Madsen Community

Message from Darin Labrenz, President & CEO

With first production scheduled for late 2020, Pure Gold is currently ramping up development activities at the mine site.  In doing so, Pure Gold aims to build positive relationships with the individuals and organizations of our community to build a strong, sustainable mine that benefits the entire region.  Pure Gold is committed to work with the community and our partners to create economic, social and environment benefits, and to continually seek out ways to eliminate adverse impacts on the environment.  The Protection of wildlife, lands, and waters in the local area are a key focus for Pure Gold. 

The construction and operation of the mine will have a direct impact on the local economy of Red Lake. With direct employment of over 300 workers on average over a 12-year mine life, a projected +$450 million in life of mine local salaries, as well as a direct capital investment of $327 million, the economic benefits of the new mine will extend far beyond the borders of Red Lake.  In the development and operation of the mine our goal is to provide an opportunity for employees to gain important, transferable skills through their work, skills that will benefit the region for the longer term.

In July 2019 Pure Gold joined the First Nation communities of Wabauskang and Lac Seul in signing of a Project Agreement for the Madsen Red Lake Mine.  This agreement provides the basis for communication, cooperation, collaboration, support and long-term benefits between the First Nations and Pure Gold.  We look forward to continuing to work our Wabauskang First Nation and Lac Seul First Nation partners.

Pure Gold Mining maintains consultation and engagement with the local communities through:

  • Attending and coordinating community consultation forums.
  • A Pure Gold Mining office in the Municipality of Red Lake (Balmertown) that is both a central point of contact for residents and a place for hiring local employees for the construction and operation of the mine.
  • Hosting open houses for updates on the progress on the mine site, dialogue with residents and information on potential employment opportunities.

Importantly, in reopening an historical gold mine we will be implementing a carefully designed operations and closure plan. This new, modern mine will be an enabling mechanism to progressively move the site towards final closure on completion of mining.  We are proud of the progressive reclamation work we have completed to date, and are committed to returning the site to a state consistent with the existing natural environment.

The Madsen Red Lake Gold Mine will be developed to meet or exceed modern environmental and engineering standards. Our plan for new operations sees the introduction of detoxification, water treatment, material harvesting and progressive closure and reclamation. At the end of mine life, all surface disturbances will be reclaimed, along with past mining impacts.

The Company is partnering with the local communities to solve regional challenges including underemployment and has also established a working group with the municipal and provincial governments and leading consultants to resolve a municipal wastewater management issue.

We look forward to continuing our strong relationships with local communities, as part of our responsibility to be a good neighbour and working to the benefit of the local economy and supporting community development.

Project Agreement for the Madsen Red Lake Mine

On July 29, 2019, Pure Gold Mining and the Wabauskang First Nation and Lac Seul First Nation announced the signing and implementation of a Project Agreement with respect to Pure Gold’s Madsen Red Lake Mine. The Agreement establishes a long-term, mutually-beneficial partnership between Pure Gold and the two First Nations. A full text version of the July 29, 2019 News Release for the Project Agreement may be seen at puregoldmining.ca.

Under the terms of the Agreement, Pure Gold acknowledges and respects the rights, history and interests that both the Wabauskang First Nation and the Lac Seul First Nation have in the region surrounding Madsen.  In turn both First Nations acknowledge and support Pure Gold’s rights and interests in the development and future operation of Madsen. The Agreement provides for communication, cooperation, and collaboration between the First Nations and Pure Gold, and establishes a framework for support for current and future operations of the Madsen Red Lake Mine and defines the long-term benefits for the First Nations. 

Highlights of the Project Agreement include:

  • Confirms the First Nations collaboration with Pure Gold in support of the operational permitting process for the Project and all subsequent regulatory authorizations;
  • Establishes a foundation for employment opportunities, direct contracting opportunities, and Pure Gold’s commitment and support for education and training initiatives;
  • Confirms Pure Gold’s commitment to sustainable development, to protecting the environment, and direct support for environmental monitoring; 
  • Provides for the issuance of 500,000 shares of Pure Gold to each First Nation subject to regulatory approval; and,
  • Establishes future financial contributions by Pure Gold commensurate with production.

A traditional signing ceremony and celebration followed in August and you may see the following images at: Project Agreement signing ceremony and celebration - images.

About Wabauskang First Nation

Wabauskang First Nation is an Anishinaabe community. A signatory to Treaty 3, Wabauskang is the most northern community in the Treaty 3 territory. Wabauskang's community and reserve lands are located approximately 100 kilometres south of Red Lake, Ontario. Wabauskang is committed to the protection of Mother Earth, sharing the benefits of the land and creating opportunities for future generations.

About Lac Seul First Nation

Lac Seul is located approximately 38 kilometres northwest of Sioux Lookout. The Lac Seul First Nation has a large population and land base, which is bounded to the north and the east by the northeastern boundary of Treaty 3 territory. The First Nation is made up of four communities: Kejick Bay, Canoe River, Whitefish Bay, and Frenchman's Head. The Lac Seul First Nation is the oldest First Nation in the Sioux Lookout District of INAC. The reserve was established pursuant to Treaty 3, through adhesion in 1874.