Pure Gold Mining Inc (LRTNF)

[wshaw14]

https://www.nantonnews.com/commodities/mining/gold-may-be-the-king-of-bling-but-is-it-overbought-as-prices-surge-so-do-costs-for-miners/wcm/6ecc925b-2526-4a4b-8822-e53258c02d36?video_autoplay=true About 3/4 of the way down the page. Many folks are not realizing that with the higher price of gold, reserves can be re-evaluated and cutoff grades reduced increasing the reserves.

Vancouver-based Pure Gold Mining Inc. is on track to finish building a mine near Red Lake, Ont., by the end of the year, and in February released a study on what ore was economically feasible to mine, which assumed a gold price of US$1,275 per ounce.

Currently, Darin Labrenz, chief executive of Pure Gold, said every aspect of the study “is kind of out of date.”

The company had estimated it could produce one million ounces of gold at US$1,275 per ounce, resulting in around US$1.2 billion. But in the current gold price environment, it could expect an additional roughly US$700 million in revenue.

“So you start looking at your project, saying what could I do a little differently to take advantage of this movement,” said Labrenz. “It’s not just the straight-line math, because your project parameters change.”

Already, he said the company is on track to develop the mine a little more quickly than planned, with first production slated to occur by the end of the year or early in 2021, and it’s planning to expand.