VANCOUVER, British Columbia, Dec. 16, 2020 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (PGM:TSX-V, LSE:PUR) (“PureGold” or the “Company”), is pleased to announce a major milestone with first ore introduced to the mill at the Company’s high-grade PureGold Mine, in Red Lake, Ontario. With ore delivered and first gold production scheduled this month, commissioning activities will transition into full scale ramp up of the mining and milling operations over the coming quarter.
“This is a very exciting day for our shareholders, the community of Red Lake, and our entire team,” stated Darin Labrenz, President and CEO of PureGold. “The introduction of ore to the milling facility reflects the successful culmination of our project build, and signals the commencement of the next chapter in our Company’s evolution as Canada’s newest gold mine. Just last year, we announced our intention to become a producer and we are delivering on that promise, on-track and on schedule for first gold production this month. We have taken the PureGold Mine from our first drill hole to production in less than six years. Bringing a mine on-stream in 2020 is a firm testament to our incredible team, the support we have received from our First Nations partners; Wabauskang First Nation and Lac Seul First Nation, the Province of Ontario, Municipality of Red Lake, and the entire Red Lake community. We look forward to our first gold pour, making the transition to commercial production and continuing to build and expand the PureGold Mine into an iconic Canadian producer in the heart of Red Lake.”
Chief Doug Riffel of Wabauskang First Nation and Chief Clifford Bull of Lac Seul First Nation provide the following joint statement: “We are very pleased with the development and the ongoing progress we continue to make in our relationship with PureGold. Built on the principles of Environmental Stewardship, Resource Sharing and Mutual Respect, we look forward to a long, mutually beneficial relationship.”
As the second operating mine in Red Lake, the PureGold mine is a major contributor to the economy of the region. The mine currently employs over 200 people and the workforce is expected to average 350 individuals during the twelve year phase one mine operation with approximately $470 million in life of mine salaries projected over that period.
Milling Facility
With over 21,000 tonnes of broken ore available, crushing has commenced and first ore has been introduced to the grinding circuit at a rate of approximately 25 tonnes per hour (600 tonnes per day). The mills have operated for short periods at nameplate capacity of 800 tonnes per day and have done so seamlessly, with no operational issues. Gravity concentration will recover free-milling gold, followed by pre-oxidation, leaching, carbon in pulp circuit and electrowinning, and refining to produce doré gold, with first gold expected before the end of 2020. With the grinding circuit, gravity circuit and leach / CIP circuit operating as expected, commissioning activities are now focussed on optimization of the instrumentation and controls of the mill process systems.
Underground Operations
With the commencement of milling operations, underground development will now focus on ore development and mining activities. As at the start of mill operations, a broken ore inventory of approximately 21,000 tonnes is available as mill feed, and a stockpile of ore is expected to be maintained through 2021. In addition to the west portal and ramp, which provides access to the Company’s current ore headings, PureGold has approved and collared a second ramp on the northeast end of the mine. The East Portal and ramp will provide a second mining centre to develop ore headings and will provide access to ore stopes on the east end of the mine approximately 12 months earlier than planned in the feasibility mine plan. This ramp will be driven at 5 metres x 5 metres allowing for improved productivity and providing an opportunity for potential, future mine expansion. Ramp development rates to date, and the addition of the second ramp will increase productivity, provide access to additional stopes ahead of schedule, and will provide an opportunity to focus on higher grade ore which is anticipated to result in increased cash flow in the early years of mine life.
Permitting
The Company is fully permitted for production. The Ontario Ministry of Environment, Conservation and Parks (“MECP”) has approved and issued an Amended Environmental Compliance Approval (“ECA”) for Industrial Sewage Works as well as an Amended ECA for Air and Noise emissions at the PureGold Mine. The Ontario Ministry of Northern Development and Mines has accepted and filed the PureGold Mine Closure Plan Amendment. The Company would like to thank Wabauskang First Nation, Lac Seul First Nation and the ministries for working diligently with the Company in reaching approval for all amendments.
Growth
Exploration activities continue at the Company’s 100%-owned, 47-km2 property. Within a robust, open seven - kilometre gold system, and strong potential to expand at depth, exploration drilling is designed to expedite the growth of mineral resources and aggressively expand new high-grade discoveries. Exploration drilling outside of the existing mine plan continues, with two surface drill rigs and results will be released during the course of activities. Additionally, underground drilling designed to infill and expand mineral resources continues, with the goal of optimizing and expanding the near term mine plan.1 Results from underground will be released on a quarterly basis.
Health & Safety
Since the PureGold Mine project was initiated in 2019, over 450,000 hours have been completed without a lost time incident. The total recordable incident frequency has decreased by approximately 78% over that period. COVID-19 continues to be a risk that is managed at site proactively with no material impact to mine operations.
Pure Gold Mining added to the GDXJ
PureGold is pleased to announce that effective at market close on December 18, 2020, the Company will be added to the GDXJ (VanEck Vectors® Junior Gold Miners ETF) which is traded on the NYSE Arca, under the ticker symbol “GDXJ”.
The Company remains well-funded for commissioning, ramp-up and ongoing exploration activities. With the receipt in December of $5 million from the exercise of share purchase warrants, the Company currently has a cash position of $58 million.
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.
- It is uncertain if further exploration will result in these targets being delineated as a mineral resource. It is further cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability.
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.
ON BEHALF OF THE BOARD
"Darin Labrenz"
Darin Labrenz, President & CEO
Investor inquiries:
Adrian O’Brien, Director Marketing & 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 Red Lake Mine (RL Mine Project), timing of expected gold production, expected capital costs, expected development schedule, potential for advancing the timing for higher grade ore, potential for additional resources 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 RL Mine Project; 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 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.