Pure Gold Mining announced a 48 per cent increase in its mineral resource estimate at its Madsen Gold Project in the Red Lake mining district of northwestern Ontario.
In the first of two planned mineral resource updates, the Vancouver developer reports 1,648,000 indicated ounces of gold at the Madsen Mine and 178,000 inferred ounces of gold, encompassing its Austin, South Austin, 8 Zone, McVeigh and A3 areas.
The cut-off grade is 4 grams per tonne gold. It’s the first mineral resource update at Madsen since December 2009.
A revised preliminary economic assessment is expected to be complete by fall, which will provide an assessment of near-term development opportunities.
The mine complex is located alongside Highway 618, just southwest of the Town of Red Lake. The property is host to two former mines, including the Madsen Mine which once produced 2.4 million ounces of gold. There’s a fully-permitted mill on site.
Company president-CEO Darin Labrenz called the updated mineral resource estimate “a major milestone for Madsen.”
“The size, grade, and classification of the resource differentiates Madsen from a distinguished class of high-grade undeveloped deposits, and given its Red Lake Mining District location and existing infrastructure, it presents a unique opportunity for accelerated development.
“Our successful drilling results, detailed structural studies, and underground mapping have enabled our team to become increasingly confident in the new geologic interpretation we have been applying to Madsen. We have commenced trade-off studies with the goal of updating our economic study in the fall of 2017 and with this larger indicated resource base to build from, we see the potential for longer mine life and increased annual production. Another updated mineral resource for the entire gold property is coming in the fourth quarter when the results of the Russet South and the Fork Zone satellite deposits will be included.
“We are confident that the mineral resource will continue to expand with additional new drilling both within the historic Madsen Mine area and at the satellite deposits,” said Labrenz.