The Madsen mine, in Canada's Ontario.
Canadian gold development company Pure Gold Mining on Tuesday made its debut on the LSE main market, in the UK, trading at 32.50p a share.
The listing, which is alongside the company’s existing Toronto listing, will introduce Pure Gold to European and UK investors as it approaches the construction of the Madsen Red Lake gold mine, in Ontario.
“Due to the very high grade nature of the ore body, the low capital cost, short 13-month construction period, and project location in Ontario, we have already had good interest shown by European investors,” reported Pure Gold president and CEO Darin Labrenz in a statement.
The feasibility study for the Madsen Red Lake gold mine outlines an 800-tonne-a-day underground mining operation with a 12 year life-of-mine (LoM), probable reserves of one-million ounces at 9 g/t gold in 3.5-million tonnes, and a comparatively low initial capital cost of C$95-million.
The company is targeting the second half of next year for first production. At peak, the mine would produce about 125 000 oz/y at an LoM direct operating cost of $607/oz.
In addition, specific exploration targets and satellite resources not considered in the feasibility study suggest an opportunity for near-term growth to potentially further enhance the economics of the project. A recently completed preliminary economic assessment (PEA) of these discoveries highlighted the prospective upside present at Madsen Red Lake mine, Labrenz added.
The PEA for the Fork, Russet South and Wedge deposits estimates that for a capital outlay of C$57-million, the Red Lake mine life could be extended by 3.7 years, with a further 210 000 oz of gold coming from these deposits.