Proactiveinvestors USA & Canada Pure Gold Mining https://ca.proactiveinvestors.com Proactiveinvestors USA & Canada Pure Gold Mining RSS feed en Mon, 22 Apr 2019 00:24:37 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Pure Gold Mining raises C$1 million through exercise of options ]]> https://ca.proactiveinvestors.com/companies/news/218621/pure-gold-mining-raises-c1-million-through-exercise-of-options-218621.html Pure Gold Mining Inc (CVE:PGM) announced Monday that it had raised more than C$1 million through an exercise of options. 

The Canadian focused gold developer announced that its board and senior management have exercised 2.91 million options that were granted April 8 and May 14, 2014, raising C$1,014,000.

The company is advancing its Madsen project in the prolific Red Lake district, located in northwestern Ontario. 

"The recent acquisition of shares is a strong testament to the positive fundamentals of the Madsen Red Lake gold project and alignment of the board and management with all shareholders," noted the company in a release. 

READ: Pure Gold Mining expects London listing in second quarter this year

The company said that over the last 60 days, directors and senior management of the company have acquired and held 3,094,500 shares through option exercises and acquisitions in the public market.

The Madsen project is centred around a historical mine, which produced 2.5 million ounces of gold at an average grade of 9.7 g/t (grams per tonne) gold between 1938 and 1976 and again from 1997 to 1999.

Shares of Pure Gold were at C$0.57 on Monday. 

Contact Katie Lewis at katie@proactiveinvestors.com

 

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Mon, 15 Apr 2019 17:18:00 -0400 https://ca.proactiveinvestors.com/companies/news/218621/pure-gold-mining-raises-c1-million-through-exercise-of-options-218621.html
<![CDATA[News - Pure Gold Mining expects London listing in second quarter this year ]]> https://ca.proactiveinvestors.com/companies/news/217643/pure-gold-mining-expects-london-listing-in-second-quarter-this-year-217643.html Pure Gold Mining Inc (CVE:PGM) expects to start trading on the main market of the London Stock Exchange in the second quarter of this year, ahead of its transition to a producer from a developer.

The company is advancing its Madsen project in the prolific Red Lake district of Northwestern Ontario, Canada.

"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," said Darin Labrenz, the president and CEO of Pure Gold.

READ: Pure Gold Mining closes $5M financing for exploration on its Ontario gold projects

"Our dual listing will increase the company’s international profile, and facilitate improved access to UK and international gold-focused institutional investors that are attracted to an asset that boasts a 1 million ounce reserve at a high-grade of approximately 9 grams per tonne with a short 13 month construction period to production at a capital cost of C$95million."

The Madsen project is centred around a historical Mine, which produced 2.5 million ounces of gold at an average grade of 9.7 g/t (grams per ton) gold between 1938 and 1976 and again from 1997 to 1999.

Robust operation

A feasibility study has highlighted a robust 12-year underground mining operation with an initial capital cost of C$95 million (US$71 million) and strong financials with an after-tax net present value of C$247 million (US$185 million) and an after-tax internal rate of return (IRR) of 36%, using a gold price of US$1,275 per ounce.

Moreover, several discoveries on the project, including the Fork, Russet South and Wedge deposits, could potentially further enhance its economics, with a PEA (preliminary economic assessment) showing these deposits could add C$51 million (US$38 million) to the Madsen Project after-tax NPV at an IRR of 39%.

Pure Gold noted it was not currently planning to raise capital in conjunction with the London admission.

Contact Giles at giles@proactiveinvestors.com

Follow him on Twitter@Gile74

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Mon, 01 Apr 2019 07:45:00 -0400 https://ca.proactiveinvestors.com/companies/news/217643/pure-gold-mining-expects-london-listing-in-second-quarter-this-year-217643.html
<![CDATA[News - Pure Gold Mining closes $5M financing for exploration on its Ontario gold projects ]]> https://ca.proactiveinvestors.com/companies/news/217569/pure-gold-mining-closes-5m-financing-for-exploration-on-its-ontario-gold-projects-217569.html Pure Gold Mining Inc (CVE:PGM) announced Friday that it had closed a previously announced $5 million financing for exploration on its Ontario gold projects.

The Vancouver-based company issued a total of 7.7 million shares on a flow-through basis at C$0.67 per share.

Sprott Capital Partners LP led a syndicate of underwriters, along with Velocity Trade Capital Ltd and Macquarie Capital Markets Canada Ltd. The underwriters received an aggregate cash commission of 6% of the gross proceeds of the offering.

READ: Pure Gold Mining set to bring in $4.5M in bought deal offering

The flow-through shares have a hold period of four months and one day from closing and expire on July 30, 2019.

Flow-through shares are a unique financing vehicle for junior resource companies in Canada, allowing investors to receive tax incentives.

Pure Gold is advancing the Madsen Gold Project in Red Lake, Ontario and it wants to become Canada's next iconic gold company.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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Fri, 29 Mar 2019 14:28:00 -0400 https://ca.proactiveinvestors.com/companies/news/217569/pure-gold-mining-closes-5m-financing-for-exploration-on-its-ontario-gold-projects-217569.html
<![CDATA[News - Pure Gold Mining says discussions on Madsen mine financing well advanced ]]> https://ca.proactiveinvestors.com/companies/news/217050/pure-gold-mining-says-discussions-on-madsen-mine-financing-well-advanced-217050.html Pure Gold Mining Inc (CVE:PGM) (OTCMKTS:LRTNF) said discussions on financing its Madsen gold project in Ontario are well advanced, as it posted results for the year to end December 2018.

Discussions on debt financing for the construction and development of Madsen are well advanced with multiple potential financiers, the group said.

Last year saw the release of a feasibility study for the project, which outlined a high-grade underground mining operation with a production rate of 800 tonnes per day (tpd) at modest initial capital cost and strong financial performance based upon a US$1,275 per troy ounce gold.

READ: Pure Gold Mining set to bring in $4.5M in bought deal offering

The study showed a high grade underground mining operation with engineered stopes containing 1 million ounces of gold in probable mineral reserves. The mine is set to benefit from  significant mining, milling and tailings infrastructure already in place.

Last month, the mining group also unveiled a preliminary economic assessment (PEA) for the Fork, Russet South, and Wedge deposits at the property, which showed the potential to either add mine life or improve annual production throughput at Madsen with further advancement of these deposits.

Mining these would add around $51 million to the Madsen project's after-tax net present value, and yield an after-tax IRR (internal rate of return) of 39%, it said in a statement.

It would add 3.7 years to the life of the mine with a total output of 210,000 ounces of gold, with an initial capital requirement of $57 million, including a 14% contingency.

The life of mine all in sustaining cash cost (AISC) was estimated at US$712 per ounce of payable gold.

Looking ahead

Pure Gold said that in the coming months, it will focus on a number of issues, including working with First Nations to promote a cooperative and mutually respectful relationship on then development plan, advancing project financing and continuing environmental studies and documentation to support the update and filing of existing permits and filing for additional permits.

It also aims to start detailed engineering and design activities, and continue exploration at the project.

The firm has changed its fiscal year end to December 31 from March 31, so Friday's financials relate to nine months to the end of 2018, while the comparative period is 12 months to March 31 last year.

In the period, the group spent $19.4 million on exploration and evaluation ($26.3M in 2018), while the net loss, in keeping with a company at this stage of development, was $21.9 million (loss of $26.1 million in 2018).

Shares in Toronto eased 1.69% to $0.58.

--Angela Harmants contributed to this report ]]>
Fri, 22 Mar 2019 11:37:00 -0400 https://ca.proactiveinvestors.com/companies/news/217050/pure-gold-mining-says-discussions-on-madsen-mine-financing-well-advanced-217050.html
<![CDATA[News - Pure Gold Mining set to bring in $4.5M in bought deal offering ]]> https://ca.proactiveinvestors.com/companies/news/216494/pure-gold-mining-set-to-bring-in-45m-in-bought-deal-offering-216494.html Pure Gold Mining Inc (CVE:PGM) announced Thursday a bought deal private placing to bring in $4.5 million to be used for exploration.

Sprott Capital Partners will act as lead underwriter on its own behalf and, if applicable, on behalf of a syndicate of underwriters to buy on a bought-deal basis over 6.7 million shares issued on a flow-through basis at $0.67 per FT (flow-through) share, for gross proceeds of up to C$4,500,055.

READ: Pure Gold releases positive PEA for Madsen-Red Lake project

The underwriters will also have an option, exercisable, in whole or in part, at any time up to three days prior to closing, to purchase up to such a number of FT shares as is equal to 15% of the number of FT shares initially purchased as part of the offering.

It is expected that the offer will close on or about March 29 this year.

In consideration, the underwriters will receive a cash commission equal to 6% of the gross proceeds.

Pure Gold is advancing the Madsen Gold Project in Red Lake, Ontario and it wants to become Canada's next iconic gold company.

Contact Giles at giles@proactiveinvestors.com

Follow him on Twitter @Gile74

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Thu, 14 Mar 2019 10:06:00 -0400 https://ca.proactiveinvestors.com/companies/news/216494/pure-gold-mining-set-to-bring-in-45m-in-bought-deal-offering-216494.html
<![CDATA[Media files - Pure Gold releases positive PEA for Madsen-Red Lake project ]]> https://ca.proactiveinvestors.com/companies/stocktube/12440/pure-gold-releases-positive-pea-for-madsen-red-lake-project-12440.html Mon, 04 Mar 2019 13:08:00 -0500 https://ca.proactiveinvestors.com/companies/stocktube/12440/pure-gold-releases-positive-pea-for-madsen-red-lake-project-12440.html <![CDATA[News - Pure Gold Mining says new discoveries at Madsen gold project boost its credentials; announces PEA ]]> https://ca.proactiveinvestors.com/companies/news/215425/pure-gold-mining-says-new-discoveries-at-madsen-gold-project-boost-its-credentials-announces-pea-215425.html Pure Gold Mining Inc (CVE:PGM) (OTCMKTS:LRTNF) continues to demonstrate the credentials of its flagship Madsen gold project in Ontario, where new discoveries could add four years of production at below-industry costs, it revealed.

The resource firm today unveiled a preliminary economic assessment (PEA) for the Fork, Russet South, and Wedge deposits at the property.

READ:  Pure Gold Mining's Madsen feasibility study shows high-grade, low cost mine; eyes start of development

Mining these would add around $51 million to the Madsen project's after-tax net present value, and yield an after-tax IRR (internal rate of return) of 39%, it said in a statement.

It would add 3.7 years to the life of the mine with a total output of 210,000 ounces of gold, with an initial capital requirement of $57 million, including a 14% contingency.

The life of mine all in sustaining cash cost (AISC) was estimated at US$712 per ounce of payable gold.

"The results of this PEA highlight the tremendous prospective upside at Madsen-Red Lake, the economic viability of Madsen, and demonstrates how Pure Gold would phase new discoveries into future mine plans, the company said in a statement.

"Based on the current resource, development of these new discoveries could add approximately four years of production at below-industry average cash costs while generating robust cash flows."

Darin Labrenz, president and CEO at Pure Gold, added: "We have deployed a modest amount of capital in discovering and delineating these new resources and the return on our investment is exceptional. This PEA, represents the first conceptual expansion scenario for the future phased growth of the Madsen Mine complex.” 

Each of the three deposits would be mined from underground, with separate portal and ramp systems.

Mining will be conducted concurrently from Russet South, Fork and Wedge to support a milling rate of 800 tpd (tonnes per day), the firm said.

Notably, at Russet South, only the shallow portion of the resource was considered to fit for the 800 tpd base case, excluding around 52,400 potential ounces from the base case plan.

Shares were unchanged at $0.68.

Contact Giles at giles@proactiveinvestors.com

Follow him on Twitter @Gile74

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Wed, 27 Feb 2019 08:40:00 -0500 https://ca.proactiveinvestors.com/companies/news/215425/pure-gold-mining-says-new-discoveries-at-madsen-gold-project-boost-its-credentials-announces-pea-215425.html
<![CDATA[Media files - Pure Gold Mining releases feasibility study on Madsen-Red Lake Gold Deposit. ]]> https://ca.proactiveinvestors.com/companies/stocktube/12190/pure-gold-mining-releases-feasibility-study-on-madsen-red-lake-gold-deposit-12190.html Tue, 12 Feb 2019 14:43:00 -0500 https://ca.proactiveinvestors.com/companies/stocktube/12190/pure-gold-mining-releases-feasibility-study-on-madsen-red-lake-gold-deposit-12190.html <![CDATA[News - Pure Gold Mining's Madsen feasibility study shows high-grade, low cost mine; eyes start of development ]]> https://ca.proactiveinvestors.com/companies/news/214366/pure-gold-mining-s-madsen-feasibility-study-shows-high-grade-low-cost-mine-eyes-start-of-development-214366.html Pure Gold Mining Inc (CVE:PGM) (OTCMKTS:LRTNF) has released a feasibility study for its flagship Madsen gold project, which outlines a robust 12-year high grade, 800 tonne per day underground mining operation with low initial capital costs.

The pre-tax net present value was pegged at $353 million, with an IRR (internal rate of return) of 43% with a pay-back of initial capital put at three years.

READ: Mackie stays bullish on Pure Gold Mining after positive Madsen resource update

Last week, the group issued a posted a positive updated resource estimate on the project, which lies in the heart of Ontario's famous Red Lake mining district and is hoped to be Canada's next gold mine.

That showed that higher confidence indicated resources had risen by 319,000 ounces to 2.06 million ounces at an average grade of 8.9 grams of gold per tonne, while inferred resources rose by 171,000 ounces to 467,000 ounces at an average grade of 7.7 grams of gold per tonne.

"The Madsen-Red Lake orebody is an exceptional foundation on which to build a gold mining company, said Darin Labrenz, the president and CEO of Pure Gold in a statement Monday.

"With access to existing infrastructure, a high grade reserve, and exceptional growth potential, Madsen is one of the outstanding gold deposits in Canada. The completed study outlines a long life high margin mine, with low initial capital requirements and a fast timeline to production."

Labrenz also highlighted that further exploration targets and satellite resources, which were not part of the report, suggested an opportunity for near-term growth to potentially further enhance the economics of the project.

Probable mineral reserves are 3.5 million tonnes (Mt) at 9 g/t (grams per ton) containing 1 million ounces of gold.

Mine life of 12.2 years

The mine life is 12.2 years and peak annual production was put at around 125,000 ounces, with average annual gold production in years three through to seven of around 102,000 ounces.

The LOM (life of mine) all in sustaining cash cost (AISC) was estimated at US$787 per ounce of gold recovered.

Total pre-production capital cost (capex) is estimated at C$94.7 million (US$71.0M), inclusive of a C$8.1 million contingency. The total life of mine capex is C$327 million (US$245M), inclusive of closure costs.

"The project benefits from significant mining, milling and tailings infrastructure already in place, resulting in one of the lowest capital intensity, undeveloped gold projects in the world," said Pure Gold.

The existing mill and tailings management facility will be upgraded to include the installation of new pumps, two new batch gravity concentrators as well as expansion of the grinding circuit through replacement of the existing ball mill to achieve forecast productivity.

Now that the feasibility study is complete, the firm will move towards development. Last August, it appointed Endeavour Financial as its advisor to aid with debt financing to construct and develop the project and this process is well advanced and discussions are underway, the company said.

"Assuming the project execution starts in April of 2019, the first gold production would be expected in May of 2020," the company also told investors.

 

Contact Giles at giles@proactiveinvestors.com

Follow him on Twitter @Gile74

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Mon, 11 Feb 2019 08:03:00 -0500 https://ca.proactiveinvestors.com/companies/news/214366/pure-gold-mining-s-madsen-feasibility-study-shows-high-grade-low-cost-mine-eyes-start-of-development-214366.html
<![CDATA[Media files - Pure Gold Mining provides impressive Mineral Resource update on Madsen Project ]]> https://ca.proactiveinvestors.com/companies/stocktube/12153/pure-gold-mining-provides-impressive-mineral-resource-update-on-madsen-project-12153.html Fri, 08 Feb 2019 10:45:00 -0500 https://ca.proactiveinvestors.com/companies/stocktube/12153/pure-gold-mining-provides-impressive-mineral-resource-update-on-madsen-project-12153.html <![CDATA[News - Mackie stays bullish on Pure Gold Mining after positive Madsen resource update ]]> https://ca.proactiveinvestors.com/companies/news/214120/mackie-stays-bullish-on-pure-gold-mining-after-positive-madsen-resource-update-214120.html Pure Gold Mining Inc (CVE:PGM) (OTCMKTS:LRTNF) is "among the better" exploration and development stories out there, according to Mackie research, which has repeated a Speculative Buy rating on the stock and raised its price target.

On Tuesday, the company posted a positive updated resource estimate on its flagship Madsen gold project in the heart of Ontario's famous Red Lake mining district, which will form the basis of a near complete feasibility study on the main deposits and a preliminary economic assessment (PEA) on the satellite zones.

READ: Pure Gold Mining is a top pick for Echelon Wealth Partners as explorer moves into pivotal first quarter

The latest estimate showed that the higher confidence indicated resources rose by 319,000 ounces to 2.06M ounces at an average grade of 8.9 grams of gold per tonne, while inferred resources rose by 171,000 ounces to 467,000 ounces at an average grade of 7.7 grams of gold per tonne.

PGM is now finalizing the feasibility study on the main Madsen deposit and expects to release the results by month’s end, wrote Mackie analyst Stuart McDougall in a research note.

"PGM also expects to shortly release a PEA on the satellite zones. Combined, the Fork, Russet South and Wedge zones host combined resources of 1.76Mt grading 7.63 g/t, for 431,000oz of contained gold," he added.

Wedge zone included

That revision represents a 70% increase in tonnes and 18% higher in grade than the previous estimate of 2017, noted the analyst, mainly reflecting the inclusion of the Wedge zone.

McDougall noted that these zones had the potential to increase the broker's production estimates by nearly 45%, or around 30,000 ounces per year, should they justify the use of the fully permitted milling rate of 1,100 tpd (tonnes per day).

The broker assumes 600 tpd in the first two years of the mine, followed by 750 tpd in year three onwards.

"PGM is nearing the completion of a definitive feasibility study on the proposed restart of the historic Madsen underground gold mine. This combined with the project’ high grades and clear exploration upside, continues to rank the company among the better exploration and development stories we see out there," wrote McDougall.

The analyst hiked his target price to $1.35 a share from $1.25 due to the larger resource base.

Shares in the company nudged up 3.8% on Wednesday to $0.81.

Contact Giles at giles@proactiveinvestors.com

Follow him on Twitter @Gile74

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Wed, 06 Feb 2019 14:15:00 -0500 https://ca.proactiveinvestors.com/companies/news/214120/mackie-stays-bullish-on-pure-gold-mining-after-positive-madsen-resource-update-214120.html
<![CDATA[News - Pure Gold cites significant increase in mineral resources at Madsen project in Ontario ]]> https://ca.proactiveinvestors.com/companies/news/214008/pure-gold-cites-significant-increase-in-mineral-resources-at-madsen-project-in-ontario-214008.html Pure Gold Mining Inc (CVE:PGM) (OTCMKTS:LRTNF) said Tuesday that an estimate has found increased mineral resources at its Madsen gold project in the heart of Ontario's Red Lake mining district.

The Vancouver-based company said in a statement that the estimate showed that indicated mineral resources rose by 319,000 ounces to a total of 2.06 million ounces at an average grade of 8.9 grams of gold per tonne. In addition, inferred mineral resources rose by 171,000 ounces to 467,000 ounces at an average grade of 7.7 grams of gold per tonne.

READ: Pure Gold Mining is a top pick for Echelon Wealth Partners as explorer moves into pivotal first quarter

Under industry standards, the three categories of mineral resource classification in order of geological certainty are inferred, indicated and measured.

"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," CEO Darin Labrenz said.

The mineral resource estimate showed increases at the Madsen, Russet South and Fork deposits and for the first time showed mineral resources at the company's Wedge deposit. The February 5 mineral resource estimate was prepared by Vancouver-based Ginto Consulting Inc.

Shares of Pure Gold fetched C$0.77 in Tuesday's Canadian trading. They climbed US$0.01 to US$0.58 on the OTC Markets.

Last month, Pure Gold received a repeated Speculative Buy rating from Echelon Wealth Partners, which said the first quarter of 2019 will be pivotal for the explorer.

Contact Dennis Fitzgerald at dennis@proactiveinvestors.com

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Tue, 05 Feb 2019 08:57:00 -0500 https://ca.proactiveinvestors.com/companies/news/214008/pure-gold-cites-significant-increase-in-mineral-resources-at-madsen-project-in-ontario-214008.html
<![CDATA[News - Pure Gold Mining is a top pick for Echelon Wealth Partners as explorer moves into pivotal first quarter ]]> https://ca.proactiveinvestors.com/companies/news/212417/pure-gold-mining-is-a-top-pick-for-echelon-wealth-partners-as-explorer-moves-into-pivotal-first-quarter-212417.html Pure Gold Mining Inc (CVE:PGM) has received a repeated 'speculative buy' rating from Echelon Wealth Partners, which says the first quarter of 2019 will be 'pivotal' for the explorer, with a number of potential catalysts coming up.

The company is one of Echelon's 'top picks' going into the quarter on the back of its good performance in the fourth quarter of 2018.

READ: Pure Gold Mining test mining results at Madsen a ‘resounding success’

The group's flagship asset is its 100% interest in the Madsen Gold project, which covers an area of around 4,718 hectares in the prolific Red Lake gold district in Ontario.

The project has previously generated 2.5Moz (million ounces) of gold and remains one of the highest-grade, undeveloped gold projects in the world.

It boasts total (measured and indicated and inferred) gold resources of 1.8 Moz (million ounces) at a grade of 8.9g/t (grams per ton).

A key near-term catalyst expected is a maiden resource estimate of the shallow Wedge deposit at the property, which will include all assay results from drilling completed prior to September last year from the Wedge, Russet South, Fork and Madsen areas, analyst Ryan Walker noted.

Significantly, this latest drilling has extended the high-grade mineralization to a vertical depth of more than 500 meters (m).

Importantly, the Wedge area lies just 3km by road from an existing mill, which highlights the area’s potential as a satellite source of feed for production, he added.

Other potential catalysts

Other potential catalysts for the first quarter of 2019 are the delivery of a definitive feasibility study (DFS) for the project, and the inclusion of the Russet, Fork and Wedge satellite deposits into a preliminary economic assessment (PEA).

Also on the cards, is a production decision from the company on the Madsen project itself.

"Our positive view on PGM shares reflects Madsen’s high-grade nature, the potential for solid near-term, high-margin production, and substantial exploration potential," said Walker.

He highlighted that the company's shares increased by a whopping 18.2% during the fourth quarter of 2018, which beat the 10.5% increase by the VanEck Vectors Junior Gold Miners ETF (NASDAQ:GDXJ).

The latter consists of a basket of smaller market capitalization peer gold producers.

Walker notes that the company's share price increase was partly attributable to a late surge in the gold price into the end of 2018.

Echelon targets $1.20 for the shares, which is a long way from where they stand today at $0.70 - up over 11% on the day.

Contact Giles at giles@proactiveinvestors.com

Follow him on Twitter @Gile74

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Fri, 11 Jan 2019 09:02:00 -0500 https://ca.proactiveinvestors.com/companies/news/212417/pure-gold-mining-is-a-top-pick-for-echelon-wealth-partners-as-explorer-moves-into-pivotal-first-quarter-212417.html
<![CDATA[News - Pure Gold Mining test mining results at Madsen a ‘resounding success’ ]]> https://ca.proactiveinvestors.com/companies/news/210333/pure-gold-mining-test-mining-results-at-madsen-a-resounding-success-210333.html Pure Gold Mining Inc (CVE:PGM) announced encouraging news this week after reporting that test mining at its Madsen project returned higher-than-expected results, with tonnes, grade and mining width greater than predicted from the resource model.

“Overall, test mining returned an estimated 56% more gold than predicted, with limited dilution achieved through average widths that exceed five metres,” said Pure Gold president and chief executive officer, Darin Labrenz.

The company’s flagship Madsen project is located in the Red Lake gold district of Ontario and has the potential to become Ontario’s next gold mine.

Using a 4.0 grams per ton (g/t) gold cut-off, the bulk sample estimate includes 46% more tons, 8% higher gold grade and an estimated 56% more ounces of gold than predicted from the resource model.

An overall average grade of 10.2 grams per tonne gold was returned from 1,555 muck samples collected.

“From the first round blasted in the ramp to the completion of the program in November, our team has demonstrated it can visually identify, and easily follow gold mineralization underground providing a strong validation of our geologic model.”

Madsen has strong potential

The Madsen gold project is a near-term, high grade, quality gold project, located in a mining friendly jurisdiction. Pure Gold says it is aiming to build a scalable, long life mine, with attractive economics. 

Madsen also has the benefit of positive infrastructure, including a mill, tailings facility and underground development, located by a provincial highway and power grid.

 

  Underground drilling identifies expansion opportunities

Pure Gold said underground drilling has identified additional mineralized structures, which have the potential to expand the mine.

The new drilling highlights included:

Hole PGB-0131: 20.1 g/t gold over 6.0 metres, including 38.6 g/t gold over 2.0 metres;

Hole PGB-0134: 47.6 g/t gold over 6.0 metres;

Hole PGB-0140: 30.3 g/t gold over 2.0 metres and 133.0 g/t gold over 1.0 metre; and

Hole PGB-015: 15.2 g/t gold over 2.9 metres.

Feasibility study set to come out soon

The fully-funded feasibility study, along with a new resource estimate, is set to come out in January.

“With test mining now complete, delivering a strong validation of both geologic model and resource, we look forward to finalizing our definitive feasibility study as the next step to building a modern, scalable mining operation at Madsen,” said Labrenz.

Pure Gold applies a disciplined approach to resource estimation

According to the company, the positive results of this mining highlight the disciplined and conservative approach it has applied to resource estimation.

“Our resource work is well supported by comparison to this test program and also the extensive previous mining records at Madsen,”  said vice-president of exploration, Phil Smerchanski.

“It has been invigorating to get to work mapping and mining this gold mineralized rock that we have focused so much study on over the last four years. Our whole team is very excited about the growth possibilities at Madsen,” he added.

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Thu, 29 Nov 2018 20:52:00 -0500 https://ca.proactiveinvestors.com/companies/news/210333/pure-gold-mining-test-mining-results-at-madsen-a-resounding-success-210333.html
<![CDATA[News - Pure Gold hits over 17 g/t gold over 3.5 metres at Madsen in Red Lake ]]> https://ca.proactiveinvestors.com/companies/news/103898/pure-gold-hits-over-17-gt-gold-over-35-metres-at-madsen-in-red-lake-57746.html Pure Gold Mining (CVE:PGM) shares rallied as much as 5.5 percent on Wednesday after reporting drill results from its ongoing exploration program at its Madsen gold project in the Red lake gold district of Ontario. 

The results were highlighted by an intercept of 17.18 grams per tonne (g/t) gold over 3.5 metres, occurring approximately 115 metres below surfact at the Fork zone.

The hole is the most southern hole targeted the zone, which remains open along strike and to depth. The structure has so far been traced for 275 metres in strike length, to a vertical depth of 200 metres.

The company has completed seven drill holes in the area, with three of them returning visible gold, Pure Gold said.

The Fork zone will be further drill tested by the company following the winter freeze-up, it added.

Shares jumped to as high as 28.5 Canadian cents on Wednesday, up 5.5 percent.

 

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Wed, 29 Oct 2014 13:12:00 -0400 https://ca.proactiveinvestors.com/companies/news/103898/pure-gold-hits-over-17-gt-gold-over-35-metres-at-madsen-in-red-lake-57746.html