Pure Gold Mining Inc (TSX-V:PGM, LSE:PUR, OTC:LRTNF) has released an updated Mineral Resource Estimate (MRE) for its PureGold Mine in Ontario’s Red Lake Gold District that incorporates new data and knowledge gleaned from the mine’s first 18 months of operations.
The result, according to the company, is an estimate that is “more robust” and aligns more closely with actual mining to date.
The new estimate, prepared by SRK Consulting (Canada) Inc, includes 1.65 million ounces of gold at 7.4 grams per tonne (g/t) in the Indicated Mineral Resource category, and 0.37 million ounces of gold at 6.3 g/t in the Inferred Mineral Resource category.
READ: Pure Gold Mining enhances credit facility and launches strategic review
The report replaces a previous version from February 2019 and will form the basis of a new pre-feasibility study and updated Life of Mine plan, which is expected to be ready in the fourth quarter of 2022, Pure Gold Mining said.
“The thorough independent review and update led by SRK shows that the PureGold Mine remains underpinned by a multi-million-ounce high-grade gold resource,” said Pure Gold CEO Mark O'Dea in a statement.
“The Updated MRE is based on a combination of deep geological understanding, closely spaced drilling, and first-hand observations of stope scale shapes and continuity. The team is confident that the forthcoming updated Pre-Feasibility Study and Life of Mine plan will demonstrate the near-term potential of the PureGold Mine and lay the foundation for future growth,” he added.
The dataset underlying the new estimate benefits from information collected from mining operations, underground development and other activities conducted since the mine began production. It also features the results of over 1,700 new diamond drill holes and 40,000 new underground chip sample and test hole results completed since the previous estimate was released.
The Vancouver-based gold mining company also noted an important evolution in mining operations, as it nears completion of mining in the McVeigh Zone and transitions operations into the Austin and South Austin Zones. Austin and South Austin together account for 89% of the PureGold Mine’s contained gold ounces in the Indicated Resource category and are characterized by simpler geometries and higher grades than McVeigh. Further improvements to operational performance are expected as a result, said the company.
Pure Gold Mining performed the first gold pour at the PureGold Mine in December 2020 after the successful construction of an 800-tonne per day underground mine and processing facilities and commenced commercial production in 2021.
The PureGold Mine is centered on a 47-kilometer (km) property, the majority of which remains unexplored. To date, the company has defined a 7 kilometre gold system that remains open along strike and at depth. Among the most highly prospective targets is 8-Zone, a high-grade zone where past results include 4.3 meters (m) at 466 g/t gold and 5.5m at 342 g/t gold.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter:@UttaraProactive