PureGold Mine Achieves Third Quarter Gold Production Guidance

VANCOUVER - Pure Gold Mining Inc. achieved gold production guidance for the third quarter of 2022 for the PureGold Mine located in Red Lake, Ontario. PureGold also announced production guidance for the fourth quarter of 2022.

Terry Smith, Chief Operating Officer, said, “Our quarterly gold production results are a positive step in the operational transformation underway at the PureGold Mine. Our short-range planning and execution are working well and with that, we can aggressively pursue further optimization of the business. Looking ahead to the fourth quarter we expect another consecutive quarter over quarter step up in production for the PureGold Mine. We remain on track for delivery of the updated life of mine plan and pre-feasibility study in the fourth quarter of 2022, which will form the basis for 2023 guidance.”

PureGold resumed full time mill operations in July, delivering strong back-to-back monthly ore tonnage in July and August, and achieving record monthly gold production in August. Results for the third quarter would have been better, but for nine unexpected days of lost production in September due to downtime of the contract crusher and an unrelated issue with automation control electronics in the mill. These one-time issues have now been fully addressed with strong average daily throughput in the last week of September carrying through into October. However, the nine lost days caused the volume of ore processed in the third quarter to be below guidance.

The Company remains on track to deliver a new Pre-Feasibility Study (PFS) in Q4. The new PFS will incorporate an updated life of mine (LOM) plan and is based on the recently announced updated Mineral Resource Estimate (Updated MRE). The Company is working to ensure a smooth integration beginning in January 2023 of the new Life of Mine plan into the Mine’s existing planning system. The LOM plan is focused around continued targeted production growth well beyond the Company’s Q4 production guidance.

The Updated MRE has reaffirmed a multi-million-ounce, high-grade gold deposit and the Company expects the PFS to outline a long-life, profitable mining operation in a top-tier jurisdiction with significant benefits to our shareholders along with the community of Red Lake and our First Nations partners. PureGold expects to share the results with the market in near future.