PureGold still on track for first gold pour at Red Lake

PureGold Mining said on Monday that mine construction activities at its Red Lake Mine in Ontario, Canada are on schedule for first gold pour before the end of the year.

The London-listed company said it was still making “significant progress” towards completing construction, while ensuring the health and safety of its employees and contractors during the Covid-19 coronavirus pandemic.

It said the first gold pour, planned for the fourth quarter of 2020, aligned with a robust and rising gold market, that “significantly” exceeded the base-case parameters and project economics of the mine's 2019 feasibility study.

The company was also still building size and scale, saying that in May it would begin drilling with the intent to convert resources to reserves, and increasing resources from new high-grade discoveries at surface and at depth.

“We are not just building an integrated mining operation - we are building a fully-funded, long-life growth company uniquely positioned in the Red Lake camp, one of the world's largest gold-producing districts,” said president and chief executive officer Darin Labrenz.

“Our opportunity is tremendous - the real potential to become Red Lake's next senior gold producer.”

Labrenz said the company’s 47 square kilometre property possessed a proven, large high-grade gold system, with the same rocks, structure, timing, geology, grade and endowment potential as Evolution's Red Lake mine, 15 kilometres away.

“Work to date has proven we have a clear and precise understanding of the geology and district, and we have demonstrated our ability to execute on our goals.

“Our future cash flow will fund our aggressive gold growth plans, and there is no more important time to be building a gold mine.”

At 0940 1451 BST, shares in PureGold Mining were up 14.68% in London, at 55.62p.