The Toronto and London-listed company has defined over 2 million ounces of gold in less than five years at the project and believes it has only just “scratched the surface”.
The company is building a new mine in the Red Lake area, renowned for gold discovery, and is on track for first gold pour before the end of this year.
Once in production the PureGold mine will be the fourth highest-grade gold mine in Canada at 9 grams per ton (g/t) and the 16th highest grade gold mine globally, making it higher grade than 95% of gold mines anywhere in the world.
The company is developing the mine with a scalable, phased approach, and the first phase is set to produce 1 million ounces.
Gold was deposited at the surface via huge tectonic shifts more than two billion years ago at Red Lake long before the first hard-hats arrived.
This iconic mining district has produced nearly 30 million ounces of gold over the past 85 years, but geologists believe there is far more of the metal to be discovered.
The company has now defined a higher confidence indicated resource of 2.1 million ounces and 0.5 million ounces of inferred at its project, including probable mineral reserves of 1 million ounces at 9 g/t.
The video graphically shows how the firm’s data from over 1 million metres of drilling has now delineated a new 7 kilometre long gold corridor, which has the same structure and geology as the famous Red Lake Mine Complex, which sits just next door.
It is in this corridor that the company has discovered over 2 million ounces of high-grade gold since 2015.
“I believe this is barely the tip of the iceberg,” the video quotes Pure Gold’s director, Dr Mark O’Dea, as saying, envisaging future growth for the company.
“We continue to discover new high-grade gold all along this corridor – at surface and up to 2km underground,” he adds.
In its recent third-quarter financial and operating results to end-September 2020, PureGold confirmed it remained fully funded through construction of the mine.
The group said it had raised around C$7.1 million during the quarter from the exercise of share purchase warrants. AngloGold Ashanti exercised 5.9 million of those warrants, increasing its ownership interest in the company to around 16%.
Strategic investors in PureGold Mining, aside from mining giant AngloGold Ashanti, include billionaire resource investor Eric Sprott, and the worlds’ largest gold miner Newmont.
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