Canadian Mining Journal


GOLD: Pure Gold cuts 10.9 g/t at Madsen project

ONTARIO – Vancouver-based Pure Gold Mining has intersected more high grade gold at its Madsen gold project 16 km west of Red Lake. The property contains two former producers – Madsen (1938-74 and 1997-99) and Starrett-Olsen (1945-56).

As Pure Gold prepares to reopen the Madsen mine, it has been drilling the 1-km long McVeigh horizon. The best results have been 20.6 g/t Au over 2.0 metres and 10.9 g/t Au over 9.8 metres including 27.0 g/t over 3.8 metres. Current resources from four zones within the Madsen mine include 928,000 oz of gold in 3.24 million indicated tonnes grading 8.93 g/t Au and 297,000 oz of gold in 790,000 inferred tonnes grading 11.74 g/t.

Last month a positive preliminary economic assessment for the Madsen project was unveiled. The mine plan considered a portion of the mineral resources that lie within 600 metres of the surface and are accessible via the existing ramp. Spending $20.1 million over a 12-month pre-production period will create a project with a pre-tax net present value of $104 million and an internal rate of return of 74% with a 1.5-year payback, using a gold price of US$1,175. All-in sustaining costs are estimated to be US$692/oz over the 6.5 years of production.

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