Pure Gold Mining – Comprehensive Operations And Exploration Update
Darin Labrenz, President and CEO of Pure Gold Mining (TSX.V: PGM – OTC: LRTNF), joins us to provide a comprehensive update on operations and production ramping up at the Red Lake Mine in Red Lake Ontario, as well as the ongoing aggressive exploration program underway. The Company plans to ramp up from 600-700 tonnes per day of mill throughput to 1000 tpd by the middle of next year, and should be cashflow positive by the end of Q1.
Next we discussed some of the initial teething challenges, overbreak dilution, and ramp congestion problems the company had during this first year of commercial production. We also outlined what the company has done to resolve and mitigate them, including opening up more mining stopes and installing a second decline ramp. In addition, Darin gave us some background on the new Mine General Manager, Maryse Belanger, that was brought on board in October to continue to optimize the mining operations.
We wrap up with a general overview of all the high grade exploration results that have been coming back from the Main Zone, East Ramp Zone, and the 8 Zone. The company has gone from 1 drill rig to 4 drill rigs, after the recent capital raise, to push expansion of the resources and extension of mine life, and plans on using the additional cashflow in mid-2022 to continue drilling out the 8 Zone for commercial development in just over 2 more years, with just that zone having a resource of 300,000 ounces averaging 21 g/t gold.
If you have more questions for Darin regarding Pure Gold Mining, then please email us at either Fleck@kereport.com or Shad@kereport.com.
Click here to visit the Pure Gold Mining website and read over the recent news.
Why Gold & Silver are Weak Amid High Inflation
.
Jordan Roy-Byrne – The Daily Gold – Dec 21, 2021
.
https://youtu.be/N641webw–I
Commodities Gained Across the Board in 2021. Gold Was the Exception.
.
By Simon Constable – Barron’s – Dec. 22, 2021
.
“Anyone wanting a calm commodities market in 2021 would have been disappointed. It produced surprises that would have shocked even the most jaded market veterans.”
“Wheat, coffee, sugar, lumber, and energy prices all shot up. Perhaps most shocking was that the price jumps were driven by different factors. It wasn’t all upward: gold puzzled some investors, as prices slumped even while inflation surged.”
.
https://www.barrons.com/articles/commodities-gains-were-across-the-board-in-2021except-for-gold-51640164501
Same old algos. Today is over.
Corey, Shad – thanks for getting Pure Gold on the show.
My main concern with Pure Gold is the involvement of AngloGold. To be blunt I just don’t trust the AngloGold. Normally I think if AngloGold gets involved with a company I, as an investor, should leave as soon as possible. I will not forget how they played Corvus Gold. That saga started 5 months ago and still is unresolved today.
There are no “win wins” with AngloGold. They win and everybody else looses.
Understood Mike. Well, as previously discussed, I made out pretty well with the Corvus this year on the Anglogold Ashanti takeover, as I had positioned in the spring, figuring that either Coeur or Anglogold Ashanti would take them over after their drilling success, and I came out with a nice 63% gain on the trade as a result of the transaction. I’m sure the management of Corvus felt it was a win for them as well, since the acquisition by one of the majors was validation that they’d found an economic deposit. However, longer term shareholders may not have been made whole.
.
As for Pure Gold, I’m hoping that Anglogold Ashanti doesn’t take a similar track here at such a depressed valuation in PGE, especially after just participating in the recent financing, but if they do, I’ll likely come out with a wash. Still, I’d rather see PGE have the time to keep exploring and prove the market that their operations are profitable by the first quarter of next year, and then get rerated higher, before possibly getting taken over. However, big producers like to get deals too, and currently Pure Gold is way undervalued and on the tax loss silly clearance rack, so it would be tempting for a larger company to pounce before the company has a chance to re-rate higher. We’ll see how it goes…
Ex – The announcement from Pure Gold that AngloGold now owns 14.96% of the company happened on Oct. 15th. Most miners are down since that date so it is hard to guess how Anglo’s entry has affected Pure’s share price. All I can do is speak for myself, before that date I was routinely buying small lots of that sock but after it I have pretty much stopped buying any more. Now my decisions can’t just be based on the Pure Gold’s actions and successes but they have to be tempered with the knowledge that AngloGold could swoop down at any moment to scoop up the whole thing at a bargain price. Since Anglo is now inside they can monitor things the rest of us can’t so we should expect them to move prior to any re-rating. The lower the price goes the better the setup for AngloGold. If a buyout offer was made tomorrow I’d say we would be looking at the latest recent peak, 0.85 US or 1.08 CAN. As Pure’s price goes lower so does the buyout price. We need to understand that Anglo is playing a very long game that the rest of us can’t. Honestly at this price point I’d be backing up the truck to load it down with Pure stock but I have to accept that this time the cards may be stacked and not in our favor.
Fwiw, I don’t own that one anymore and probably won’t again but right now, it’s an easy buy in my book.
https://stockcharts.com/h-sc/ui?s=PGM.V&p=D&yr=1&mn=0&dy=0&id=p02877827955
Good PGM charts Matthew. Yes, it does look like a compelling buy area down here. I was adding more on Dec 15th, but may consider adding some more down at these levels, for a turnaround play.
Matthew and Ex – you are probably right. We may have hit the bottom here and looking in from the outside AngloGold probably has its hands full with the lawyers suing everybody re: the Corvus deal. At least I hope so. I’ll definitely accumulate a bit more down here thinking that even if the worst happens I’ll turn a few pennies on the deal. If AngloGold sits on its hands I think the upside potential is excellent but that is a big “if”. Still, in the back of my mind, I have to wonder if AngloGold’s involvement may have put in a top for Pure not a bottom. For me this is getting complex – it just isn’t about Pure Gold anymore.
Re: Mgmt over at Pure Gold. My guess is that this all started before the Corvus buyout hit the fan and they were blindsided by it. Again, this is just a guess, but I’m thinking all the other miners now know when AngloGold comes a calling they just need to say no.
We’ve received a lot of emails requesting an update on Pure Gold Mining and were happy to record this market update, but if there are further questions then please email them to us, or place them here on this blog. We did our best to cover the challenges overcome in 2021, the mining and milling operations update, and a review of all the exploration success and plans for next year, once they are cashflow positive by late February. Thanks for listening to the KE Report!