TIDMPUR
RNS Number : 5491T
Pure Gold Mining Inc.
15 November 2019
NEWS RELEASE 19-26 November 15, 2019
PURE GOLD REPORTS THIRD QUARTER FINANCIAL RESULTS
VANCOUVER, B.C. - Pure Gold Mining Inc. (TSX-V: PGM, LSE: PUR)
("Pure Gold" or the "Company") is pleased to announce that its
unaudited condensed interim financial statements ("Financial
Statements") for its third quarter ended September 30, 2019 and the
accompanying Management's Discussion and Analysis are available for
download on the Company's website at www.puregoldmining.ca at under
the Company's SEDAR profile at www.sedar.com.
Financial and Operating Highlights through and subsequent to
September 30, 2019:
During the three months ended September 30, 2019 and to date,
the Company completed and advanced a number of key milestones for
its 100%-owned Madsen Red Lake Mine ("Madsen" or the
"Project").
-- Project finance and construction decision
During the quarter, Pure Gold awarded the surface Engineering
and Procurement (E/P) contract to JDS Energy & Mining ("JDS")
in partnership with Hatch Ltd. ("Hatch") and Knight Piesold Ltd.
(Knight Piesold) for its Madsen Red Lake Mine. Additionally, the
Company has awarded the underground mine design engineering
contract to Dumas Mine Contracting Ltd. ("Dumas").
With the engagement of our engineering partners, the Company has
commenced construction. Detailed design work on surface
infrastructure, as well as underground electrical distribution,
mine ventilation, mine service design and stope optimization has
been initiated, as well as equipment sourcing including the
purchase of mining equipment and the procurement of long lead time
items has began.
-- Hiring has begun, with key roles on the owner's construction
team as well as site specific staffing in human resources, safety
and environmental, procurement, and mining.
-- Mining equipment purchases have commenced
Pure Gold has begun to identify and purchase its mining fleet of
equipment in anticipation of commencing underground development in
November 2019.
-- Exploration success continues
Surface drilling at Madsen during the quarter continued with
ongoing drilling along the Madsen Red Lake Mine Trend adding 530
metres of mineralized strike length to the Wedge zone, expanding
the deposit footprint by 85% and continuing the rapid progression
of this zone.
Drilling highlights during the quarter include:
o A 90 metre northeast step-out on the Wedge deposit has
intersected near surface, high grade gold in hole PG19-677,
returning 24.4 g/t gold over 1.0 metre;
o A 440 metre southwest step out has intersected 12.4 g/t gold
over 1.1 metres from hole PG19-657, extending the length of the
Wedge zone to 1,150 metres and importantly extending seven
kilometres from the northeastern extents of the Madsen deposit;
o Drilling aimed at extending and upgrading resources in the
Wedge area continues to be successful, with drill highlights
including:
Ø 11.7 g/t gold over 1.0 metre from drill hole PG19-661;
Ø 5.1 g/t gold over 7.0 metres from drill hole PG19-664,
including 19.3 g/t gold over 1.0 metre;
In addition, the Company intersected a 10 metre wide, gold
bearing zone (2.2 g/t gold over 10.4 metres) including 4.9 g/t gold
over 2.1 metres in a widespread gap midway between the Company's
high grade 8 Zone at depth and near surface Russet South mineral
resources, clearly establishing the prospectivity of this setting
and opening up a brand new target area for discovery. The Company
plans to continue to test this exciting new target in the coming
months.
Outlook
Pure Gold is focused on advancing high quality assets that host
the key traits of economic mines: grade, scope, size potential and
access to infrastructure in mining-friendly jurisdictions. Our key
asset is Madsen which comprises in excess of 4,600 hectares of
primarily patented mineral claims in the prolific Red Lake gold
camp of Northwestern Ontario and hosts two significant former gold
producers including the Madsen Mine with previous gold production
of 2.6 million ounces.
Despite challenging market conditions, in the second quarter of
2019, Pure Gold secured access to approximately $167.5 million
(using 1C$ = US$.75) in funding to advance Madsen, including a
US$65 million project finance facility (US$10 million received to
date) and a US$25 million gold metal stream (together the
"Financing") with Sprott Resource Lending ("Sprott") and a $47.5
million equity raise. Upon satisfactory receipt of permits and
other customary conditions, the Company believes it has sufficient
funds available to fund construction and development of the
Project.
According to the Madsen feasibility study completed in February
2019, mine construction and development will require an estimated
$95 million, including contingency and start-up and working
capital. In August 2019, we commenced the selection process to
engage engineers to commence detailed engineering for the
construction of surface works and mill upgrades and underground
ramp and stope development. A detailed project schedule with
finalized costing will be derived from the detailed engineering,
which is expected to be completed in November 2019. On receipt of
this detailed schedule and costing the Company will initiate the
construction phase of its development plan and begin underground
mine development.
Over the coming months, the Company will be focused on:
-- Finalizing the project execution schedule, including detailed
engineering, procurement and cost estimation;
-- Preparing to commence underground mining, focussing on ramp and level development;
-- Continuing environmental studies and documentation to support
the updating of existing major permits and filing for additional
required minor permits;
-- Continuing equipment and materials procurement;
-- Continuing construction and upgrades of surface facilities,
including mill upgrades, updates to the tailings facility and other
surface works, in addition to preparing for commencement of
underground ramp and stope development; and
-- Continuing surface exploration at deposits and targets
outside of the feasibility study mine plan.
-- Definition drilling to support detailed design
Selected Financial Data
The following selected financial data is derived from our
Financial Statements and related notes thereto for the periods
indicated, as prepared in accordance with International Financial
Reporting Standards. Details of these results are described in the
unaudited condensed interim financial statements and Management's
Discussion and Analysis for the quarter ended September 30, 2019.
These documents can be found on the Company's website
(www.puregoldmining.ca) or on SEDAR at www.sedar.com. All dollar
figures are expressed in Canadian $.
For the three For the three For the nine For the
months ended months ended months ended nine months
September September September ended September
30, 2019 30, 2018 30, 2019 30, 2018
-------------- -------------- -------------- -----------------
Total Revenue - - - -
Exploration Expenditures $3,643,163 $7,183,704 $7,247,427 $22,091,640
Change in fair value
of derivative liabilities $3,299,400 - $3,299,400 -
Net Loss and comprehensive
loss for the period
attributable to shareholders $8,836,364 $8,101,945 $15,711,147 $22,994,324
Basic and Diluted Loss
per Share $0.03 $0.03 $0.05 $0.10
------------------------------- -------------- -------------- -------------- -----------------
As at September As at December
30, 31,
2019 2018
---- ---------------- --- ---------------
Total assets $ 107.7 million $ 20.9 million
Current liabilities $ 3.5 million $ 1.0 million
Non-current liabilities $ 49.6 million $ 2.4 million
Cash dividends
declared $ - $ -
------------------------- ---- ---------------- --- ---------------
This press release should be read in conjunction with Pure
Gold's Condensed Interim Financial Statements and Management's
Discussion and Analysis for the quarter ended September 30, 2019.
In addition, for further information please see Pure Gold's Annual
Information Form for the fiscal period ended December 31, 2018.
These documents can be found on the Company's website
(www.puregoldmining.ca) or under the Company's profile on SEDAR at
www.sedar.com. Shareholders may receive a printed copy of the
audited consolidated financial statements, free of charge, upon
request.
Qualified Persons and 43-101 Disclosure
Phil Smerchanski, P. Geo., Vice President, Exploration 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.
Pure Gold is a Canadian focused gold developer. The Madsen Red
Lake Gold Mine has historical production of 2.6 million ounces of
gold and a current indicated resource of 2,063,000 ounces gold at
8.9 g/t gold (in 7.2 million tonnes), an inferred resource of
467,000 ounces gold at 7.7 g/t gold (in 1.9 million tonnes), in
both cases inclusive of mineral reserves, and benefits from
existing infrastructure including a mill and tailings facility,
paved highway access, and access to power, water and experienced
labour. The recently released Feasibility Study for the Madsen Red
Lake Gold Mine outlines an 800 tonne per day underground mining
operation with a 12 year mine life, Probable Mineral Reserves of
one million ounces of gold grading 9 g/t in 3.5 million tonnes, and
a low initial capital, putting the Madsen Red Lake Mine firmly on
the path to becoming Canada's next iconic gold mine.
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.
ON BEHALF OF THE BOARD
"Darin Labrenz"
Darin Labrenz, President & CEO
Investor inquiries:
Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000
info@puregoldmining.ca
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
Pure Gold within the meaning of applicable securities laws,
including, but not limited to statements with respect to those that
address potential quantity and/or grade of minerals, potential size
and expansion of a mineralized zone, proposed timing of exploration
and development plans, the growth potential of the Madsen Gold
Project and opportunities for scalability, planned mining methods,
mineral processing and sources of power, expected annual
production, potential profitability of the Madsen Gold Project at
lower metal prices, expected capital costs, anticipated permitting
requirements and timing thereof, expected development schedule,
expected timing of the completion of the Preliminary Economic
Assessment for the Russet South, Fork and Wedge deposits, potential
conversion of inferred resources to measured and indicated
resources, potential extension and expansion of mineral resources
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 Pure Gold 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 Madsen Gold Project; 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 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 20, 2019 in the section
entitled "Risk Factors", under Pure Gold's SEDAR profile at
www.sedar.com.
Although Pure Gold 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. Pure Gold 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.
END
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