MiningGold & silver
viewPure Gold Mining

Pure Gold Mining notes key highlights as it reports on pivotal first quarter

The firm completed and advanced a number of key milestones in 1Q, notably significantly de-risking its 100%-owned Madsen Gold Mine

Madsen project
Pure Gold Mining is advancing the Madsen gold project in the historic Red Lake district of Ontario

Pure Gold Mining Inc (CVE:PGM) (OTCMKTS:LRTNF) (LSE:PUR)  has unveiled its first-quarter financial results, highlighting a number of key milestones reached by the firm.

During the first quarter, the company worked to significantly de-risk its 100%-owned Madsen gold mine, which culminated in the release of a new mineral resource estimate, a feasibility study for the Madsen deposit and a preliminary economic assessment for its Fork, Russet South and Wedge Deposits. 

READ: Pure Gold Mining starts new chapter trading on London Stock Exchange

The firm continues to push forward its 100%-owned Madsen gold mine, located in the historic Red Lake district of Ontario and reported it spent C$1.6 million on exploration in the quarter ending March 31, 2019. 

The firm narrowed its net loss to C$2.8 million, or C$0.01 per share, in the quarter ending March 31, 2019 from C$7.2 million, or C$0.03 per share in the same period a year ago. 

A feasibility study for Madsen has shown a robust 800 tonne per day, 12-year underground mining operation with an initial capital cost of C$95 million and strong financials with a pre-tax net present value of C$353 million and a pre-tax internal rate of return of 43%, using a gold price of US$1,275 per ounce.

Several discoveries on the project, including the Fork, Russet South and Wedge deposits, could potentially further enhance its economics.

A preliminary economic assessment (PEA) has shown these deposits could add C$79 million on a pre-tax net present value and 57% internal rate of return.

More than 29 million ounces of high-grade gold have been mined from the Red Lake mining district of northwestern Ontario, making it one of the largest gold-producing districts in Canada.


Looking forward, the firm continues to push the Madsen project towards development. It is continuing to work with Indigenous groups to "promote a cooperative and mutually respectful relationship concerning Pure Gold's development plan, and to finalize an agreement to govern this relationship," noted the company. 

The firm is also advancing project finance initiatives, optimizing the project schedule, including engineering, procurement and permitting, continuing environmental studies and documentation to support the update and filing of existing permits and filing for additional permits that may be required, while also commencing detailed engineering and design activities.

"Madsen has outstanding potential for growth and opportunities for scalability," said the company in a release, noting there are key opportunities to enhance the project over the project life, including potentially expanding the Madsen resource, through targeting extensions to the known resource, potential depth extensions of the Madsen deposit, as well as continuing the firm's exploration at Fork, Russet South and Wedge. 

Shares of Pure Gold on Wednesday in Toronto stood at $0.53. In London, they are at 33.5p.

Contact Katie Lewis at [email protected]

Quick facts: Pure Gold Mining

Price: 0.57 CAD

Market: TSX-V
Market Cap: $201.57 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Pure Gold Mining named herein, including the promotion by the Company of Pure Gold Mining in any Content on the Site, the Company receives from...



Pure Gold Mining begins trading in London as it looks to attract greater...

Pure Gold Mining (CVE:PGM)(LON:PUR) CEO Darin Labrenz chats Proactive London's Andrew Scott as the firm began trading on the London Stock Exchange. The Vancouver-based group is developing the Madsen project in the prolific mining area of Red Lake in Ontario, Canada, with first output...

on 22/5/19

3 min read