Pure Gold Mining Inc (CVE:PGM) (LON:PUR) Friday announced its third-quarter 2020 financial and operating results, saying the development of its PureGold Mine in Red Lake, Ontario, is continuing at a “rapid pace” and the company remains on track to bring the first ore to the mill before year-end.
The company raised about $7.1 million during the quarter from the exercise of share purchase warrants and said it remains fully funded through construction of the PureGold Mine. AngloGold Ashanti exercised 5.9 million of those warrants, increasing its ownership interest in the company to approximately 16%.
The company also announced additional drill results at the PureGold project, which included 296.1 gram per tonne (g/t) gold over 4.9 metres from underground drilling, as well as 66.3 g/t gold over 1.0 metre from surface drilling at the Wedge target.
Pure Gold Mining noted that new grade control drilling has highlighted the potential for “bonanza” grades in stopes planned for near-term production, while the new surface drilling results highlight the strong continuity of the high-grade gold mineralization, both down plunge and along strike, reinforcing the Wedge target as a high priority for resource growth.
The pre-revenue company’s third-quarter financials, to September 30, 2020, showed exploration expenditure of $2.8 million, against $3.6 million at the same stage of 2019, with the figure for the nine-month period at $3.0 million against $7.2 million in 2019. The group’s net loss for the third quarter was $9.7 million against $8.8 million in 3Q 2019 and was 10.8 million for the none-month period versus $15.7 million in 2019.
PureGold Mine’s orebody is situated within a seven-kilometre-long gold system that is wide open for expansion at depth and along strike, and the company says near-term growth opportunities exist following multiple discoveries on the property.
The PureGold Mine is the highest-grade underground development project in Canada at 9 g/t and ranks 11th out of 132 projects globally. It is set to be developed in two phases, the first of which will generate 1 million ounces.
Strategic investors in Pure Gold Mining, aside from mining giant AngloGold Ashanti, include billionaire resource investor Eric Sprott, and Van Eck Associates Corporation.