In the third-quarter results statement to end September, the firm said the next few months would see it preparing to start underground mining, focusing on ramp and level development, along with environmental work to update existing major permits.
Early construction is underway and orders for long lead items have already been placed.
Pure Gold also aims to continue surface exploration at deposits and targets outside the feasibility study mine plan, it said.
Notably, in the second quarter of 2019 (to end June), Pure Gold secured access to around C$167.5 million in funding to advance Madsen.
According to a feasibility study, mine construction and development will require an estimated C$95 million, including contingency and start-up and working capital.
The three months also saw the group continue its exploration success, with 530 metres of mineralized strike length added to the Wedge zone at the project with some high-grade drill intercepts, expanding the footprint at the deposit by 85%.
In keeping with a firm at this stage, the net loss for the three months was C$8.8 million, wider, marginally than the C$8.1 million seen in the same period of 2018.
Madsen is the highest-grade underground development project in Canada and ranks 11th out of 132 projects globally.
The project's pre-tax net present value (NPV) was pegged at C$353 million, with a pre-tax IRR (internal rate of return - the higher the IRR figure, basically the higher the cashflow to investors) of 43%, based on a gold price of US$1,275.
Broker says 'Buy'
Broker Peel Hunt put a Buy on shares after the statement, with a target of 46p (current price: around 34.6p).
The loss, it said in a note, was larger than the broker expected, partly on more exploration work carried out (and it being expensed rather than capitalised) and secondly a C$3.3 million non-cash fair value adjustment charge, adjusting the value of the gold stream.
The next milestone will be the initial underground works, due to start this month, added Peel Hunt.
Shares in Toronto were unchanged at C$0.59. In London, the stock slipped 2.3% to 34.68p.
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