Mucking operations during test mining at the Madsen Gold Project at Red Lake, Ontario. Source: Pure Gold Mining Inc.
Pure Gold Mining Inc. [PGM-TSXV] on Tuesday February 5 announced an updated and expanded mineral resource estimate for its 100%-owned Madsen Gold Project in Red Lake, Ontario.
It said the announcement features a significant increase in estimated mineral resources at the Madsen Project. It includes an updated and expanded resource for all previously reported deposits, including Madsen, Russet South and Fork, and includes first time disclosure of mineral resources at the company’s Wedge deposit.
Mineral resources from the Madsen deposit have been incorporated into a feasibility study currently being finalized and will be followed by a preliminary economic assessment of the Russet South, Fork and Wedge deposits.
Both studies are expected to be announced this month.
Meanwhile, Pure Gold shares advanced 2.60% or $0.02 to 79 cents on volume of 556,866. The 52-week range is 81 cents and 50 cents.
On Tuesday, the company said the indicated mineral resources increased by 319,000 ounces or 18% to 2.06 million ounces (7.2 million tonnes at an average grade of 8.9 g/t gold) at a 4.0 g/t gold cut-off.
Additionally, inferred mineral resources increased by 171,000 ounces or 58% to 467,000 ounces (1.9 million tonnes at an average grade of 7.7 g/t gold) at a 4.0 g/t cut-off.
The company said the soon-to-be completed feasibility study is based upon indicated mineral resources at the Madsen deposit, which increased by 13% to 1.86 million ounces (6.42 million tonnes at an average grade of 9.0 g/t) at a 4.0 g/t cut-off.
Satellite indicated resources (Russet South, Fork and Wedge) grew by 114% to 206,000 ounces (767,000 tonnes at an average grade of 8.4 g/t gold), while inferred resources increased by 91% to 226,000 ounces (991,000 tonnes at 7.1 g/t gold) at a 4.0 g/t gold cut off.
News of the updated estimates comes after Pure Gold recently said it is pleased with the results of a test mining program at Madsen.
During the program, Pure Gold extracted 7,096 tonnes of mineralized material from three distinct stoping areas.
“Results have exceeded expectations, with tonnes, grade and mining width greater than predicted from the resource model,” the company said.
The former Madsen Mine is situated in the Red Lake area, an established mining district with more than 29 million ounces of high grade gold production to date.
Madsen boasts production of 2.5 million ounces between 1938 and 1976. The project benefits from existing infrastructure, including a mill and tailings facility, paved highway access, and access to power, water and experienced labour.
“Today’s updated mineral resource estimate is the first of several near term key milestones on the path to establishing a modern, scalable mining operation at Madsen,” said Pure Gold President and CEO Darin Labrenz.
“This this new high confidence resource, based on 1.2 million metres of drilling, we are in great shape to put a mine plan together for the next chapter in the evolution and growth of the Red Lake camp,” he said.