Pure Gold Mining announce it has awarded the surface Engineering and Procurement (E/P) contract to JDS Energy & Mining in partnership with Hatch Ltd. and Knight Piesold Ltd. for it’s Madsen Red Lake Mine. Additionally, the Company has awarded the underground mine design engineering contract to Dumas Mine Contracting Ltd. (“Dumas”).
With the engagement of the engineering partners, the Company has commenced construction. Detailed design work on surface infrastructure, as well as underground electrical distribution, mine ventilation, mine service design and stope optimization has been initiated, as well as equipment sourcing and the procurement of long lead time items.
“Today we hit yet another key milestone on our road to near term cash flow,” stated President & CEO, Darin Labrenz. “I am incredibly proud of our team for what they have accomplished over the last five years. Madsen began as an exploration concept in late 2014, and has evolved into a multi-million ounce gold deposit that is now under construction as Canada`s highest grade gold development project.1 Along the way, the team has hit every milestone we set: from first resource estimate, to early conceptual studies, through a comprehensive feasibility study, an agreement with our First Nation partners, and now a fully funded financing package. Today, as we commence construction, our project is perfectly timed to benefit from a rising gold market, and looks set to generate well over C$800 million in cumulative pre-tax cash flow with gold currently near C$2,000 per ounce.”
The Madsen Red Lake Mine is Canada’s highest grade development-stage gold project and is fully funded to production with first gold pour projected for late 2020. The orebody is situated within a five kilometre long gold system in the heart of the Red Lake gold district.