Pure Gold recently released the results of a Feasibility Study on the Madsen Red Lake Gold Deposit. The Feasibility Study projects a long-life, high margin mine with low initial capital requirements and fast timeline to production1. The Feasibility Study is expected to be closely followed by a production decision2.
We look forward to rapidly advancing the Madsen Red Lake Gold Deposit to become Canada’s next gold mine.
Pure Gold is focused on the objective of near-term mining production at the Madsen Red Lake Gold Deposit.
The recently completed Feasibility Study outlines a robust 12-year, high grade, 800 tonne per day underground mining operation with low initial capital cost of C$95mm and strong financial performance with an after-tax NPV of C$247mm and an after-tax internal rate of return of 36%. Current Probable Reserves at the Madsen Red Lake Gold Deposit are one million ounces at 9 g/t Au in 3.5 million tonnes1.
Highlighting the scalability of the project, the company also announced the results of a Preliminary Economic Assessment (“PEA”) for its Fork, Russet South, and Wedge deposits that demonstrate the potential to add approximately $51 million to the Madsen Red Lake Gold Deposit (“Madsen”) after-tax net present value. As a result of high gold grades, near surface resources, and use of existing infrastructure, mining of these zones will yield an after-tax IRR of 39%3.
The Madsen Red Lake Gold Deposit is a multi-generational asset. It is quite simply the heart and soul of Red Lake and represents the future of this prolific gold district.
Multiple high-grade gold discoveries and the infrastructure in place to allow for the potential to turn those discoveries into mineable deposits on a short timeline has attracted a highly passionate, skilled and experienced team. Our board, management, and technical team all have extensive experience in gold exploration and mining across the world. Perhaps more significantly, they have deep roots in Red Lake – and a rich and intimate knowledge acquired during their years mining and exploring in the area.
pure gold is a true growth company.
Our mandate is pure and simple. To dream big. To colour outside the lines. To use creativity and smart science to unlock the true potential of the Madsen Red Lake Gold Project, located in Red Lake, Ontario. In the process of moving the Madsen Red Lake Gold Project into production, we plan to become Canada’s next iconic gold company.
Pure Gold. Dream Big.
More than 29 million ounces of high grade gold have been mined in the legendary Red Lake district of northwestern Ontario, making this one of the largest gold producing districts in Canada.
In a world of low margin ounces from increasingly unpredictable jurisdictions, this district continues to produce some of the highest grade and highest margin gold ounces in the world.
That’s why Pure Gold is 100% focused on the goal of developing Canada’s next gold mine in the Red Lake district of northern Ontario.
- See Pure Gold News Release: See the National Instrument 43-101 technical report entitled “Madsen Gold Project Technical Report, Feasibility Study for the Madsen Deposit and Preliminary Economic Assessment for the Fork, Russet South and Wedge Deposits Red Lake, Ontario, Canada” with an effective date of February 5, 2019 for complete details, available on the Company’s website at www.puregoldmining.ca or Sedar profile at www.sedar.com.
- See Pure Gold Mining Inc. Management’s Discussion & Analysis For the six month’s ended September 30, 2018.
- See Pure Gold News Release: “Pure Gold’s New Discoveries at Madsen-Red Lake Demonstrate Robust Economics”, February 27, 2019.