Pure Gold Inc. - Amendment to a closure plan

Pure Gold Inc. has submitted an Amendment to a Closure Plan for filing by the Ministry of Energy, Northern Development and Mines as required under the Mining Act. The following are the major components of this Amendment to a Closure Plan as proposed by Pure Gold Inc.:

• List changes

Pre-development Surface development, refurbishment and modernisation of existing infrastructure:

• The mill and associated facilities sized to 800 t/d (reduced from existing 1089 t/d)
• Utilization of existing portal underground access
• Utilization of the existing Advanced Exploration laydown area, fuel storage and refuelling area at the Madsen Portal
• Mine ramp access
• Ventilation and heating systems
• Haul road between the portal and the head frame
• Tailings Management Facility service road
• Emergency power supply at the mill
• Expanding rock storage areas on historically used land within the TMF catchment.

Improvement of water management facilities for improved water quality including:

• Installation of a cyanide destruction unit at the existing mill
• Upgrading existing or installation of new pipelines for tailings deposition, dewatering and water recirculation from the TMF
• Installation of an active waste-water treatment system for the removal of ammonia, arsenic and other metals before the release of mine water below the existing Polishing Pond
• Upgrading of existing sewage facilities in collaboration with MECP, Red Lake Municipality and Northern Water with the intent of bypassing the TMF to avoid remobilisation of Arsenic in the tailings
• Reinforcing and raising the wall of the existing Tailings Pond to hold additional tailings and control seepage to the polishing pond
• Upgrading the polishing pond dam walls to address stability issues
• Repositioning the TMF ponds away from retaining walls and structures to reduce potential seepage
• Initiating a partial closure of the TMF to reduce remobilisation of historical tailings.

 Acquisition or construction of additional facilities within the legacy mine footprint:

• Construction of administrative buildings, dry, parking area, and maintenance facilities
• Construction of a hoisting system in the headframe yard
• Installation of a crushing system in the headframe yard
• Installation of surface ventilation fans and a mine air heater
• Installation of a backfill plant in the mill yard
• Upgrading of existing roads and construction of new ones
• Acquisition of a mining fleet
• Development of a surface Mine Rock Management Facility and soil stockpiles to provide material for the TMF closure. No materials were stockpiled for closure by previous operators
• Installation of noise control measures along roads and near ore handling facilities.

Recommencement of mining including:

• Underground mine development via the existing Madsen Portal. The resource is an additional 43% of the historic mine
• Bringing ore to surface via the existing portal or the #2 Shaft
• Recommencement of ore processing and tailings discharge to the Tailings Management Facility (TMF) at a rate of 800 tonnes per day
• Backfilling of mined underground areas with tailings and mine rock as mining proceeds
• Progressive reclamation and rehabilitation of areas where mine operations have been completed and the partial reclamation of the TMF during the life of mine to meet agreed to final land use objectives.

Final decommissioning and closure:

• Defining in consultation with regulators, First Nations, and the local community closure “endpoints” during the life of mine
• Implementing a final reclamation and closure plan to meet those endpoints.

The filing of an Amendment to a Closure Plan does not relieve the proponent from compliance with any other requirements that are set out under the Mining Act or any other Act. All activities included in the filed Amendment to a Closure Plan must be carried out in compliance with Ontario Regulation 240/00.