Following the release of the feasibility study in February 2019 outlining a 12-year, high-grade underground mining operation with a production rate of 800 tonnes per day (“tpd”) and robust economics, a construction decision was made in August 2019. 

Detailed engineering, procurement and construction have commenced. The project is fully funded for initial capital costs and first production is expected by the end of the year.

With a robust development plan and outstanding potential for growth along with substantial opportunities for scalability, the PureGold Red Lake Mine is simply phase one of our growth strategy.

PureGold’s rapid pace from acquisition and exploration through development to pending production from the PureGold Red Lake Mine, the team’s command of the Red Lake district geology and the quality of the exploration and engineering programs are reflected in the global mining leaders that chose PureGold to invest in. These investors include Eric Sprott and Rob McEwen who built multi-billion dollar companies Kirkland Lake Gold and Goldcorp, respectively, through the discovery of new, high-grade multi-million ounce deposits at the historic Fosterville, Macassa and Red Lake mines. Two additional key strategic investors include Newmont Goldcorp and AngloGold Ashanti. Collectively, these strategic investors represent 30% share ownership.

High Grade Deposit

The PureGold Mine ore body is an exceptional foundation on which to build a gold mining company.  With Probable Mineral Reserves of 3.5 Mt at 9.0 g/t containing 1.0 million ounces of gold included in a Mineral Resource of 7,196,000 Indicated tonnes grading 8.9 g/t gold for 2,063,000 ounces of gold and 1,880,000 Inferred tonnes grading 7.7 g/t gold for 467,000 ounces of gold, the PureGold Red Lake Mine is the highest grade development stage gold deposit in Canada today, and will be in the top 8 percentile globally when in production.^1,2

The PureGold Mine is based around a newly defined reserve accessed by new development and shares geologic attributes including host rocks, alteration style, and structural setting with other major mines in Red Lake Including Newmont Goldcorp’s Red Lake Mine.

The high-grade and low-capex nature of the PureGold Red Lake Mine is highly levered to gold price: at US$1,500/oz. the after-tax NPV5% is C$390 million with an after-tax IRR of 51%.¹

Supporting the move to production, this “data-rich” deposit has over 1.3 million metres of drilling defining a resource model with an average drill hole spacing of just over six metres between drill holes. Conducted in late 2018, PureGold’s successful test mining program and the Feasibility Study completed in 2019 have further de-risked the project.

Location: Red Lake Gold Mining District

Over its nine decade history, the Red Lake Mining District in northwestern Ontario has produced more than 29 million ounces of high grade gold, making this one of the largest and highest grade gold producing districts in Canada.¹  The PureGold Mine is an important part of this history and will be a critical component of the future of the district.

Infrastructure and Land Position

The 47 square kilometre patented land position is host to two significant past producing mines, the Madsen Red Lake Mine and Starratt-Olsen Mine which together produced approximately 2.6 million ounces of gold. Substantial infrastructure is in place, including a mill and tailings facility, grid power and paved highway access, a 1,275 metre deep shaft and headframe, 27 levels of underground workings, a portal and ramp, and substantial permits. The existing infrastructure provides a solid foundation on which to build a modern long life mining and processing operation.¹

Production Stage: the First Phase in the PureGold Red Lake Mine Strategy

Over the coming months, the Company will be focused on:

• Commencement of construction activities to meet a target of first gold production in late 2020
• Optimizing the project execution schedule, detailed engineering, procurement and permitting updates;
• Initiation of hiring strategy to facilitate the rapid, 13-month development schedule.