Red Lake Miner Posts Record Monthly Gold Production

Source: Streetwise Reports   09/12/2022

Pure Gold Mining Inc. shares traded 30% higher after the company reported that during August 2022, it produced 4,595 ounces of gold at its Red Lake Greenstone Belt property. The firm additionally reaffirmed its Q3/22 estimates calling for production of 8,700-12,300 ounces of gold.

Red Lake, Ont. exploration and development company Pure Gold Mining Inc. (LRTNF:OTC; PGM:TSX.V; PUR:LSE), yesterday announced that during August 2022, it produced a new monthly record total of 4,595 ounces of gold at its PureGold Mine. The firm stated that it achieved this milestone by processing a record amount ore throughput and further benefited from improved grades.

The company noted that during August 2022, it processed a record amount of ore throughput measuring 25,188 tonnes, equal to 813 tpd (tonnes per day), and enjoyed record gold production of 4,595 oz.

Pure Gold Mining added that it is reaffirming its Q3/22 production guidance of 8.7-12.3 Koz Au (thousand ounces of gold).

The company noted that during August 2022, it processed a record amount of ore throughput measuring 25,188 tonnes, equal to 813 tpd (tonnes per day), and enjoyed record gold production of 4,595 oz.

The firm noted that through the first two months of Q3/22, production has averaged 794 tpd, compared to 500 tpd in Q2/22, due to improved planning, better mining execution, and increased mill availability. The company advised that it expects these fundamental improvements to continue and, in the near term, aims to move toward the processing of up to 1,000 tpd.

The company stated that “the head grade in August of 5.9 g/t Au increased 90% compared to July at 3.1 g/t Au.” The firm attributed the improved yields to an increase in mill feed from high-grade stopes and expects the trend to continue as plans are in place to increase milling from material collected at the Austin and South Austin Zones, which contain higher grades.

Pure Gold indicated that its production forecasts for Q3/22 remain on track and that the firm expects to meet its previously stated production volume guidance of 775-875 tpd at 4.0-5.0 g/t Au.

The company listed that in Q4/22, it plans to focus on definition drilling and other planning activities and added that it expects to announce actual Q3/22 production and Q4/22 estimates in early October.

Importantly, the company advised that in Q4/22, it plans to release both the updated Life-of-Mine plan and Pre-Feasibility Study as scheduled and expects to file an updated Technical Report before September 25, 2022, which will include an updated Mineral Resource estimate.

The firm said that during Q3/22, monthly on-site operating and sustaining capital costs are expected to be in the range of CA$9.5-10.5 million, which are in line with such costs incurred in Q2/22 and represent an absolute reduction of around 25% when compared to results in Q1/22.

The company stated that it has identified new opportunities for implementation in 2023, which offer estimated monthly savings of around CA$1 million.

The firm stated that it continues to hold around CA$6 million in cash on its balance sheet.

Pure Gold Mining Inc. is a gold mining company based in Vancouver, B.C. The firm is focused on the exploration and development of its PureGold Mine located in the heart of Red Lake, Ont., Canada, which is well-known for being one of the world’s most prolific gold mining districts.

The PureGold Mine property, which encompasses about 47 sq. km, has a defined Indicated Resource of 1.65 Moz Au (million ounces of gold) and an Inferred Resource of 0.366 Moz Au.

Pure Gold Mining started yesterday with a market cap of around US$58.67 million, with approximately 728.93 million shares outstanding. LRTNF shares opened yesterday 25% higher at US$0.10 (+US$0.0201, +25.16%) over Friday’s US$0.0799 closing price. The stock traded yesterday between US$0.079 and US$0.11 per share and closed for trading at US$0.1038 (+US$0.0239, +29.89%). It is currently trading at US$0.13. 

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( Companies Mentioned: PGM:TSX.V; PUR:LSE, )