Our Mine

We’ll be pouring gold by Christmas

By The Numbers

Here’s a snapshot of key metrics for our Phase One mine.1

 

 

Low-Hanging Fruit. We sliced off this small section of our 47-kmproperty because it’s the lowest hanging fruit.

 

Bringing High-Grade Gold to Life

Welcome to Canada’s next gold mine.

This is one of the highest-grade gold mines on the planet. In fact, it’s in the top 5th percentile.1,4

Phase One alone will generate more than $1.2 billion in pre-tax free cashflow at current gold prices. At an exceptionally low all-in sustaining cash cost of USD $787 per ounce. Yielding a 56% operating margin of more than $1,350 per ounce.1,3

The reason for this extraordinary operating margin is simple: our gold grade is higher than 95% of all other gold mines in production anywhere in the world.4

We’ll be pouring gold by Christmas. Operational readiness of our Phase One mine is on plan. Ore has been mined and stockpiled as mill feed. Recruiting and hiring of over 300 miners and technical staff, most of whom live right next door in town, is well underway.

Overall Plan. Our vision is to develop a long-life gold-producing company in the very heart of Red Lake. Our disciplined plan is sensible and financially sound: to develop our PureGold Mine incrementally, step-by-step, using a Phased approach.

Strategy for Phase One. Our motivation for developing Phase One is simple: to deliver near-term gold production into a rising gold market, creating a pre-tax cash flow stream of over $1.2 billion. Which will fund our program for organic growth and continued expansion along our 7-kilometre-long Gold Corridor.1,3

Strategy for Phase Two. Our objective is to significantly increase our high-grade gold resource and reserve numbers, thereby transforming PureGold into Canada’s next iconic gold producer. Our strategy for Phase Two is to incorporate existing and newly-discovered mineral resources that lie outside of the Phase One footprint into an expanded mine plan – fueled by our continuing and highly-successful exploration and expansion drilling program along our 7-kilometre-long Gold Corridor.1

 

An Overview of the PureGold Mine

The PureGold Mine is located in Red Lake, Ontario, Canada, one of the world’s richest and most prolific gold mining districts. Located primarily on patented claims, there is year-round access to the property via Ontario Highway 618. Numerous secondary roads transect the 4,700-hectare property providing simple access for exploration and development. The district also benefits from scheduled commercial air services to the Red Lake Airport via Thunder Bay and Winnipeg.

Our underground operation utilizes a combination of longhole stoping, conventional cut-and-fill, and mechanized cut-and-fill mining methods. Processing includes conventional crushing and grinding, followed by gravity concentration to recover free-milling gold, followed by pre-oxidation, leaching, carbon in pulp circuit and electrowinning, and refining to produce doré gold.

We believe that this will become a multi-generational mine, and PureGold will be Canada’s next iconic gold producer.

Technical Report

Mine Attributes.

  • Mining Method: Underground
  • Processing: 800tpd Gravity/CIP Plant
  • Gold Recovery: 95.8%

2020/2021 PureGold Mine Milestones.

  • Q4 2020 Mill Commissioning
  • Q4 2020 First Gold Pour
  • Q1 2021 Commercial Production

1See the National Instrument 43-101 technical report entitled “Madsen Gold Project Technical Report, Feasibility Study for the Madsen Deposit, Red Lake, Ontario, Canada” with an effective date of February 5, 2019 and dated July 5, 2019 for complete details, available on the Company’s website at www.puregoldmining.ca or Sedar profile at www.sedar.com.
3Based on current metal price of US$1800/oz and US$1 = C$1.33. Free cash flow is pre-tax. This is a non-GAAP performance measure. See “Non-GAAP” Measures and other Financial Measures cautionary language Under ‘Legal Notice’.
4Source S&P Global Market Intelligence, VT Capital; based on life of mine producing mine reserve grades most recent reported, as of 2020.