Pure Gold Mining Share Discussion Threads

[jeanesy] 16/8/2021 07:20

be interesting to see what the market makes of the news. Those costs are awfully high but with a promise to come down from now.

[11_percent] 15/8/2021 15:54

PureGold Reports Strong Start to Third Quarter and Provides Outlook for the Second Half of 2021

VANCOUVER, British Columbia, Aug. 13, 2021 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) (“PureGoldR21; or the “Company”;), is pleased to provide an operations update for the month of July and an outlook for the second half (“H2”) of 2021 at its high-grade PureGold Mine in Red Lake, Ontario.

July Production and H2 2021 Outlook Highlights

Daily throughput averaged 703 tpd for the month of July, a 38% improvement compared to the second quarter average. The strong performance in July which led to the declaration of commercial production as of August 1 is attributed to significantly improved stope availability and inventory as a result of investments in development and infill drilling made in the first six months of the year. Average throughput is expected to continue to increase steadily up to and beyond nameplate capacity of 800 tpd for the balance of 2021.
Excellent mining rates including a new single-day production record as unreconciled mined ore production averaged 849 tpd from the Main and East Ramps for the month, including a peak single day production record of over 1,450 tonnes of high-grade ore brought to surface in a span of 24 hours, reaffirming the strong potential to exceed 800 tonnes per day sustainably by the end of the year.
Head grades achieved were in line with plan, averaging 5.6 g/t Au from all ore processed during the month of July, in line with plan for the month which was expected to be the lightest month from a grade perspective for H2 2021. Over the last two weeks of July, mill head grades averaged 6.9 g/t Au with mine feed coming from multiple headings, including both longhole and mechanized cut and fill stopes. As production transitions to higher grade stopes in Q3 and Q4, head grades are expected to continue to improve for the balance of the year along with increasing throughput.
Steady progress on ramp development, with daily ramp development rates for the Main and East Ramps averaging 5.4 metres and 3.7 metres per day for July, respectively. With a dedicated contract crew now focused exclusively on the Main Ramp as of July, capital development will continue to be a priority for the balance of 2021 to ensure continued stope availability and flexibility and to accelerate drilling and access to 8 Zone. Once sufficiently ahead of mine production, capital development is expected to be reduced in 2022 and all-in sustaining costs1 (“AISC”) are expected to fall accordingly.
Gold production achieved a new monthly record in July of approximately 3,730 ounces of gold produced. Mill recoveries averaged 96.0% for the month.2
Four of six CIP interstage screens have been installed with the remaining two expected to be installed in August. The trommel screen for the SAG discharge is on site and expected to be operational by September. The screens are expected to increase mill capacity in excess of nameplate 800 tpd once commissioned.
Guidance for H2 2021

Gold production for H2 2021, inclusive of July, is expected to be in the range of 27 – 32 koz Au with grades and throughputs increasing steadily toward the end of the year. Cash Costs1 for the fourth quarter, the first full quarter of commercial production, are expected to be in the range of US$1,025 - $1,125 per ounce. AISC1 for the fourth quarter is expected to be in the range of US$1,600 - $1,750 per ounce. Looking forward into 2022, production is expected to increase and Cash Costs and AISC are expected to fall significantly driven by higher grades and throughput coupled with decreased investment in capital development and other sustaining capital programs. This dynamic of increasing production and falling costs is expected to continue throughout 2022 and beyond as grades generally improve as mining progresses deeper and toward the 8 Zone as outlined in the 2019 Feasibility Study.3

Darin Labrenz, President & CEO of PureGold, commented, “I am proud of the consistent progress we’ve made and of the key milestones achieved in ramping up the PureGold Mine in 2021, highlighted by the recent declaration of commercial production as of August 1, 2021. In July, with the new East Portal producing ore at full capacity for the first time, we got a glimpse of what the PureGold Mine is capable of, setting new monthly and daily records for both milled and mined tonnage, respectively, and demonstrating the strong potential to push beyond 800 tpd on a sustainable basis by the end of this year. As grades continue to improve and throughput continues to increase throughout the year, we look forward to strong and steadily improving production metrics for the balance of the year and into 2022.”

[robertstronghand] 14/8/2021 13:06

Mine start up costs can be included or excluded at management's discretion, there are fixed and variable costs with mining, increased throughput will see costs fall. Sprott only sees net income of CAD9.9m this year and a net change in cash of -32.8, despite raising finance of 44m. Next year is when money starts to be made. Average head grade of ore processed has gone from Q1 2.8g/t to Q2 4.2g/t and now to 5.6g/t in July. I think these results are good, one thing having a deposit, it is another getting that in to production, good stuff.

[1hercule] 14/8/2021 08:52

Steady progress on ramp development, with daily ramp development rates for the Main and East Ramps averaging 5.4 metres and 3.7 metres per day for July, respectively. With a dedicated contract crew now focused exclusively on the Main Ramp as of July, capital development will continue to be a priority for the balance of 2021 to ensure continued stope availability and flexibility and to accelerate drilling and access to 8 Zone. Once sufficiently ahead of mine production, capital development is expected to be reduced in 2022 and all-in sustaining costs1 ("AISC") are expected to fall accordingly.

[onedayrodders] 14/8/2021 08:45

AISC is fixed right ?.. not something that should change with more volume.
It's a per ounce stat.

I think it's solely down to oil prices are up 65% over 12 months ... the whole industry has got to expect higher AISC than those predicted last year etc.

Gold over $2000, as I assume we are all invested for will more than solve the problem

[1hercule] 14/8/2021 08:37

Yes and expected to be high for remainder of the year. Then hopefully improving greatly in 2022

[jeanesy] 14/8/2021 08:30

Those costs look mighty high to me tbh but maybe that is to be expected with production stat up ?

[robertstronghand] 13/8/2021 23:23

Looked at the update in comparison to the forecast from Sprott I provided up thread. Basically Sprott had production of 35k this year, with 10k in H1 and forecast 27-32 H2 should be slightly ahead with 37-42k this year. Production rates are supposed to be above 800 so that explains that. Grade is a little lower at the moment 6.9g/t, but only very marginally and this can change, never is exact in mining, but you prefer to be always slightly higher. Given everything is broadly in line with Sprott's numbers, if not exceeding, the only thing wrong is Sprott forecast AISC for 2021 of $1134 and 2022 of $938, I can only assume this discrepancy is because Sprott has put some ramp up and development costs in capex rather than AISC as it is one off, the company says costs are high because of one off start up costs, so to me that makes sense. All seems to forecast, let us hope a higher gold price and eight zone exploration results deliver the upside we hope for in the following months.

[1hercule] 11/8/2021 08:52

you can buy for 72p this morning

[ginko3] 03/8/2021 15:56

nai but I also have a small investment in Erdene Resources due to start producing early 2023, not listed in the UK but on the TSX and Mongolian Exchanges, pretty well under the radar atm and investable through Hargreaves Lansdowne . . another one that Sprott has a fair chunk of.

dyor and all that, but feels fairly stable, a clear path through to monetisation and still expanding their resources

[11_percent] 03/8/2021 11:45

robertsh,

Thanks for that.....will go and read.

Clickable link

[robertstronghand] 03/8/2021 09:42

Should be self funding now, Sprott has them cash in hand at end of 2021 of $8m with a gold price at 1806.

hxxps://sprott.com/media/4099/210713-scp-pgm-2q.pdf

[katsy] 03/8/2021 09:08

The trades just below 80p are buys

[loafofbread] 03/8/2021 09:01

A few months delay on a 15/20 year mine!

It has been painful but onward and upward as they say.

[ginko3] 03/8/2021 08:58

We may see another leg up when the yanks log on later

[metis20] 03/8/2021 08:33

Commercial Production means, and is deemed to have been achieved, when the concentrator processing ores, for other than testing purposes, has operated for a period of 30 consecutive production days at an average rate of not less than 60% of design capacity....

[onedayrodders] 03/8/2021 07:41

Hallelujah

[11_percent] 03/8/2021 07:30

We are doing 800 tonnes per day.....its all about the grade now.

[mufprat] 03/8/2021 07:28

Commercial production announced.

[11_percent] 03/8/2021 07:27

Pure Gold Mining Inc. PureGold Declares Commercial Production

Bit short on detail.

Explains the recent rise.

[katsy] 30/7/2021 11:39

Bit annoyed I didn't do an NT trade yesterday wen the offer was 70p

[mufprat] 29/7/2021 17:34

Heading back to $1.75 (finally!). Hopefully this is the start of a new uptrend. Been a while coming.

[katsy] 29/7/2021 13:14

Can only get a quote to buy 250 shares

[loafofbread] 25/7/2021 13:28

Looks like everything going to plan apart from the SP!