TIDMPUR
RNS Number : 9043Q
Pure Gold Mining Inc.
24 June 2020
NEWS RELEASE 20- 12 June 24 , 2020
PUREGOLD RED LAKE MINE CONSTRUCTION RAMPING UP - ON TRACK FOR Q4
PRODUCTION
VANCOUVER, B.C. - Pure Gold Mining Inc. (TSX-V: PGM, LSE: PUR)
("PureGold" or the "Company") is pleased to report on the progress
of construction activities at its PureGold Red Lake Mine, located
in Red Lake, Ontario. Construction is advancing rapidly, on
schedule for first gold pour in Q4 2020.
Project Highlights as at June 21, 2020:
-- Procurement of major equipment is now 94% complete
-- Total of 1,285 metres of underground mine development
completed. Advance rate 60% better than mine plan
-- Initial access development to longhole stopes commenced
-- Installed alimak in existing shaft to support dewatering and shaft rehabilitation
-- Process plant prepared for installation of new equipment,
with removal of legacy piping, pumps, motors, ball mill, gold room
and pre-leach thickener
-- Steel and concrete work modifications inside process plant
for new ball mill, gravity circuit and construction of hydraulic
backfill plant commenced
-- Installed and occupied new buildings including administration, warehouse, and mine dry
-- Recruited key operational team members including safety,
mining, milling, and technical services, with bulk of operational
management team now in place
-- More than 145,000 hours without a lost time incident
Construction, which commenced at the PureGold Red Lake Mine in
late 2019, is well advanced with 45% of our capital expenditure
committed. The Company is fully funded to production, with first
gold production planned for Q4 2020.
"We are now only months away from first gold pour at our new
PureGold Mine, and our first step to building a long-life growth
company in the heart of Red Lake, one of the world's most prolific
gold-producing camps," says Darin Labrenz, President and CEO. "Our
opportunity for value creation is tremendous: we are delivering our
mine into a rising gold market, with the potential to benefit from
a period of margin expansion unlike any we have seen in years. But
we see this as just the beginning of establishing ourselves as Red
Lake's next senior producer. On the cusp of production, we believe
we have only scratched the surface and we are already working
towards the next phase of our growth with the initiation of an
aggressive 18-month exploration program. We look forward to
becoming Canada's next gold mine and delivering on the strong
organic growth platform that underpins our PureGold Red Lake
Mine."
Mine Development:
As at June 19th, a total of 1,285 metres of underground
development has been achieved. Underground development to date is
advancing at a rate of eight metres per day compared to a
feasibility planned advance of five metres per day. Improved
productivity, with development rates that are 60% better than plan,
and a focus on main ramp development will open up more mining areas
and drive deeper development more quickly. This will allow the
Company to improve upon the feasibility mine plan by prioritizing
mining on higher grade stopes.
The Company has commenced initial access development to the
first longhole stopes and is now accessing ore on multiple sills.
Underground development is expected to accelerate in July with the
recruitment of the next team of mining crews.
Another significant new development underground is the
installation of a three deck alimak in the shaft to support mine
dewatering. Dewatering is now down to 311 metres below the shaft
collar, progressing on schedule and well in advance of underground
development.
Underground exploration and stope scale drilling is now
underway, with infill drilling focused in areas targeted for the
first two years of production. The underground drill program has
been designed to convert resources to reserves and expand mineral
resources in order to more closely define the stope geometry,
further optimize and expand the near term mine plan.(1)
Process Plant:
Construction and modernization of our process plant is
progressing well. Electrical switchgear has been certified and
overhead cranes have been commissioned and are being utilized for
removal of old equipment and installation of new. Numerous systems
have been dismantled and removed to make way for new equipment,
including all piping, pumps and motors, pre-leach thickener and all
gold room components. In addition, the pre-existing ball mill has
been removed, along with the original pedestals. New concrete
foundations have been designed and mill pedestals will soon be
constructed in preparation for the arrival and installation of a
new ball mill, which is scheduled to arrive in late August.
Steel work for the new gravity circuit, anticipated to arrive in
July is now complete. Foundations and tanks for the new hydraulic
backfill batch plant and cyanide detoxification circuit are well
advanced.
Other Surface Infrastructure:
Construction continues to accelerate with more than 80
contractors now on site. New infrastructure established includes an
administration complex, warehouse, mine dry and water treatment
plant building. Road infrastructure has been improved and a mine
rock management facility has been completed.
Equipment Procurement:
Approximately 95% of major equipment procurement packages have
been placed. Initial procurement packages have been delivered to
site and significant equipment orders, including long-lead items
and key processing equipment are in fabrication and are progressing
on schedule, with delivery expected in the coming weeks. New mine
equipment delivered to date includes four underground scoops, two
jumbos, two haul trucks, two scissor lifts, multiple utility
vehicles and an anfo loader.
Permitting:
The amendment of the Environmental Compliance Approval ("ECA")
for Air and Noise permit has passed regulatory review and all work
is complete, with receipt of the amended permit anticipated in the
coming weeks. In addition, regulatory review of the Industrial
Effluent permit (ECA Industrial Sewage Works) amendment is complete
and the permit amendment is expected to go through an expedited
approval process.
Operations Team:
PureGold is pleased to announce that Rickardo Welyhorsky,
P.Eng., has recently joined the senior mine management team as Mine
General Manager.
Mr. Welyhorsky is a Professional Engineer with a degree in
Extractive Metallurgical Engineering and over 27 years of
experience throughout all l e vels of project development and
operations in the mining and metals industry. He has a wealth of
Canadian and International experience in various roles with Yamana
Gold, Detour Gold , Barrick Gold, and AMEC.
Most recently, Mr. Welyhorsky was Director Technical Services
for Yamana Gold, where he played a leadership role in the
development and commissioning of the Cerro Moro underground and
open pit operation. Prior to his position with Yamana, Mr.
Welyhorsky held management positions at several Canadian open pit
and underground operations.
PureGold's operational management team is now well advanced,
with the Mine General Manager, Milling Manager, Mining Manager,
Chief Engineer, Chief Geologist, and Health and Safety
Superintendent all in place. Other key project roles have been
filled and discussions are ongoing with candidates for remaining
positions. Hiring is underway for the next tranche of miners for
ore development work as well as recruitment of key roles in the
maintenance department. To date, PureGold has recruited 89 of the
101 employees planned for the end of June. The total workforce
anticipated to be engaged by end of September, before start of mill
operations is 189 employees. We continue to place emphasis on
engaging and hiring local and First Nation contractors and
employees.
Health & Safety:
Since construction was initiated in 2019, the PureGold team has
completed over 145,000 hours without a lost time incident. All
construction and development activities at the PureGold Red Lake
Mine continue to operate normally, with no significant impact to
date beyond the implementation of additional education and safety
measures. We have no reported incidences of COVID-19. Please see
March 20, 2020 release for our COVID-19 response measures.
Engagement of Investor Relations Consultant:
The Company would also like to advise that Goldsmith
Consultants, LLC., has been engaged for Investor Relations
consulting effective immediately. The engagement of Goldsmith
Consultants supports the Company's broader communications strategy
to build investor audiences.
Goldsmith Consultants does not have any interest, directly or
indirectly in PureGold Mining or its securities nor any right to
acquire such an interest. Pursuant to the terms of the Company's
agreement with Goldsmith Consultants, Goldsmith will be responsible
for a variety of financial public relations and investor relations
activities, including development of the Company's communications
strategy, dissemination of corporate information, presentations,
videos, interviews, and communications materials.
Qualified Persons and 43-101 Disclosure:
Ken Donner, P. Eng., Vice President, Operations for the Company,
is the designated Qualified Person for this news release within the
meaning of National Instrument 43-101 ("NI 43-101") and has
reviewed and verified that the technical information contained
herein is accurate and approves of the written disclosure of
same.
1. See Company News Release Dated June 4(th) , 2019
For a set of photos showing recent development, click link
below:
http://puregoldmining.ca/sites/default/files/June23NRPhotos.pdf
About Pure Gold Mining Inc.
The PureGold Red Lake Mine is Canada's next gold mine. Fully
funded, 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.
Additional information about the Company and its activities may
be found on the Company's website at www.puregoldmining.ca and
under the Company's profile at www.sedar.com .
ON BEHALF OF THE BOARD
"Darin Labrenz"
Darin Labrenz, President & CEO
Investor inquiries:
Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000
info@puregoldmining.ca
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
All statements in this press release, other than statements of
historical fact, are "forward-looking information" with respect to
PureGold within the meaning of applicable securities laws,
including, but not limited to statements with respect to those that
address proposed timing of development plans for the PureGold Red
Lake Mine complex, timing of expected production, timing and size
of exploration activities, expected development rates and schedule,
timing of permits, potential for advancing the amount and timing
for higher grade ore, potential for additional resources and
expansion of known deposits and potential for making new
discoveries and the focus of the Company in the coming months .
Forward-looking information is often, but not always, identified by
the use of words such as "seek", "anticipate", "plan", "continue",
"planned", "expect", "project", "predict", "potential",
"targeting", "intends", "believe", "potential", and similar
expressions, or describes a "goal", or variation of such words and
phrases or state that certain actions, events or results "may",
"should", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made including, among
others, assumptions about future prices of gold and other metal
prices, currency exchange rates and interest rates, favourable
operating conditions, political stability, obtaining governmental
approvals and financing on time, obtaining renewals for existing
licences and permits and obtaining required licences and permits,
labour stability, stability in market conditions, availability of
equipment, accuracy of any mineral resources, successful resolution
of disputes and anticipated costs and expenditures. Many
assumptions are based on factors and events that are not within the
control of PureGold and there is no assurance they will prove to be
correct.
Such forward-looking information, involves known and unknown
risks, which may cause the actual results to be materially
different from any future results expressed or implied by such
forward-looking information, including, risks related to the
interpretation of results at the Pure Gold Red Lake Mine complex ;
changes in project parameters as plans continue to be refined;
current economic conditions; future prices of commodities; possible
variations in grade or recovery rates; the costs and timing of the
development of new deposits; failure of equipment or processes to
operate as anticipated; the failure of contracted parties to
perform; the timing and success of exploration and development
activities generally; delays in permitting; possible claims against
the Company; the timing of future economic studies; labour disputes
and other risks of the mining industry; delays in obtaining
governmental approvals, financing or in the completion of
exploration as well as those factors discussed in the Annual
Information Form of the Company dated March 26, 2020 in the section
entitled "Risk Factors", under PureGold's SEDAR profile at
www.sedar.com .
Although PureGold has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. PureGold disclaims any intention or
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise
unless required by law.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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