Pure Gold Mining Inc. is pleased to announce that its unaudited condensed interim consolidated financial statements (“Financial Statements”) for its third quarter ended September 30, 2020 and the accompanying Management’s Discussion and Analysis are available for download on the Company’s website at www.puregoldmining.ca and under the Company’s SEDAR profile at www.sedar.com.
Financial and Operating Highlights for the quarter and to date:
During the three months ended September 30, 2020 and up to the date of this MD&A, the Company advanced construction and underground development activities at its 100%-owned PureGold Mine Project (“Mine Project” or the “Project”)). A summary of the highlights for the three months ended September 30, 2020 and subsequent period to date are as follows:
The development of the Mine Project is continuing at a rapid pace. Engineering is complete and all major components are on site and installed. Final piping and electrical cabling has begun. The Company remains on track to bring first ore to the mill before year-end.
During the quarter and subsequent to quarter end, PureGold raised approximately $7.1 million from the exercise of 7,561,500 share purchase warrants with a strike price of $0.85 (the “Warrants”), including 5,925,000 Warrants exercised by Anglogold Ashanti, increasing its ownership percentage in the Company to approximately 16% and 3,346,665 share purchase options with a weighted average exercise price of $0.27 per share.
The Company remains fully funded through construction of the PureGold Mine.
Our underground drilling continues to be extremely successful in delivering on its objective of discovering new gold mineralization, extending mineralization out from planned stopes and confirming stopes planned for near-term production. New grade control drilling has highlighted the potential for bonanza grades in stopes planned for near term production1.
Highlights of drilling from underground include:
Additionally, new surface drilling results at the Wedge target (“Wedge”) highlight the strong continuity of the high-grade gold mineralization, both down plunge and along strike, reinforcing the Wedge as a high priority for resource growth.
Highlights of surface drilling from Wedge:
Selected Financial Data
The following selected financial data is derived from our Financial Statements and related notes thereto for the periods indicated, as prepared in accordance with International Financial Reporting Standards. Details of these results are described in the unaudited condensed interim consolidated financial statements and Management’s Discussion and Analysis for the nine months ended September 30, 2020.
|For the three months ended September 30, 2020||For the three months ended September 30, 2019||For the nine months ended September 30, 2020||For the nine months ended September 30, 2019|
|Exploration Expenditures||$||2.8 million||$||3.6 million||$||3.0 million||$||7.2 million|
|Loss on change in fair value of derivatives||$||6.4 million||$||3.3 million||$||6.8 million||$||3.3 million|
|Net Loss and Comprehensive loss for the period||$||9.7 million||$||8.8 million||$||10.8 million||$||15.7 million|
|Basic and Diluted Loss per Share||$||(0.02)||$||(0.03)||$||(0.03)||$||(0.05)|
|As at September 30,
|As at December 31,
|$||212.0 million||$||130.6 million|
|Current liabilities||$||32.7 million||$||8.2 million|
|Non-current liabilities||$||109.3 million||$||72.8 million|
|Cash dividends declared||$||–||$||–|
Qualified Persons and 43-101 Disclosure
Darin Labrenz, P. Geo., President & CEO for the Company, is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 (“NI 43-101”) and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.
About Pure Gold Mining Inc.
The PureGold Mine, located in the heart of Red Lake, Ontario, is Canada’s next gold mine. Fully funded, the project is on track to deliver near term gold production into a rising Canadian gold price environment, with first gold pour scheduled for late 2020. The orebody is situated within a seven-kilometre-long gold system that is wide open for expansion at depth and along strike, and multiple discoveries by the Company suggest potential opportunities for near-term growth.
Additional information about the Company and its activities may be found on the Company’s website at www.puregoldmining.ca and under the Company’s profile at www.sedar.com.
ON BEHALF OF THE BOARD
Darin Labrenz, President & CEO
Adrian O’Brien, Director of Marketing & Communications