TSX-V-listed Pure Gold Mining expects to release the feasibility study for its Madsen gold deposit, in Ontario, followed by a preliminary economic assessment (PEA) of the Russet South, Fork and Wedge satellite deposits, during the course of this month.
On Tuesday, the Vancouver-based explorer revealed that indicated mineral resources at its Madsen project increased by 319 000 oz to more than two-million ounces at a 4.0 g/t gold cut-off.
Further, inferred mineral resources increased by 171 000 oz to a total of 467 000 oz at a 4.0 g/t cut-off.
The soon-to-be completed feasibility study is based upon indicated mineral resources at the Madsen deposit, which increased by 13% to more than 1.8-million ounces at a 4.0 g/t cut-off.
Satellite indicated resources for the Russet South, Fork and Wedge deposits grew by 114% to 206 000 oz, and inferred resources grew by 91% to 226 000 oz at a 4.0 g/t cut-off.
However, satellite resources include first time disclosure of indicated mineral resources at Wedge of 107 000 oz, and inferred mineral resources of 79 000 oz at a 4.0 g/t cut-off.
Dubbing it “the first of several near term key milestones” on the company’s path to establishing a modern, scalable mining operation at Madsen, Pure Gold CEO and president Darin Labrenz said that with the new high confidence resource, the company was in a position to compile a mine plan for the next chapter in the evolution and growth of the Red Lake camp.
Exploration VP Phil Smerchanski, meanwhile, commented that the Madsen mineral system was a foundational component of the Red Lake mining district.
“With more than 2.5-million ounces of historical production, two-million ounces of current indicated resource, and an inferred resource that remains open and is the subject of active ongoing exploration, this is a top tier high grade asset in one of the best mining jurisdictions on the planet,” he enthused.
As a result, the company believes that with continuing exploration, and drilling, the endowment of this unique and special asset will continue to grow.
Since acquiring the project, Pure Gold’s exploration team has completed more than 209 000 m of new oriented-core drilling, in 918 holes, relogged over 270 000 m of historical drill core and completed extensive surface and underground mapping, to build a comprehensive understanding of the three-dimensional structural, alteration, and lithologic controls on mineralisation.
This understanding provides the foundation for the current geological model, which has guided resource estimation in each of the resource areas.
Additionally, the company is also finalising a PEA for the Wedge, Russet South and Fork deposits and expects to issue this PEA in February.
The PEA will consider both indicated and inferred resources from the company’s satellite deposits and will provide initial engineering for potential mining of these satellite deposits as well as estimates of capital, operating and other economic parameters.
The scoping of mining alternatives from these satellite resources is key to the company’s goal of demonstrating project growth and scalability.