Recovering Gold at the Madsen Mill
West Red Lake Gold Mines recently made headlines by pouring a gold bar using material recovered from a cleanup of the Madsen mill outside Red Lake. The company successfully poured the gold bar on June 8 using the refinery in the Madsen mill, which had been inactive for 18 months.
Restarting Operations
After Pure Gold Mining halted production at the Madsen mine and mill in October 2022 and entered CCAA protection, West Red Lake acquired the asset and surrounding land in June 2023. Their plan is to restart the mine in the second half of 2025.
Meticulous Cleanup Process
West Red Lake initiated a mill cleanup and gold recovery program in May after discovering operational errors in certain areas of the mill. Longshot Diamond Drilling was enlisted to conduct the cleanup, which led to the recovery of 415 troy ounces of gold valued at US$750,000. Gold was found trapped in various parts of the mill due to unaddressed issues from the previous operation.
The company stated that these issues would have affected previous reconciliation numbers but can be rectified through proper equipment installation and operational expertise.
Operational Readiness
Speaking on the successful gold bar pour, West Red Lake Mines president-CEO Shane Williams emphasized the importance of having reliable operations and systems in place when starting or restarting a mine. Williams highlighted the significance of having over 100 employees on-site, ongoing underground development and drilling activities, and several capital projects in progress or planned to support smooth mine operations.
Previous Challenges and Future Plans
The Madsen mine had entered commercial production under Pure Gold in August 2021 but encountered production and financial difficulties within a year, leading to its shutdown and entry into CCAA protection in late 2022. West Red Lake emerged as the successful bidder in the court-supervised sales process.
Insight: The successful recovery of gold at the Madsen mill demonstrates West Red Lake’s commitment to rectifying operational issues and preparing for a successful restart of the mine. By addressing past missteps and implementing proper systems, the company is laying the foundation for efficient and profitable operations in the future. The acquisition of the asset and surrounding land signifies West Red Lake’s strategic investment in the Red Lake region’s mining sector. Their meticulous approach to cleanup and gold recovery highlights the importance of attention to detail in the mining industry.
