Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canada’s Pure Gold Mining (TSX-V: PGM) expects to begin trading on the main market of the London Stock Exchange this quarter and so lift its international profile ahead of its transition to producer from developer.
The Vancouver-based company said it doesn’t intend raising capital in conjunction with the admission of its shares.
Listing seeks lifting Pure Gold’s international profile ahead of its transition to producer from developer.
“The London market is known for its deep knowledge of the mining sector and as an investment destination for institutional capital from around the world,” president and chief executive Darin Labrenz said in a statement. “Our dual listing will (…) facilitate improved access to UK and international gold-focused institutional investors.”
Pure Gold is advancing its Madsen gold project in the prolific Red Lake district of Northwestern Ontario, Canada. The miner recently released a technical report, which included the results of a preliminary economic assessment (PEA) on three satellite deposits — Fork, Russet South and Wedge —, representing the first conceptual expansion scenario for the future phased growth of Madsen.
The report highlighted a robust 12-year underground mining operation with an initial capital cost of C$95 million.
The mine plan envisions a combination of methods from conventional cut and fill (59%), mechanized cut and fill (16%) and longhole mining (25%).
The PEA also demonstrated the potential of these deposits to add C$51-million to the Madsen project after-tax net-present value (NPV) of 5% at an internal rate of return (IRR) of 39%.
At peak production, the mine is expected to yield about 125,000 ounces of gold with average annual production in years three through seven of approximately 102,000 ounces.
Madsen has an estimated life of mine of just over 12 years.
