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 itself with the facts with the expectation of 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 nearterm, high-grade, quality gold projects in friendly...
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