Case Study

PureGold Mining

Madsen Pre-Feasibility Study

Location: Red Lake, Ontario
Commodity: Gold
Project Phases: Pre-Feasibility Study, Trade-Off Studies, Study Management

Client Overview

PureGold Mining, operating as a single-asset company, has delineated a significant gold resource at the PureGold Mine in the Red Lake district of Northern Ontario. This includes a 1.65-million-ounce Resource (6.9Mt at 7.44 g/t gold) and a 0.366 million-ounce Inferred Resource (1.8Mt at 6.26 g/t gold).

TMG’s Contributions

TMG played a pivotal role in enhancing the operational and financial aspects of the Madsen Pre-Feasibility Study for PureGold Mining:

Pre-Feasibility Study: TMG was involved in conducting a new Pre-Feasibility Study to assess and add additional resources, focusing on optimizing OPEX expenditures for the existing infrastructure.
Trade-Off Studies: TMG completed comprehensive trade-off studies as part of the in-house Pre-Feasibility Study. These studies included nine memorandums outlining options, assessing capital impact, and making recommendations in various areas such as core logging services, office trailers, assay labs, and more.
Financial Analysis: TMG prepared a detailed financial analysis, including cash flow, Net Present Cost, Payback Period, and Internal Rate of Return, offering critical insights for decision-making.
Compliant Disclosures Support: TMG supported the PureGold Qualified Persons in reviewing compliant disclosures in accordance with National Instrument 43-101 standards.
PFS Schedule Development: TMG was responsible for the overall schedule development of the Pre-Feasibility Study.

Results

The collaboration between PureGold Mining and TMG has led to significant achievements in the Madsen project:

Operational Improvements: TMG identified over $41.0 million worth of operational improvements, streamlining cash flow with an average payback period ranging from six months to four years.
Study Advancement: The completion of the Pre-Feasibility Study and Trade-Off studies has provided PureGold Mining with valuable insights and recommendations for enhancing their operations and financial performance.
Regulatory Compliance: The support in compliant disclosures ensures that PureGold Mining’s project meets the stringent standards set by National Instrument 43-101.

The collaboration between PureGold Mining and TMG highlights their shared commitment to advancing the Madsen project through rigorous financial and operational analysis. The Madsen Pre-Feasibility Study represents a significant step forward in optimizing the operational efficiency and financial viability of the PureGold Mine, reinforcing PureGold Mining’s position in the gold mining sector. The project underscores the importance of detailed study management, trade-off analysis, and adherence to regulatory standards in achieving successful project outcomes.