Overview
| Status | Care and Maintenance |
| Mine Type | Underground |
| Commodities |
|
| Mining Method |
- Mechanized Cut & Fill
- Overhand Cut & Fill
- Longhole stoping
- Hydraulic backfill
|
| Production Start | ...  |
| Mine Life | 12 years (as of Jan 1, 2021) |
PureGold poured first gold in late December 2020 and declared commercial production at the Mine on August 1, 2021.
On October 24, 2022, the Company suspended operations and placed the PureGold Mine on care and maintenance. This step followed an evaluation of several potential alternative scenarios and became necessary because the mine had not yet achieved consistent positive site-level cash flow. |
Source:
p. 2, 3
Pure Gold is the 100% owner of the Madsen Gold Project (now PureGold) in the Red Lake Mining District.
On October 31, 2022, the Company obtained an initial order for creditor protection from the Supreme Court of British Columbia (the “Court”) under the Companies’ Creditors Arrangement Act (“CCAA”). KSV Restructuring Inc. was appointed as the monitor.
On November 9, 2022 the Court, on application of the Company, granted a Sales and Investment Solicitation Process Order (the “SISP Order”), among other relief. The SISP Order, among other things: (i) approves a sales and investment solicitation process for all the assets, undertakings and property of the Company, including the PureGold Mine project located in Ontario and (ii) approves of the engagement of National Bank Financial Inc.as PureGold’s sales agent for the purposes of the SISP.
Contractors
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Deposit Type
- Vein / narrow vein
- Orogenic
Summary:
The PureGold Mine is located within the Red Lake Greenstone Belt (RLGB) of the Archean Superior Province of the Canadian Shield. Gold deposits in the RLGB are classified as orogenic gold deposits (Groves et al., 1998) and characterized by a spatial and temporal association with crustal-scale fault structures.
Property Mineralization
Madsen Deposit – Austin, South Austin and McVeigh Zones
Most of the historical gold production and most of the current mineral resources at the PureGold Mine are within the Austin, South Austin and McVeigh zones which, along with the 8 Zone, comprise the Madsen deposit. At the scale of the property, these zones all lie within much broader, kilometrescale planar alteration and deformation corridors that have been repeatedly reactivated during gold mineralization and subsequent deformation and metamorphism.
The distribution of gold within these planar structures is almost exclusively within variably altered basalt, and enhanced in close proximity to major lithological contacts, such as ultramafic sills, felsic dykes and felsic volcanic strata. The overall plunge of the different deposits occurring close to the Confederation assemblage (e.g., Madsen, Starratt and Wedge) is controlled by the intersection of the mineralized planar structures with the local stratigraphy, as exemplified by its intersection with two barren ultramafic sills in the PureGold mine. Here, the northeastern boundary of the Austin zone coincides ........
Mining Methods
- Mechanized Cut & Fill
- Overhand Cut & Fill
- Longhole stoping
- Hydraulic backfill
Summary:
Madsen is proposed to be mined as an underground operation using a combination of longhole stoping (LH) with unconsolidated rock fill, conventional cut and fill (CCF) and mechanized cut and fill (MCF) both using hydraulic and rock fill. A target production rate of 800 t/d is envisioned over an operating mine life of 12-years that will extract 3.5 Mt of ore. LH Stoping, CCF and MCF will account for 25%, 59% and 16% of the total ore production respectively. The Madsen deposit will be accessed by extending the current underground ramp and tying into the existing mine levels spaced approximately every 50 metres. Ore and un- mineralized mine rock will initially only be trucked out of the mine, with shaft hoisting being utilized to bring ore to surface from year 4 onwards. A mix of fully electric and diesel mining equipment will be utilized to reduce ventilation requirements through the mine life.
The ventilation network will require a combination of 3.7 meter and 2.4 meter diameter raises, as well as the ramp to distribute fresh air. The tight-lined ventilation partition of the shaft will be utilized as an exhaust path for the ventilation network. Mine air heaters will be installed at both fresh air intakes.
Longhole Mining
LH will be used where the rock quality and ground conditions allow and where vein geometry is amenable to economic stope design. LH is the highest productivity method selected for the production phase of mining.
LH is ........
Source:
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Flow Sheet:
Summary:
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Reserves at December 31, 2021:
Mineral resources are reported at a cut-off grade of 3.38 g/t Au
| Category | Tonnage | Commodity | Grade | Contained Metal |
|
Indicated
|
6,909,900 t
|
Gold
|
7.4 g/t
|
1,653,000 oz
|
|
Inferred
|
1,819,300 t
|
Gold
|
6.3 g/t
|
366,200 oz
|
Financials:
| | Units | 2022 | 2021 |
|
Revenue
|
M CAD
| ...... | ...... |
|
Operating Income
|
M CAD
| ...... | ...... |
|
Pre-tax Income
|
M CAD
| ...... | ...... |
|
After-tax Income
|
M CAD
| ...... | ...... |
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Corporate Filings & Presentations:
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