viewPure Gold Mining, Inc.

Pure Gold Mining a good prospect for Peel Hunt on 'rapid payback' and exploration potential

Ontario gold miner last month floated its shares on London's main market to add to its Toronto listing

pure gold mining
Pure Gold's Madsen mine is located near Newmont Goldcorp Corp’s established Red Lake complex

Broker Peel Hunt said freshly London-listed Pure Gold Mining Inc (LON:PUR) (CVE:PGM) is a 'buy' as it begins work to restart production at the historic Madsen Red Lake mine.  

Pure Gold, which last month added an LSE main market quote to its Toronto listing, is targeting first gold production in the second half of 2020 from Madsen, which is located near Newmont Goldcorp Corp’s (TSE:NGT) established Red Lake complex.

READ: Pure Gold Mining sees huge exploration upside at Madsen as it begins new exploration program

A recently released feasibility study outlined probable reserves of 1mln ounces and an 800-tonne per day underground mining operation with a 12-year mine life with an initial capital cost of C$95mln.

In a note to clients on Friday, Peel Hunt liked the look of Pure Gold’s “high-margin, low-capex gold mine restart project in an established mining area”, with an existing portal, shaft, plant, tailings facility and civil infrastructure, “implying capital and time savings when operations restart”.

“This translates to a low capital intensity and a rapid payback,” analysts said, with the recent preliminary economic assessment suggesting the mine life could be extended 3.7 years for an initial capital requirement of C$57mln and a rich database of local exploration data indicating the chances of expanding the resource inventory “look high”.

Estimating management needs a C$40mln capital raise and C$65mln debt package to fund the development, Peel Hunt set a price target of 39p as it initiated coverage on the stock.

Quick facts: Pure Gold Mining, Inc.

Price: 2.07 CAD

Market: TSX-V
Market Cap: $796.82 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Pure Gold Mining, Inc. named herein, including the promotion by the Company of Pure Gold Mining, Inc. in any Content on the Site, the Company...



Pure Gold releases more impressive drill results from their underground work...

Pure Gold Mining (CVE: PGM- LSE: PUR) CEO Darin Labrenz joined Steve Darling from Proactive to discuss the company’s most recent drill results that show impressive numbers like 46.7 g/t gold over 7.0 metres and 57.0 g/t gold over 1.0 metre. Labrenz telling Proactive about that underground...

3 weeks, 5 days ago

2 min read