West Red Lake Cuts 2026 Gold Production Target to 27,000–32,000 Ounces
Key Facts
West Red Lake Gold cut its 2026 gold production target range at the Madsen mine to 27,000–32,000 ounces, from previous guidance of 35,000–45,000 ounces, according to a company statement published on October 27. The adjustment reflects continued expected production growth in the second half of the year, as well as difficulties extracting some remnant support pillars and challenges hiring and retaining skilled underground workers. The company also reported production of 7,859 ounces in the third quarter and 22,102 ounces in the nine months ended September 30. Signaling an improvement in monthly production toward quarter-end, September output reached 3,320 ounces, the highest since the mine restarted. The guidance cut comes alongside strong monthly performance as the company continues to ramp up mine production.
Ore mined in the third quarter totaled 63,945 tonnes, while gold mined was 7,689 ounces, according to the company statement. Total gold produced during the quarter was 7,859 ounces, while output for the first nine months reached 22,102 ounces. The mill averaged approximately 867 tonnes processed per day during the quarter, with a gold recovery rate of 94%. These figures show mining, processing and recovery performance in the period before September recorded the strongest monthly production since the restart. They also put nine-month production below the revised annual target, with expected second-half growth remaining part of the company's original plan.
The company attributed the revised outlook to the extraction of some remaining support pillars being "more challenging than anticipated" and to challenges hiring and retaining skilled underground workers, which affected mining rates. The 2026 plan assumed that about 60% of targeted annual production would come in the second half, while the mine was still ramping up. The company said in April that Madsen achieved commercial production in January and that reaching full production rates was planned for the second half of 2026. In a January announcement, it said commercial production began on January 1 after the plant averaged 689 tonnes processed per day in December, equivalent to 86% of permitted capacity. Management had expected in January that the mine would reach its sustainable permitted capacity by mid-2026.
On processing, the company installed and commissioned a secondary crusher during the third quarter, saying it supports the mill's ability to process up to 1,000 tonnes per day. This comes as the mill averaged about 867 tonnes processed per day during the quarter, with a gold recovery rate of 94%. As part of its operational and development plans, the company said it expects to release an integrated preliminary economic assessment for the Madsen and Rowan projects in the coming weeks. The study will present a combined production plan for the two projects, the company said. The milestone follows the revision to Madsen's annual production target, as the company focuses on increasing output and addressing challenges that slowed mining rates.
In the gold market, a Reuters report published on October 30 said the metal fell to a one-year low. The report said higher energy costs and inflation concerns supported expectations that U.S. interest rates would remain high. It also noted that U.S. inflation data for September, released on Thursday, showed inflation accelerating and reinforced economists' expectations of a rate hike in December. This provides market context for gold in the days after the company's announcement, while West Red Lake attributed its guidance cut to operating factors at the Madsen mine.
West Red Lake said it will release its unaudited financial and operating results for the three, six and nine months ended September 30 on November 27, 2026, after market close. The company scheduled a webcast to discuss the results for November 30 at 8:00 a.m. Pacific Time, or 11:00 a.m. Eastern Time. The results will cover the three periods ended at the close of September, while the webcast is scheduled to discuss the third-quarter results. Before then, the company expects to release an integrated preliminary economic assessment for the Madsen and Rowan projects in the coming weeks.