Pure Gold Mining has started a preliminary economic assessment (PEA) of a mine, mill and tailings facility its Madsen Gold Project in the Red Lake mining district.
Completion of the PEA is expected in the second quarter of this year.
Nordmin Engineering of Sudbury has been contracted to work with Pure Gold’s technical team on the PEA, and will report on the scoping-level capital costs, operating costs, and project economics associated with the potential development of the mineral resource.
"The Madsen Gold Project is a unique Canadian-based asset with a history of high-grade production, an in-situ high-grade gold resource, mining infrastructure, and permitted milling and tailings facilities,” said president-CEO Darin Labrenz in March 3 release. “The completion of an assumed 500-tonnes per day base case development scenario will be a stepping stone as we target resource growth through our accelerated exploration program.”
The Madsen Gold Project currently has an indicated resource of 928,000 ounces gold at 8.93 g/t and an inferred resource of 297,000 ounces gold at 11.74 g/t.
“Our team has been conducting scoping-level mine design using the existing mineral resource and are investigating a development scenario utilizing a dedicated haulage ramp,” he added.
As the PEA proceeds, the company has two drill rigs drilling near-surface, high-grade targets close to the former Madsen Mine, which operated for 36 years and produced 2.5 million ounces of gold, grading 9.9 grams per tonne (g/t).
