Pure Gold shares up on Red Lake drill results

Image from Pure Gold.

Pure Gold Mining (TSX-V:PGM, LSE:PUR) reported high-grade drill intercepts returned from underground drilling completed during the first quarter of 2021 in Red Lake, Ontario.

Underground drilling results highlights include 56.6 g/t gold over 1.0 metre from drill hole PGB-0186, and 8.7 g/t gold over 7.9 metres from drill hole PGU-0184, including 44.4 g/t gold over 1.0 metre.

“Our underground drilling ahead of near-term mine production continues to reinforce the high-grade nature of this orebody,” Darin Labrenz, Pure Gold CEO said in a press release.

Underground drilling results highlights include 56.6 g/t gold over 1 metre

“With gold recoveries at better than 95%, and the mill ramp up effectively behind us, we can now focus on maximizing delivery of high grade ore from underground.”

In the first three months of 2021, Pure Gold processed 47,182 tonnes grading 2.8 g/t gold and generated 4,011 gold oz. In the last quarter of 2020, the company milled 3,535 tonnes at a head grade of 7.8 g/t gold.

The company has also entered into a binding agreement with Sprott Private Resource Lending to increase the principal amount of its debt by up to $20 million; $12.5 million of this amount will be available on closing. The agreement also defers the payment of cash interest until the end of June.

According to a 2019 feasibility study, the PureGold reserve grade of 9 g/t gold includes average annual grades between 6.3 g/t gold and 13.7 g/t gold. First-quarter stopes averaged between 5 g/t gold and 6 g/t gold, before overbreak. The study outlined probable reserves of 1 million oz., from 3.5 million tonnes at 9 g/t gold.

Midday Tuesday, Pure Gold’s stock was up 4.4% on the TSXV. The company has a C$555 million market capitalization.