Pure Gold Mining (TSXV: PGM; LSE: PUR; US-OTC: LRTNF) poured its first gold in the final week of 2020 at its PureGold mine in Red Lake, Ont., and the company expects to reach commercial production by the end of the first quarter of 2021.
The company plans to provide full-year guidance for 2021 once the mine reaches commercial production.
“To build a mine at any time requires a complete team effort comprised of dedicated, driven, and focused individuals,” Darin Labrenz, Pure Gold’s president and CEO, stated in a news release. “To do so under the unique challenges of 2020 speaks to the quality and dedication of the entire team.”
The underground mine – which will be one of the world’s highest grade gold producers — uses a combination of longhole stoping, conventional cut-and-fill, and mechanized cut-and-fill mining methods, while processing includes conventional crushing and grinding, followed by gravity concentration to recover free-milling gold, pre-oxidation, leaching, a carbon-in-pulp circuit and electrowinning, and then refining to produce doré gold.
Geordie Mark, an analyst who covers the company at Haywood Securities, forecasts the mine will produce about 81,000 oz. of gold in 2021 at an all-in sustaining cost of US$920 per oz.
“With first gold pour delivered on time and on budget, the Red Lake mine now represents one of very few operations to come online within North America over the last few years, and we note that the operation, which is located in the prolific Red Lake Mining Camp (30+ M oz gold produced over the past ~ 85 years), represents one of the highest-grade large-scale gold projects within North America (5th in Canada and 6th in North America),” Mark commented in a research note to clients.
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