Pure Gold Mining Inc (LRTNF)

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PUREGOLD REPORTS STRONG START TO THIRD QUARTER AND PROVIDES OUTLOOK FOR THE SECOND HALF OF 2021

August 13, 2021

VANCOUVER, B.C. – Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) (“PureGold” or the “Company”), is pleased to provide an operations update for the month of July and an outlook for the second half (“H2”) of 2021 at its high-grade PureGold Mine in Red Lake, Ontario.

July Production and H2 2021 Outlook Highlights

Daily throughput averaged 703 tpd for the month of July, a 38% improvement compared to the second quarter average. The strong performance in July which led to the declaration of commercial production as of August 1 is attributed to significantly improved stope availability and inventory as a result of investments in development and infill drilling made in the first six months of the year. Average throughput is expected to continue to increase steadily up to and beyond nameplate capacity of 800 tpd for the balance of 2021.

Excellent mining rates including a new single-day production record as unreconciled mined ore production averaged 849 tpd from the Main and East Ramps for the month, including a peak single day production record of over 1,450 tonnes of high-grade ore brought to surface in a span of 24 hours, reaffirming the strong potential to exceed 800 tonnes per day sustainably by the end of the year.

Head grades achieved were in line with plan, averaging 5.6 g/t Au from all ore processed during the month of July, in line with plan for the month which was expected to be the lightest month from a grade perspective for H2 2021. Over the last two weeks of July, mill head grades averaged 6.9 g/t Au with mine feed coming from multiple headings, including both longhole and mechanized cut and fill stopes. As production transitions to higher grade stopes in Q3 and Q4, head grades are expected to continue to improve for the balance of the year along with increasing throughput.

Steady progress on ramp development, with daily ramp development rates for the Main and East Ramps averaging 5.4 metres and 3.7 metres per day for July, respectively. With a dedicated contract crew now focused exclusively on the Main Ramp as of July, capital development will continue to be a priority for the balance of 2021 to ensure continued stope availability and flexibility and to accelerate drilling and access to 8 Zone. Once sufficiently ahead of mine production, capital development is expected to be reduced in 2022 and all-in sustaining costs1 (“AISC”) are expected to fall accordingly.

Gold production achieved a new monthly record in July of approximately 3,730 ounces of gold produced. Mill recoveries averaged 96.0% for the month.2

Four of six CIP interstage screens have been installed with the remaining two expected to be installed in August. The trommel screen for the SAG discharge is on site and expected to be operational by September. The screens are expected to increase mill capacity in excess of nameplate 800 tpd once commissioned.



Guidance for H2 2021

Gold production for H2 2021, inclusive of July, is expected to be in the range of 27 – 32 koz Au with grades and throughputs increasing steadily toward the end of the year. Cash Costs1 for the fourth quarter, the first full quarter of commercial production, are expected to be in the range of US$1,025 – $1,125 per ounce. AISC1 for the fourth quarter is expected to be in the range of US$1,600 – $1,750 per ounce. Looking forward into 2022, production is expected to increase and Cash Costs and AISC are expected to fall significantly driven by higher grades and throughput coupled with decreased investment in capital development and other sustaining capital programs. This dynamic of increasing production and falling costs is expected to continue throughout 2022 and beyond as grades generally improve as mining progresses deeper and toward the 8 Zone as outlined in the 2019 Feasibility Study.3

Darin Labrenz, President & CEO of PureGold, commented, “I am proud of the consistent progress we’ve made and of the key milestones achieved in ramping up the PureGold Mine in 2021, highlighted by the recent declaration of commercial production as of August 1, 2021. In July, with the new East Portal producing ore at full capacity for the first time, we got a glimpse of what the PureGold Mine is capable of, setting new monthly and daily records for both milled and mined tonnage, respectively, and demonstrating the strong potential to push beyond 800 tpd on a sustainable basis by the end of this year. As grades continue to improve and throughput continues to increase throughout the year, we look forward to strong and steadily improving production metrics for the balance of the year and into 2022.”



Read at:
https://www.puregoldmining.ca/puregold-reports-strong-start-to-third-quarter-and-provides-outlook-for-the-second-half-of-2021/