With the milling facility ramp-up completed in the first quarter, the Company’s focus for the second quarter has shifted to ramping up high-grade ore production from the mine. Quarter-to-date, head grades have significantly increased compared to the first quarter and continue to trend positively, achieving an average of 6.3 g/t Au over the last three weeks. Metallurgical recoveries continue to be exceptional, ranging between 95-99% year-to-date. Ore production rates are expected to continue to increase toward design capacity of 800 tonnes per day with the goal of achieving and sustaining that rate by mid-year.
Production Highlights for the Three-Week Period from
- 6.3 g/t Au average processed head grade
- 9,637 tonnes of ore milled
- 97.5% gold recovery rate
- 1,908 ounces of gold produced
- 459 tonnes per day processed on average
He continued, “We currently have 17 stopes designed and ready for development over the next three months, representing approximately 70,000 tonnes of ore with an estimated average grade of 6.0-7.0 g/t Au, in line with expected grades from the feasibility study.1 We are currently active in 17 headings at various phases of development and expect that number to increase to 26 by the end of the quarter. With the first stopes expected to be developed in the East Ramp area in the coming weeks, we will soon have two active haulage ways to support increased ore production for the remainder of 2021 and beyond. We are targeting an ore production rate of 500-600 tonnes per day for the month of May and are expecting to achieve feasibility design capacity of 800 tonnes per day on a sustainable basis by mid-year. With the mine entering the final stages of ramp-up and commercial production imminent, our long-term goal of combining world-class exploration potential with a cash flowing mine is becoming very real. It is an exciting time for PureGold.”
Mining Update
During the first six weeks of the second quarter, mining has generally progressed from stopes on the periphery of the orebody into the higher-grade heart of the orebody. Additionally, as access to a greater number of production areas has been established including areas accessible via the East Ramp, stope availability and scheduling flexibility have improved significantly compared to the first quarter. External dilution issues related to overbreak encountered in the first longhole stopes mined in the first quarter have been resolved. As expected, non-mineralized dykes have not been a significant issue in any stopes since the first quarter.
Production for the first six weeks of the second quarter totaled 18,546 tonnes of ore and 2,855 ounces of gold recovered, inclusive of a four-day mill shutdown for planned maintenance in mid-April. High-grade ore production highlights in the second quarter to date include stope MV04-1347 which returned 3,813 tonnes grading 10.2 g/t Au on average, and stope MV03-1360 which returned 1,363 tonnes grading 7.3 g/t Au on average.2 These stopes are in the heart of the orebody and are reconciling in line with the Company’s expectations.
The Company is accelerating development of both the Main Ramp and the East Ramp main haulage ways for the remainder of 2021. Proceeds from the recently closed
Processing Update
The milling facility has continued to operate exceptionally well throughout the first six weeks of the second quarter. Recoveries have exceeded feasibility expectations, averaging 96.6% for the first six weeks of the quarter and 97.5% for the three-week period from
Financial Update
As of
Commercial Production
The Company currently anticipates declaring commercial production at or near the end of the second quarter, based on its ongoing assessment of both ore throughput and gold production. Inaugural production and cost guidance for the balance of 2021 will follow shortly thereafter.
Qualified Persons and 43-101 Disclosure
About
PureGold is a growth company, located in the very heart of
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
- 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 ofFebruary 5, 2019 , and datedJuly 5, 2019 (the “Feasibility Study”), for further information please see www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com - Average grades for stopes are determined by averaging all muck samples from the stope. Individual muck samples in excess of 100 g/t gold were cut back to 100 g/t gold.
ON BEHALF OF THE BOARD
"
Investor inquiries:
Adrian O’Brien, Director,
Tel: 604-809-6890
aobrien@puregoldmining.ca
Neither
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to PureGold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address proposed timing of development plans for the
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the
Although PureGold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. PureGold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
Source:
2021 GlobeNewswire, Inc., source