Madsen-Red Lake, economic viable!

A resource of 210K Oz of gold

Pure Gold Mining announces results of a Preliminary Economic Assessment (PEA) for its Fork, Russet South, and Wedge deposits that demonstrate the potential to add approximately $51 million to the Madsen Gold Project after-tax net present value.  As a result of high gold grades, near surface resources, and use of existing infrastructure, mining of these zones will yield an after-tax IRR of 39%.

The results of this PEA highlight the tremendous prospective upside at Madsen-Red Lake & it is the economic viability of Madsen, and demonstrates how Pure Gold would phase new discoveries into future mine plans.

Based on the current resource, development of these new discoveries could add approximately four years of production at below-industry average cash costs while generating robust cash flows.

“Our PEA provides us with a blueprint of how we could expand our mine life and production profile at Madsen, and illustrates just how impactful and accretive new discoveries can be to the future of our district,” stated Darin Labrenz, President and CEO of Pure Gold. Mine life extension is of 3.7 years with total production of 210K Oz of gold.

“We have deployed a modest amount of capital in discovering and delineating these new resources and the return on our investment is exceptional.  This PEA represents the first conceptual expansion scenario for the future phased growth of the Madsen Mine complex.”