Pure Gold Mining Share Discussion Threads

[robertstronghand] 26/12/2021 11:08

That was a copy and paste from a Canadian comment board. The interview is up on the youtube channel The Wealth Holders Podcast.

[bwana4] 24/12/2021 15:00

Thank you for a comprehensive input Mr.RSH. Have a very nice Xmas.

[swallowsflysouth] 24/12/2021 13:19

thank you RSH, have a good XMAS

[robertstronghand] 24/12/2021 11:12

Interview on Korelin Economics Report, 22nd December.

[robertstronghand] 24/12/2021 10:57

The recent interviews have been extremely useful in tying together all the bits and pieces we have been collecting over the past few months. The most useful bit of information is that the reserve stopes are matching the mine plan (7.8 gpt). This is a huge relief. The main challenge has been driving tonnage to the mill (this in itself is a common issue faced with new mines, so forgivable in my opinion...what is not forgivable is the management leaving us in the dark). Basically, due to the lack of stopes available, the company had to blend the low grade ore from the commissioning period with the higher grades from the mine plan. This diluted the head grades that we saw earlier in the year. The company raised money to open up the East Ramp to add additional headings for stoping; some of these areas only became available to be mined in July. I believe the company had started with two low grade stopes initially, but has since moved up to mining actively from 5 stopes as of November. In the first quarter, there was also the overbreak from stopes outside the reserve plan - they were basically desperate to grab whatever ore they could to feed the mill. These were new discoveries with insufficient geological information so dilution was high. But since then, the company has increased drill rigs from one to four. This will allow the management to schedule the mine plan ahead of mining; initially it will mean the company will be able to plan and predict production two months in advance and eventually to six months ahead. The four rigs are now running and producing 600 samples a day for assaying on site - effectively allowing them to plan and execute in real time with Maryse leading the charge. She is the perfect person for the job as she has also served as SVP of Technical Services at the adjacent Red Lake Mine which has essentially the same geology. Not only are these drills providing much needed geological data, but also adding ounces that were never part of the original mineral resource. For example, the stope being developed and extracted from the East Ramp this month is THREE times larger than the size anticipated in the feasibility study! In effect, the drills are paying for themselves.

Mines face different sorts of risks; jurisdictional, geological, operational, capital, and construction related. Fortuna Silver Mines lost 30% in a day due to jurisdictional risks. Argonaut similarly dropped due to construction risks. Rubicon fell victim to geology. In lieu of the above updates, I believe the operations are headed in the right direction now. The big risk remaining is capital; will the company run out of money and dilute us again? Based on the math I posted a few weeks ago, it doesn’t seem like it. Sources on the ground say bills are being paid on time. Plus, they have reduced several costs associated with operations. The company expects to be cash flow neutral in February, and then positive from there on. My math had pitted them at slightly negative in December, but as I have not crunched the numbers for the next two months, I can only parrot what the company has said. If we had seen significant insider buying at these levels, I would have assumed capital risk is no longer a major issue. So there is risk, but it is low.

The 12 year mine life will definitely increase as the drills are showing additional gold around the ore body. This will become even more significant as they go deeper. Plus, there is 50,000 meters of drill data that will become part of the mine plan in the second half. The drilling to 8 Zone will begin in the second half of the year funded with positive cash flows. Which, as I have said in the past, is a relief since capital is the key risk at the moment. So what do I think of the picture painted above? I am far more optimistic now than I was two months ago. If in two more months the company can indeed stop bleeding cash, there is a good chance the company could 3X through to the end of 2022 (mine performance + mineral resource update + continuous assay results from 8 Zone).

[the count of monte_cristo] 23/12/2021 15:30

Looks like it has bottomed. I have been buying in recently.

[the count of monte_cristo] 17/12/2021 09:49

I expect gold and silver to have a great run over the next few years, what we are seeing across the precious metals right now is likely to be the bottom.

[mufprat] 17/12/2021 09:47

POG finally reacting to worldwide inflationary pressures. Better late than never.

[sos100] 16/12/2021 05:39

first 2mins are just waffle ,have to go to around 4.30 min for anything co specific

and strange to see director sell and then a proactive interview

[robertstronghand] 15/12/2021 13:01

The exercise price and sales price are almost exactly the same, essentially a mini fund raising that put CAD100k in to the company coffers.

[mufprat] 15/12/2021 12:06

Or stupid lol

[robertstronghand] 15/12/2021 12:05

He has kept 400k of the 550k he bought, there aren't any other sells, at the moment. We are just waiting, in a month or two we will know if things have turned around.

[jubberjim] 15/12/2021 11:30

I think along the lines of Katey

Does not signal confidence when you see director selling at 42 (charitable calc )
Have set my buy in at 27
All my other gold shares are taking a beating going for a full house

[atlantic57] 15/12/2021 10:52

Mufrat that is a brave call

[mufprat] 15/12/2021 10:37

If I thought you knew what you were talking about I'd pay attention to your posts. However, in light of the content of some of your posts, clearly you do not. Anyone can throw darts and hit a bullseye occasionally when it comes to making share price predictions.Whilst I may live to regret doing so I've increased my position here by a further 50%.

[katsy] 15/12/2021 10:17

In light of director sell and valuation against profitable peers I've revised my target now down to 25p. Yes it will come good, but not before another placing and some fundamental changes to operations.

[robertstronghand] 15/12/2021 09:49

At least O'Dea only disposed of some of the options he exercised, keeping the 400k at the moment, the others also keeping theirs. Interesting that Fidelity picked up a five percent holding end of last month, and we haven't yet had another equity raising yet...

[atlantic57] 15/12/2021 08:16

The words of Eric Sprott are very clear .
No evidence yet that the management team are turning this round.

[mufprat] 15/12/2021 07:58

Here we go again, no doubt the start of another raft of Director sells. Sprott and other major shareholders should clear out these avaricious incompetents.

[katsy] 14/12/2021 16:25

I thought 50p was a realistic target but I never say 40p coming. management must really be screwing things up. Turning gold into muck!!!

[katsy] 13/12/2021 09:01

Do you have the link robertstronghand?

[robertstronghand] 12/12/2021 11:51

Sprott discuss Pure in his yearly wrap up with Chris Hemke, 38mins in. Oh my God, beautiful orebody, tough performer, not performed on a mining level, keeps in touch with management who suggest things will be better, proof is in the pudding, not there yet. Hopefully management changes improve things, still owns all his shares, thinks the quality of the ore body will win out in the end, but taken a big hit so far.

[the count of monte_cristo] 10/12/2021 14:14

What does it have to do with PUR?