NEWS RELEASE 22-23 September 12, 2022
PureGold Announces Record Gold Production in August; Reaffirms Q3 2022 Guidance
· August gold production of 4,595 ounces driven by strong ore tonnage and improved grades
· Robust drilled inventory supports September forecast; Q3 2022 guidance reaffirmed
· Further growth forecasted as mining transitions fully into Austin / South Austin Zones
· Results of updated Life-of-Mine plan remain on track for Q4 2022
VANCOUVER, B.C. - Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) ("PureGold" or the "Company"), today reaffirmed third quarter 2022 guidance and announced that gold production in August 2022 set a new monthly record for the PureGold Mine (the "Mine"), driven by record ore throughput and improved grades.
| | August 2022 | July 2022 | QTD Total / Average | Q3 2022 Guidance |
| Ore Tonnes Processed (t) | 25,188 | 24,052 | 49,240 | 71,300-80,500 |
| Average Daily Throughput (tpd) | 813 | 776 | 794 | 775-875 |
| Head Grade (g/t Au) | 5.9 | 3.1 | 4.5 | 4.0-5.0 |
| Recovery (%) | 96.2% | 93.7% | 95.1% | 95.0% |
| Ounces Produced (oz) | 4,595 | 2,232 | 6,827 | 8,700-12,300 |
Production Update and Outlook
Both the August ore throughput of 25,188 tonnes or 813 tonnes per day ("tpd") and gold production of 4,595 ounces represent monthly records for the Mine to date. Ore throughput of 24,052 tonnes in July was also a monthly record until being broken in August.
The increase in average ore throughput in the third quarter to date of 794 tpd compared to the second quarter average of 500 tpd has been driven primarily by improved short-range planning processes, improved mining execution, and increased mill availability. These fundamental improvements are expected to continue to support strong and increasing production going forward. The Company's near-term target is to increase ore throughput towards 1,000 tpd.
The head grade in August of 5.9 g/t Au increased 90% compared to July at 3.1 g/t Au. This improvement was driven by an increase in mill feed from high-grade stopes. Recent improvements to mine planning practices have established a drilled inventory of high-grade stopes to help optimize grades and production. Additionally, the Company expects grades to continue to increase as mining continues to transition into higher-grade Austin and South Austin Zones.
With September production forecasts largely underpinned by a robust drilled inventory, the Company remains on track to achieve its previously stated third quarter production guidance of 775-875 tpd at 4.0-5.0 g/t Au. The Company has not previously provided monthly results and does not intend to do so on a regular basis but is nevertheless providing data for July and August to support the reaffirmation of guidance for the third quarter of 2022.
Definition drilling and planning activities are currently focused on production for November and December. The Company expects to disclose actual production for the third quarter and production guidance for the fourth quarter by early October.
Pre-Feasibility Study, Life of Mine Plan and Technical Report Update
The updated Life-of-Mine plan and Pre-Feasibility Study remain on track for release in Q4 2022. The Company remains on track to file an updated Technical Report in respect of the updated Mineral Resource Estimate announced August 10, 2022 by September 25, 2022.
Cost Update
Site-level operating plus sustaining capital costs are expected to be in the range of $9.5 - $10.5 million per month for the third quarter. Costs at these levels are in line with costs in the second quarter of 2022 and represent an absolute reduction of approximately 25% and a cost-per-tonne reduction of approximately 50% compared to the first quarter of 2022. Several opportunities to further reduce costs are currently underway or have been completed including replacing rentals and contractors with more permanent solutions and completing key infrastructure upgrades including the new camp, new electric compressors, and a new mine air heater.
Further opportunities have been identified and are now expected to be implemented in early 2023. This represents a slight delay from prior disclosure of implementation by the end of 2022. The estimated amounts for these further opportunities remains unchanged from prior disclosure at savings of $1 million per month (approximately 10%) compared to third quarter costs. These and other longer-term savings opportunities are expected to be identified and incorporated into the Updated Life-of-Mine plan.
Capital and Liquidity
The Company currently has $6 million in cash. The Company's cash balance is unchanged from the previous disclosure on August 15 and has been stable since late July.
Qualified Persons and 43-101 Disclosure
Terrence Smith, P.Eng., Chief Operating Officer 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 Canadian gold mining company, located in the very heart of Red Lake, Canada. We are a principled and ethical company who want to be good neighbours. We are committed to our People (safety, training, culture, good salaries and benefits for our workers), our Community (strong sustainable economic benefits and community development) and the Environment (meeting and exceeding standards).
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
"Mark O'Dea"
Mark O'Dea, President & CEO
Investor inquiries:
Adrian O'Brien,
Director, IR & CommunicationsTel: 604-809-6890
aobrien@puregoldmining.ca