Junior Madsen Gold (TSE) is taking the Ontario government and the Local Services Board of Madsen in the Red Lake area of northwestern Ontario to court.
The company is seeking damages from the ministry of the environment and energy and the community board related to the discharge of raw sewage on its tailings. This action, alleges the company, has rendered the tailings unfit for commercial recovery in the foreseeable future.
Madsen has been working the past-producing Madsen gold mine, which it says hosts proven and probable reserves of 832,900 tons grading 0.29 oz. gold per ton. The company is concerned that it may be delayed or prevented from re-opening the old mine.
Meanwhile, the company recently received a $300,000 grant from the Northern Ontario Heritage Fund
With the grant, the company has now raised the $1.4 million required to dewater its Madsen property. The mine will be dewatered down to the 12th level to confirm conditions underground and allow for drilling. Madsen work crews have removed the shaft cap and are currently retimbering the shaft below the collar.
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