Pure Gold Mining Inc. [PGM-TSXV] has been recognized for its work in developing the Madsen Gold Project, one of the iconic former mines in the fabled Red Lake camp, northwestern Ontario.
The Northwestern Ontario Prospectors Association has honoured Pure Gold with the “Developer of the Year” award. It was handed to company officials at the association’s annual awards dinner in Thunder Bay, Ontario, April 3, 2018.
“We greatly appreciate the Northwestern Ontario Prospectors Association recognition of the Pure Gold Exploration and development team, staff and our partner contractors and consultants in the development of the Madsen Gold Project,” said Pure Gold President and CEO Darin Labrenz.
“My appreciation extends to the communities of Madsen and Red Lake and the Wabauskang First Nation and Lac Seul First Nation,” he said.
“Congratulations to the extended team and for all their hard efforts over the past year as we continue to move the project forward rapidly through the Definitive Feasibility Stage planned for completion in the fourth quarter of 2018.”
Labrenz described the award as deserving recognition for all the team’s efforts as it advances the Madsen Gold Project on the path towards becoming Ontario’s next gold mine.
The Madsen Gold Project boasts production of 2.5 million ounces between 1938 and 1976. The project benefits from existing infrastructure, including a mill and tailings facility, paved highway access, and access to power, water and experienced labour.
It is situated in the Red Lake area, an established mining district with more than 29 million ounces of high grade gold production to date.
In 2017, Pure Gold achieved several major milestones for the Madsen Project. They are as follows:
- Completion of over 15,000 metres of drilling during the past two years.
- Completion of an updated mineral resource report in August 2017 for the Madsen deposit, resulting in an indicated resource of 1,648,000 ounces gold at 8.9 g/t gold (in 5.79 million tonnes) and an inferred resource of 178,000 ounces gold at 9.4 g/t gold (in 0.59 million tonnes) at a cut-off grade of 4 g/t gold.
- Reopening and reconditioning of the Madsen underground ramp including: installing new ground support, water line, mine air heating and ventilation, power line construction and commissioning and communications infrastructure.
- Completion of a Preliminary Economic Assessment (PEA) in September 2017.
- Addition of mineral resources from two satellite deposits to the Madsen Mineral Resource in December, 2017.
- Discovery of multiple zones of high grade gold mineralization at the Wedge satellite target.
- Initiation of a definitive feasibility study in December 2017.
The preliminary economic assessment estimates that the project can support a mine life of 14 years with annual production in years three through nine of approximately 75,500 ounces. Peak annual production is expected to be 85,000 ounces.
The life-of-mine operating cash cost, plus sustaining cost is estimated at US$714 per ounce of gold recovered.
Pure Gold shares rose 5.08% or $0.03 to 62 cents Thursday. The 52-week range is 68 cents and 46 cents.
See Resource World cover story August-September 2017 – Volume 15 Issue 5.