Pure Gold releases preliminary economic assessment
Pure Gold has released a preliminary economic assessment (PEA) for its 100 per cent-owned Madsen Gold Project 16 kilometres west of Red Lake. The PEA estimates a 14-year underground mining operation with average annual gold production of 66,109 ounces.
Prepared by Nordmin Engineering, the PEA is based on an indicated mineral resource of 5,785,000 tonnes grading 8.9 grams per tonne for 1,648,000 ounces of gold and an inferred resource of 587,000 tonnes grading 9.4 g/t for 78,000 ounces of gold.
Pre-production capital costs are estimated at $50.9 million for mill upgrades, new ventilation and dewatering systems, and the extension of an existing 150-metre ramp to a distance of 1,430 metres.
A past producing operation, Madsen has a 1,275-metre shaft, a headframe and a 550-tonne per day mill.
In October, Pure Gold upsized a previously announced bought deal financing agreement with Macquarie Capital Markets to C$18,300,810. The funds will be used for exploration purposes.