestern Ontario. The recently released Preliminary Economic Assessment (PEA), effective June 30, 2025, underscores the project's economic viability, projecting an average annual production of over 35,000 ounces of gold. The assessment reveals a robust after-tax Internal Rate of Return (IRR) of 42%, alongside a Net Present Value (NPV) estimated at $239 million based on current gold prices. This favorable outlook positions the Rowan Project as a promising venture in an area known for its rich gold deposits.
The PEA, conducted by independent consultants, emphasizes the high-grade nature of the gold deposit, which consists of 26 domains and includes three veins currently accounted for in the mine plan. The company identifies considerable potential for resource expansion, particularly focusing on the underexplored v006b vein. Historical drilling has yielded encouraging results, including a notable intercept of 70.8 grams per ton of gold over 8.3 meters during the 2023 drilling campaign. This positive data contributes to West Red Lake Gold's strategy of implementing a drilling program that will encompass 3,500 meters aimed at upgrading the inferred resources and enhancing continuity along the v006b vein.
In addition to upgrading existing resources, West Red Lake Gold's commitment to advancing the Rowan Project involves a comprehensive Pre-Feasibility Study (PFS) slated for completion by the third quarter of 2026. The PEA outlines various exploration strategies to further delineate the mineralization at Rowan, including infill drilling on two main veins (v001 and v004) and testing new high-potential targets such as Apex and Big Bend. The company's proactive approach to exploration and engineering work reflects its confidence in the project's potential, positioning it strategically for future development and production.
West Red Lake Gold Mines Ltd. emphasizes the importance of continuing to explore and upgrade its resource estimates. The planned drilling program not only targets the main veins but also aims to transition approximately 37% of the current inferred resource to indicated status. The ongoing exploration efforts highlight the company's ambition to maximize the Rowan Project's output and further solidify its position within the competitive landscape of the gold mining industry. As the company moves forward, it remains focused on harnessing the project's robust economic fundamentals to drive growth and sustainability in gold production.