All components of the Dona Lake mill have been moved to the Madsen gold mine property near Red Lake, Ont., as Madsen Gold (TSE) works toward its goal of resuming production at its namesake operation.
Madsen bought the Dona Lake mill for $816,000 in late 1994, and plans to reconstruct it at the Madsen mine site in 1996.
All government approvals for the recommissioned permanent hoist have been received, and the modern, computer-operated hoist is now operational and ready to pull ore. The company is currently hoisting ore and stockpiling it for testing purposes.
Underground drilling has resumed, with three rigs attempting to confirm and expand the known reserves in the upper levels of the mine. New drill stations have been established on the second level, east of the shaft, to investigate the 2-30 zone and continue exploring the area above the 4-14 stope. An immediately accessible area east of the 2-15 lens has been found to contain 2,200 tons grading 0.46 oz. gold per ton (undiluted). A recent hole, drilled 42 ft. above the second level, intersected 8 ft. averaging 0.39 oz. gold.
Proven and probable minable reserves at the Madsen mine are estimated at 907,000 tons averaging 0.289 oz. gold, for a contained resource of about 262,000 oz. The mine cranked out more than 3.8 million oz. of the yellow metal between 1938 and 1976.
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