Pure Gold Mining (TSXV: PGM) has finally updated the current mineral resource estimate for its flagship PureGold Mine in the Red Lake, Ontario mining camp. The estimate, which has an effective date of December 31, 2021, is the first such update provided by the company since February 2019.
“The thorough independent review and update led by SRK shows that the PureGold Mine remains underpinned by a multi-million-ounce high grade gold resource. The Updated MRE is based on a combination of deep geological understanding, closely spaced drilling, and first-hand observations of stope scale shapes and continuity,” commented CEO Mark O’Dea.
The new resource estimate outlines that the property is said to contain a total of 1.65 million ounces of gold at 7.4 g/t within the indicated category, and a further 0.37 million ounces in the inferred category at 6.3 g/t gold. The estimate is expected to form the basis of a pre-feasibility study and life of mine plan.
The figures represent a decline from what was presented by the company in 2019, with indicated resources falling from 2.06 million ounces at 8.9 g/t gold, while inferred resources fell from 0.47 million ounces at 7.7 g/t gold.
In terms of mining efforts, the company has said it is about to transition into mining the Austin and South Austin zones, which represent the largest deposits at the mine, containing 914,200 and 474,600 gold ounces, respectively, on an indicated basis.
The estimate update follows continuous problems experienced at the company, where a strategic review is underway. While the resource estimate may point to potential high grades, the most recent quarter saw grades of 4.27 g/t gold produced, while the cost of production continues to worsen.
Pure Gold Mining last traded at $0.095 on the TSX Venture.
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