Pure Gold Mining lifts throughput and headgrade at flagship Red Lake mine in 3Q

Pure Gold Mining Inc has announced an increase in throughput and headgrade at its flagship PureGold mine in Red Lake, Ontario, in the third quarter of 2021, as the company posted its operating and financial results for the three-month period.

The company declared commercial production at the new mine on August 1 this year (part way through the quarter) and said throughput at the project for the three months to end-September 2021 was 685 tonnes per day (tpd), an increase of 35% on the second quarter this year.

Gold output came in at 9,260 ounces, 54% higher than 2Q, driven by higher grades and increased tonnage, while average mill head grade was 4.8 grams per ton (g/t) gold, 15% higher than in the second quarter of 2021.

READ: Pure Gold Mining intersects high-grade gold at its mine in Red Lake, Ontario

Pure Gold Mining said it is targeting a production rate of around 600-700 tpd at an average head grade of 5.5-6.5 g/t gold for 4Q, 2021 and expects to continue ramping up both throughput and mill head grade toward full capacity by the end of Q1, 2022.

The firm said it expects to sustain 1,000 tpd by mid-2022.

The company reported a net loss for the period of C$13.2 million, on revenue of C$15.9 million. The mine operating loss was C$5.9 million in the quarter.

In  late October this year, the miner unveiled results from surface and underground drilling completed at the mine during the third quarter, which included 55.4 g/t gold over 5 meters and 14.5 g/t gold over 13.2 meters.

The company said drilling had been successful in demonstrating the tenor and continuity of gold mineralization for planned, near-term mine production from both the Main Ramp and the East Ramp areas, as well as establishing the potential for resource expansion close to existing development.

Also in October, the firm said that director Maryse Bélanger, an experienced mine operator and builder, had agreed to step into the role of general manager at the PureGold mine, following the retirement of the incumbent manager.

PureGold Mining, with operations in the heart of Red Lake, Ontario, has an objective of developing a highly profitable long-life gold mining company, becoming Canada’s next iconic gold producer.

The company intends 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.

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Story by ProactiveInvestors