TIDMPUR
RNS Number : 0715Z
Pure Gold Mining Inc.
12 September 2022
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 July QTD Total Q3 2022
2022 2022 / Average 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 & 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 Mine,
including the proposed updated NI 43-101 Technical Report and
timing and content of such Technical Report, including the life of
mine plan; expectations to achieve previously stated production
guidance in the third quarter; expectations regarding the
disclosure of third quarter production and fourth quarter guidance
in October, expectations regarding the effectiveness of new
initiatives to improve stope access and result in increased
throughput, improved grades and reduced costs; expectation to
achieve forecasted site-level costs in the third quarter and to
reduce costs by early 2023 relative to the third quarter; potential
for extending the mine life of the PureGold Mine; the timing and
results of the new Pre-Feasibility Study and updated Life of Mine
Plan; the potential to convert resources to reserves; the
transition of mining from the McVeigh Zone to the South Austin and
Austin Zones; expectation for grades to continue to increase; and
potential for additional resources and expansion of known deposits
and potential for making new discoveries 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", "progress", "confirms", "continue",
"planned", "expect", "expectations", "expand", "enhanced",
"increasing", "optimize", "project", "predict", "potential",
"supports", "targeting", "intends", "believe", "improved",
"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", "confirms", "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 liquidity
and the Company's ability to continue as a going concern; mine
closure and rehabilitation; failure to achieve estimates or
material increases in costs; history of net losses and negative
operating cash flow, indebtedness; interpretation of results at the
PureGold Mine complex, including reserve and resource estimates may
prove to be incorrect ; 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 and development 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 30, 2022 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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