Pure Gold Mining Inc (CVE:PGM) (LON:PUR) said it continues to advance construction at its Red Lake gold mine in Ontario with detailed engineering for the processing plant now 95% complete, as it posted first-quarter results to end-March.
Post-period end, the group noted that it received a further US$19.6 million under its facility with Sprott Lending, adding that it currently holds C$78.7 million in cash.
"Significant earthworks, road and utilities infrastructure upgrades, and equipment installation is currently underway on surface at the site," Pure Gold told investors in the results statement.
"Underground development is proceeding ahead of schedule. As part of the test mining program, pre-production underground ramp development was initiated on December 12, 2019 and is progressing at an accelerated pace," it added.
Operations have been adapted due to the coronavirus pandemic, but the project remains on track to deliver ore to the mill by the end of 2020, it confirmed.
In February this year, Maryse Bélanger joined Pure Gold's board as a director, bringing with her over 30 years of experience with senior gold companies.
In the three months to March 31, the firm posted net income of C$8.6 million, compared to a loss of C$2.8 million in the same three months of 2019. The turnaround was largely due to a C$10.5 million gain on the change in fair value of various derivative liabilities relating to the company's Facility and Callable Gold Stream.
Madsen is the highest-grade underground development project in Canada, at 9 grams per tonne (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.
Shares in London nudged up 0.88% to 57.50p.
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