RED LAKE — The owners of a gold mine in Red Lake are suspending operations immediately.
In a statement issued Monday, Pure Gold Mining announced they are suspending operations and placing the mine on care and maintenance immediately.
The Vancouver-based company said the mine has yet to achieve "consistent positive site-level cash flow," despite making recent reductions in operating costs and some increases in production.
The company had run into challenges since production began at the site of the former Madsen Mine in August 2021, which earlier this year Pure Gold CEO Mark O'Dea attributed to having mining start at the wrong end of the deposit. Just two months ago, O'Dea expressed optimism the company was "rounding the corner" and was pointed in a "better and healthier direction."
In April, the company had announced it had laid off 20 per cent of its workforce.
Pure Gold said it will default on its debt if external funding is not secured in the short term.
— NWOnewswatch.com
