Proactiveinvestors USA & Canada Pure Gold Mining https://ca.proactiveinvestors.com Proactiveinvestors USA & Canada Pure Gold Mining RSS feed en Wed, 20 Feb 2019 06:35:54 -0500 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![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