TIDMPUR
RNS Number : 5130Y
Pure Gold Mining Inc.
13 May 2021
NEWS RELEASE 21- 09 May 13 , 2021
PUREGOLD REPORTS HIGH-GRADE PRODUCTION AS MINE ENTERS FINAL
STAGES OF
RAMP-UP
VANCOUVER, B.C. - Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR)
("PureGold" or the "Company"), is pleased to provide an operations
update for its high-grade PureGold Mine in Red Lake, Ontario.
With the milling facility ramp-up completed in the first
quarter, the Company's focus for the second quarter has shifted to
ramping up high-grade ore production from the mine.
Quarter-to-date, head grades have significantly increased compared
to the first quarter and continue to trend positively, achieving an
average of 6.3 g/t Au over the last three weeks. Metallurgical
recoveries continue to be exceptional, ranging between 95-99%
year-to-date. Ore production rates are expected to continue to
increase toward design capacity of 800 tonnes per day with the goal
of achieving and sustaining that rate by mid-year.
Production Highlights for the Three-Week Period from April 20 -
May 10, 2021
-- 6.3 g/t Au average processed head grade
-- 9,637 tonnes of ore milled
-- 97.5% gold recovery rate
-- 1,908 ounces of gold produced
-- 459 tonnes per day processed on average
Darin Labrenz, President & CEO of PureGold, commented, "The
ramp-up of the PureGold Mine has gone exceptionally well during the
second quarter. As we continue to open up the mine and access the
heart of the deposit, we are seeing the mine show its high-grade
nature, as expected. Our most recently mined stope yielded an
average head grade of 10.0 g/t Au including a peak daily head grade
of 13.1 g/t Au and provided mill feed for multiple consecutive days
setting single-day and multi-day production records. These high
grades remind us of how special this orebody is and of the
world-class potential Red Lake deposits are known for. Our focus
for the balance of the second quarter will be on ramping up ore
production from the mine to design capacity."
He continued, "We currently have 17 stopes designed and ready
for development over the next three months, representing
approximately 70,000 tonnes of ore with an estimated average grade
of 6.0-7.0 g/t Au, in line with expected grades from the
feasibility study.(1) We are currently active in 17 headings at
various phases of development and expect that number to increase to
26 by the end of the quarter. With the first stopes expected to be
developed in the East Ramp area in the coming weeks, we will soon
have two active haulage ways to support increased ore production
for the remainder of 2021 and beyond. We are targeting an ore
production rate of 500-600 tonnes per day for the month of May and
are expecting to achieve feasibility design capacity of 800 tonnes
per day on a sustainable basis by mid-year. With the mine entering
the final stages of ramp-up and commercial production imminent, our
long-term goal of combining world-class exploration potential with
a cash flowing mine is becoming very real. It is an exciting time
for PureGold."
Mining Update
During the first six weeks of the second quarter, mining has
generally progressed from stopes on the periphery of the orebody
into the higher-grade heart of the orebody. Additionally, as access
to a greater number of production areas has been established
including areas accessible via the East Ramp, stope availability
and scheduling flexibility have improved significantly compared to
the first quarter. External dilution issues related to overbreak
encountered in the first longhole stopes mined in the first quarter
have been resolved. As expected, non-mineralized dykes have not
been a significant issue in any stopes since the first quarter.
Production for the first six weeks of the second quarter totaled
18,546 tonnes of ore and 2,855 ounces of gold recovered, inclusive
of a four-day mill shutdown for planned maintenance in mid-April.
High-grade ore production highlights in the second quarter to date
include stope MV04-1347 which returned 3,813 tonnes grading 10.2
g/t Au on average, and stope MV03-1360 which returned 1,363 tonnes
grading 7.3 g/t Au on average.(2) These stopes are in the heart of
the orebody and are reconciling in line with the Company's
expectations.
Ramp Development
The Company is accelerating development of both the Main Ramp
and the East Ramp main haulage ways for the remainder of 2021.
Proceeds from the recently closed $17.3 million equity offering,
which included $1.5 million subscribed for by the Board and Senior
Management, will primarily be deployed to accelerate the
development of these two ramps and should enhance near-term mine
flexibility, provide earlier access to higher grade mining zones
including the ultra high-grade 8 Zone, and position the mine for
potential expansions beyond 800 tpd in the future.
Processing Update
The milling facility has continued to operate exceptionally well
throughout the first six weeks of the second quarter. Recoveries
have exceeded feasibility expectations, averaging 96.6% for the
first six weeks of the quarter and 97.5% for the three-week period
from April 20 - May 10, 2021. Since reaching nameplate capacity in
March 2021, throughput has been reduced to align with the rate of
ore production from the mine as the mine continues to ramp-up.
Interstage screens for the CIP tanks and a trommel screen for the
SAG discharge are currently in transit and are now expected to be
installed in early July which will further enhance operational
stability and will position the milling facility for potential
expansions beyond 800 tpd in the future.
Financial Update
As of May 12, 2021, the Company held approximately $23 million
in cash. The Company has drawn US$77.5 million to date on its
credit facility with Sprott Resource Lending and expects another
US$7.1 million principal to be made available as a result of the
proceeds raised in the bought-deal equity offering closed May 5,
2021. The Company's financial statements for the quarter ended
March 31, 2021 will be available on May 14, 2021.
Commercial Production
The Company currently anticipates declaring commercial
production at or near the end of the second quarter, based on its
ongoing assessment of both ore throughput and gold production.
Inaugural production and cost guidance for the balance of 2021 will
follow shortly thereafter.
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.
About Pure Gold Mining Inc.
PureGold is a growth company, located in the very heart of Red
Lake, Canada. Our objective is pure and simple. To develop a
highly-profitable long life gold mining company, becoming Canada's
next iconic gold producer. Our plan is very disciplined, very
methodical and financially sound. To expand organically, and
develop PureGold's multi-million ounce high grade gold asset
incrementally, step-by-step, using a phased mining development plan
to deliver maximum return.
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
1. 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
February 5, 2019, and dated July 5, 2019 (the "Feasibility Study"),
for further information please see www.puregoldmining.ca or under
the Company's Sedar profile at www.sedar.com
2. Average grades for stopes are determined by averaging all
muck samples from the stope. Individual muck samples in excess of
100 g/t gold were cut back to 100 g/t gold.
ON BEHALF OF THE BOARD
"Darin Labrenz"
Darin Labrenz, President & CEO
Investor inquiries:
Adrian O'Brien, Director, Marketing and Communications
Tel: 604-809-6890
aobrien@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 Mine
complex, timing of expected production, potential for accelerating
development of the two main ramps, 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 31, 2021 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.
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END
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