pure gold. planning a mine.
A definitive feasibility study (DFS) for the Madsen Gold Project is underway with metallurgical, infrastructure, and development studies proceeding. Results are expected in the fourth quarter of 2018. Environmental baseline and permitting updates are in progress. A production decision is expected in late 2018. A total of 33,000 meters of diamond drilling has been budgeted for 2018 with drilling focused on expanding known resources and the discovery of new gold deposits. Exploration success to date that has included new discoveries within the Madsen Deposit, the near surface Russet South and Fork satellite deposits, and the Wedge Target1.
At Pure Gold, we’ve assembled and acquired 100% ownership of more than 47 square kilometres of contiguous patented mining claims.Our Madsen Mine asset has produced 2.5 million ounces of gold, making it the second largest historic gold mine in Red Lake.
In addition, Madsen contains an indicated resource of 1,648,000 ounces gold (5.79 million tonnes at 8.9 g/t Au), and an inferred resource of 178,000 ounces gold (0.599 million tonnes at 9.4 g/t Au)2, situated close to existing infrastructure. These ounces, and those previously mined, were discovered along the multi-kilometre Madsen gold trend which runs through our property. Through application of modern geoscience, Pure Gold has unlocked the geology of the trend, linking what were previously viewed as separate target areas into a common geological model, demonstrating the potential size of the Madsen mineral system. New discoveries of Russet South and the Fork satellite deposits located approximately 1.5km from the Madsen Gold Project were included in a year-end 2017 resource update, quantifying resources from satellite deposits for the first time.
New indicated mineral resources at Russet South total 56,000 ounces (259,000 tonnes at an average grade of 6.7 g/t gold) and inferred mineral resources total 71,000 ounces (322,000 tonnes at an average grade of 6.8 g/t gold) at a 4.0 g/t cut-off;
New indicated mineral resources at Fork total 40,000 ounces (194,000 tonnes at an average grade of 6.5 g/t gold) and inferred mineral resources total 47,000 ounces (255,000 tonnes at an average grade of 5.8 g/t gold) at a 4.0 g/t cut-off.
The Fork and Russet South deposits have the potential to positively impact annual throughput and the production profile at Madsen.
The Company also made a discovery of multiple new zones of high grade gold mineralization located approximately three kilometres by road south of the Madsen milling infrastructure. This important new discovery, referred to as the Wedge Target, outcrops at surface, adds 1,100 metres of strike length to the Madsen Mine trend, and clearly highlights an exciting new area for potential resource expansion and underlines the inherent scalability of the Madsen Gold Project1.
To which we say, pure opportunity.
Pure Gold is focused both on the potential for a new gold discovery, and the potential for near term mining at Madsen. The Company has initiated a definitive feasibility study; planned for completion with an updated mineral resource report in Q4 2018. In September 2017, the Company released a new Preliminary Economic Assessment (PEA) for an underground mining operation based on a August 2017 Resource Estimate which outlined a long life high margin mine, with low initial capital requirements and fast timeline to production. The 2017 PEA showed a robust after-tax net present value (at a 5% discount rate) of $258 million and an internal rate of return of 47% with a 2.8 year payback of initial capital. The mine would produce a total of 911,497 ounces of gold during a mine life of 14 years. The pre-production construction period would be 12 months with an initial capital investment of $51 million.3
The potential for multiple high grade gold discoveries has attracted a highly passionate, skilled and experienced team. Our Board, Management, and Technical teams have extensive experience in gold exploration and mining all over 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 smart science and creativity to unlock the next multi-million-ounce gold discovery at Madsen. And to become Canada’s next iconic gold company.
Pure Gold. Dream Big.
More than 28 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 potential for a new gold discovery, and the potential for near term mining in the Red Lake district.
- See News Release 18-02, Pure Gold Makes High Grade Discovery South of the Madsen Mine, January 31, 2018.
- The mineral resource estimate reported herein for the Madsen Gold Project is set out in the NI 43-101 technical report “Madsen Gold Project 2017 Mineral Resource” with an effective date of August 2, 2017.
- See News Release 17-18, Pure Gold Announces Positive Preliminary Economic Assessment For The Madsen Gold Project, September 14, 2017.