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Pure Gold dives into the details to revive Red Lake mine

Red Lake junior miner expects to make production decision on Madsen project in 2018

Pure Gold Mining has started a feasibility study on its Madsen Gold Project, southwest of Red Lake.

The Vancouver junior miner wants to arm themselves with the facts before making a definitive production decision by the fourth quarter of 2018.

After more than one million metres of exploratory drilling, the study will determine the best mine plan, the mining method, and mining rate while making use of the old underground infrastructure that has 36 years of production history.

A preliminary economic assessment (PEA) released last September outlined a 14-year underground mine life for Madsen with a diluted head grade of 10.3 grams per tonne of gold.

The average annual gold production between the third and ninth year of production will be 75,500 ounces with a peak of 85,000 ounces.

The company is eager to get the property into production.

“With the recent completion of a significantly expanded mineral resource, and a positive preliminary economic assessment outlining a robust 14-year underground mining operation with highly attractive economics, we are aggressively pressing ahead to advance Madsen towards production,” said Pure Gold CEO-president Darin Labrenz.

“There remains today a scarcity of near-term, high grade, quality gold projects in friendly jurisdictions and Madsen is extremely well placed with existing infrastructure including a mill, tailings facility, and underground development. Our calendar 2018 exploration and development plan will continue to de-risk the project and bring Madsen one step closer to becoming Ontario’s next gold mine.”

Underground rehabilitation work is still underway as the company drives an exploration drift to allow for some 5,000 metres of infill drilling to confirm the mineral resource.

About 28,000 metres of surface drilling will look for new gold zones nearby at their 8 Zone and at the Russet South areas of their property.

An initial mineral estimate for Madsen’s satellite deposits will be out before the new year. Also on the to-do list is the extraction of a 7,200-tonne bulk sample to be taken out for metallurgical testwork.

Baseline environmental work and updating the permitting paperwork continues.