Our Story

Dream no small dreams

PureGold is a growth company, located in the very heart of Red Lake, Canada.

Red Lake is the world-famous high-grade gold district which has already produced more than 30 million ounces of gold, valued at over USD $50 billion in today’s prices.3

Little wonder Red Lake is called the high-grade gold capital of the world.

Our Mandate. Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and disciplined creativity to exponentially increase the size and scale of our high-grade gold assets along PureGold’s 100%-owned property – historically the second-highest gold-producing property in the Red Lake District.

Our Objective. Our objective is also pure and simple. To develop a highly-profitable long-life gold mining company in the heart of Red Lake, becoming Canada’s next iconic gold producer.

Our Plan. Our plan is very disciplined, very methodical, and financially sound.

To expand organically, and develop PureGold’s multi-million-ounce high-grade gold asset incrementally, step-by-step, using a Phased mining development plan to deliver maximum profitability.

Our Growth Strategy. Our growth and profitability strategy is focused on two parallel paths. First, to generate exponential growth in the size and scale of our multi-million-ounce gold asset. Second, to simultaneously generate over $2.3 billion in revenue – and over $1.2 billion in pre-tax free cash flow – from our Phase One mine alone.1,3

What Have We Accomplished To Date? In less than six years, PureGold has advanced it’s project from exploration, through development and is poised today to become the only new gold mine in Canada to start production in 2020.

Even more impressive is our pre-tax operating margin of more than $1,350 an ounce – an extraordinary margin expected to generate more than $1.2 billion in pre-tax cash flow over the next 12 years alone.1,3

 

Our Phase One Mine1,3

Welcome to Canada’s next gold mine.

PureGold’s Phase One mine will start pouring its first million ounces of high-grade gold by Christmas. At the exceptionally low all-in-sustaining-cash-costs of USD $787 per ounce.

This one million ounces of ‘low-hanging fruit’ will generate over $2.3 billion in revenue over the next decade. More than $1.2 billion in pre-tax free cash flow. And, based on a gold price of just USD $1,800 an ounce, will deliver an exceptional pre-tax margin of more than $1,350 per ounce.

There’s good reason for this extraordinary operating margin.

The PureGold mine is one of the highest-grade gold mines on the planet – higher than 95% of all other producing gold mines. In fact, it’s in the top 5th percentile.4

This should come as no surprise.

Our mantra has always been to keep our eyes wide open, but to ‘Dream no small dreams’.

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Our Discovery and Growth Engine

In less than 6 years, PureGold has defined a 2.1-million-ounce Indicated Resource, and a 0.5-million-ounce Inferred Resource at the PureGold Mine. Mineral resources are inclusive of Probable Mineral Reserves of 1 million ounces of gold grading 9 g/t. 1,6

We believe this is just the tip of the iceberg.

Data from more than 1.3 million metres of drilling has now delineated a 7-kilometre-long by half-a-kilometre-wide Gold Corridor on our property. This Corridor has a similar geological environment, as the Red Lake Mine Complex right next door – a mine complex which has already produced over 25 million ounces of gold.8

Our aggressive and highly-successful exploration and expansion drilling program continues to make new discoveries – discoveries which extend the scale and confirm the continuity of this gold system along our Gold Corridor. Discoveries of new near-surface zones with mineral resources that are not currently included in our feasibility study or mine plan. Discoveries that remain open along strike and at depth for expansion. Discoveries with mineral resources made over 3 kilometres south of the PureGold mine.

It’s like opening the door to Canada’s Fort Knox.

We believe we have barely scratched the surface. That’s why our ongoing exploration drilling program includes more than 30,000 metres of new, highly-focused drilling along our Gold Corridor.

To which we say, dream no small dreams.

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Our Owners

We are in good company.

More than 30% of PureGold is owned by three global gold leaders and visionaries, including: Eric Sprott, the world-renowned gold visionary and investor, who owns over 10% of PureGold; the world’s third-largest gold producer, AngloGold Ashanti, which owns 16% of PureGold; and Newmont, the largest gold producer in the world.5

Our leadership and management teams have deep roots and experience in the geology of the Red Lake gold district, and direct hands-on experience from years of on-site exploring, mining, and producing high-grade gold in this area.

As owners, leaders, mine builders, and operators with extensive experience on most continents, we believe that we are the next chapter in the evolution of Red Lake. That we will achieve exponential transformative growth, in both size and scale, of our gold asset. Because we believe that there’s significantly more high-grade gold waiting to be discovered, right here, in Canada’s Red Lake.

Dream no small dreams.

Words to live by.

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Our Ethos

At PureGold, responsible mining is not an oxymoron. It is both a duty and a commitment.

We are a principled and ethical company, trying our best to be good neighbours, fully committed to our people, our community, and the environment.

Yes, we are passionate about gold and discovery.

Yes, we are in pursuit of profit for our shareholders.

But these motivations run parallel with our duty and responsibility to our People (safety, training, culture, good salaries and benefits for over 300 workers), our Community (agreements with First Nations, strong sustainable economic benefits, and community development), and the Environment (meeting and/or exceeding modern environmental and engineering standards, protection of wildlife, lands, and waters, and progressive closure and reclamation of surface disturbances – including for mining sites conducted by previous operators).

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1See the National Instrument 43-101 technical report entitled “Madsen Gold Project Technical Report Feasibility Study for the Madsen, 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.

3 Based on metal price of US$1,800/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 in 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.
5Based on public disclosure, August 2020.
6PureGold has defined a 2.1-million-ounce Indicated Resource (7.2Mt @ 8.9 g/t gold) and a 0.5-million-ounce Inferred Resource (1.9Mt @ 7.7 g/t gold) at the PureGold Mine. Mineral resources are inclusive of Probable Mineral Reserves of 1 million ounces of gold grading 9 g/t (in 3.5 million tonnes).
8Geological similarities to Evolution Red Lake Mine are not necessarily indicative of the mineralization at the PureGold Mine.