Pure Gold Mining Inc (CVE:PGM) (LON:PUR) updated investors Wednesday on construction progress at its Red Lake gold mine in the famous Ontario mining district, where the first gold pour is still on track for the fourth quarter this year.
The firm is fully funded to production, mine building began late last year, and 45% of capital expenditure has so far been spent, the company highlighted in a statement.
So far, 1,285 metres (m) of underground mine development has already been completed and is advancing at a 60% better rate than the mine plan had envisaged.
Darin Labrenz, the firm’s CEO, told investors that the group was delivering Canada’s next gold mine into a rising market for the precious metal, with the “potential to benefit from a period of margin expansion unlike any we have seen in years”.
“But we see this as just the beginning of establishing ourselves as Red Lake’s next senior producer,” he added.
“On the cusp of production, we believe we have only scratched the surface and we are already working towards the next phase of our growth with the initiation of an aggressive 18-month exploration program.”
As at June 21, procurement of major equipment is now 94% complete, said Pure Gold, adding that the process plant was now ready for the installation of new equipment.
The group has also recruited key operational team members including safety, mining, milling, and technical services, with the bulk of operational management team now in place, it added.
Notably, underground development is advancing at a rate of eight metres per day compared to a feasibility planned advance of five metres.
“Improved productivity, with development rates that are 60% better than plan, and a focus on main ramp development will open up more mining areas and drive deeper development more quickly,” said the firm.
“This will allow the company to improve upon the feasibility mine plan by prioritizing mining on higher grade stopes.”
On June 17, the firm said it had closed a non-brokered private placing, raising C$15 million gross to fund an “aggressive” exploration drilling program.
Pure Gold said it had closed the previously announced placing of flow-through common shares at C$1.52 per share and that resource investor Eric Sprott was the back-end buyer of all the flow through shares. He has now increased his stake in the company to 12%.
Shares added around 10% in London to 92p each.
—Updates for share price—
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