PureGold Red Lake Mine Construction on Track for Q4 Production

Pure Gold Mining Inc. is gearing up for an historic 4th quarter. The company released a report today on the progress of construction activities at its PureGold Red Lake Mine, located in Red Lake, Ontario. Construction is advancing rapidly, on schedule for first gold pour in Q4 2020.

Project Highlights as at June 21, 2020:

• Procurement of major equipment is now 94% complete
• Total of 1,285 metres of underground mine development completed. Advance rate 60% better than mine plan
• Initial access development to longhole stopes commenced
• Installed alimak in existing shaft to support dewatering and shaft rehabilitation
• Process plant prepared for installation of new equipment, with removal of legacy piping, pumps, motors, ball mill, gold room and pre-leach thickener
• Steel and concrete work modifications inside process plant for new ball mill, gravity circuit and construction of hydraulic backfill plant commenced
• Installed and occupied new buildings including administration, warehouse, and mine dry
• Recruited key operational team members including safety, mining, milling, and technical services, with bulk of operational management team now in place
• More than 145,000 hours without a lost time incident

Construction, which commenced at the PureGold Red Lake Mine in late 2019, is well advanced with 45% of our capital expenditure committed. The Company is fully funded to production, with first gold production planned for Q4 2020.

“We are now only months away from first gold pour at our new PureGold Mine, and our first step to building a long-life growth company in the heart of Red Lake, one of the world’s most prolific gold-producing camps,” says Darin Labrenz, President and CEO.  “Our opportunity for value creation is tremendous: we are delivering our mine into a rising gold market, with the potential to benefit from a period of margin expansion unlike any we have seen in years. But we see this as just the beginning of establishing ourselves as Red Lake’s next senior producer.  On the cusp of production, we believe we have only scratched the surface and we are already working towards the next phase of our growth with the initiation of an aggressive 18-month exploration program.  We look forward to becoming Canada’s next gold mine and delivering on the strong organic growth platform that underpins our PureGold Red Lake Mine.”

Mine Development:
As at June 19th, a total of 1,285 metres of underground development has been achieved.  Underground development to date is advancing at a rate of eight metres per day compared to a feasibility planned advance of five metres per day.  Improved productivity, with development rates that are 60% better than plan, and a focus on main ramp development will open up more mining areas and drive deeper development more quickly.  This will allow the Company to improve upon the feasibility mine plan by prioritizing mining on higher grade stopes.

The Company has commenced initial access development to the first longhole stopes and is now accessing ore on multiple sills.  Underground development is expected to accelerate in July with the recruitment of the next team of mining crews.

Another significant new development underground is the installation of a three deck alimak in the shaft to support mine dewatering. Dewatering is now down to 311 metres below the shaft collar, progressing on schedule and well in advance of underground development.

Underground exploration and stope scale drilling is now underway, with infill drilling focused in areas targeted for the first two years of production.  The underground drill program has been designed to convert resources to reserves and expand mineral resources in order to more closely define the stope geometry, further optimize and expand the near term mine plan.1

Process Plant:
Construction and modernization of our process plant is progressing well.  Electrical switchgear has been certified and overhead cranes have been commissioned and are being utilized for removal of old equipment and installation of new.  Numerous systems have been dismantled and removed to make way for new equipment, including all piping, pumps and motors, pre-leach thickener and all gold room components.  In addition, the pre-existing ball mill has been removed, along with the original pedestals.  New concrete foundations have been designed and mill pedestals will soon be constructed in preparation for the arrival and installation of a new ball mill, which is scheduled to arrive in late August. 

Steel work for the new gravity circuit, anticipated to arrive in July is now complete.  Foundations and tanks for the new hydraulic backfill batch plant and cyanide detoxification circuit are well advanced.

Other Surface Infrastructure:
Construction continues to accelerate with more than 80 contractors now on site.  New infrastructure established includes an administration complex, warehouse, mine dry and water treatment plant building. Road infrastructure has been improved and a mine rock management facility has been completed.

Equipment Procurement:
Approximately 95% of major equipment procurement packages have been placed.  Initial procurement packages have been delivered to site and significant equipment orders, including long-lead items and key processing equipment are in fabrication and are progressing on schedule, with delivery expected in the coming weeks.  New mine equipment delivered to date includes four underground scoops, two jumbos, two haul trucks, two scissor lifts, multiple utility vehicles and an anfo loader.

Permitting:
The amendment of the Environmental Compliance Approval (“ECA”) for Air and Noise permit has passed regulatory review and all work is complete, with receipt of the amended permit anticipated in the coming weeks.  In addition, regulatory review of the Industrial Effluent permit (ECA Industrial Sewage Works) amendment is complete and the permit amendment is expected to go through an expedited approval process.

Operations Team:
PureGold is pleased to announce that Rickardo Welyhorsky, P.Eng., has recently joined the senior mine management team as Mine General Manager.

Mr. Welyhorsky is a Professional Engineer with a degree in Extractive Metallurgical Engineering and over 27 years of experience throughout all levels of project development and operations in the mining and metals industry. He has a wealth of Canadian and International experience in various roles with Yamana Gold, Detour Gold, Barrick Gold, and AMEC.

Most recently, Mr. Welyhorsky was Director Technical Services for Yamana Gold, where he played a leadership role in the development and commissioning of the Cerro Moro underground and open pit operation. Prior to his position with Yamana, Mr. Welyhorsky held management positions at several Canadian open pit and underground operations.

PureGold’s operational management team is now well advanced, with the Mine General Manager, Milling Manager, Mining Manager, Chief Engineer, Chief Geologist, and Health and Safety Superintendent all in place. Other key project roles have been filled and discussions are ongoing with candidates for remaining positions.  Hiring is underway for the next tranche of miners for ore development work as well as recruitment of key roles in the maintenance department. To date, PureGold has recruited 89 of the 101 employees planned for the end of June. The total workforce anticipated to be engaged by end of September, before start of mill operations is 189 employees.  We continue to place emphasis on engaging and hiring local and First Nation contractors and employees.

Health & Safety:
Since construction was initiated in 2019, the PureGold team has completed over 145,000 hours without a lost time incident.  All construction and development activities at the PureGold Red Lake Mine continue to operate normally, with no significant impact to date beyond the implementation of additional education and safety measures.  We have no reported incidences of COVID-19. Please see March 20, 2020 release for our COVID-19 response measures.

Engagement of Investor Relations Consultant:
The Company would also like to advise that Goldsmith Consultants, LLC., has been engaged for Investor Relations consulting effective immediately. The engagement of Goldsmith Consultants supports the Company’s broader communications strategy to build investor audiences.

Goldsmith Consultants does not have any interest, directly or indirectly in PureGold Mining or its securities nor any right to acquire such an interest. Pursuant to the terms of the Company’s agreement with Goldsmith Consultants, Goldsmith will be responsible for a variety of financial public relations and investor relations activities, including development of the Company's communications strategy, dissemination of corporate information, presentations, videos, interviews, and communications materials.

Tags: Northern Ontario / Operational Updates / Gold / All Articles