The Derlak Red Lake Property is strategically located in the prolific Red Lake Greenstone Belt approximately 5 kilometers southwest of the Town of Red Lake and 1.6 kilometers northeast of the past producing Madsen Mine along a major unconformity known as the "Madsen Trend". The Property is accessible year round by paved highway and gravel roads. A major power line is present along the eastern claims on the property.
Orefinders Derlak Property is is completely surrounded by Pure Gold's Madsen Mine land position, except for a single claim block which is bounded by Goldcorp Inc.
The Madsen Mine is owned by Pure Gold Mining and is host to two significant past-producing mines, existing mine infrastructure, current Mineral Resources, and multiple exploration targets in a geological setting analogous to other modern high grade discoveries in the Red Lake District.
MADSEN MINE PROJECT HIGHLIGHTS
- Location: Located in Red Lake, Ontario, an established mining jurisdiction with more than 28 million ounces1 of high grade gold produced to date.
- High Grade: Madsen is one of the highest grade undeveloped deposits in the world2. High grade gold near ultramafic contacts have been identified in the 8 Zone, Fork Zone, and Russet South.
- Mineral Resources: Current mineral resources from four zones within the historic Madsen Mine include:
- Indicated mineral resource of 928,000 oz gold in 3.24 million tonnes grading 8.93 g/t Au;
- Inferred mineral resource of 297,000 oz gold in 0.79 million tonnes grading 11.74 g/t Au
- Past Producer: The property is host to three past producing mines, including the Madsen Mine which produced 2.4 million ounces of gold.
- Permitted: Located on patented ground with permitted tailings facility
- Infrastructure: Existing mining infrastructure in place, including a 550 tonne per day mill, a 1,275 metre deep shaft and headframe, portal and decline, 27 levels of underground workings, connected to roads and power
- Pure Gold Mining's Madsen Mine Positive PEA Study: Base case Preliminary Economic Assessment ("PEA") completed in April 2016, evaluating development opportunity utilizing existing infrastructure and a portion of the mineral resource
- Pre-Tax NPV(5%) of $104 million, IRR of 74%
- After-Tax NPV(5%) of $76 million, IRR of 62%
- The Derlak Red Lake Property consists of eleven contiguous patented mining claims which Orefinders owns 100%
- Derlak Red Lake Property remains largely untested and has the potential for discovery of economic mineralisation near-surface and at depth, along the Madsen Trend for a strike length of up to 1200m across the property.
- The Madsen Mine mineralized trend extends down dip onto Orefinders' Derlak claim boundary, with Claude Resources (Pure Gold Mining's predecessor) having drifted and mined to the limit of our patented claims.