15 Sep Canadian junior Pure Gold Mining publishes encouraging PEA for underground mine
Vancouver-based junior Pure Gold Mining (TSX-V:PGM) has passed an important milestone in the early stages of its Madsen project in Ontario, publishing a preliminary economic assessment (PEA).
The PEA indicated that there is more gold to be found at the deposit in the Northwest of Ontario’s Red Lake district, and gave the underground mine a 14-year life of mine productivity period.
Exploration drilling taking place above and below ground will follow gold extensions off the main resource, which should result in the discovery of new gold zones within the resource.
“With a significantly expanded resource, access to infrastructure, and exceptional growth potential, Madsen is one of the outstanding gold deposits in Canada,” said Darin Labrenz, president and CEO of Pure Gold.
“The completed study provides a measure of these attributes, outlining a long life high margin mine, with low initial capital requirements and a fast timeline to production.”
Madsen is considered by the company to be one of the highest grade undeveloped gold deposits in the world. Existing infrastructure includes a permitted 550 tonnes per day mill and tailings facility.