Pure Gold Mining Inc. said Dec. 11 that it started a definitive feasibility study on its Madsen gold project in Ontario, with a view to making a positive production decision by the fourth quarter of 2018.
The study will determine the optimum mine plan, underground mining methods and mining rate, while leveraging the existing mine infrastructure and 36 years of continuous past production history.
Concurrent with the study, Pure Gold will continue exploration drilling on the property, which will focus on defining near-surface mining shapes and delivering new zones to expand the overall resource. Project funding discussions will also be initiated with select lenders.
The company, meanwhile, will continue environmental baseline studies to support permitting activities and will file a new project definition for Madsen in early 2018.
An updated preliminary economic assessment on the project generated an an after-tax net present value of C$258 million, using a 5% discount rate, with a 47% internal rate of return and a 2.8-year payback period.
