Lab Report | Sep 21 Deep Dives on West Red Lake Gold, Copper Giant, Power Metallic, and Kingsmen

CEO.CA Sep 22, 2026 50:12

Summary

Grade without continuity bankrupts mines, so Madsen's turning point is reaching never-mined ground below the old workings, likely in 2027.

West Red Lake Gold's all-in sustaining cost of US$3,284 per ounce sits far above the US$2,000 most operations target, keeping financing pressure on.

Copper Giant's 12.7 billion pounds of copper equivalent in its Mocoa resource is rare at this scale, and copper near US$7 per pound supports it.

Power Metallic's resource estimate pulled it into a valuation discount window, where investors may ignore good drill results until a PEA clears it.

Kingsmen Resources' 218 grams per tonne silver equivalent over 6.5 metres matches the widths that make Mexican epithermal veins economic.

Laboucan's top point is that the Madsen turning point arrives when mining reaches ground never mined before, in the 904 and 955 complexes, and he expects that to be a 2027 event rather than something investors see this year.
He reports assays of 176 g/t gold over 5.3 m, 128 g/t over 4.5 m and 35 g/t over 13 m from the 904 and 955 complexes, coming out of the ongoing underground definition drill program at Madsen.
He treats the coarse visible gold in the core photos as evidence that these Red Lake orogenic systems have deep roots, but he balances that with the previous operator Pure Gold going bankrupt on near-surface material at Madsen — grade without continuity, in his view.
He says sentiment improved after Q2 production rose, but all-in sustaining cost was still US$3,284/oz against roughly US$2,000 or less for most operations, with only about US$9.7 million of positive free cash flow; he expects more ounces and lower costs in H2 while investors watch Q3 and Q4 grades.
He calls the roughly $348 million valuation modest if production reaches the 50,000–100,000 ounces management talks about and costs come down, but flags financing and dilution risk from thin free cash flow and a delayed shaft.

Top takeaway Quoted on the Lion zone, Lynch argues Power Metallic's high-grade, near-surface position suits it to supply copper and PGMs while still growing the resource substantially between now and the end of 2027.
He says the latest results push 25% deeper than the deepest hole used in the recent MRE and did so at significantly higher grades, giving visibility more than 50% deeper while the zone still appears open.

Top takeaway Laboucan reads Robinson as reporting another round of impressive assays from the underground definition program at Madsen, with grades and continuity in the 904 and 955 complexes holding up across multiple areas.
He passes on Robinson's view that the results add confidence to the geological model and support integrating those areas into the Madsen mine plan in 2027.

Top takeaway His core call is patience on West Red Lake Gold: he wants to see mining reach the unmined 904 and 955 ground before judging the stock, and expects that wait to run into 2027.
He is bullish on Copper Giant, saying few undeveloped projects of that size remain in the pipeline and the world needs a much higher copper price to bring them into production.
He argues Power Metallic put the cart before the horse by publishing an MRE before finishing drilling, which has left it in the development discount window and limited its rise on the left side of his Lassonde curve.
He likes Kingsmen Resources and calls the roughly C$40 million valuation very modest for the grades being found, but says he needs more drilling before sizing the potential.
His recurring framework is his updated Lassonde curve — Copper Giant sits beyond the left side moving toward feasibility and development, while Power Metallic is inside the development discount window and Kingsmen is still near the start of the left side.