Pure Gold Mining Inc advancing Canada’s next iconic gold mine

• First gold already poured; ramping up to steady-state output
• Probable mineral reserves of 1 million ounces of gold
• Strong set of strategic investors including and Eric Sprott

What Pure Gold Mining does:

Pure Gold Mining Inc (CVE:PGM) () () is advancing the PureGold mine in Red Lake Ontario – one of the highest grade gold mines in the world – and first gold has now been poured.

The project sits in the 7 kilometer (km) Madsen Red Lake gold system and there is huge exploration upside here.

The area already has significant infrastructure in place. The Red Lake mining camp in northwestern Ontario has produced nearly 30 million ounces of gold over the past 85 years, making it one of the largest and highest-grade gold-producing districts in Canada.

The PureGold mine is poised to be the fourth highest-grade gold mine in Canada at 9 grams per ton (g/t) and the 16th highest grade gold mine globally, making it higher grade than 95% of gold mines anywhere in the world. The company is developing the mine with scalable, phased approach, and the first phase is set to produce 1 million ounces.

This first one million announces will generate over C$2.3 billion in revenue over the next decade, says the company,  and over C$1.2 billion in pre-tax free cash flow. .

PureGold has defined a 2.1 million ounce indicated resource (7.2Mt at 8.9 g/t gold) and a 0.5 million ounce inferred resource (1.9Mt at 7.7 g/t gold) at the PureGold mine.

In 2019, a feasibility study for Phase 1 pegged the pre-tax net present value (NPV) at C$353 million, with a pre-tax IRR (internal rate of return) of 43%, based on a gold price of US$1,275. That NPV moves to US$390 million and IRR at 51% based on a gold price of US$1,500 per ounce.

The first phase project is fully funded and in August 2019, the firm announced a US$90 million project finance package. The aim of the second phase is to extract high-grade ounces of gold already drilled off in the immediate area of the Phase One mine.

Pure Gold is supported by some key strategic investors experienced in building multi-billion dollar gold mining companies. Its largest shareholder is mining titan , while its second and third-largest shareholders are Eric Sprott and Van Eck Associates Corporation.

Chief executive Darin Labrenz is a Red Lake camp veteran who now leads a multifaceted team of experienced geologists, mine builders, and mine operators, supported by a board with proven capital markets expertise and rich history of building and operating mines.

The firm, last year, put out a corporate video which vividly highlighted the excitement surrounding its PureGold Mine in Ontario. See below:

How is it doing:

A major milestone was reported on December 30, 2020 when the firm told investors that first gold was poured at the mine on December 29, 2020, following the introduction of ore to the mill on December 15. That fired the starting pistol on the process of ramping up and optimizing the operation at the mill.

The company noted it would continue to pursue its aggressive growth strategy in 2021, with ongoing exploration drilling from both surface and underground, an update of mineral resources to include drilling completed over the last two years, and incorporation of significant improvements in mine design and mine plan.

And, in March 2021, the group revealed it expects to declare commercial production in the second quarter of 2021.

Updating on the ramp-up at the end of March this year, covering the progress of the first quarter to end March, Pure Gold revealed that recoveries had been “exceptional” since the first gold pour in December. It added that ramp-up of then processing mill was now complete, operating, as it is, at more than 75% of nameplate capacity.

The company’s focus is now shifting to aligning mill throughput with the rate of underground mining as the project moves to access higher grade ore and progress…