en.Wedoany.com Reported - West Red Lake Gold Mines Ltd. (TSX.V:WRLG; OTCQX:WRLGF; FSE:UJO) of Canada has announced the launch of a fully funded surface drilling program at the historic Starratt-Olsen mine, located approximately 1.1 kilometers southwest of the company's wholly owned Madsen mine in the Red Lake mining district of northwestern Ontario.

The program will include up to 4,000 meters of oriented HQ-diameter diamond drilling. The drilling targets the up-dip and down-dip extensions of previously mined zones at Starratt, aiming to investigate unmined portions of previously identified mineralization and test new parallel sub-lenses.

This marks the first time the main historic mining zone at Starratt has been subjected to a focused drilling test since mining ceased in the 1950s. Starratt has been identified as the second-largest historical gold producer on the Madsen property, producing approximately 164,000 ounces of gold at an average grade of 6.17 grams per tonne gold between 1948 and 1956.

The company stated that the 4,000-meter program is expected to be completed by mid-August 2026, with assay results to be released as they become available. Will Robinson, Vice President of Exploration, said in a company press release that following a very successful drilling season at Rowan and Fork, the company moved the surface drill rig to the past-producing Starratt-Olsen mine to maintain momentum. Given that underground development at Fork is underway and the deposit is on track to be included in Madsen's production profile by 2027, it is logical to continue defining new resources along this major southwest structural corridor.

In the gold market, Stewart Thomson noted in a June 16 commentary that gold had fallen into the buy zone of $4,100 to $4,000 before experiencing a significant rally. He stated that technical indicators have become oversold and oscillators are bullish. Inflation, stock market valuations, debt concerns, and broader macroeconomic developments continue to shape the investment landscape for precious metals.

The same commentary described silver as leveraged gold and suggested it is not too late to buy silver now. Thomson also mentioned that all signals are green on the technical side for the gold stock sector, with historically rare oversold readings in mining stock indicators typically followed by significant rebounds. According to a June 15 commentary by Matthew Piepenburg, the gold sector remains caught between opposing views on the future of fiat currency and gold's role as a monetary asset. Piepenburg believes that some investors understand gold as real, honest money, and the metal's long-term outlook is closely tied to views on the monetary system and currency debasement. He also noted that the world began net selling U.S. Treasuries and net buying physical gold as early as 2014, with central bank gold purchases increasing fivefold after 2022. Central banks now hold more physical gold than U.S. Treasuries, a trend reflecting the growing focus of monetary authorities on physical gold holdings.

A June 13 Bloomberg report described a period of heightened volatility in gold stocks. The report noted that the NYSE Arca Gold Miners Index has fallen 31% since late February, as investors react to shifting geopolitical headlines, inflation expectations, and interest rate outlooks. Some investors have reduced exposure while others remain engaged. Brian Laks, Chief Investment Officer at Old West Investment Management, said gold is not the same trade it was 10 years ago. The report stated that gold stocks have become increasingly sensitive to investor sentiment and macroeconomic events. Chris Mancini, Associate Portfolio Manager at the Gabelli Gold Fund, told Bloomberg that gold is increasingly being used as a tool for speculators to bet on short-term interest rate fluctuations, with investors largely frozen and waiting to see how things develop.

Despite recent volatility, Bloomberg noted that gold mining stocks have recorded significant gains over the past year. Gold rose 65% in 2025, while the NYSE index tracking gold miners gained 155%, supported by a weaker U.S. dollar, increased central bank demand for gold, and earnings growth amid controlled producer costs. Bloomberg also cited comments from investors viewing the sector from a long-term perspective. Derek Benedet, Portfolio Manager at Purpose Investments, said it takes a contrarian mindset to be interested in gold right now. Andrew Musgraves of VanEck believes that when all the noise settles, the market will turn its attention back to gold miners.

In analyst commentary, a January 13 research report from Red Cloud Securities maintained a Buy rating on West Red Lake Gold with a target price of C$2.30. Investor and newsletter author Chen Lin discussed the company's operational challenges following its 2026 guidance update on May 13. He wrote that the stock price was hit hard after the 2026 guidance, and current mining operations are quite difficult because many good areas have been mined out. The company needs to build a ramp to access new areas, a process that could take about a year. On June 9, Cantor Fitzgerald analysts Matthew O'Keefe and Associate Analyst Nicholas Lobo discussed the company's updated mineral resource estimate for the Rowan project and the initial resource estimate for the adjacent Mount Jamie deposit in a report. The analysts wrote that the updated Rowan estimate reflects the results of a highly focused 6,300-meter resource conversion drilling program. Indicated gold ounces at Rowan increased 70% to 334,825 ounces at a grade of 13.03 g/t gold, while inferred gold ounces increased 52% to 179,013 ounces at a grade of 15.31 g/t gold. The initial estimate for Mount Jamie includes 49,407 ounces of indicated resources at a grade of 14.13 g/t gold and 35,791 ounces of inferred resources at a grade of 11.97 g/t gold. Cantor Fitzgerald maintained a Buy rating and a target price of C$2.20 per share.

The company's June 2026 corporate presentation outlined multiple development and exploration activities at its Red Lake assets. The Madsen mine achieved commercial production on January 1, 2026, with 2026 production guidance of 35,000 to 45,000 ounces. Development is advancing at the 4447 and 904 zones, extending eastward along the connecting drift to the Derlak zone, and at the Fork satellite deposit. Madsen employs a multi-zone underground mining method.

The Fork deposit has commenced underground development following the completion of a 3,200-meter drilling program and is expected to enter the company's production profile in 2027. The deposit is located approximately 250 meters from existing Madsen infrastructure. Planned activities for the second half of 2026 include accessing the 904 zone and Fork, updating the pre-feasibility study for Madsen and Rowan, advancing the 13-level east drift to Derlak, Phase 1 shaft refurbishment, and exploration programs at Starratt-Olsen and North Shore.

The presentation also highlighted exploration opportunities at Starratt-Olsen and the adjacent Wedge resource area. Starratt-Olsen is described as a historic mine on the southwest trend of Madsen, with historical production of approximately 163,000 ounces of gold. The adjacent Wedge resource reports 56,100 ounces of indicated resources and 78,700 ounces of inferred gold resources. At the Rowan project, the company has begun the permitting process for the 31-square-kilometer property. The recent 6,300-meter drilling program targeted the 001, 004, 006b, and 013 veins, aiming to provide mine design, geotechnical, and metallurgical data for the pre-feasibility study. The 006b and 013 veins, located near the portal, could support additional mine life and earlier production, while Rowan remains open at depth and along strike.

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