The feasibility study for the gold mine outlined an 800 tonne per day underground mining operation with a 12 year mine life
Pure Gold Mining has commenced the construction of its 100% owned Madsen Red Lake gold project in Ontario, Canada.
The start of construction on the gold mine follows the award of the surface engineering and procurement (E/P) contract to JDS Energy & Mining (JDS) in partnership with Hatch and Knight Piesold.
The Vancouver-based firm said that the detailed design work on surface infrastructure, as well as underground electrical distribution, mine ventilation, mine service design and stope optimisation have been initiated.
On the other hand, Dumas Mine Contracting has secured the underground mine design engineering contract for the gold project.
Pure Gold Mining president and CEO Darin Labrenz said: “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.
“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/oz.”
Along with the start of construction, the company is continuing its exploration drilling programme designed to expand and define the extensive gold system in place at Madsen project.
Pure Gold secured £55.3m for the mine in August
In August, Pure Gold had secured US$90m (£55.3m) financial package for the construction of Madsen Red Lake Mine. The financing was secured from Sprott Resource Lending.
The Madsen Red Lake mine is said to be one of the highest grade development-stage gold projects, and it is fully funded to production, with first gold pour is earmarked for late 2020.
The feasibility study for the gold mine outlined an 800 tonne per day underground mining operation with a 12-year mine life.