PureGold Announces Third Quarter 2021 Production Results, MiVANCOUVER, British Columbia, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) (“PureGold” or the “Company”), is pleased to provide a third quarter 2021 update for its high-grade PureGold Mine in Red Lake, Ontario.
Production highlights and milestones for the third quarter include:
- Average daily throughput of 685 tpd for the quarter, a 35% increase compared to the second quarter driven by increased stope access and mill upgrades;
- Gold production of 9,260 ounces, a 54% increase compared to the second quarter driven by higher grades and increased tonnage;
- Average mill head grade of 4.8 g/t Au, a 15% increase on the second quarter;
- Average mill recovery rate of 94.7%, in line with expectations;
- Completion of mill upgrades to increase processing capacity, 1,000 tpd achieved for a number of days;
- Continued ramp-up of production from the East Ramp area of the mine, which has become a key production contributor and is expected to grow significantly over the coming quarters;
- Average ramp development rate 7.4 metres per day, as improving stope access and continuing to accelerate access to deeper, higher-grade zones of the mine, including 8-Zone, remains a top priority.
Mine Leadership Update Maryse Blanger, a Director of the Company, has stepped into the role of Mine General Manager at the PureGold Mine effective today and will be based in Madsen on a full time basis. In this role, Ms. Blanger will oversee all aspects of the day-to-day operations of the PureGold Mine. Maryse is a widely respected senior mining executive with decades of experience and a track-record of successfully leading the construction, commissioning, ramp-up and operation of several mines globally. Her previous roles include President & CEO of Augusta Gold and President, Director & COO of Atlantic Gold, where she successfully guided the company in taking its Touquoy Mine in Nova Scotia from construction to commissioning, ramp-up and full production, through to its eventual acquisition by St. Barbara for $722M. She also served as CEO & Managing Director of Mirabela Nickel Ltd. where she is credited with the successful turnaround of the Santa Rita mine in Brazil during a period of extremely low metal prices. From 2009 to 2014, Maryse was a senior executive with Goldcorp where she was ultimately appointed Senior Vice President, Technical Services.
Darin Labrenz, President & CEO of PureGold, commented, “The third quarter was a strong operational quarter for the PureGold Mine with quarter-over-quarter improvements in ore production, underground development rates, and mill head grades. We expect mill throughput and mill head grades to continue trending positively through the end of 2021 and into 2022 as ongoing accelerated development and definition drilling programs continue to open up access and build inventory in both the East Ramp and Main Ramp areas of the mine. Underground drilling continues to confirm the high-grade nature of this deposit and we are excited by what lies ahead.” He continued, “I am delighted to have Maryse joining our local leadership team in operations on a day-to-day basis. Maryse's extensive global experience both as a corporate executive and a mine operator, with a focus on streamlining organizations and driving cost performance, will be a great asset to PureGold. Her decades of hands-on global mining experience and a progressive approach to mining placing a high priority on safety, sustainability, and accountability, is an excellent addition to the PureGold team. I am confident that Maryse is the right leader to guide the PureGold Mine through its next phase of growth.”
Milling Update Several key upgrades were completed at the milling facilities during the third quarter including the installation of interstage screens on each of the six CIP tanks, installation of a trommel screen on the SAG mill discharge, and several pump upgrades. These upgrades have increased the steady-state milling capacity by 25% from 800 tpd to 1,000 tpd. Significant progress was made on permit amendments to increase annual ore production limits from 292,000 tonnes (800 tpd) to 360,000 tonnes (1,000 tpd) in the quarter, and final approval of the amendment is on track to be received well in advance of the current limit becoming a constraint on production.
Ramp Development Update Development of the Main Ramp averaged 4.7 metres per day in the third quarter. The Main Ramp remains the critical path to 8-Zone access and drilling. As of September 30, the Main Ramp was at a depth of approximately 420 metres below surface and is expected to reach approximately 490 metres vertical depth by the end of 2021. The Company is evaluating opportunities to continue developing the Main Ramp at an accelerated rate into 2022 to further expedite 8-Zone access.
East Ramp Update East Ramp development averaged 2.7 metres per day in the quarter as development activities in the East Ramp area of the mine were split between ramp development and lateral development. The first stopes were mined from the East Ramp area of the mine early in the third quarter. To date, a total of 6,290 tonnes of stope ore has been mined at a grade of 9.0 g/t gold. The next block of stopes to be mined beginning in Q4 2021 is under development with sill development currently underway on three levels. Sill development is showing exceptional continuity of high-grade gold mineralization, with the 1420 sill returning approximately 64 lateral metres grading 7.4 g/t gold, significantly longer and higher grade than what was initially modelled. Recent drilling in the area also indicates strong potential for stope expansion along strike and to depth, beyond the currently defined reserve stopes. These East Ramp area stopes currently under development represent a key growth opportunity for the PureGold Mine in Q4 2021 and into 2022.
8-Zone Drilling Update The Company has designed a phase one 18-hole drill program to target the high-grade 8-Zone with drills to be positioned in a drill bay off the Main Ramp at a vertical depth of approximately 400 metres. The goal of this initial 8-Zone drilling program is to upgrade 8-Zone mineral resources ahead of planned mining in 2024 and to explore possible extensions of 8-Zone. The Company will provide further updates following commencement of the 8-Zone drilling program.
Mineral Resource Update An updated Mineral Resource Estimate for the PureGold Mine including satellite deposits Wedge, Russet South and Fork is expected to be completed in Q4 2021. Following completion of the updated resource estimate, an updated Technical Report is expected to be completed including an updated Mineral Reserve. Expected timing for the updated Technical Report is H1 2022.
Updated Production Outlook For the first three quarters of 2021, accelerated ramp development and definition drilling have been successful in opening up the underground mine which, in turn, has driven steady improvements in throughput and grade year to date. The Company is confident that these programs will continue to deliver steady improvements going forward, though the forecasted pace of ramp-up has been revised based on trends observed to date. As such, the Company is targeting a production rate of approximately 600-700 tpd at an average head grade of 5.5-6.5 g/t Au for the fourth quarter of 2021 and expects to continue ramping up both throughput and mill head grade toward the mine’s full capacity by the end of Q1 2022. The Company now expects to sustain 1,000 tpd by mid-2022.
Financial Update As of September 30, 2021, the Company held approximately $24 million in cash. The Company has drawn US$85 million to date on its credit facility with Sprott Resource Lending.