PureGold Mine Reported Excellent Mining Rates Including Single Day Record
VANCOUVER - Pure Gold Mining Inc. reported that its high-grade PureGold Mine in Red Lake, Ontario, continues with excellent mining rates including a new single-day production record as unreconciled mined ore production averaged 849 tpd from the Main and East Ramps for the month, including a peak single day production record of over 1,450 tonnes of high-grade ore brought to surface in a span of 24 hours, reaffirming the strong potential to exceed 800 tonnes per day sustainably by the end of the year.
In July production and H2 2021: Daily throughput averaged 703 tpd for the month of July, a 38% improvement compared to the second quarter average. The strong performance in July which led to the declaration of commercial production as of August 1 is attributed to significantly improved stope availability and inventory as a result of investments in development and infill drilling made in the first six months of the year. Average throughput is expected to continue to increase steadily up to and beyond nameplate capacity of 800 tpd for the balance of 2021.
Head grades achieved were in line with plan, averaging 5.6 g/t Au from all ore processed during the month of July, in line with plan for the month which was expected to be the lightest month from a grade perspective for H2 2021. Over the last two weeks of July, mill head grades averaged 6.9 g/t Au with mine feed coming from multiple headings, including both longhole and mechanized cut and fill stopes. As production transitions to higher grade stopes in Q3 and Q4, head grades are expected to continue to improve for the balance of the year along with increasing throughput.
Steady progress on ramp development, with daily ramp development rates for the Main and East Ramps averaging 5.4 meters and 3.7 meters per day for July, respectively. With a dedicated contract crew now focused exclusively on the Main Ramp as of July, capital development will continue to be a priority for the balance of 2021 to ensure continued stope availability and flexibility and to accelerate drilling and access to 8 Zone. Once sufficiently ahead of mine production, capital development is expected to be reduced in 2022 and all-in sustaining costs1 (“AISC”) are expected to fall accordingly.
Gold production achieved a new monthly record in July of approximately 3,730 ounces of gold produced. Mill recoveries averaged 96.0% for the month.
Four of six CIP interstage screens have been installed with the remaining two expected to be installed in August. The trommel screen for the SAG discharge is on site and expected to be operational by September. The screens are expected to increase mill capacity in excess of nameplate 800 tpd once commissioned.