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.
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