By August, Madsen Gold (MGF-T) expects to have achieved full commercial production of 500 tons per day at its namesake gold mine in the Red Lake district of northwestern Ontario.
The junior says it is on target to produce 40,000 oz. gold this year and 50,000 oz. in 1998. Cash operating costs are projected at US$255 per oz. in 1997, decreasing to US$230 in the following year.
Madsen’s gold pour on June 14 was the first in 21 years for the former producer.
The junior spend $20 million to refurbish and reopen the underground mine. By spending a further $5 million, the mine can be expanded to 1,000 tons per day. Proven and probable reserves stand at 1.2 million tons grading 0.27 oz.
gold per ton, equivalent to nearly seven years of production at current levels.
An exploration program is attempting to expand reserves. The primary focus of this effort will be the previously-Mined Austin deposit, which is open to the east, west and at depth. The program also will be directed towards proving up new deposits on the high-grade No. 8 vein and the nearby McVeigh horizon.
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