Pure Gold Mining Inc said it has generated nearly $32 million in revenue from its PureGold mine in Red Lake, Ontario since the start of commercial production in August 2021.
The Vancouver-based resources company has produced a total of 26,899 ounces since starting production at the high-grade gold mine.
For the quarter ended December 31, 2021, the company mined 46,949 tonnes of ore, or an average of 510 tonnes per day (tpd), and produced 7,565 ounces of gold.
READ: Pure Gold Mining reveals series of initiatives to boost production and optimize costs at Red Lake mine
Pure Gold told investors that it has implemented new changes to mine planning and scheduling during 4Q to ensure access to enough high-confidence, high-grade stopes to feed the mill such as reorganizing workflow structures and expanding definition drilling activity.
The company said that early signs of positive progress are evident in December's operating results.
“Together, these changes are expected to drive sustainable increases in both ore throughput and head grade, though will require more time to fully implement,” Pure Gold said.
The PureGold mine processed a total of 51,129 tonnes of ore, or an average of 556 tpd, at an average head grade of 4.8 grams of gold per tonne (g/t) of ore and an average recovery of 95.3% during 4Q. Mill upgrades are in the works for the gravity circuit, which Pure Gold said should increase gravity recovery by 10-15% and overall gold recoveries by 1-2% to 96-97%.
The company recently appointed Bryan Wilson as vice president and mine general manager of the PureGold mine.
As for the balance sheet, Pure Gold said it had generated $15.9 million in revenue during 4Q, net of refining costs. The firm reported a net loss of $17.8 million over the same three-month period.
Pure Gold added that it is working on an updated Mineral Resource Estimate for the mine to include satellite deposits - Wedge, Russet South and Fork. Following completion of the updated resource estimate, an updated Technical Report is expected to be completed, including an updated Mineral Reserve, the company said. The updated Technical Report is expected to be ready in the second half of 2022.
Pure Gold ended the quarter with $8.5 million in cash.
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