Pure Gold Mining (TSXV: PGM) is seeking a higher profile for its Madsen gold project in northwestern Ontario, with a listing on the main market of the London Stock Exchange.
The junior expects admission to trading on the LSE in the second quarter of this year.
The dual listing will boost the company’s international profile and “facilitate improved access to U.K. and international gold-focused institutional investors,” Darin Labrenz, Pure Gold’s president and CEO, says in a news release.
The company says it is not currently intending to raise capital in conjunction with the listing.
The project is centered around the historic Madsen mine, which produced 2.5 million oz. gold at an average grade of 9.7 grams gold per tonne between 1938 and 1976, and again from 1997 to 1999.
A recent feasibility study estimates capital requirements of US$71 million to build an underground mine and a 13-month construction period.
The study forecast a 12-year mine life, and total gold production of 970,000 oz. for an average 80,000 oz. per year.
Operating cash costs and all-in sustaining costs for the 800-tonne-per-day operation over the mine life are estimated at US$607 per oz. and US$787 per oz., respectively.
Using a gold price of US$1,275 per oz., Madsen’s after-tax net present value at a 5% discount rate is estimated at US$185 million, with an after-tax internal rate of return of 36%, which would result in initial capex payback in just under three and a half years.
The mine plan envisions a combination of methods from conventional cut and fill (59%), mechanized cut and fill (16%) and longhole mining (25%).
The feasibility study is based on Madsen’s indicated resource of 1.86 million contained oz. gold within 6.43 million tonnes grading 9 grams gold, and did not include mineralization from any of the project’s satellite deposits — Wedge, Fork and Russet South.