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Pure Gold ups indicated resources by 48% at Madsen gold mine

Pure Gold Mining Inc. initiated a revised preliminary economic assessment for the Madsen gold project in northwestern Ontario after a 48% increase in contained indicated resources.

At a cutoff of 4 g/t gold, the indicated resource now stands at 5.8 million tonnes at an average grade of 8.9 g/t containing 1.6 million ounces of gold, according to an Aug. 2 release.

The inferred resource at the Madsen mine stands at 587,000 tonnes at 9.4 g/t containing 178,000 ounces of gold, encompassing the Austin, South Austin, 8 Zone, McVeigh and A3 domains.

The revised preliminary economic assessment is expected to be completed in fall 2017, and an additional resource update is expected in the fourth quarter, which will incorporate a first ever mineral resource estimate for the Russet South and the Fork Zone satellite deposits, Pure Gold said.