Canada invests $70m in Seymour Lake lithium project in Ontario
The lithium mine operated by Australia's Green Technology Metals could become the province's first lithium producer.
Pure Gold Mining (TSXV: PGM) (LSE: PUR) announced Monday that construction of its Madsen Red Lake mine in Ontario has begun. Detailed design work on surface infrastructure, as well as underground electrical distribution, mine ventilation, mine service design and stope optimization, have been initiated.
The project is “perfectly timed to benefit from a rising gold market, and looks set to generate well over C$800 million in cumulative pre-tax cash flow with gold currently near C$2,000 per ounce,” President and CEO Darin Labrenz says.
The Madsen Red Lake mine is said to be the highest grade development-stage gold project, and it is fully funded to production, with first gold pour projected for late 2020.
Last month, the company secured a $90 million financing from Sprott Resource Lending to bring Madsen into production.
The mine is located within the Red Lake Mining District of northwestern Ontario, which has produced more than 29 million ounces of gold over its 90-year history, making it one of the largest gold-producing districts in Canada.
