TIDMPUR
RNS Number : 3098S
Pure Gold Mining Inc.
15 November 2021
NEWS RELEASE 21-21 November 12, 2021
PureGold Gold Reports Third Quarter 2021 Financial and Operating
Results
VANCOUVER, B.C. - Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR)
("PureGold" or the "Company"), reports its third quarter 2021
summary financial and operating results. The Company's unaudited
condensed interim financial statements and related management's
discussion and analysis for the three and nine months ended
September 30, 2021, will be available for download on SEDAR and on
the Company's website. All amounts are expressed in Canadian
dollars ("$"), unless otherwise noted).
A summary of the highlights for the three months ended September
30, 2021, and subsequent period to date for the Company and its
100% owned PureGold Mine Project ("PureGold Mine" or the "Project")
are as follows:
-- Declared commercial production on August 1, 2021;
-- Announced on October 27, 2021, that Maryse Bélanger,
director, and experienced mine operator and builder, has agreed to
step into the role of Mine General Manager at the PureGold Mine,
following retirement by the incumbent. In this role, Ms. Bélanger
will oversee all aspects of the day-to-day operations of the
PureGold Mine;[1]
-- Average daily throughput of 685 tonnes per day ("tpd") at the
PureGold Mine for the quarter, a 35% increase compared to the
second quarter driven by increased stope access and mill
upgrades;
-- Gold production of 9,260 ounces, a 54% increase compared to
the second quarter driven by higher grades and increased
tonnage;
-- Average mill head grade of 4.8 g/t Au, a 15% increase on the second quarter;
-- Completion of mill upgrades to increase processing capacity,
1,000 tpd achieved for a number of days;
-- Continued progress on permit amendments to increase annual
ore production limits from 292,000 tonnes (800 tpd) to 360,000
tonnes (1,000 tpd);
-- Announced quarterly results from drilling used to support
near-term mine production from both the Main and East Ramp areas,
with highlights as follows:[2]
o 55.4 g/t gold over 5.0 metres from drill hole PGP-00072;
including
83.2 g/t gold over 2.0 metres ; and including
50.3 g/t gold over 2.0 metres ;
o 14.5 g/t gold over 13.2 metres from drill hole PGP-00086;
including
116.7 g/t gold over 1.0 metre ;
o 10.1 g/t gold over 7.8 metres from drill hole PGP-00091;
including
44.2 g/t gold over 1.0 metre ;
o 18.2 g/t gold over 3.9 metres from drill hole PGP-00070;
including
30.1 g/t gold over 1.9 metres .
-- On September 28, 2021, the Company closed a bought deal
offering of 21,905,200 units of the Company ("Units") at a price of
C$1.05 per Unit for gross proceeds to the Company of C$23.0 million
(the "Offering"). Each Unit is comprised of one common share (each
a "Common Share") and one-half Common Share purchase warrant (each
such full warrant, a "Warrant"). Each Warrant will entitle the
holder thereof to purchase one Common Share at a price of C$1.36
until March 28, 2023. [3]
-- On October 15, 2021, the Company closed a further financing
on similar terms to the September 28, 2021 financing, when it
issued a total of 3,307,619 Units of the Company to a subsidiary of
AngloGold Ashanti International Exploration Limited ("AngloGold")
at a price of C$1.05 per Unit, for aggregate gross proceeds of
approximately C$3.5 million. This private placement financing
brought AngloGold's then ownership percentage in the Company to
14.96% of the issued and then outstanding common shares on a
non-diluted basis. Each Unit consists of one Common Share of the
Company and one-half of one common share purchase warrant (each
whole common share purchase warrant, an "AngloGold Warrant"). Each
AngloGold Warrant is transferrable and entitles the holder to
acquire one Common Share of the Company until April 15, 2023, at a
price of C$1.36.[4]
In the third quarter, the Company approved an increase from two
to four rigs for its ongoing underground and surface drill program
with the goal of further delineation and growth of our near-term
mine plan. Looking ahead, the Company is targeting a production
rate of approximately 600-700 tpd at an average head grade of
5.5-6.5 g/t Au for the fourth quarter of 2021 and expects to
continue ramping up both throughput and mill head grade toward the
mine's full capacity by the end of Q1 2022. The Company expects to
sustain 1,000 tpd by mid-2022.
Financial Results
-- Mine operating loss of $5.9 million for the three and nine
months ended September 30, 2021;[5];
-- Revenues, net of refining costs of $15.9 million for the
three and nine months ended September 30, 2021(5) ;
-- Net loss and comprehensive loss for the three and nine months
ended September 30, 2021 totaled $13.2 million and $17.1 million
respectively;
-- Basic and diluted loss per share for the three and nine
months ended September 30, 2021 of $0.03 and $0.04,
respectively
-- Cash balance as of September 30, 2021, of $24.3 million;
-- Total loans and borrowings as of September 30, 2021, of $122.7 million; and
-- Gold Stream derivative liability as of September 30, 2021 of $44.1 million.
Operational and Financial Details
For the two
months since
start of commercial For the three
production months ended September
30, 2021[6]
---------------- ------------- --------------------- -------------------------
Operating data
Ore mined Tonnes 39,460 61,534
Waste mined Tonnes 101,825 143,225
Total mined Tonnes 141,285 204,759
Ore milled Tonnes 41,242 63,028
Average head Grams per
grade tonne gold 4.6 4.8
Recovery % 93.8 94.5
Gold produced Ounces 5,700 9,260
Gold sold Ounces 7,042 8,382
Financial data
(millions)
Revenue $15.9
Mine operating
loss $(5.9)
Net loss $(13.2)
EBITDA $(4.7)
$ amounts in For the three For the three For the nine For the nine
millions, except months ended months ended months ended months ended
per share amounts September September September 30, September 30,
30, 2021 30, 2020[7] 2021 2020
-------------------------- ----- -------------- ---- -------------- ---- --------------- ---- ---------------
Mine operating
loss $ 5.9 $ -- $ 5.9 $ --
Corporate administrative
costs 1.4 2.0 5.0 5.0
Interest and
financing costs 2.4 0.1 2.5 0.2
Foreign exchange
loss (gain) 4.9 (1.5) 2.1 (2.9)
Loss (gain)
on fair value
of derivative
liabilities (1.6) 6.4 0.0 6.8
--------------------------------- -------------- ---- -------------- ---- --------------- ---- ---------------
Net loss before
income taxes 13.2 9.7 19.1 11.6
Deferred income
tax recovery -- -- (2.1) 0.9
--------------------------------- -------------- ---- -------------- ---- --------------- ---- ---------------
Net loss and
comprehensive
loss for the
period $ 13.2 $ 9.7 $ 17.1 $ 10.8
-------------------------- ----- -------------- ---- -------------- ---- --------------- ---- ---------------
Basic and diluted
loss per common
share $ 0.03 $ 0.02 $ 0.04 $ 0.03
-------------------------- ----- -------------- ---- -------------- ---- --------------- ---- ---------------
Additional information regarding the Company's financial results
and activities underway at the Company's PureGold Mine is available
in the Company's Q3 2021 Financial Statements and accompanying
management's discussion and analysis for the three and nine months
ended September 30, 2021.
Management Change
The Company wishes to announce that Mr. Ken Donner, VP
Operations has indicated he will retire from the Company effective
as of the date of this release. Maryse Bélanger, in her role as
Mine General Manager, will be responsible for operational
leadership at the PureGold Mine.
Management and the Board of directors wish to thank Ken for his
many years of service and want to acknowledge his key role in the
successful build of the PureGold Mine in 2020, on time and on
budget. We wish Ken a happy retirement and all the best in his
future endeavours.
Qualified Persons and 43-101 Disclosure
Darin Labrenz, P.Geo, PureGold's President & CEO, is the
Company's QP for the purposes of NI 43-101 and has reviewed and
validated that the scientific or technical information contained in
this press release related to the PureGold Mine Technical Report,
is consistent with that provided by the independent QPs responsible
for preparing the PureGold Mine Technical Report and has verified
the technical data disclosed in this document relating to those
projects in which the Company holds an interest. Mr. Labrenz has
consented to the inclusion of the Technical Information in the form
and context in which it appears in this press release.
About Pure Gold Mining Inc.
PureGold is a growth company, located in the very heart of Red
Lake, Canada. Our objective is pure and simple. To develop a
highly-profitable long life gold mining company, becoming Canada's
next iconic gold producer. Our plan is very disciplined, very
methodical and financially sound. To expand organically, and
develop PureGold's multi-million ounce high-grade gold asset
incrementally, step-by-step, using a phased mining development plan
to deliver maximum return.
Additional information about the Company and its activities may
be found on the Company's website at www.puregoldmining.ca and
under the Company's profile at www.sedar.com
ON BEHALF OF THE BOARD
"Darin Labrenz"
Darin Labrenz, President & CEO
Investor inquiries:
Adrian O'Brien, Director, Marketing and Communications
Tel: 604-809-6890
aobrien@puregoldmining.ca
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
All statements in this press release, other than statements of
historical fact, are "forward-looking information" with respect to
PureGold within the meaning of applicable securities laws,
including, but not limited to statements with respect to those that
address proposed timing of development plans for the PureGold Mine
complex, timing of expected production including timing for
increased production, timing and size of exploration activities,
potential for advancing the amount and timing for higher grade ore,
potential for additional resources and expansion of known deposits
and potential for making new discoveries and the focus of the
Company in the coming months . Forward-looking information is
often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "progress", "continue", "planned",
"expect", expectations", "expand", "increasing", "project",
"predict", "potential", "targeting", "intends", "believe",
"improved", "potential", and similar expressions, or describes a
"goal", or variation , of such words and phrases or state that
certain actions, events or results "may", "should", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made including, among
others, assumptions about future prices of gold and other metal
prices, currency exchange rates and interest rates, favourable
operating conditions, political stability, obtaining governmental
approvals and financing on time, obtaining renewals for existing
licences and permits and obtaining required licences and permits,
labour stability, stability in market conditions, availability of
equipment, accuracy of any mineral resources, successful resolution
of disputes and anticipated costs and expenditures. Many
assumptions are based on factors and events that are not within the
control of PureGold and there is no assurance they will prove to be
correct.
Such forward-looking information, involves known and unknown
risks, which may cause the actual results to be materially
different from any future results expressed or implied by such
forward-looking information, including, risks related to the
interpretation of results at the PureGold Mine complex ; changes in
project parameters as plans continue to be refined; current
economic conditions; future prices of commodities; possible
variations in grade or recovery rates; the costs and timing of the
development of new deposits; failure of equipment or processes to
operate as anticipated; the failure of contracted parties to
perform; the timing and success of exploration and development
activities generally; delays in permitting; possible claims against
the Company; the timing of future economic studies; labour disputes
and other risks of the mining industry; delays in obtaining
governmental approvals, financing or in the completion of
exploration as well as those factors discussed in the Annual
Information Form of the Company dated March 31, 2021 in the section
entitled "Risk Factors", under PureGold's SEDAR profile at
www.sedar.com .
Although PureGold has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking information,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. PureGold disclaims any intention or
obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise
unless required by law.
[1] See press release dated October 27, 2021 available at
www.puregoldmining.ca or under the Company's Sedar profile at
www.sedar.com.
[2] See press release dated October 28, 2021 available at
www.puregoldmining.ca or under the Company's Sedar profile at
www.sedar.com.
[3] See press release dated September 28, 2021, available at
www.puregoldmining.ca or under the Company's Sedar profile at
www.sedar.com.
[4] See press release dated October 15, 2021, available at
www.puregoldmining.ca or under the Company's Sedar profile at
www.sedar.com.
[5] Commercial production was declared on August 1, 2021. Mine
operating results and revenues therefore reflect only two months of
operations. Gold sales prior to commercial production are netted
against Mineral Property costs on the balance sheet.
[6] Until the Company reaches this expected level of sustained
throughput and expected grade, non-IFRS financial measures such as
Cash costs per ounce and All-in sustaining costs ("AISC") per
ounce, which rely on ounces produced in their calculation, are not
representative of the future mine plan and are not provided herein.
The Company expects to begin to provide these numbers in Q1 of
2022.
[7] Prior to commercial production on August 1, 2021, all
operating results were capitalized to Mineral Property costs.
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