TIDMPUR
RNS Number : 3188X
Pure Gold Mining Inc.
04 January 2022
NEWS RELEASE 22- 01 January 4 , 2022
PureGold Transitions to Operational Leadership Team and Provides
Project Update
VANCOUVER, B.C. - Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR)
("PureGold" or the "Company"), announced today proactive executive
management changes which better align operational requirements with
professional expertise. Mr. Troy Fierro, Director and seasoned
mining engineer, has replaced Darin Labrenz as President & CEO.
Mr. Chris Haubrich, Vice President Business Development, has
replaced Sean Tetzlaff as CFO. Ms. Ashley Kates, Corporate
Controller, has been promoted to Vice President Finance &
Corporate Secretary. All changes are effective as of January 1,
2022.
Graeme Currie, Chairman, stated, "On behalf of the board of
directors and all PureGold stakeholders, I thank both Darin and
Sean for their dedication, commitment, and hard work dating back to
the inception of the Company. Due in large part to their focused
efforts, the PureGold Mine transitioned in just six years from a
pre-resource stage asset through construction toward a commercial
operation, which today is one of only two operating mines in the
re-emergent Red Lake District. We wish both Darin and Sean the very
best in all their future endeavors."
"Today's changes are consistent with the Company's transition to
a culture of operational excellence," stated Troy Fierro. "As the
PureGold Mine continues to evolve and grow, so too does the
repertoire of skills needed in our executive leadership team to
ensure ongoing success. Chris, Ashley, and I each bring our own
unique combination of leadership skills and operational experience
and I am excited for us to work together in our new roles. In
addition to Chris and Ashley I am delighted to be working more
closely with Maryse Bélanger, our MGM and my fellow Director, who
has been driving operational improvements at the mine site for the
past two months. Together, this revitalized leadership group is
ideally suited to steer the Company through full ramp-up and
execute our vision of building a multi-generational Canadian gold
mining company rooted in the heart of Red Lake."
Mr. Labrenz is also stepping down from the Board. Although
Mr.Tetzlaff will no longer be in an executive role, he will
continue to provide support as needed in an advisory capacity.
PureGold Mine Update
Since Maryse Bélanger assumed the role of Mine General Manager
in November 2021, several operational improvement initiatives have
been implemented at the Mine. These changes are expected to have a
positive impact on both short-term and long-term operational
performance.
"The PureGold Mine is a high-grade deposit in a strategic
location with exciting exploration potential that was advanced
rapidly from exploration through to commercial production at a time
when few other mines were being built. It is an incredible
achievement, especially during a pandemic," commented Ms. Bélanger.
"Today we have a fully built mine site with an 800 tpd mill
currently achieving +95% recoveries which can operate at 125% of
nameplate capacity. Despite that success, much work remains to
unlock the mine's full potential."
"I have been immersed in all facets of the operation with the
goal of getting the mine profitable in the near-term and ensuring
that the culture is one that fosters operational excellence for the
long-term. Given the changes underway, I am confident that we will
be successful going forward. The PureGold Mine needs a leadership
team with deep operational experience to guide and support the team
at site, shift after shift, day after day, to be successful. We
have that at PureGold now and in time, success will follow."
Reconciliation and Planning & Scheduling Improvements
Mined grades have been reconciling well with the Mineral
Reserve(1) for stopes within the Mineral Reserve envelope to date.
The mill has demonstrated capability of operating consistently and
reliably at and above its design capacity of 800 tpd on multiple
occasions. The key challenge to date has been maintaining access to
enough high-confidence, high-grade stopes to provide high-grade ore
to the mill. Shortages of high-grade ore at various times have led
to blending of low-grade development material and stockpiles which
has reduced the overall feed grade to the mill. These shortages
were caused by a combination of factors including development
delays, insufficient scheduling flexibility, insufficient geologic
information available for stopes prior to mining, equipment
downtime, and strategic misalignments.
Significant changes to mine planning and scheduling were
implemented during the fourth quarter of 2021 to address these
underlying causes, with early signs of positive progress evident in
December's operating results. These changes include reorganization
of information and workflow structures, resulting in enhanced
accountability and reduced assay turnaround times. Additionally,
definition drilling activity has been expanded, which will provide
mine planners with better information in a timely manner leading to
improved stope designs and enhanced scheduling flexibility.
Finally, a geologic confidence-based model was implemented to
standardize decision making and improve mine scheduling and
planning. Together, these changes are expected to drive sustainable
increases in both ore throughput and head grade, though will
require more time to fully implement.
Although these changes only took effect as recently as
mid-November, improved performance was already evident at year-end,
and significant room for continued improvement remains. For the
month of December, the PureGold Mine averaged 662 tpd of ore milled
at a grade of 6.1 g/t Au with 96% recovery for 3,905 ounces of gold
produced. For the last three weeks of December, the PureGold Mine
averaged an estimated 760 tpd of ore milled at a grade of 6.6 g/t
Au with 96% recovery for an estimated 3,232 ounces of gold
produced. Both represent gold production records over those
respective time periods for the Company.
Cost Reduction Initiatives
In addition to improved mining practices, various cost reduction
and efficiency enhancement initiatives have been implemented. The
recent focus has been on streamlining functional leadership and
driving direct accountability across the organization to ensure the
impacts are long-lasting.
Several senior manager roles have been eliminated, resulting in
reduced site G&A costs. The Company expects to continue to
explore and implement additional cost saving opportunities in 2022.
A new crushing and hauling contract was awarded in November, which
has reduced material handling costs by 25%. A new agreement is
being negotiated with Dumas Mine Contracting, which will reduce
costs, improve transparency, and ensure maximum benefit for
PureGold and its partner contract miners.
Inexpensive upgrades are being made to the gravity circuit. They
are expected to increase gravity recovery by 10-15% and overall
gold recoveries by 1-2%. This will also reduce operating costs by
reducing cyanide dosages (consumption) in leaching, carbon in
carbon-in-pulp (CIP), and metabisulfite/copper sulfate in the detox
circuit.
A consignment program for critical parts with various vendors
has been implemented, which will keep inventory costs down and
equipment availability and productivity high.
A camp has been sourced and will be installed near the mine
early in Q1 2022, significantly improving PureGold's ability to
attract and retain top talent, while reducing costs of
accommodation and travel. Occupancy is planned for March 2022.
As ore throughput and grade increase in conjunction with the
ongoing cost reduction initiatives, the Company expects cash costs
and all-in sustaining costs to trend steadily and significantly
downward throughout 2022.
Outlook
As these and several other operational improvement initiatives
continue to be implemented, the mine is targeting production in the
range of 600-700 tonnes per day (60%-70% of mill capacity) for the
first quarter of 2022 and will ramp up gradually from there as
access to high-confidence, high-grade stopes increases. Average
head grades are expected to initially be in the range of 5.0-7.0
g/t Au and are also expected to increase steadily as the growing
drilled inventory allows for better stope scheduling and increasing
stope access allows for increased ore mining rates on a sustained
basis.
Of note, mining in 2021 was almost exclusively in the McVeigh
Zone, which is the zone nearest to the pre-existing Main (West)
Ramp, but is also the least well-defined and most geometrically
irregular zone within the Mineral Reserve. McVeigh represents
approximately 6% of the overall Mineral Reserves. Only three stopes
from the Austin Zone, accessed via the East Ramp, were developed in
2021. Going forward, as the McVeigh Zone is depleted, the Company
expects mining operational performance to benefit naturally from
more continuous deposit geometry and larger, more productive
stopes.
Fourth Quarter 2021 Production Summary
After reaching a low point in October, both ore production and
head grade have been steadily increasing. December mine production
was a record month for PureGold, and further improvements from
operational improvement initiatives currently underway are expected
to drive continued improvements in gold production and cost
performance throughout 2022.
October November December Total/Avg.
2021 2021 2021 Q4 2021
------------------------- ------- -------- -------- ----------
Tonnes Processed (t) 11,991 18,613 20,525 51,129
------------------------- ------- -------- -------- ----------
Average Daily Throughput
(tpd) 387 620 662 556
------------------------- ------- -------- -------- ----------
Head Grade (g/t Au) 3.7 4.3 6.1 4.9
------------------------- ------- -------- -------- ----------
Recovery (%) 94.9% 94.6% 96.4% 95.3%
------------------------- ------- -------- -------- ----------
Ounces Produced (oz) 1,347 2,406 3,905 7,657
------------------------- ------- -------- -------- ----------
Full Year 2021 Production Summary
Q1 2021 Q2 2021 Q3 2021 Q4 2021
------------------------- ------- ------- ------- -------
Tonnes Processed (t) 48,404 47,166 63,029 51,129
------------------------- ------- ------- ------- -------
Average Daily Throughput
(tpd) 538 518 685 556
------------------------- ------- ------- ------- -------
Head Grade (g/t Au) 2.9 4.3 4.8 4.9
------------------------- ------- ------- ------- -------
Recovery (%) 95.2% 95.7% 94.5% 95.3%
------------------------- ------- ------- ------- -------
Ounces Produced (oz) 4,233 6,287 9,260 7,657
------------------------- ------- ------- ------- -------
Amendments to Credit Agreement
As of December 31, 2021, the Company and its principal lending
partner, Sprott Private Resource Lending II (Collector), LP
("Sprott") have agreed to amend the restated credit agreement dated
April 2021. Amended terms include a temporary reduction of the
minimum cash balance, a temporary reduction of the minimum working
capital position, and deferral of the completion test from December
31, 2021 to June 30, 2022.
Management Profiles
Troy Fierro - President & CEO
Mr. Troy J. Fierro is a mining engineer and seasoned mining
executive who brings over 35 years of operating and leadership
experience with a special focus on startups and early-stage
operations. Mr. Fierro began his career in 1983 as an underground
contract miner at the Homestake Gold Mine in Lead, South Dakota
while completing his engineering degree. Since then, Mr. Fierro
worked his way through the ranks from mine engineer to mine
superintendent, MGM, and VP General Manager. Mr. Fierro
subsequently held senior operational and technical leadership roles
including VP Technical Services and VP Operations with Coeur
d'Alene Mines. During his tenure at Coeur, Mr. Fierro was
responsible for operating properties in the US and South America.
He was also responsible for two underground mine startups in South
America and the development of other projects in Bolivia and
Alaska. As VP Operations for Metallica Resources, Mr. Fierro was
responsible for the construction and startup of the Cerro San Pedro
Mine in San Luis Potosi, Mexico. Metallica Resources was acquired
shortly after startup by New Gold. Mr. Fierro then joined Dr. Mark
O'Dea at Fronteer Gold as COO and began advancing the Long Canyon
deposit in Nevada which was acquired by Newmont in 2011. During
that time, Mr. Fierro joined the Board of Grayd Resources, which
was advancing the La India project in Mexico. Grayd was
subsequently acquired by Agnico Eagle. Mr. Fierro also provides
consulting services to the industry through his firm Fierro
Consulting and previously held board positions with Timberline
Resources and Gold Canyon Resources before joining the board of
Pure Gold Mining in 2014.
Chris Haubrich, P.Eng., M.Sc., CFA - Vice President Business
Development & CFO
Chris Haubrich is a mining finance professional and registered
professional mining engineer with over a decade of experience in
mergers and acquisitions, corporate strategy, capital markets,
operations, and engineering consulting in the mining industry. Mr.
Haubrich has served as Vice President, Business Development with
PureGold since January 2021, where he has been responsible for the
Company's strategy, M&A activities, commercial negotiations,
and investor relations functions. Prior to joining PureGold, he
served as Vice President, Investment Banking with National Bank
Financial where he covered the mining industry and advised clients
on a wide range of M&A and financing transactions. Mr. Haubrich
started his career as an underground mining engineer with Cameco
Corporation and has also worked in operational roles with Rio
Tinto, Mosaic Potash, and Syncrude Canada. He holds a Bachelor of
Science degree in Mining Engineering from the University of
Alberta, a Master of Science degree in Mineral and Energy Economics
from Colorado School of Mines and is a CFA Charterholder.
Ashley Kates, CPA, CA - Vice President Finance & Corporate
Secretary
Ashley Kates is a Chartered Professional Accountant with over 15
years' experience in accounting, finance and corporate governance,
the majority of which has been spent at production and development
stage mining companies. Ms. Kates joined PureGold in 2019 and
manages the financial reporting, treasury, tax, and regulatory
compliance of the Company. Prior to joining PureGold, she served as
Corporate Controller at Atlantic Gold Corporation for five years
and played a key role in the company's successful transition from
development to full production until its sale to St. Barbara
Limited. Ms. Kates began her career in accounting and finance at
Ernst & Young, where she spent eight years in the audit and
assurance group. Ms. Kates holds a Bachelor of Commerce degree from
the University of British Columbia and holds CPA and CA
professional designations.
Qualified Persons and 43-101 Disclosure
Cameron Andrews, P.Eng., Superintendent, Technical Services for
the Company, is the designated Qualified Person for this news
release within the meaning of National Instrument 43-101 ("NI
43-101") and has reviewed and verified that the technical
information contained herein is accurate and approves of the
written disclosure of same.
About Pure Gold Mining Inc.
PureGold is a Canadian gold mining company, located in the very
heart of Red Lake, Ontario, Canada. Our vision is pure and simple.
To build a highly profitable, multi-generational growth company in
the world-class gold mining district of Red Lake. With our
100%-owned, fully constructed operating PureGold Mine, a
multi-million-ounce gold endowment, and significant exploration
upside, our value-maximizing strategy is to pursue operational
excellence today, while investing in systematic exploration and
phased expansions to fuel discovery and growth for the future.
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
1. For further information, see the technical report titled
"Madsen Gold Project Technical Report Feasibility Study for the
Madsen Deposit Red Lake, Ontario, Canada" with an effective date of
February 5, 2019, and dated July 5, 2019 (the "Feasibility Study"),
for further information please see www.puregoldmining.ca or under
the Company's Sedar profile at www.sedar.com
ON BEHALF OF THE BOARD
"Troy Fierro"
Troy Fierro, President & CEO
Investor inquiries:
Adrian O'Brien, Director, Marketing and Communications
Tel: 604-809-6890
aobrien@puregoldmining.ca
Non-IFRS Financial Performance Measures
The Company has included certain non-IFRS measures in this new
release. Refer to the Company's MD&A for an explanation of
non-IFRS measures. The Company believes that these measures, in
addition to measures prepared in accordance with International
Financial Reporting Standards ("IFRS"), provide readers with an
improved ability to evaluate the underlying performance of the
Company and to compare it to information reported by other
companies. The non-IFRS measures are intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. These measures do not have any standardized meaning
prescribed under IFRS, and therefore may not be comparable to
similar measures presented by other issuers.
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, 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", "continue",
"planned", "expect", "project", "predict", "potential",
"targeting", "intends", "believe", "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 Pure Gold Red Lake 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCBIMFTMTIMMLT
(END) Dow Jones Newswires
January 04, 2022 02:00 ET (07:00 GMT)
Pure Gold Mining (LSE:PUR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Pure Gold Mining (LSE:PUR)
Historical Stock Chart
From Sep 2023 to Sep 2024