Madsen Gold Project - Overview
Pure Gold Mining is advancing a high grade project with existing infrastructure and permits to operational readiness and resource growth.
A Feasibility Study for the Madsen Gold Deposit is in progress with metallurgical, plant, infrastructure, and development studies proceeding. Results are expected in the first quarter of 20192. Environmental baseline and permitting updates are also underway. A production decision is expected to follow closely in Q1 20192.
Continued exploration drilling at Wedge, Fork, and Russet satellite deposits has been successful and is expected to provide potential expansion and project scalability opportunities at Madsen3. Drill results from the Wedge, Russet South and Fork Deposits will be incorporated into an updated resource estimate and economic study expected in Q1 20192.
Location: Located in Red Lake, Ontario, an established mining jurisdiction with more than 29 million ounces of high margin, high grade gold produced to date4.
High Grade: Madsen is one of the highest grade undeveloped Gold deposits in the world5. High grade gold mineralization is structurally controlled and hosted in altered basalt near ultramafic contacts.
Existing Infrastructure and Permits: The 47 square kilometre patented land position is host to two significant past producing mines, including the Madsen Mine which together produced approximately 2.5 million ounces of gold over a 36 year operating history. Substantial infrastructure is in place, including existing power and paved highway access, a 1,275 metre deep shaft and headframe, 27 levels of underground workings, a portal and ramp which is currently open and active for exploration and a mill and tailings facility with an existing Environmental Compliance Approval which allows for operation of a 1,089 tonne per day milling and processing facility1.
Satellite deposit growth through exploration provides potential scalability:
- Madsen’s satellite deposits are outcropping at surface, road accessible, close to existing milling infrastructure (1-3 kilometres), and remain open for expansion.
- Drill results from the Wedge, Russet South and Fork Deposits will be incorporated into an updated resource estimate and preliminary economic assessment, on track for Q1 20192.
Phil Smerchanski, P.Geo, Vice President, Exploration of the Company, is a Qualified Person within the meaning of NI 43-101. Mr. Smerchanski has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of the same.
1) See the National Instrument 43-101 technical report entitled “Technical Report for the Madsen Gold Project - Restated Preliminary Economic Assessment and Initial Satellite Deposit Mineral Resource Estimates” with an effective date of December 14, 2017 for complete details, available on the Company’s website at www.puregoldmining.ca or Sedar profile at www.sedar.com.
2) See Pure Gold Mining Inc. Management’s Discussion & Analysis For the six month’s ended September 30, 2018
3) See News Release 18-20, August 16, 2018
4) Lichtblau, A.F., Paterson, W., Ravnaas, C., Tuomi, R.D., Pettigrew, T.K., Lewis, S. and Wiebe, K. 2018. Report of Activities 2017, Resident Geologist Program, Red Lake Regional Resident Geologist Report:Red Lake and Kenora Districts; Ontario Geological Survey, Open File Report 6336, 100p.
5) Source: Natural Resources Holdings Global Gold Mines & Deposit Rankings of 2013
The Madsen Gold Project is located in the Red Lake greenstone belt, one of Canada's most prolific gold producing districts, with over 28 million ounces of gold produced since 1927 at an average grade of 15.6 g/t Au1. The greenstone sequence occurs within the Uchi Subprovince of the Superior Province of the Canadian Precambrian Shield.
The Madsen Mine produced 2.5 million ounces of gold at an average grade of 9.7 g/t Au1 from two sub-parallel composite, stratigraphic units known historically as the Austin and McVeigh "Tuffs". These "Tuff" horizons are defined by a heterogeneous assemblage of Archean (approximately 3000 to 2960 Ma) mafic volcanic tuff, breccia, pillowed and massive basalts and volcano-sedimentary rocks that occur at the top of the more regionally extensive Balmer Assemblage. Here, the Balmer Assemblage is juxtaposed in angular unconformity against the much younger (approximately 2748 to 2739 Ma) Confederation Assemblage, which is defined by sequences of predominantly mafic to intermediate, calc-alkaline and tholeiitic volcanic rocks. This unconformity is a fundamental geological break spanning more than 200 million years of earth history; and the vast majority of the gold produced from the Red Lake district was mined from within 1.5 kilometres of this major structure.
At the deposit scale, gold mineralization is mainly structurally controlled disseminated gold hosted in Balmer mafic volcanic rocks adjacent to ultramafic intrusive rock units, while quartz vein-hosted gold mineralization dominates in the 8 Zone deposit. Historic mining focused on high grade pods within the hanging wall Austin horizon, and less so in the McVeigh footwall horizon. The high grade pods are clustered in sheared, folded and attenuated corridors that transect the stratigraphy at a low angle.
(1) Lichtblau, A.F., Ravnaas, C., Storey, C.C., Tuomi, R.D., Tims, A., Debicki, R.L., Pettigrew, T.K., Paju, G.F. and Wetendorf, J. 2016. Report of Activities 2015, Resident Geologist Program, Red Lake Regional Resident Geologist Report: Red Lake and Kenora Districts; Ontario Geological Survey, Open File Report 6314, 130p.
Phil Smerchanski, P.Geo, Vice President Exploration of the Company, is a Qualified Person within the meaning of NI 43-101. Mr. Smerchanski has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of the same.
The existing infrastructure on-site at Madsen Gold Project combined with the high-grade mineral resources contributes to a robust project.
The Madsen Gold Project was the second largest historic producer in Red Lake over a 38 year period and was rebuilt, permitted, and mined briefly in the late 1990’s.
Madsen is located approximately ten kilometres southwest of the town of Red Lake, Ontario. Located on patented claims, there is year-round access to the property via Ontario Highway 618. Numerous secondary roads transect the 4,700 hectare property providing simple access for exploration programs.
The Madsen Mine infrastructure includes:
- 550 tonne per day mill
- Tailings management facility; Existing Environmental Compliance Approval allows for operation of a 1,089 tonne per day operation
- 5 compartment,1,275 metre deep shaft and headframe
- 27 levels of underground workings, recently dewatered and rehabilitated to 16 level
- Portal and Decline: Underground exploration and delineation drilling commenced via the Madsen portal in July 2017. The portal provides ramp access to the top 150 meters of mine workings including Austin, South Austin, and McVeigh Deposits. The PEA study contemplates underground mining with access through the portal.
Madsen Gold Project is connected to roads and power and has access to an experienced workforce in the Red Lake area.
The mill consists of a single stage crushing circuit and a two stage grinding circuit, which is then followed by cyanide leaching. The leached gold is collected in a carbon-in-pulp circuit which is subsequently stripped using mild caustic and collected on stainless steel mesh cathodes by electrowinning. The product from electrowinning is refined into dore bars in an induction furnace. Ontario Hydro supplies power via overhead lines at 44KV to a step-down transformer on the Madsen property.
The mill has been kept on care and maintenance since 1999. Other infrastructure includes the headframe, hoists, vent raises, coreshack/warehouse, shop, project offices, and ancillary buildings.
(1) See the Company's National Instrument 43-101 technical report entitled "Technical Report on the Preliminary Economic Assessment for the Madsen Gold Project", prepared by Nordmin Engineering Ltd., dated effective April 20, 2016. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
(2) Phil Smerchanski, P.Geo, Vice President Exploration of the Company, is a Qualified Person within the meaning of NI 43-101. Mr. Smerchanski has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of the same.
Gold was originally reported in the Red Lake area in 1897 by R.J. Gilbert of the North Western Ontario Development Company. The exploration and mining history of the Red Lake Mining district dates back to 1925, when significant gold was first discovered by prospector L.B. Howey. The gold bearing veins he discovered were developed into Red Lake's first producing mine, the Howey Mine.
Since 1925, a total of 28 mines have operated in the district producing approximately 28 million ounces of gold. Over 85 percent of this gold was produced from two mines; Goldcorp’s Red Lake Mine Complex and Pure Gold's Madsen Mine. The Madsen Mine was the first million ounce gold producer in the Red Lake district.
The history of the Madsen Mine can be sub-divided into five main periods:
- Operation between 1938 and 1976, where 2.5 million ounces of gold were produced at an average grade of 9.9 grams per tonne;
- Acquisition, exploration, underground development, permitting, and installation of the mill complex and tailings management facility by Claude Resources from 1997 to 1999;
- Brownfield exploration completed by Placer Dome under an option from Claude between 2001 and 2006. Discovery of several new zones including Fork and Treasure Box;
- Dewatering, surface and underground drilling, and maiden resource estimate completed by Claude between 2006 and 2013;
- Purchase of the project by Pure Gold in 2014 with the goal of consolidating the Madsen Mine Trend and expanding the mineral resource through focused exploration.
Updates in Progress.