Environmental baseline and permitting updates are also underway. In addition to the DFS, the Company is completing a first time evaluation of the economics of the Russet South, Fork and Wedge satellite deposits1. This Preliminary Economic Assessment of the satellite deposits will demonstrate project scalability potential at Madsen.2
Exploration success to date has included new discoveries within the Madsen Deposit and discoveries at the Russet South, Fork and Wedge satellite deposits. An updated resource estimate for Madsen and three of its satellite deposits will be part of the planned January 2019 announcements1.
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 producer in Red Lake.
In addition, Madsen contains a current indicated resource of 1,744,000 ounces gold (6.24 million tonnes grading 8.7 g/t Au, at a 4g/t cut-off), and an inferred resource of 296,000 ounces gold (1.16 million tonnes grading 7.9 g/t Au, at 4 g/t cut-off), situated close to existing infrastructure3. 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 gold system.
To which we say, pure opportunity.
Pure Gold is focused on the objective of near term mining production at Madsen.
In September 2017, the Company released a Preliminary Economic Assessment for an underground mining operation which outlined a long life, high margin mine, with low initial capital requirements and an accelerated timeline to production. The study presented 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 911,000 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 Company will complete a definitive feasibility study with an updated mineral resource report in January 2019. Drilling and metallurgical results from the Wedge, Russet South and Fork Deposits will be incorporated into an updated resource estimate and satellite deposit PEA, on track for January 2019. The satellite deposits have the potential to positively impact the annual production profile at Madsen.
The potential for multiple high grade gold discoveries and the infrastructure to turn those discoveries into mineable deposits in 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 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 Madsen Gold Project in Red Lake, Ontario. And 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 Ontario’s next gold mine in the Red Lake district.
- See Pure Gold Mining Inc. Management’s Discussion & Analysis For the six month’s ended September 30, 2018
- See News Release 18-13, Pure Gold Fully Funded to Rapidly Advance Madsen Through Feasibility Study and Permitting Updates, May 30, 2018
- 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 .