Proactiveinvestors USA & Canada Pure Gold Mining Proactiveinvestors USA & Canada Pure Gold Mining RSS feed en Mon, 22 Apr 2019 03:05:11 -0400 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[Media files - Pure Gold releases positive PEA for Madsen-Red Lake project ]]> Mon, 04 Mar 2019 13:08:00 -0500 <![CDATA[News - Pure Gold Mining says new discoveries at Madsen gold project boost its credentials; announces PEA ]]> 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.

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Wed, 27 Feb 2019 08:40:00 -0500
<![CDATA[Media files - Pure Gold Mining releases feasibility study on Madsen-Red Lake Gold Deposit. ]]> Tue, 12 Feb 2019 14:43:00 -0500 <![CDATA[News - Pure Gold Mining's Madsen feasibility study shows high-grade, low cost mine; eyes start of development ]]> 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.


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Mon, 11 Feb 2019 08:03:00 -0500
<![CDATA[Media files - Pure Gold Mining provides impressive Mineral Resource update on Madsen Project ]]> Fri, 08 Feb 2019 10:45:00 -0500 <![CDATA[News - Pure Gold cites significant increase in mineral resources at Madsen project in Ontario ]]> 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

Tue, 05 Feb 2019 08:57:00 -0500
<![CDATA[News - Pure Gold Mining extends outcropping mineralization at Russet South ]]> Drilling by Pure Gold Mining Inc. (CVE:PGM) at its Madsen gold project has successfully extended outcropping mineralization discovered in 2015 at the Russet South prospect.

The Beta and Kappa targets intersected high grade, near surface gold mineralization within close proximity to the existing mining infrastructure, Pure Gold said.

The 2016 drill program at Madsen, in Red Lake, Ontario, is mainly focused on potential resource expansion within the McVeigh horizon, but a smaller sub-set of drilling was completed in early 2016 at the Russet South area where previous drilling and channel sampling by Pure Gold defined three separate targets: Alpha, Beta and Kappa.

These targets share a similar geologic environment to Madsen's 8 Zone resource which is situated 1.6 kilometres down dip on the same geologic contacts.

"Together with Alpha, the Beta and Kappa gold zones highlight the near surface potential of the Russet South area, with both of these targets outcropping at surface, intersected to a vertical depth of 70 metres, and open at depth. The extension of high grade gold in multiple target areas at Russet South, combined with the ongoing two-rig drill testing of expansion potential within the McVeigh horizon continues to advance our goal of unlocking the exploration potential of Madsen," said Darin Labrenz, president and chief executive officer of Pure Gold.

The Russet South target is a series of high grade, near-surface gold zones, located some 1.5 kilometres west of the McVeigh horizon and associated mine infrastructure.

Along with the drilling results, which can be accessed here, the company announced that Phil Smerchanski, director of Geoscience, has been appointed as vice president of Exploration, replacing Darren O'Brien, who leaves with the board's best wishes.
Technical advisor Christopher Lee takes over as Chief Geoscientist now that Smerchanski has changed roles.

Wed, 04 May 2016 09:34:00 -0400
<![CDATA[News - Pure Gold hits over 17 g/t gold over 3.5 metres at Madsen in Red Lake ]]> 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.


Wed, 29 Oct 2014 13:12:00 -0400