Pure Gold upbeat on latest Red Lake drilling results

Pure Gold Mining announced on Tuesday that underground exploration drilling at the Red Lake Mine, initiated in June, intersected high-grade gold mineralisation from both infill and step-out drill holes.

The London-listed firm said drilling at the Canadian mine had extended gold mineralisation out from planned stopes, discovered new gold zones that would be integrated into the mine plan, and confirmed stopes scheduled for near term production.

Highlights of the drilling included 46.7 grams of gold per tonne over seven metres from drill hole PGU-0118, which itself included 193.5 grams of gold per tonne over one metre.

They also noted 57.0 grams of gold per tonne over one metre from drill hole PGU-0121, 15.8 grams of gold per tonne over 2.3 metres from drill hole PGU-0117, and 7.2 grams of gold per tonne over five metres from drill hole PGU-0113, which included 22.3 grams of gold per tonne over one metre.

“Over the last several years our team has developed a tremendous understanding of the PureGold mine deposit,” said president and chief executive officer Darin Labrenz.

“We have established the scale of this gold system, with fantastic continuity along a seven kilometre trend, and we are building a mine that will be one of the highest grade mines in the world.”

Labrenz said the company’s 30,000 metre exploration program was designed to establish growth and scalability beyond its initial phase one mine plan.

“But even within the footprint of our phase one mine, the deposit continues to exceed our expectations with broad, high-grade intercepts that demonstrate opportunities for near term growth.

“New drill results demonstrate that extensions of existing stopes and possible expansions of the mine plan occur very close to existing or planned development and as such, have the potential to impact near term mine cash flow.”

At 1226 BST, shares in Pure Gold Mining were up 6.6% at 108.2p.