Interview with
Shane Williams, President & CEO of West Red Lake Gold Mines
Alex Black, Executive Chairman of Rio2 Ltd.

Recording date: 25th April 2025

In a recent panel discussion, Shane Williams, CEO of West Red Lake Gold Mines, and Alex Black, Executive Chair of Rio2, shared valuable perspectives on gold mine development that investors should consider when evaluating mining stocks.

The executives lead distinctly different projects: West Red Lake's Madsen mine is a high-grade underground operation in Canada, while Rio2's Fenix Gold is a large open-pit low-grade project in Chile. This contrast highlights the diverse approaches within the gold mining sector.

Williams described Madsen as a data-driven operation requiring intensive geological understanding through 150,000 meters of detailed drilling. "It's not a visual mine. So you can't visually follow the gold," he explained. The mine employs three levels of geological modeling and will process 800 tons daily with an expected annual production of 65,000-70,000 ounces at full capacity.

In contrast, Black characterized Fenix Gold as "a massive 400 million ton ore body sitting at the top of a hill." Rio2 will move approximately 20,000 tons daily with a grade of about 0.5 grams per ton, compared to Madsen's 8 grams. First gold production is anticipated in January 2026, targeting 100,000 ounces annually by year-end.

Both executives emphasized that successful mine development depends on experienced management teams – a resource increasingly scarce in the industry. "There's been a brain drain in the mining sector over the last 20 years," Black noted, while Williams cautioned investors against taking management credentials at face value.

The discussion highlighted several red flags investors should watch for, including projects with extended development timelines. "A project should take three to four years to build roughly," Williams stated. "If that project is not moving, there's something there that either they can't advance or there's some issues."

The executives advocated for leadership approaches focused on empowerment rather than micromanagement. "If you're a micromanager, you're going to lose," Black emphasized, particularly in project development where numerous workstreams must progress simultaneously.

They also discussed industry challenges including the need for consolidation among junior miners, management ego as a barrier to necessary mergers, and the importance of transparency with shareholders.

For investors, the key takeaways include thoroughly evaluating management credentials, understanding the specific challenges of different mining methods, recognizing timeline red flags, and appreciating the necessity of transparency and appropriate leadership approaches in successful mine development.

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