PureGold Announces Milestone Second Quarter and Provides Underground Drilling and 8-Zone Updates as Ramp-Up Nears Completion
VANCOUVER, British Columbia, July 13, 2021 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) (“PureGold” or the “Company”), is pleased to provide an operations and underground drilling update, including drill results, for the second quarter at its high-grade PureGold Mine in Red Lake, Ontario.
Production highlights for the second quarter include:
• Average daily throughput of 509 tpd for the quarter and 577 tpd for the month of June;
• Average daily ramp development rate for the Main and East Ramps of 5.2 metres and 4.5 metres per day for the second quarter, respectively, a new quarterly record for the Main Ramp and a 53% increase compared to the first quarter;
• A 46% increase in second quarter gold production compared to the first quarter;
• Average head grade of 7.0 g/t Au from all stopes mined during the second quarter; and
• Average head grade of 5.8 g/t Au for the high-grade portion of the mill feed, which includes all stopes mined plus high-grade development ore, a 51% increase compared to the first quarter and in line with expectations for the period.
Key de-risking milestones achieved in the second quarter include:
• Underground drilling successfully confirmed stopes planned for mining in the second half of 2021 and identified new areas with potential to expand mineable inventory beyond known reserves close to existing development, highlights include 15.1 g/t Au over 5.6 metres and 33.1 g/t Au over 2.2 metres from the Main Ramp and 120.8 g/t Au over 1.0 metre and 21.4 over 2.0 metres from the East Ramp;
• First ore production from the East Ramp achieved, with the first high-grade stopes from the east side of the mine expected to come online in August;
• Ramp development contract awarded to accelerate the Main Ramp development at a projected rate of 6.0 metres/day for the balance of 2021, beginning in July;
• Arrival of interstage screens for CIP tanks and trommel screen for the SAG discharge which are currently being installed with completion expected in August, positioning the mill to operate above design capacity in the second half of 2021 and beyond;
• Over 4,500 metres of diamond drilling in over 70 drill holes completed to further delineate planned production for the second half of 2021; and
• Continued excellent grade reconciliation for stopes mined to date with respect to the Mineral Reserves.1
8 Zone Update
In addition to improving access to high-grade ore in the near-term, the ramp development rates achieved to date coupled with the acceleration of the Main Ramp beginning in July present an opportunity to bring forward underground drilling and development of the high-grade 8 Zone. Based on projected Main Ramp development rates from July 2021 onward, first access to 8 Zone ore is currently expected to be achieved by July 2024, approximately 8 months earlier than was envisioned in the Feasibility Study.1 Additionally, the Company is currently evaluating opportunities to begin underground infill and step-out drilling of 8 Zone from the Main Ramp earlier than planned, with first results now potentially possible before the end of 2021. Further updates on plans to begin drilling 8 Zone from underground will be provided over the coming months.
Darin Labrenz, President & CEO of PureGold, commented, “The second quarter was one of achieving critically important milestones and making key investment decisions for the PureGold Mine, balancing both long-term and short-term objectives. As we continue opening up the mine and accelerating the development of our two key haulage ways, we are seeing consistent quarter-over-quarter improvements in all key operating metrics and, importantly, excellent grade reconciliation to our Mineral Reserves. With two active ramps now mining ore, an additional dedicated crew to focus on Main Ramp development beginning in July, and nearly 30,000 tonnes of longhole stopes developed in front of us, we are entering the third quarter in our strongest position ever.”
Second Quarter Ramp-Up Summary
Q1 2021 Q2 2021
Main Ramp Advance Rate (metres/day) 3.4 5.2
East Ramp Advance Rate (metres/day) 4.7 4.5
Combined Ramp Advance Rate (metres/day) 8.1 9.7
Number of Stopes Mined in Period 4 7
Average Grade of Stopes Mined in Period (g/t Au) 3.6 7.0
Stope Tonnage Mined in Period (tonnes) 14,485 17,216
Ending Number of Active Ore Headings 13 17
Average Daily Ore Throughput (tpd) 538 509
Average Grade of High Grade Portion of Mill Feed (g/t Au) 3.8 5.8
Proportion of High Grade Material in Total Mill Feed (%) 46 63
Average Head Grade of Total Mill Feed (g/t Au) 2.8 4.2
Total Gold Production (oz) 4,291 6,261
Average Recovery (%) 95.0 95.6
During the second quarter, 63% of the mill feed was comprised of high-grade stope and development ore grading 5.8 g/t Au on average, in line with expectations and a significant increase from 46% grading 3.8 g/t Au in the first quarter. The balance of the mill feed has been comprised of low-grade development ore and stockpiles to date. Increasing the proportion of high-grade ore in the mill feed to 100% going forward remains the primary focus for the Company during ramp-up, with the key performance metrics being ramp development rates and number of active ore headings and stopes. Commencement of high-grade stope production from the East Ramp and acceleration of the Main Ramp development in July are expected to jointly drive continued and sustained quarter-over-quarter increases of high-grade ore production and average grades for the third quarter and for the balance of the year.
Underground Drilling Update
PureGold is also pleased to report high-grade drill intercepts returned from underground drilling completed during the second quarter of 2021. This new drilling targeted zones in close proximity to both the Main Ramp and the East Ramp and has been designed to further delineate stopes planned for the second half of 2021 with the goal of expanding mineable inventory and increasing the grade of longhole stopes in the near-term mine plan. This drilling has been highly successful in confirming the tenor of high-grade mineralization within planned stopes and has also expanded the mineable inventory in areas close to the main haulage ways.
Underground drilling results highlights:
East Ramp:
• 14.7 g/t gold over 1.7 metres from drill hole PGU-0203; including
21.6 g/t gold over 1.0 metre.
• 84.2 g/t gold over 1.0 metre from drill hole PGU-0210;
• 21.4 g/t gold over 2.1 metres from drill hole PGU-0212;
• 120.8 g/t gold over 1.0 metre from drill hole PGU-0214;
• 9.2 g/t gold over 7.9 metres from drill hole PGU-0222; including
15.2 g/t gold over 1.0 metre and 33.0 g/t gold over 1.0 metre.
Main Ramp:
• 33.1 g/t gold over 2.2 metres from drill hole PGU-0188; including
68.5 g/t gold over 1.0 metre;
• 65.6 g/t gold over 2.0 metres from drill hole PGU-0198;
• 41.6 g/t gold over 1.0 metre from drill hole PGP-00007;
• 14.2 g/t gold over 4.3 metres from drill hole PGP-00009; including
21.2 g/t gold over 1.0 metre;
• 16.7 g/t gold over 3.6 metres from drill hole PGP-00012; including
27.6 g/t gold over 1.6 metres;
• 6.4 g/t gold over 8.4 metres from drill hole PGP-00018; including
32.3 g/t gold over 1.0 metre;
• 15.1 g/t gold over 5.6 metres from drill hole PGP-00019; including
20.8 g/t gold over 1.0 metre and 30.4 g/t gold over 1.0 metre;
• 12.4 g/t gold over 5.0 metres from drill hole PGP-00019 including
29.8 g/t gold over 1.0 metre.
A summary table of results is set out at the end of this News Release.
Results from drilling continue to be integrated into short-term mine planning, with production planned from most of these areas in 2021. High-grade results from the East Ramp include PGU-0210, PGU-0212 and PGU-0214 which confirm the first stoping area scheduled to be mined from PureGold’s East Ramp. Development of two stopes in this area is underway with sills on multiple levels currently delivering high-grade development ore. Stoping from the East Ramp in the third quarter will enhance mine flexibility and will increase the availability of high-grade ore inventory and mill feed from underground and is expected to commence in August.
In addition to confirming high-grade stopes close to the main haulage ways, underground drilling also continues to identify new zones that are not part of the current mineral reserves. Drillholes PGP-00017, PGP-00018 and PGP-00019 each returned broad zones of high-grade gold mineralization, including 15.1 g/t gold over 5.6 metres and 12.4 g/t gold over 5.0 metres in a new zone that lies west of a high-grade longhole stope that was mined in the second quarter of 2021. Ore development is currently underway in this area with stoping anticipated to occur in the third quarter.
“Ongoing underground drilling programs such as these are a hallmark of Red Lake deposits, responsible for the nearly 100 years of high-grade discovery and mining in the district,” stated Darin Labrenz, President & CEO of PureGold. “Our underground drilling program continues to be highly successful at confirming stopes within our near-term production plan as well as identifying opportunities for discovery and growth near our existing development. We expect this trend to continue as we continue to open up the mine and establish underground access to an increasing number of ore production areas into the third quarter and for many quarters to come at the PureGold Mine.”
As of the end of the second quarter, three air-powered underground core diamond drills were active on the site and focused on delineating gold mineralization with both infill and extension drilling. Results from this underground drilling will continue to be reported on a quarterly basis.
Commercial Production
Commercial production will be declared on the first day of the calendar month following the achievement of certain criteria including ore throughput and gold production levels achieving a pre-determined percentage of design capacity. These criteria are reviewed monthly. Inaugural production and cost guidance will follow shortly after a positive commercial production decision.
Underground Drill Results Summary
New assay results from select drill holes are outlined below:
Hole ID From (m) To (m) Length (m) Gold (g/t) Infill / Extension
PGU-0188 68.6 75.0 6.4 4.4 Extension
including 68.6 70.0 1.4 9.2
including 74.0 75.0 1.0 6.4
90.1 92.3 2.2 33.1
including 90.1 91.1 1.0 68.5
PGU-0190 38.5 39.8 1.3 6.7 Extension
PGU-0195 65.0 66.1 1.1 7.2 Infill
PGU-0198 12.0 14.0 2.0 65.6 Infill
PGU-0200 34.0 35.0 1.0 13.5 Infill
PGU-0202 22.7 25.5 2.8 5.9 Extension
including 23.5 24.5 1.0 10.7
PGU-0203 25.3 27.0 1.7 14.7 Extension
including 26.0 27.0 1.0 21.6
PGU-0205 32.8 35.3 2.6 7.5 Extension
PGU-0207 36.0 37.0 1.0 7.2 Infill
PGU-0209 7.0 8.0 1.0 7.1 Infill
PGU-0210 30.0 31.0 1.0 84.2 Infill
PGU-0211 40.0 40.9 0.9 7.1 Infill
PGU-0212 34.0 36.1 2.1 21.4 Infill
PGU-0214 41.9 42.9 1.0 120.8 Infill
PGU-0222 78.0 85.0 7.0 9.2 Extension
including 79.0 82.0 3.0 17.5
including 79.0 80.0 1.0 15.2
including 81.0 82.0 1.0 33.0
PGU-0230 42.7 43.5 0.8 7.3 Extension
PGB-0231 12.7 13.8 1.1 6.5 Infill
PGP-00007 43.2 44.2 1.0 41.6 Extension
PGP-00008 38.3 39.3 1.0 28.0 Infill
PGP-00009 53.0 57.3 4.3 14.2 Infill
including 53.0 54.0 1.0 17.3
and including 55.0 55.6 0.6 20.9
and including 56.3 57.3 1.0 21.2
PGP-00010 12.7 14.6 1.9 9.3 Extension
46.5 47.5 1.0 16.6
PGP-00012 18.5 22.2 3.6 16.7 Extension
including 18.5 20.2 1.6 27.6
92.1 93.0 0.9 8.1
PGP-00013 23.1 24.1 1.0 8.1 Extension
PGP-00015 7.0 8.0 1.0 11.1
PGP-00016 4.3 5.0 0.7 32.3 Extension
PGP-00017 28.6 32.1 3.5 8.2 Extension
including 30.0 31.1 1.1 11.9
PGP-00018 30.6 39.0 8.4 6.4 Extension
including 33.8 34.8 1.0 32.3
and including 37.0 38.0 1.0 9.3
PGP-00019 30.0 35.6 5.6 15.1 Extension
including 30.0 31.0 1.0 20.8
and including 31.0 32.0 1.0 14.8
and including 32.0 33.0 1.0 30.4
and including 33.0 33.6 0.6 12.3
41.6 46.6 5.0 12.4
including 42.6 43.6 1.0 29.8
and including 45.6 46.6 1.0 18.9
PGP-00024 32.4 33.4 1.0 10.8 Extension
38.4 39.4 1.0 13.9
*Assay composites were calculated using uncut assays and true widths are interpreted to vary from 80-95% (90%, on average) of reported core lengths above.
QA/QC and Core Sampling Protocols
Underground drill core samples are submitted to SGS Minerals in Red Lake. Underground core samples are whole core sampled after being detail logged and photographed. Sample shipments are bagged and sealed and picked up at the mine site by SGS Minerals employees. Samples reported herein include BQ and ATK-size whole core samples and are prepared by drying and crushing to 75% less than 2 mm, a riffle split of 250 g, and pulverization of the split to better than 85% passing 106 microns at the SGS Red Lake facility. Gold analysis is completed in the SGS Red Lake lab with a 30 g fire assay and AAS finish (code GO-FAA30V10 for mine samples and GE-FAA30V5 for exploration samples). Mine samples returning >100 g/t Au and exploration samples returning >5 g/t Au are re-assayed with a gravimetric finish (code GO-FAG30V). Mineralized zones with visible gold are also analyzed by a 500 g screen fire assay with screening to 106 microns (code GO-FAS30M). Duplicate 30 g fire assays are conducted on the screen undersize and combined with an assay of the entire oversize fraction.
Control samples (certified standards and uncertified blanks), along with field, prep and pulp duplicates, are inserted on a regular basis. Results are assessed for accuracy, precision, and contamination on an ongoing basis.
Further details of drilling, analytical process, quality assurance and control, and sampling are available in the Feasibility Study1 technical report.
Qualified Persons and 43-101 Disclosure
Ken Donner, P. Eng., Vice President, Operations and Phil Smerchanski, P. Geo., Vice President, Exploration for the Company, are the designated Qualified Persons for this news release within the meaning of National Instrument 43-101 (“NI 43-101”). Mr. Donner has reviewed and verified that the mine operational technical information contained herein is accurate and approves the written disclosure of same. Mr. Smerchanski has reviewed and verified the underground drilling technical information contained herein is accurate and approves of the written disclosure of same.
About Pure Gold Mining Inc.
PureGold is a growth company, located in the very heart of Red Lake, Canada. Our objective is pure and simple. To develop a highly-profitable long life gold mining company, becoming Canada’s next iconic gold producer. Our plan is very disciplined, very methodical and financially sound. To expand organically, and develop PureGold’s multi-million ounce high-grade gold asset incrementally, step-by-step, using a phased mining development plan to deliver maximum return.
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
1. For further information, see the technical report titled “Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit Red Lake, Ontario, Canada” with an effective date of February 5, 2019, and dated July 5, 2019 (the “Feasibility Study”), for further information please see www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com
ON BEHALF OF THE BOARD
"Darin Labrenz"_______
Darin Labrenz, President & CEO
Investor inquiries:
Adrian O’Brien, Director, Marketing and Communications
Tel: 604-809-6890
aobrien@puregoldmining.ca
