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Pure Gold has released the results of drilling completed close to existing mine development at its Madsen mine in Red Lake, Ontario, with high grade gold intersected in both infill and step-out holes. The company is now referring to the project as the Pure Gold Red Lake mine.
Drill highlights from the 14 holes reported include:
The results suggest continuity of mineralization at the mine, indicate potential for expansion of the planned stopes and have also identified new zones that may be incorporated into future mine plans. The drilling targeted the ore zones which will make up the initial feed for the processing plant.
“The Pure Gold Red Lake mine continues to produce significant, high-grade gold drill intercepts and today’s results from areas planned for mining this year highlight local opportunities for mine expansion,” Darin Labrenz, the company’s president and CEO said in a release. “These drill holes have identified both potential extensions to mine stopes and opportunities to test and develop new stopes.”
The results suggest continuity of mineralization at the mine, indicate potential for expansion
Mine development has resumed at the Pure Gold Red Lake mine; the mine is under construction with underground development ahead of the feasibility schedule. The first gold pour is expected in the fourth quarter of 2020.
Pure Gold has installed infrastructure at the site with de-watering of the underground mine proceeding on schedule. The company has determined that purchasing an underground mining fleet could deliver significant costs savings over the equipment leasing scenario outlined in the feasibility study. To date, C$6.1 million worth of equipment has been purchased and delivered.
A feasibility study for the mine released last year outlined an operation producing up to 125,000 oz. of payable gold annually at a pre-production capital cost of C$95.1 million.
Probable reserves for the project stand at 3.5 million tonnes grading 9 g/t gold for a total of 1 million oz.
The mine has produced 2.6 million oz. of gold.
(This article first appeared in the Canadian Mining Journal)
