RED LAKE – MINING – Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) (“PureGold” or the “Company”), today announced that it achieved gold production guidance for the third quarter of 2022 for its 100% owned and operated PureGold Mine located in Red Lake, Ontario. PureGold also announced production guidance for the fourth quarter of 2022.
Terry Smith, PureGold Chief Operating Officer, stated: “Our quarterly gold production results are a positive step in the operational transformation underway at the PureGold Mine. Our short-range planning and execution are working well and with that, we can aggressively pursue further optimization of the business. Looking ahead to the fourth quarter we expect another consecutive quarter over quarter step up in production for the PureGold Mine. We remain on track for delivery of the updated life of mine plan and pre-feasibility study in the fourth quarter of 2022, which will form the basis for 2023 guidance.”
|Q3 2022||Q3 2022 Guidance|
|Ounces Produced (oz)||9,041||8,700 – 12,300|
|Head Grade (g/t Au)||4.5||4.0 – 5.0|
|Ore Tonnes Processed (t)||66,042||71,300 – 80,500|
|Average Daily Throughput (tpd)||718||775 – 875|
As shown in the table above, gold production was 9,041 ounces in the third quarter of 2022, which was within the guidance range. Head grade and recovery were also within guidance. As previously disclosed, the PureGold resumed full time mill operations in July, delivering strong back-to-back monthly ore tonnage in July and August, and achieving record monthly gold production in August.
Results for the third quarter would have been better, but for nine unexpected days of lost production in September due to downtime of the contract crusher and an unrelated issue with automation control electronics in the mill. These one-time issues have now been fully addressed with strong average daily throughput in the last week of September carrying through into October. However, the nine lost days caused the volume of ore processed in the third quarter to be below guidance.
Production costs for the third quarter are still being finalized but are expected to be in the range of $9.5 – $10.5 million per month, in line with previously announced guidance. Notably, current costs represent an absolute reduction in costs of approximately 25% and a cost-per-tonne reduction of approximately 50%, when compared with Q1 2022. The Company expects costs and revenues to continue to trend downward through the fourth quarter.
Fourth Quarter Production Outlook
Fourth quarter production guidance for the PureGold Mine is summarized in the table below.
|Q4 2022 Guidance|
|Ounces Produced (oz)||9,000 – 12,500|
|Head Grade (g/t Au)||4.25 – 5.25|
|Ore Tonnes Processed (t)||69,000 – 78,200|
|Average Daily Throughput (tpd)||750 – 850|
Pre-Feasibility Study Update
The Company remains on track to deliver a new Pre-Feasibility Study (“PFS”) in Q4. The new PFS will incorporate an updated life of mine (“LOM”) plan and is based on the recently announced updated Mineral Resource Estimate (“Updated MRE”) completed by SRK Consulting (Canada) Inc (“SRK”). The Company is working collaboratively with SRK to ensure a smooth integration beginning in January 2023 of the new Life of Mine plan into the Mine’s existing planning system. The LOM plan is focused around continued targeted production growth well beyond the Company’s Q4 production guidance.
The Updated MRE has reaffirmed a multi-million-ounce, high-grade gold deposit and the Company expects the PFS to outline a long-life, profitable mining operation in a top-tier jurisdiction with significant benefits to our shareholders along with the community of Red Lake and our First Nations partners. PureGold expects to share the results with the market in near future.
Qualified Persons and NI 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 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 Red Lake, Ontario, Canada. The Company owns and operates the PureGold Mine, which began gold production in 2021 after the successful construction of an 800 tpd underground mine and processing facility. The PureGold Mine is centered on a forty-seven square kilometre property with significant discovery potential.