21:30:27 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Pure Gold Mining Inc
Symbol PGM
Shares Issued 359,233,359
Close 2020-05-11 C$ 0.89
Market Cap C$ 319,717,690
Recent Sedar Documents

Pure Gold expects to pour first gold at Red Lake in Q4

2020-05-11 08:00 ET - News Release

Mr. Darin Labrenz reports

CANADA'S NEXT GOLD MINE ON TRACK FOR FIRST GOLD POUR IN Q4

Pure Gold Mining Inc.'s mine construction activities at its Pure Gold Red Lake mine in Ontario are on schedule for first gold pour before the end of the year.

The company continues to make significant progress toward completing construction while ensuring the health and safety of its employees and contractors during COVID-19. The first gold pour planned for Q4 2020 aligns with a robust and rising gold market, that significantly exceeds the base case parameters and strong project economics of the mine's 2019 feasibility study (1). Pure Gold also continues to build size and scale: this month it begins drilling with the intent to convert resources to reserves and increasing resources from new high-grade discoveries at surface and at depth (2).

"We are not just building an integrated mining operation. We are building a fully funded, long-life growth company uniquely positioned in the Red Lake camp, one of the world's largest gold-producing districts. Our opportunity is tremendous: the real potential to become Red Lake's next senior gold producer," says Darin Labrenz, president and chief executive officer. "Our 47-square-kilometre property possesses a proven, large high-grade gold system, with the same rocks, structure, timing, geology, grade and endowment potential as Evolution's Red Lake mine just 15 kilometres away. Work to date has proven we have a clear and precise understanding of the geology and district, and we have demonstrated our ability to execute on our goals. Our future cash flow will fund our aggressive gold growth plans, and there is no more important time to be building a gold mine."

Project economics

Current market conditions improve the company's Canadian-dollar-per-ounce gold price by 41 per cent from the base case. Base case parameters for the company's 2019 feasibility are $1,275 (U.S.) per ounce of gold and a U.S. to Canadian exchange rate of $1.33, equal to a $1,700 (Canadian) gold price. As a Canadian gold producer, the combination of stronger gold price and declining Canadian dollar has a material positive impact. As at May 7, 2020, with gold at $2,400 (Canadian) per ounce, the mine would generate an additional $679-million (Canadian) in revenue over the base case (1).

Engineering, procurement and hiring

Detailed engineering in the process plant is now 95 per cent complete, strengthening certainty for meeting production timeline. The company has increased placed equipment purchase orders of long-lead items to 80 per cent, based on value, including key processing equipment. To date, the company has hired 60 new employees, most of whom are Red Lake residents. The company is also continuing to build upon its relationships with local and first nation contractors and service providers.

Surface construction

Significant new developments include near completion of mine dry construction, substantial progress toward the refurbishment of the semi-autogenous grinding (SAG) mill, opening the process plant's roof to remove the legacy ball mill in preparation for the new ball mill installation and starting foundation work for the batch plant that will supply backfill material for the mine.

Underground development

Preproduction underground ramp development as part of the company's test mining program was initiated ahead of the feasibility schedule and continues to progress at an accelerated pace. It has now completed 1,000 metres of development, up from 740 metres from last reporting. This development will increase productivity by providing access to key stopes ahead of schedule, optimize the mine plan with higher grade ore and accelerate cash flow.

Growth

The company continues its disciplined and highly successful growth program across its 100-per-cent-owned, 47-square-kilometre property, located in the heart of the Red Lake mining district. Within the company's strong, open over seven km gold system, it has already made three new discoveries at surface, and confirmed strong potential to expand at depth, supported by high-grade intercepts occurring up to 700 vertical metres below the base of the current mine plan. Subject to continued monitoring of the COVID-19 pandemic, the company intends to resume its 2020 drill program in late May with the goals of converting resources to reserves and increasing resources from new high-grade discoveries at surface and at depth. Initial drilling from new underground access will focus on the growth of mineral reserves in areas targeted for 2020 and 2021 production. It will then focus on increasing resources outside of the initial mine footprint (2).

Health and safety

Development activities at the Pure Gold Red Lake mine continue to operate normally, with no significant impact to date beyond the implementation of additional education and safety measures. It has no reported incidences of COVID-19 to date. Please see March 20, 2020, release for the company's COVID-19 response measures.

Qualified persons and National Instrument 43-101 disclosure

Ken Donner, PEng, vice-president, operations, for the company, is the designated qualified person for this news release within the meaning of National Instrument 43-101 and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

For further information, see the technical report titled "Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit Red Lake, Ontario, Canada" with an effective date of Feb. 5, 2019, and dated July 5, 2019, for further information, available at the company's website or under its SEDAR profile.

About Pure Gold Mining Inc.

The Pure Gold Red Lake mine is Canada's next gold mine. Fully financed, the project is on track to deliver near-term gold production into a rising Canadian gold price environment, with first production scheduled for late 2020. The orebody is situated within a seven-kilometre-long gold system that is wide open for expansion at depth and along strike, and multiple discoveries by the company suggest potential opportunities for near-term growth.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.