Pure Gold Mining Inc (TSX-V:PGM, LSE:PUR, OTC:LRTNF) reported its 1Q 2022 financial results that showed the company grew its revenue thanks to higher gold sales from its PureGold mine in Red Lake.
For the quarter ended March 31, 2022, the Vancouver-based miner generated C$18.4 million in revenue off of 7,676 ounces of gold sold, compared to C$6.4 million from 2,924 gold ounces sold in 1Q 2021.
Gold production for the quarter was 6,653 ounces compared to 6,796 ounces in the same year-ago period, the company reported.
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Pure Gold is in the midst of a turnaround plan that includes several new initiatives to boost production and optimize costs in 2022.
According to the firm, these initiatives are expected to improve stope access and ultimately result in increased ore throughput, improved grades, and reduced costs. The moves include faster sill development to expedite access to higher grade stopes by developing sills faster, by taking longer rounds and improving definition drilling and grade control procedures.
“Definition drilling remains a key component in the plan to improve both ore production and grade,” the company told shareholders.
“The company significantly increased its definition drilling program in 4Q 2021, the positive impacts of which are expected to positively impact short-term mine plans and production beginning in the second quarter of 2022.”
Pure Gold added that it has gathered “significant” data with respect to 2021 grade control sampling, and work is underway to compile and reconcile this data with the company's mineral resource and mineral reserve models and with mill production.
“Together, these changes are expected to drive sustainable increases in both ore throughput and head grade, and will be implemented progressively throughout 2022,” Pure Gold told investors.
The firm reported a net loss of $21.5 million or $0.05 for the quarter versus $16.8 million or $0.04 in the same year-ago period.
Pure Gold ended the quarter with $6.5 million in cash.
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