During the last week of 2020, Pure Gold Mining poured its first gold at its Red Lake Pure Gold mine, located in Ontario. The company aims to issue guidance for this year after its mine reached commercial production. Company executives expect that this will happen by the end of Q1 2021.
Pure Gold Mining CEO and president Darin Labrenz stated in a press release that a complete team effort made up of driven, focused and dedicated individuals was needed to build the mine. The underground mine, which will be among the highest producers of grade gold globally, utilizes various mining methods. On the other hand, processing is made up of gravity concentration, a process that retrieves free-million gold and comes after crushing and grinding. Other stages of processing include leaching, electrowinning, pre-oxidation and refining, which produces doré gold.
The company stated that it would carry on with exploration drilling from underground and surface, in addition to updating the resource estimate of the property based off of the drilling that had been completed in the past two years.
Mine financier and a key investor in the company Eric Sprott noted that the firm possessed all the features that he looked for in a company, including growth, location, size and grade. He explained that the company’s mine in Red Lake had more than 7 km of strike with high-grade shoots that had been outlined down to 1,200 meters.
He added that the eight-zone, ultra-high grade reminded him of the HG zone that formed Goldcorp, as well as Fosterville’s Swan zone and Macassa’s SMC. He explained that these discoveries had the potential to make companies, in addition to resulting in a significantly higher production profile.
Pure Gold’s recent corporate presentations show that Sprott has invested nearly $23.5 million in the firm. The company’s other major shareholders include Newmont and AngloGold Ashanti.
A mine feasibility study completed in 2019 provided an outline for an underground mining operation that would produce 800 tons per day and would have a mine life of 12.3 years. It is expected that peak annual production will reach 102,000 ounces of gold yearly in roughly between three to seven years. In its computations, the feasibility study used the price of gold as $999 per ounce.
The company estimates that over its lifetime, the mine will employ roughly 340 individuals while also delivering direct salaries valued at $366 million.
Things seem to be looking up for other mining companies as well. For example, GoldHaven Resources Corp. (CSE: GOH) (OTCQB: GHVNF) recently completed an oversubscribed funding round on the heels of its acquisition of seven gold-rich properties in Chile.
NOTE TO INVESTORS: The latest news and updates relating to GoldHaven Resources Corp. (CSE: GOH) (OTCQB: GHVNF) are available in the company’s newsroom at http://ibn.fm/GHVNF
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