NEWS RELEASE 20-22 November 13, 2020
PURE GOLD REPORTS THIRD QUARTER FINANCIAL RESULTS
Remains on Track for First Ore to Mill by Year-End
VANCOUVER, B.C. - Pure Gold Mining Inc. (TSX-V: PGM, LSE: PUR) ("Pure Gold" or the "Company") is pleased to announce that its unaudited condensed interim consolidated financial statements ("Financial Statements") for its third quarter ended September 30, 2020 and the accompanying Management's Discussion and Analysis are available for download on the Company's website at www.puregoldmining.ca and under the Company's SEDAR profile at www.sedar.com.
Financial and Operating Highlights for the quarter and to date:
During the three months ended September 30, 2020 and up to the date of this MD&A, the Company advanced construction and underground development activities at its 100%-owned PureGold Mine Project ("Mine Project" or the "Project")). A summary of the highlights for the three months ended September 30, 2020 and subsequent period to date are as follows:
· Development of the Mine Project continues
The development of the Mine Project is continuing at a rapid pace. Engineering is complete and all major components are on site and installed. Final piping and electrical cabling has begun. The Company remains on track to bring first ore to the mill before year-end.
· Raised approximately $7.1 million from the exercise of share purchase warrants and stock options
During the quarter and subsequent to quarter end, PureGold raised approximately $7.1 million from the exercise of 7,561,500 share purchase warrants with a strike price of $0.85 (the "Warrants"), including 5,925,000 Warrants exercised by Anglogold Ashanti, increasing its ownership percentage in the Company to approximately 16% and 3,346,665 share purchase options with a weighted average exercise price of $0.27 per share.
The Company remains fully funded through construction of the PureGold Mine.
· Announced significant results from underground and surface drilling
Our underground drilling continues to be extremely successful in delivering on its objective of discovering new gold mineralization, extending mineralization out from planned stopes and confirming stopes planned for near-term production. New grade control drilling has highlighted the potential for bonanza grades in stopes planned for near term production[1].
Highlights of drilling from underground include:
o 296.1 g/t gold over 4.9 metres from test hole PGL-0003, including 1,147.1 g/t gold over 1.2 metres;
o 40.0 g/t gold over 2.2 metres from drill hole PGB-0170, including 94.1 g/t over 0.9 metres;
o 18.7 g/t gold over 2.8 metres from drill hole PGB-0165, including 65.4 g/t over 0.7 metres;
o 11.1 g/t gold over 6.7 metres from drill hole PGB-0178.
Additionally, new surface drilling results at the Wedge target ("Wedge") highlight the strong continuity of the high-grade gold mineralization, both down plunge and along strike, reinforcing the Wedge as a high priority for resource growth.
Highlights of surface drilling from Wedge:
o 66.3 g/t gold over 1.0 metre from drill hole PG20-769;
o 24.3 g/t gold over 1.0 metre from drill hole PG20-775;
o 20.5 g/t gold over 1.0 metre from drill hole PG20-766;
o 16.6 g/t gold over 1.5 metres from drill hole PG20-767;
o 11.4 g/t gold over 2.0 metres from drill hole PG20-773.
Selected Financial Data
The following selected financial data is derived from our Financial Statements and related notes thereto for the periods indicated, as prepared in accordance with International Financial Reporting Standards. Details of these results are described in the unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis for the nine months ended September 30, 2020.
| | For the three months ended September 30, 2020 | For the three months ended September 30, 2019 | For the nine months ended September 30, 2020 | For the nine months ended September 30, 2019 |
| Total Revenue | - | - | - | - |
| Exploration Expenditures | $ 2.8 million | $ 3.6 million | $ 3.0 million | $ 7.2 million |
| Loss on change in fair value of derivatives | $ 6.4 million | $ 3.3 million | $ 6.8 million | $ 3.3 million |
| Net Loss and Comprehensive loss for the period | $ 9.7 million | $ 8.8 million | $ 10.8 million | $ 15.7 million |
| Basic and Diluted Loss per Share | $ (0.02) | $ (0.03) | $ (0.03) | $ (0.05) |
| | | As at September 30, 2020 | | As at December 31, 2019 | |
| Total assets | $ | 212.0 million | $ | 130.6 million | |
| Current liabilities | $ | 32.7 million | $ | 8.2 million | |
| Non-current liabilities | $ | 109.3 million | $ | 72.8 million | |
| Cash dividends declared | $ | - | $ | - | |
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