TIDMPUR
RNS Number : 8319I
Pure Gold Mining Inc.
16 December 2020
NEWS RELEASE 20- 24 December 16 , 2020
PUREGOLD DELIVERS FIRST ORE TO THE MILL
PureGold Mine Delivered on Time and on Budget
VANCOUVER, B.C. - Pure Gold Mining Inc. (PGM:TSX-V, LSE:PUR)
("PureGold" or the "Company"), is pleased to announce a major
milestone with first ore introduced to the mill at the Company's
high-grade PureGold Mine, in Red Lake, Ontario. With ore delivered
and first gold production scheduled this month, commissioning
activities will transition into full scale ramp up of the mining
and milling operations over the coming quarter.
"This is a very exciting day for our shareholders, the community
of Red Lake, and our entire team." stated Darin Labrenz, President
and CEO of PureGold. "The introduction of ore to the milling
facility reflects the successful culmination of our project build,
and signals the commencement of the next chapter in our Company's
evolution as Canada's newest gold mine. Just last year, we
announced our intention to become a producer and we are delivering
on that promise, on-track and on schedule for first gold production
this month. We have taken the PureGold Mine from our first drill
hole to production in less than six years. Bringing a mine
on-stream in 2020 is a firm testament to our incredible team, the
support we have received from our First Nations partners;
Wabauskang First Nation and Lac Seul First Nation, the Province of
Ontario, Municipality of Red Lake, and the entire Red Lake
community. We look forward to our first gold pour, making the
transition to commercial production and continuing to build and
expand the PureGold Mine into an iconic Canadian producer in the
heart of Red Lake."
Chief Doug Riffel of Wabauskang First Nation and Chief Clifford
Bull of Lac Seul First Nation provide the following joint
statement: "We are very pleased with the development and the
ongoing progress we continue to make in our relationship with
PureGold. Built on the principles of Environmental Stewardship,
Resource Sharing and Mutual Respect, we look forward to a long,
mutually beneficial relationship."
As the second operating mine in Red Lake, the PureGold mine is a
major contributor to the economy of the region. The mine currently
employs over 200 people and the workforce is expected to average
350 individuals during the twelve year phase one mine operation
with approximately $470 million in life of mine salaries projected
over that period.
Milling Facility
With over 21,000 tonnes of broken ore available, crushing has
commenced and first ore has been introduced to the grinding circuit
at a rate of approximately 25 tonnes per hour (600 tonnes per day).
The mills have operated for short periods at nameplate capacity of
800 tonnes per day and have done so seamlessly, with no operational
issues. Gravity concentration will recover free-milling gold,
followed by pre-oxidation, leaching, carbon in pulp circuit and
electrowinning, and refining to produce doré gold, with first gold
expected before the end of 2020. With the grinding circuit, gravity
circuit and leach / CIP circuit operating as expected,
commissioning activities are now focussed on optimization of the
instrumentation and controls of the mill process systems.
Underground Operations
With the commencement of milling operations, underground
development will now focus on ore development and mining
activities. As at the start of mill operations, a broken ore
inventory of approximately 21,000 tonnes is available as mill feed,
and a stockpile of ore is expected to be maintained through 2021.
In addition to the west portal and ramp, which provides access to
the Company's current ore headings, PureGold has approved and
collared a second ramp on the northeast end of the mine. The East
Portal and ramp will provide a second mining centre to develop ore
headings and will provide access to ore stopes on the east end of
the mine approximately 12 months earlier than planned in the
feasibility mine plan. This ramp will be driven at 5 metres x 5
metres allowing for improved productivity and providing an
opportunity for potential, future mine expansion. Ramp development
rates to date, and the addition of the second ramp will increase
productivity, provide access to additional stopes ahead of
schedule, and will provide an opportunity to focus on higher grade
ore which is anticipated to result in increased cash flow in the
early years of mine life.
Permitting
The Company is fully permitted for production. The Ontario
Ministry of Environment, Conservation and Parks ("MECP") has
approved and issued an Amended Environmental Compliance Approval
("ECA") for Industrial Sewage Works as well as an Amended ECA for
Air and Noise emissions at the PureGold Mine. The Ontario Ministry
of Northern Development and Mines has accepted and filed the
PureGold Mine Closure Plan Amendment. The Company would like to
thank Wabauskang First Nation, Lac Seul First Nation and the
ministries for working diligently with the Company in reaching
approval for all amendments.
Growth
Exploration activities continue at the Company's 100%-owned,
47-km(2) property. Within a robust, open seven - kilometre gold
system, and strong potential to expand at depth, exploration
drilling is designed to expedite the growth of mineral resources
and aggressively expand new high-grade discoveries. Exploration
drilling outside of the existing mine plan continues, with two
surface drill rigs and results will be released during the course
of activities. Additionally, underground drilling designed to
infill and expand mineral resources continues, with the goal of
optimizing and expanding the near term mine plan.(1) Results from
underground will be released on a quarterly basis.
Health & Safety
Since the PureGold Mine project was initiated in 2019, over
450,000 hours have been completed without a lost time incident. The
total recordable incident frequency has decreased by approximately
78% over that period. COVID-19 continues to be a risk that is
managed at site proactively with no material impact to mine
operations.
Pure Gold Mining added to the GDXJ
PureGold is pleased to announce that effective at market close
on December 18, 2020, the Company will be added to the GDXJ (VanEck
Vectors(R) Junior Gold Miners ETF) which is traded on the NYSE
Arca, under the ticker symbol "GDXJ".
The Company remains well-funded for commissioning, ramp-up and
ongoing exploration activities. With the receipt in December of $5
million from the exercise of share purchase warrants, the Company
currently has a cash position of $58 million.
Qualified Persons and 43-101 Disclosure
Ken Donner, P. Eng., Vice President, Operations 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.
1. It is uncertain if further exploration will result in these
targets being delineated as a mineral resource. It is further
cautioned that mineral resources are not mineral reserves and do
not have demonstrated economic viability.
About Pure Gold Mining Inc.
PureGold is a growth company, located in the very heart of Red
Lake, Canada. Our objective is pure and simple. To develop a
highly-profitable long life gold mining company, becoming Canada's
next iconic gold producer. Our plan is very disciplined, very
methodical and financially sound. 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.
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
"Darin Labrenz"
Darin Labrenz, President & CEO
Investor inquiries:
Adrian O'Brien, Director Marketing & Communications
Tel: 604-809-6890
aobrien@puregoldmining.ca
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
All statements in this press release, other than statements of
historical fact, are "forward-looking information" with respect to
PureGold within the meaning of applicable securities laws,
including, but not limited to statements with respect to those that
address proposed timing of development plans for the PureGold Red
Lake Mine (RL Mine Project), timing of expected gold production,
expected capital costs, expected development schedule, potential
for advancing the timing for higher grade ore, potential for
additional resources and the focus of the Company in the coming
months . Forward-looking information is often, but not always,
identified by the use of words such as "seek", "anticipate",
"plan", "continue", "planned", "expect", "project", "predict",
"potential", "targeting", "intends", "believe", "potential", and
similar expressions, or describes a "goal", or variation of such
words and phrases or state that certain actions, events or results
"may", "should", "could", "would", "might" or "will" be taken,
occur or be achieved. Forward-looking information is not a
guarantee of future performance and is based upon a number of
estimates and assumptions of management at the date the statements
are made including, among others, assumptions about future prices
of gold and other metal prices, currency exchange rates and
interest rates, favourable operating conditions, political
stability, obtaining governmental approvals and financing on time,
obtaining renewals for existing licences and permits and obtaining
required licences and permits, labour stability, stability in
market conditions, availability of equipment, accuracy of any
mineral resources,
successful resolution of disputes and anticipated costs and
expenditures. Many assumptions are based on factors and events that
are not within the control of PureGold and there is no assurance
they will prove to be correct.
Such forward-looking information, involves known and unknown
risks, which may cause the actual results to be materially
different from any future results expressed or implied by such
forward-looking information, including, risks related to the
interpretation of results at the RL Mine Project ; changes in
project parameters as plans continue to be refined; current
economic conditions; future prices of commodities; possible
variations in grade or recovery rates; the costs and timing of the
development of new deposits; failure of equipment or processes to
operate as anticipated; the failure of contracted parties to
perform; the timing and success of exploration activities
generally; delays in permitting; possible claims against the
Company; the timing of future economic studies; labour disputes and
other risks of the mining industry; delays in obtaining
governmental approvals, financing or in the completion of
exploration as well as those factors discussed in the Annual
Information Form of the Company dated March 26, 2020 in the section
entitled "Risk Factors", under PureGold's SEDAR profile at
www.sedar.com .
Although PureGold has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. PureGold disclaims any intention or
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise
unless required by law.
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END
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