PureGold (TSXV: PGM) this morning reported that it has begun high grade gold production at its flagship operation in Red Lake, Ontario. The company has entered high grade ore production from its newly established mine, with commercial operations expected to begin by the end of the second quarter.
The company this morning indicated that it has seen an average head grade of 6.3 g/t gold over the last three weeks, while recoveries of gold continue to be between 95 to 99%. Ore production meanwhile is headed towards the designed capacity of the operation of 800 tonnes per day. The last three weeks saw an average of 459 tonnes per day processed on average, with a total of 1,908 ounces of gold produced in that time frame.
Quarter to date, the company indicated that a total of 18,456 tonnes of ore has been processed, resulting in 2,855 ounces of gold produced. Mining is currently occurring across 17 stopes within the mine, with the expectation that this increases to 26 by the end of the quarter.
Construction wise, the company is accelerating the development of the Main and East ramps following the recent financing, which is expected to result in potential expansions beyond 800 tonnes per day of processing in the future.
Commercial production meanwhile is expected to be achieved by the end of the quarter, with production and cost guidance expected to shortly follow. The company currently has $23 million in cash on hand.
Pure Gold Mining last traded at $1.34 on the TSX Venture.
Information for this briefing was found via Pure Gold Mining and Sedar. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
The Grocery Grift: Why Toronto and New York Are About to Light Taxpayer Money on Fire