West Red Lake Gold Mines says the ramp-up at its Madsen Mine in Ontario kept gaining traction in the second quarter of 2026, with stronger mining and processing rates, higher grades, and a larger surface stockpile by period end. The company’s latest operating update shows the project moving in the right direction on the core measures investors watch most closely: tonnes mined, ounces produced, mill throughput, and consistency. The main question now is whether those gains can hold long enough to support the company’s full-year production target while the operation still works toward steadier throughput.
The quarter-over-quarter improvement was broad-based. Mined tonnage rose 46% to 75,524 tonnes from 51,616 tonnes in Q1, while mined ounces increased 73% to 10,459 ounces from 6,033 ounces. Gold production climbed 51% to 8,576 ounces from 5,667 ounces in the prior quarter, bringing year-to-date output to 14,243 ounces. The average mined grade also improved, reaching 4.3 grams per tonne gold from 3.5 grams per tonne in Q1. For a mine in ramp-up mode, those are the kinds of trends that matter more than any single headline number.
The processing side also improved, though it is still trailing the mine’s internal throughput potential. The mill averaged about 842 tonnes per day in Q2, up from 572 tonnes per day in Q1. That is above the currently permitted mill throughput of 800 tonnes per day, but still below the company’s longer-term goal of a sustained 1,000 tonnes per day in the second half of 2026. Underground mining rates averaged 878 tonnes per day for the quarter, and the company said rates moved above 1,000 tonnes per day from mid-quarter onward. That gap between mining and milling helped generate stockpile inventory.
By the end of Q2, West Red Lake Gold had built a surface stockpile of about 10,768 tonnes, containing roughly 1,500 ounces of gold based on estimated grades. Management described that as about half a month of mill feed inventory. For investors, a stockpile can be a useful operational cushion because it gives the plant material to process even when underground mining is uneven. It can also signal that the mine is producing ore faster than the mill can currently absorb it, which is generally a sign of improving operating flexibility. The flip side is that inventory alone does not solve throughput constraints.
The company also reported a gold recovery rate of 95% in Q2, unchanged from Q1. That is a useful indicator because recoveries can have a material impact on realized ounces once ore reaches the plant. A stable recovery rate suggests the milling process is still delivering consistent metal extraction even as the broader operation ramps up. For a developing mine, that kind of stability matters. It reduces one source of volatility while management works on the more difficult task of increasing volume and maintaining sequencing underground.
President and CEO Shane Williams framed the quarter as evidence that the development-first strategy is working. He said, “Q2 demonstrated that the development-focused strategy implemented during the first half of 2026 is translating into measurable operating improvements as mine sequencing advanced to unlock multiple stoping fronts and operational flexibility continued to improve.” That language points to a mine that is becoming more operationally balanced, with multiple mining areas available rather than relying on a narrower set of headings. In practical terms, more stoping fronts can help smooth production and reduce bottlenecks, which is important in a ramp-up phase.
Williams also emphasized the stockpile and the relationship between mine output and mill capacity. He said the company mined over 1,000 tonnes per day from mid-quarter onward, which allowed it to build a stockpile equivalent to about half a month of mill feed inventory. He also said the mine has been producing above the currently permitted mill throughput of 800 tonnes per day, and called that an important indicator of greater flexibility and overall consistency for sustained operations. Those are encouraging signs, but they still need to be tested over more than one quarter.
West Red Lake Gold is still guiding to 35,000 to 45,000 ounces of gold for full-year 2026, with about 60% of output weighted to the second half of the year. On that basis, the Q2 result is directionally helpful, but the company still has a meaningful amount of work to do in H2. To stay on track, Madsen will need both higher mill throughput and continued underground consistency. The company said it expects processing rates to increase to about 1,000 tonnes per day over the second half of 2026, and management said it remains focused on safer, more consistent operations and self-funded development and exploration activities across the broader Madsen property.
That leaves investors with a straightforward checklist. First, can the mill move closer to the 1,000-tonne-per-day target without disrupting recoveries? Second, can underground mining hold above plant capacity long enough to keep the stockpile healthy? Third, can the company convert operational progress into a second-half production profile that supports the full-year guidance range? The Q2 update suggests the answer to the first two questions is improving, but not yet settled. Ramp-up stories are often judged on repeatability, not just progress in one quarter.
There is also a larger asset-level context. West Red Lake Gold says Madsen recently achieved commercial production and is positioned as the central hub of a growing multi-asset platform in the Red Lake district. The company controls a 47 square kilometre land package in a mining district that has historically produced over 20 million ounces of gold from high-grade systems. It also owns the 31 square kilometre Rowan Property, which includes the Rowan, Mount Jamie, and Red Summit past-producing mines. Those assets matter because they create optionality beyond the current ramp-up at Madsen, but they do not change the immediate focus on execution at the main mine.
The company also noted that a combined pre-feasibility study for Madsen and Rowan is expected in H2 2026, while shaft refurbishment Phase 1, with a capacity range of 300 to 500 tonnes per day, is expected in H2 2026 as well. Mining from the 904 complex is expected to begin in H1 2027, and Fork deposit development is expected in the same general timeframe. Those are longer-dated catalysts, but they also underline a key point: the story is not just about current-quarter ounces. It is about whether the company can layer in infrastructure and new mining areas to support a more durable production profile.
West Red Lake Gold plans to release its unaudited financial and operating results for the three and six months ended June 30, 2026 on August 25, 2026 after market close, followed by a webcast on August 26, 2026 at 8:00 am PT / 11:00 am ET. That next release should help investors see whether the operational gains in Q2 are translating into the financial side of the business. For now, the operating update shows a mine that is improving, but still in transition. The key issue is no longer whether Madsen can produce; it is whether it can do so at a steadier rate and keep building toward the higher second-half target.
