Madsen raises funds for underground exploration

Madsen Gold (TSE) has raised $402,500 in a flow-through share offering.

The funds will be applied to underground exploration costs at the past-producing Madsen gold mine in Red Lake, Ont. In addition to dewatering, the company will continue drilling the 2-30 lens in the vicinity of the second level.

The work is intended to expand proven and probable reserves so that the mine can be re-opened. Reserves currently stand at 1 million tons averaging 0.29 oz. gold per ton.

Previously, three holes drilled over a 100-ft. strike length of the 2-30 lens intersected mineralization to yield a reserve figure of 8,500 tons averaging 0.29 oz. gold per ton over a true width of 14-20 ft. The zone remains open at depth.

In addition to the Madsen mine, the company owns two other past-producing gold mines, a 500-ton-per-day mill and more than 10,000 acres of contiguous claims — all in the Red Lake area.