The Northern Miner March 21 2016 Issue

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MARCH 21-27, 2016 / VOL. 102 ISSUE 6 / GLOBAL MINING NEWS · SINCE 1915 / $3.99 / WWW.NORTHERNMINER.COM

Engineering reports fail to impress

Pure Gold’s fresh look at Madsen in Red Lake

PDAC 2016

| Investors would benefit from more rigour

BEYOND THE RESOURCE

| Firm aims to leverage infrastructure with blue-sky potential

SMSJ_Sept 2012_Pro_TH_PC

BY TRISH SAYWELL Mobile Equipment

for Safety and Productivity

tsaywell@northernminer.com

A

for adequacy andsq.ft. PLant! Rreview e-Located to a 50,000 quality of 34 development-

stage National Instrument (NI) 43-101 studies on Sedar showed nearly half lacked engineering rigour, Tim Oliver, an environmental engineer and independent consultant, told the Prospectors & Developers Association of Canada in Toronto earlier this month. “The conclusion was that 13 of SMSJ_Sept SMSJ_Sept 2012_Pro_TH_PC 2012_Pro_TH_PC the 34 studies flunked. They really Mobile Equipment forof giving didn’t measure up in terms and for Productivity enoughSafety support an investment decision,” declared the Re-Located Oliver to a 50,000 sq.ft. Pat Lant ! Metro Toronto Convention Centre. “In general, investors would benefit from more engineering rigour in these studies,” especially in key areas such as project execution planning, engineering documentation, scheduling and cost-basis discussion, or how they arrived at their capex and opex numbers. Among Oliver’s other findings was that just 67% — or 23 of the 34 studies surveyed — passed the “qualified” part of Qualified Person (QP). “That Authorizedbe 100%,” he said. number should Toyota Landcruiser “Thirty-three percent of the QP on Dealer these studies were not qualified to

Pure Gold Mining’s Madsen gold project and the nearby town in northwestern Ontario.   PURE GOLD MINING

BY LESLEY STOKES

See ENGINEERING / 14

lstokes@northernminer.com VANCOUVER

T

Authorized Authorized Toyota Toyota Landcruiser Landcruiser Dealer Dealer

he drills are turning in the shadow of a head frame at Pure Gold Mining’s (TSXV: PGM; US-OTC: LRTNF) Madsen gold property in Ontario’s prolific INTRODUCING THE NEWEST Red Lake gold district, as the company ramps up exploration and MID-RANGE UTILITY VEHICLE initiates a preliminary economic assessment (PEA) of the former INTRODUCING THE NEWEST high-grade, underground gold MID-RANGE UTILITY VEHICLE mine. The Vancouver-based junior has been exploring ways to leverage the infrastructure — which includes a permitted 500-tonne-per-day mill and tailings facility — with FIVE TON FIVE TON the resource locked in the ground. FIVE YEAR WARRANTY FIVE YEAR WARRANTY “The launch for the PEA is to Sales & Service a base-case snapshot Sales && Rental Rental && Service ServiceSales & Rental establish Phone: (705) 476-4500 Phone: (705) 476-4500 Phone: (705) 476-4500 Email: Email: mtsales@millertechnology.com mtsales@millertechnology.com with the existing infrastructure Email: mtsales@millertechnology.com Website: Website: www.millertechnology.com www.millertechnology.com

x 5 x 5 55

Website: www.millertechnology.com

Sales & Rental & Service Phone: (705) 476-4500 Email: mtsales@millertechnology.com Website: www.millertechnology.com

Mar 21 Pgs 1 2 3 4 5 7 8 9 14.indd 1

and the resource that’s nearsurface and ramp accessible, so the scenario we’re looking at is a low capital option,” Darin Labrenz, president and CEO of Pure Gold, tells The Northern Miner at the company’s headquarters in Vancouver. The resource at Madsen is divided between four shear-hosted and replacement-style mineralization zones — Austin, South Austin, McVeigh and Zone 8 — delivering 3.2 million indicated tonnes grading 8.93 grams gold per tonne for 928,000 oz. gold, plus another 297,000 oz. gold within 790,000 inferred tonnes at 11.74 grams gold. The Austin and South Austin horizons were the principal sources of mill feed for the historic Madsen mine, which has produced 2.4 million oz. gold since 1935 from surface to 1.2 km deep. “The mine shut down in the

mid-1970s for various reasons, one being that Austin plunged away from the head frame, so by the time they reached the 24 level, it was 2.5 km of drifting just to reach the outer orebody, so it really would’ve benefitted from a second shaft,” Labrenz explains. “If you look at the Campbell mine at Red Lake, there are a number of shafts accessing that orebody, whereas Austin only had one.” Although the resource at Austin is still “wide open” at depth, Labrenz says that Pure Gold’s focus is on the less-examined potential at the parallel-trending McVeigh horizon, which only saw development down to 300 metres. “It’s always easier to push the mine down another level because it’s right in front of you, and so long as your mill is well-fed, you don’t

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DISASTERS: UP TO 10 KILLED AT KATANGA, LILY / 5

2016-03-15 7:20 PM


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