Pure Gold Mining Inc (TSX-V:PGM, LSE:PUR, OTC:LRTNF) said it achieved its gold production guidance for the third quarter at its 100% owned and operated PureGold Mine in Red Lake, Ontario, producing 9,041 ounces with a head grade within guidance of 4 to 5 grams per ton (g/t) gold.
The company said with the resumption of full-time mill operations in July, it delivered strong back-to-back monthly ore tonnage in July and August, and achieved record monthly gold production in the latter month.
Its 3Q results would have been better, PureGold noted, but for nine unexpected days of lost production in September due to downtime of the contract crusher and an unrelated issue with automation control electronics in the mill.
READ: Pure Gold Mining files updated resource estimate for its flagship operation in Red Lake, Ontario
Both of these one-time issues have now been fully addressed, with strong average daily throughput in the last week of September carrying through into October, PureGold noted.
The company said it was finalizing its production costs for the quarter, but they are expected to be in the range of $9.5 million to $10.5 million per month, in line with previously announced guidance.
Its current costs represented an absolute reduction in costs of approximately 25% and a cost-per-tonne reduction of approximately 50% when compared with 1Q 2022, with costs expected to continue to trend downward through 4Q, it added.
PureGold chief operating officer Terry Smith said the company’s quarterly gold production results were a positive step in the operational transformation underway at the PureGold Mine.
“Our short-range planning and execution are working well and with that, we can aggressively pursue further optimization of the business,” he said.
Fourth quarter outlook
Along with its 3Q production results, the company released its 4Q production outlook for the PureGold Mine. The miner said it expects to produce between 9,000 and 12,500 ounces of gold, with a head grade of 4.25 to 5.25 g/t gold.
The company said it also remains on track to deliver a new pre-feasibility study (PFS) in 4Q, which will include incorporating an updated life of mine plan and is based on the recently announced updated mineral resource estimate (MRE) completed by SRK Consulting Inc.
PureGold said the updated MRE has reaffirmed a multi-million-ounce, high-grade gold deposit and it expects the PFS to outline a long-life, profitable mining operation in a top-tier jurisdiction with significant benefits for its shareholders, along with the community of Red Lake and its First Nations partners.
“Looking ahead to the fourth quarter, we expect another consecutive quarter-over-quarter step up in production for the PureGold Mine,” Smith commented.
PureGold is a Canadian gold mining company that owns and operates the PureGold Mine located in Red Lake, Ontario.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie