Additionally, the company has awarded the underground mine design engineering contract to Dumas Mine Contracting.
The Madsen mine is located in the Red Lake mining district in northwestern Ontario, Canada.
With the engagement of its engineering partners, the company has commenced construction of the mine. Detailed design work on surface infrastructure, as well as underground electrical distribution, mine ventilation, mine service design and stope optimisation has been initiated, as well as equipment sourcing and the procurement of long lead time items.
"Today we hit yet another key milestone on our road to near term cash flow," stated Darin Labrenz, president and CEO of Pure Gold Mining. "I am incredibly proud of our team for what they have accomplished over the last five years. Madsen began as an exploration concept in late 2014, and has evolved into a multi-million ounce gold deposit that is now under construction as Canada`s highest grade gold development project.
"Along the way, the team has hit every milestone we set; from first resource estimate, to early conceptual studies, through a comprehensive feasibility study, an agreement with our First Nation partners, and now a fully funded financing package. Today, as we commence construction, our project is perfectly timed to benefit from a rising gold market, and looks set to generate well over C$800 million [US$608.8 million] in cumulative pre-tax cash flow with gold currently near C$2,000 per ounce."