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Drilling targeting expansion of mineral resources at Wedge, Fork and Russet South

 

VANCOUVER, B.C. – Pure Gold Mining Inc. (PGM – TSX-V) (“Pure Gold” or the “Company”) is pleased to announce the launch of the 2019 Exploration Program at its 100% owned Madsen Red Lake Gold Mine (“Madsen”) in Red Lake, Ontario.

 

The phased exploration program is designed to focus on the Company’s Wedge, Fork, and Russet South discoveries with the goal of converting and growing the mineral resources that form the foundation of the recently completed Preliminary Economic Assessment of these deposits1,2. The 2019 Exploration Program will include up to 12,000 meters of diamond drilling and is expected to be largely directed at our Wedge discovery and along strike extensions, with a limited amount of focused work at the Fork and Russet South deposits.

 

Drilling has already re-commenced on the project with the first phase incorporating one diamond drill rig, targeting upgrading of the inferred resources at the Wedge deposit, as well as testing along its strike and down plunge extensions.  

 

Drilling plans also include the initial testing of the Fork EXT target which is located down-plunge of the near-surface Fork deposit and hosts strong alteration, blue-grey quartz veins, and anomalous gold in limited drill testing. The Fork EXT target is hosted along the upper contact of the Russet Lake Ultramafic unit in an analogous target setting to the high grade 8 Zone of the Madsen deposit. The 2019 exploration program will also continue surface work to prepare a further 24 current high priority exploration targets across the Madsen Property for future discovery drilling. 

 

The program is expected to be completed in December, with results released during the course of the activities.

 

“Just over a year ago our team began to test the southern extents of our geological model of Madsen in the Wedge area. Our drilling resulted in the discovery of the Wedge deposit and since that time we have rapidly progressed our understanding of the scale and tenor of gold mineralization, resulting in the first time disclosure of mineral resources and a Preliminary Economic Assessment of those resources,” stated Darin Labrenz, President and CEO of Pure Gold. “The rapid progression of Wedge, and other near surface discoveries, from discovery to engineering and economics is testament to the strength of our team’s geologic model, and the tremendous exploration upside evident at Madsen. With this new program our exploration team is focused on growth of the current resource and providing the framework for a second phase of development with the goal of not only extending, but potentially expanding the base case production scenario at Madsen.”    

 

 

Previously released drilling highlights from Wedge, Russet South and Fork include:2,3

 

Wedge:

    • 33.3 g/t gold over 8.3 metres from drill hole PG17-467;
    • 21.3 g/t gold over 10.3 metres from drill hole PG17-486;
    • 15.1 g/t gold over 5.4 metres from drill hole PG16-215;
    • 19.9 g/t gold over 3.3 metres from drill hole PG18-564; and
    • 354.0 g/t gold over 1.0 metre from drill hole PG18-540.

 

Russet South:

    • 76.0 g/t gold over 2.1 metres from drill hole PG16-233;
    • 27.1 g/t gold over 5.8 metres from drill hole PG17-364;
    • 39.1 g/t gold over 2.9 metres from drill hole PG15-031; and
    • 15.0 g/t gold over 5.0 metres from drill hole PG15-028.

 

Fork / Starratt:

    • 17.2 g/t gold over 3.5 metres from drill hole PG17-467;
    • 104.1 g/t gold over 3.0 metres from drill hole PG16-198.

 

 

For a set of figures showing mineral resource locations, click link below:

http://puregoldmining.ca/sites/default/files/Resource-Location-Map-31052019.pdf

 

ABOUT MADSEN

The Madsen Red Lake Gold Mine has historical production of 2.6 million ounces of gold and a current indicated resource of 1,744,000 ounces gold at 8.7 g/t gold (in 6.2 million tonnes), an inferred resource of 296,000 ounces gold at 7.9 g/t gold (in 1.2 million tonnes), and benefits from existing infrastructure including a mill and tailings facility, paved highway access, and access to power, water and experienced labour.  The recently released feasibility study for the Madsen Red Lake Gold Mine outlines an 800 tonne per day underground mining operation with a 12 year life-of-mine (“LOM”), Probable Reserves of one million ounces at 9 g/t Au in 3.5 million tonnes, and a low initial capital cost of C$95 million (US$71 million), putting the Madsen Red Lake Gold Mine firmly on the path to becoming Canada’s next iconic gold mine.2

 

  1. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be considered for estimation of mineral reserves, and there is no certainty that the inferred mineral resources will be converted to indicated resources or a mineral reserve.
  2. See the technical report titled “Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit and Preliminary Economic Assessment for the Fork, Russet South and Wedge Deposits Red Lake, Ontario, Canada“ for further information, available at www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com
  3. See news releases October 29, 2014, March 16, 2015, October 3, 2016, October 31, 2016, November 16, 2016, May 11, 2017, January 31, 2018 and June 18, 2018 for additional disclosure

 

 

QA/QC and Core Sampling Protocols

Drill core samples are submitted to ALS Minerals in Thunder Bay, Ontario for sample preparation by crushing to 70% less than 2 mm, a rotary split of 1kg, and pulverization of the split to better than 85% passing 75 microns. Sample pulps are shipped to the ALS assay laboratory in North Vancouver, BC for gold analysis with a 30g fire assay and AAS finish (code Au-AA23). Samples returning >5 g/t Au are re-assayed with a gravimetric finish (code GRA21). Mineralized zones with visible gold and shoulder samples are also analyzed by a 1 kg screen fire assay with screening to 100 microns. A duplicate 30 g fire assay is conducted on the screen undersize with assaying of the entire oversize fraction (code Au-SCR21). Control samples (certified standards and uncertified blanks), along with field, prep and pulp duplicates, are inserted on a regular basis. Results are assessed for accuracy, precision, and contamination on an ongoing basis.

 

Qualified Persons and 43-101 Disclosure

Phil Smerchanski, P. Geo., Vice President, Exploration 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.

 

Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the Madsen Red Lake Gold Mine in Red Lake, Ontario. And become Canada’s next iconic gold company.

 

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"                                  

Darin Labrenz, President & CEO

 

Investor inquiries:

Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000

info@puregoldmining.ca

 

Media inquiries:

Gareth Tredway / Annabel de Morgan – Tavistock

Tel: +44 (0) 20 79207150

puregold@tavistock.com

 

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, the growth potential of the Madsen Gold Project and opportunities for scalability,  the potential for Russet South, Fork and Wedge to be economically viable,  potential conversion of inferred resources to measured and indicated resources, potential extension and expansion of mineral resources and the focus of the Company in the coming months . Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.

 

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 20, 2019 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at www.sedar.com.

 

Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

 

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NEWS RELEASE 19-12 May 21, 2019

PURE GOLD REPORTS FIRST QUARTER FINANCIAL RESULTS

VANCOUVER, B.C. – Pure Gold Mining Inc. (TSX-V: PGM, LSE: PUR) (“Pure Gold” or the “Company”) is pleased to announce that its unaudited condensed interim consolidated financial statements (“Financial Statements”) for the first quarter ended March 31, 2019 and the accompanying Management’s Discussion and Analysis are available for download on the Company’s website at www.puregoldmining.ca at under the Company’s SEDAR profile at www.sedar.com.

Financial and Operating Highlights through and subsequent to March 31, 2019:

During the three months ended March 31, 2019 and to date, the Company completed and advanced a number of key milestones, significantly de-risking its 100%-owned Madsen Gold Mine (“Madsen”) which culminated in the release of a new mineral resource estimate, a feasibility study for the Madsen deposit and a preliminary economic assessment (“PEA”) for the Fork, Russet South and Wedge Deposits in February 2019. A summary of the highlights for the three months ended March 31, 2019 and subsequent period to date are as follows:

On February 11, 2019, Pure Gold released the results of an independent feasibility study for the Madsen deposit[1]. The feasibility study outlines a high-grade, underground mining operation with a production rate of 800 tonne per day (“tpd”) at modest initial capital cost and strong financial performance based upon a US$1,275/troy ounce (“oz”) gold. Base case parameters in the feasibility study assume a gold price of US$1,275/oz and an exchange rate (Canadian $ to US $) of 0.75. Highlights of the feasibility study include:

  • Probable Mineral Reserves of 3.5 million tonnes at 9.0 grams per tonne (“g/t”) gold containing 1.0 million ozs gold[1];
  • Modest initial capital requirement of $95 million including a 9% contingency;
  • Mine life of 12.3 years with a 13-month pre-production period from a formal production decision;
  • Peak annual production of approximately 125,000 ozs with average annual gold production in years 3 through 7 of approximately 102,000 ozs;
  • Life of Mine (“LOM”) direct operating cash cost[2] estimated at US$607 per oz of payable gold;
  • LOM all in sustaining cash cost (“AISC”)[3] estimated at US$787 per oz of payable gold;
  • Pre-tax Net Present Value (“NPV”) at 5% and Internal Rate of Return (“IRR”) of $353 million and 43% respectively with a 3.0-year payback of initial capital; and
  • After-tax NPV at 5% and IRR of $247 million and 36% respectively with a 3.3-year payback of initial capital.

The feasibility study supports a high-grade underground mining operation with engineered stopes containing 1.0 million ozs of gold in probable mineral reserves. The project benefits from significant mining, milling and tailings infrastructure already in place, resulting in a project with modest capital intensity. Mining will be conducted from new ramp development utilizing a combination of cut and fill and longhole methods. A new hoist house and double drum production hoist will use the existing shaft infrastructure to lift ore and waste from the mine, commencing in year four of operations.

The proposed Madsen implementation schedule is over a period of 13 months, with underground mine development commencing approximately 9 months before the first gold pour. The project requires initial capital of $95 million (including contingency) to support the construction of an underground mine and associated infrastructure, including the expansion of existing milling capacity to 800 tonnes of ore per day. 

On February 27, 2019 the Company announced results of a PEA for the Fork, Russet South, and Wedge deposits that demonstrates the potential to add approximately $51 million to the Madsen after-tax net present value at an IRR 39%.

The PEA provides a blueprint of how Pure Gold might extend mine life or with further resource definition and permitting work, possibly increase the annual production profile at Madsen. The PEA represents the first conceptual expansion scenario for the future phased growth of the Madsen Mine. 

Highlights of the PEA include[1]:

  • Base case parameters assume a gold price of US$1,275/oz and an exchange rate (C$ to US$) of 0.75;
  • Mine life extension of 3.7 years with total production the Fork, Russet South and Wedge deposits of 210,000 ozs of gold;
  • LOM direct operating cash cost[4] estimated at US$557 per oz of payable gold;
  • LOM AISC4 estimated at US$712 per oz of payable gold;
  • Pre-tax NPV5% and IRR of $79 million and 57% respectively with a 1.6-year payback of initial capital;
  • After-tax NPV5% and IRR of $51 million and 39% respectively with a 2.0-year payback of initial capital; and
  • Initial capital requirement of $57 million including a 14% contingency.

The PEA is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

On March 29, 2019 the Company closed a bought-deal private placement, pursuant to which the Company issued 7,723,975 common shares of the Company on a flow-through basis (the “FT Shares”) at a price of $0.67 per FT Share for gross proceeds of $5,175,063 (the “2019 Offering”).  In connection with the 2019 Offering, the Company paid the underwriters a cash commission equal to 6.0% of the gross proceeds.

The gross proceeds from the issuance of the FT Shares will be used for “Canadian exploration expenses” and will qualify as “flow-through mining expenditures”, as those terms are defined in the Income Tax Act (Canada). The FT Shares issued under the 2019 Offering have a hold period of four months and one day from closing, expiring on July 30, 2019.

The Company began trading on the London Stock Exchange under the symbol PUR, effective May 21, 2019.

Outlook

Pure Gold is focused on advancing high quality assets that host the key traits of economic mines: grade, scope, size potential and access to infrastructure in mining-friendly jurisdictions. Our key asset is Madsen which comprises in excess of 4,600 hectares of primarily patented mineral claims in the prolific Red Lake gold camp of Northwestern Ontario and hosts two significant former gold producers including the Madsen Mine which had previous gold production of 2.6 million ozs.

With the feasibility study now complete Pure Gold will continue to advance Madsen towards development.  In August 2018 the Company announced that it had appointed Endeavour Financial as its financial advisor to provide advisory services with respect to debt financing for the construction and development of Madsen. This process is well advanced and discussions are underway and advancing with multiple potential financiers. Expressions of interest from financiers are anticipated by the end of May 2019. 

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

  •  Continuing work with First Nations to promote a cooperative and mutually respectful relationship concerning Pure Gold’s development plan, and to finalize an agreement to govern this relationship;
  • Advancing project finance initiatives;
  • Optimizing the project execution schedule, including detailed engineering, procurement and permitting;
  • Continuing environmental studies and documentation to support the update and filing of existing permits and filing for additional permits that may be required; and
  • Commencing detailed engineering and design activities.

The feasibility study, focused exclusively on the Madsen deposit, outlines a robust high-grade, low capital mining operation. Exploration by the Company to date has demonstrated that Madsen has outstanding potential for growth and opportunities for scalability. Key opportunities to enhance the project over the project life include:

  • Potential expansion of the Madsen resource, through application of the Company’s geologic model to target extensions to the known resource, including:
  • Potential conversion of the inferred resources in the Madsen deposit to measured and indicated, currently totaling 241,000 ozs of gold (0.9 million tonnes at 8.4 g/t gold1);
  • High-grade 8 Zone expansion potential beyond the reserve scheduled to commence mining in year four of operations;
  • Potential depth extensions of the Madsen deposit which remains open as supported by drill hole PG17-456 which intersected 34.6 g/t gold over 4.3 metres at a depth of 1,373 metres below surface, and AD-11-01 which returned 14.3 g/t gold over 2.0 metres at a depth of approximately 2,100 metres below surface;
  • Continue exploration at Fork, Russet South and Wedge, and across the plus 5 kilometre gold system at Madsen, where strong potential exists for continued growth; and
  • Review and optimization of the mine plan with an opportunity for additional mine flexibility, potential for increased milling rates and annual gold production.

With the addition of the PEA for the Fork, Russet South, and Wedge deposits, Pure Gold has demonstrated the potential to either add mine life or improve annual production throughput at Madsen with further advancement of these deposits.  Subject to availability of funds, the Company plans to continue exploring these zones to define further mineralization and upgrade the resource classification with the goal of determining the feasibility of adding production from these zones to the Madsen mine production profile, as early as practical, in the mine life.

Non-GAAP Measures and Other Financial Measures

Alternative performance measures are furnished to provide additional information. These non-GAAP performance measures are included in this news release because these statistics are key performance measures that management uses to monitor performance, to assess how the Company is performing, to plan and to assess the overall effectiveness and efficiency of mining operations. These performance measures do not have a standard meaning within International Financial Reporting Standards (“IFRS”) and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.

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 three months ended March 31, 2019. These documents can be found on the Company’s website (www.puregoldmining.ca) or on SEDAR at www.sedar.com. All dollar figures are expressed in Canadian $.

 

 

For the three months ended
March 31, 2019

For the three months ended
March 31, 2018

Total Revenue

-

-

Exploration and evaluation expenditures

$1,646,481

$7,619,266

Net loss for the period attributable to shareholders        

$2,834,833

$7,196,939

Total comprehensive loss for the period

$2,834,833

$7,196,939

Basic and Diluted Loss per Share

$0.01

$0.03

 

 

 

    March 31, 2019

    December 31, 2018

Cash and short-term investments

$7,187,562

$4,277,624

Working capital (current assets less current liabilities)          

$5,616,537

$3,817,475

Total assets

$24,339,863

$20,871,965

Current liabilities

$2,008,581

$1,019,408

Non-current liabilities

$3,090,537

$2,438,919

Shareholders’ equity

$19,240,745

$17,413,638

 

This press release should be read in conjunction with Pure Gold’s Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis for the three months ended March 31, 2019.  In addition, for further information please see Pure Gold’s Annual Information Form for the fiscal period ended December 31, 2018. These documents can be found on the Company’s website (www.puregoldmining.ca) or under the Company’s profile on SEDAR at www.sedar.com. Shareholders may receive a printed copy of the audited consolidated financial statements, free of charge, upon request.

Qualified Persons and 43-101 Disclosure

Phil Smerchanski, P. Geo., Vice President, Exploration 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.

Pure Gold is a Canadian focused gold developer. It has recently released the feasibility study for its flagship project, the Madsen Red Lake Gold deposit, which outlines a 12 year LOM, current probable reserves of one million ounces at 9 g/t Au in 3.5 million tonnes, 800 tonne per day underground mining operation with comparatively low initial capital cost of C$95m and strong financial performance with after-tax NPV 5% of C$247m and internal rate of return of 36%. In addition, specific exploration targets and satellite resources not considered in the feasibility study suggest an opportunity for near-term growth to potentially further enhance the economics of the project with after-tax NPV 5% of C$51m and internal rate of return of 39%.

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"                                 

Darin Labrenz, President & CEO

Investor inquiries:

Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000

info@puregoldmining.ca

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, the growth potential of the Madsen Gold Project and opportunities for scalability, planned mining methods, mineral processing and sources of power, expected annual production, potential profitability of the Madsen Gold Project at lower metal prices, expected capital costs, anticipated permitting requirements and timing thereof, expected development schedule, expected timing of the completion of the Preliminary Economic Assessment for the Russet South, Fork and Wedge deposits, potential conversion of inferred resources to measured and indicated resources, potential extension and expansion of mineral resources and the focus of the Company in the coming months . Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 20, 2019 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at www.sedar.com.

Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

[1] See the technical report titled “Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit and Preliminary Economic Assessment for the Fork, Russet South and Wedge Deposits Red Lake, Ontario, Canada“ for further information, available at www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com

[2] Cash cost includes mining cost, mine-level G&A, milling and refining cost. This is a non-GAAP performance measure; please see “Non-GAAP Measures and Other Financial Measures” below.

[3] All in sustaining cash cost adjusts cash cost for corporate G&A and sustaining capital expenditures. This is a non-GAAP performance measure; please see “Non-GAAP Measures and Other Financial Measures” below.

[4] Cash costs includes mining cost, mine-level G&A, milling and refining cost. This is a Non-GAAP measure; please see Non-GAAP Measures and Other Financial Information” below.

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News Release 19 - 11

This announcement is an advertisement for the purposes of the Prospectus Rules of the Financial Conduct Authority ("FCA") and not a prospectus and not an offer to sell, or a solicitation of an offer to subscribe for or to acquire, securities in any jurisdiction, including in or into the United States, Israel, Australia, Japan or the Republic of South Africa.

Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. Investors should not purchase or subscribe for any shares referred to in this announcement other than solely on the basis of information that is contained in the prospectus published by the Company on 14 May 2019 (“Prospectus”) in connection with the proposed admission of its common shares to the standard listing segment of the Official List of the FCA and to trading on the main market for listed securities of the London Stock Exchange plc (“LSE”).

 

VANCOUVER, B.C. – Pure Gold Mining Inc. (PGM: TSX-V) (“Pure Gold” or the “Company”), a Canadian focused gold development company that owns the high-grade Madsen Red Lake Gold Mine (“Madsen” or the “Project”) in Red Lake, Ontario, is pleased to announce that at 08:00am BST today, its common shares will be admitted to the standard listing segment of the Official List and the LSE’s Main Market for listed securities (“Admission”) under the ticker PUR.

 

Admission follows the publication of the Company’s Prospectus on 14 May 2019, a copy of which is available on the Company’s website (http://puregoldmining.ca/investors/LSE-Listing), the National Storage Mechanism (www.morningstar.co.uk/uk/NSM) and under the Company’s Sedar profile (www.sedar.com). Hard copies of the Prospectus will also be available during normal business hours at the offices of the Company’s English legal advisers, Memery Crystal LLP, at 165 Fleet Street, London EC4A 2DY.

 

Darin Labrenz, President and CEO of Pure Gold, commented:

Today marks an important new chapter for the Company as we commence trading on the London Stock Exchange alongside our existing listing in Toronto. The LSE listing is a global platform which allows us to introduce Pure Gold to European and UK investors as we approach construction of our high-grade Madsen Red Lake Gold Mine and first production targeted for next year.

Due to the very high grade nature of the ore body, the low capital cost, short 13-month construction period, and project location in Ontario, Canada, we have already had good interest shown by European investors. We look forward to broadening our shareholder register as we approach our first phase of production and unlock the wider deposits in our licence area within the iconic Red Lake mining district, home of Canada’s highest grade gold deposits.”

Pure Gold is a Canadian focused gold developer. It has recently released the feasibility study for its flagship project, the Madsen Red Lake Gold Mine, which outlines an 800 tonne per day underground mining operation with a 12 year life-of-mine (“LOM”), Probable Reserves of one million ounces at 9 g/t Au in 3.5 million tonnes, and a comparatively low initial capital cost of C$95 million (US$71 million). The Company is targeting H2 2020 for first production. In addition, specific exploration targets and satellite resources not considered in the feasibility study suggest an opportunity for near-term growth to potentially further enhance the economics of the project.  A recently completed preliminary economic assessment (“PEA”) of these discoveries highlights the tremendous prospective upside present at Madsen Red Lake Mine, and demonstrates how Pure Gold would phase these new discoveries into future mine plans.

 

Key Highlights:

Madsen Red Lake Feasibility Study:1

Base case parameters assume a gold price of US$1,275/oz and an exchange rate (C$ to US$) of 0.75.

  • Current Probable Reserves at the Madsen Red Lake Gold Mine are 1 million ounces of gold at an average grade of 9 g/t gold contained within 3.5 million tonnes;
  • Modest initial capital requirement of C$95 million including a C$8 million contingency with access to significant existing infrastructure including underground development and plant infrastructure;
  • Short 13-month pre-production period  from a formal decision to mine;
  • Peak annual production of approximately 125,000 ounces with average annual gold production in years 3 through 7 of approximately 102,000 ounces;
  • LOM direct operating cash cost estimated at US$607 per ounce of gold recovered;
  • LOM all in sustaining cash cost (“AISC”) estimated at US$787 per ounce of gold recovered;
  • Pre-tax NPV5% and IRR of C$353 million and 43% respectively with a 3.0 year payback of initial capital; and
  • After-tax NPV5% and IRR of C$247 million and 36% respectively with a 3.4 year payback of initial capital.

Preliminary Economic Assessment for Fork, Russet South, and Wedge deposits: 1

Base case parameters assume a gold price of US$1,275/oz and an exchange rate (C$ to US$) of 0.75.

  • Initial capital requirement of C$57 million including a 14% contingency;
  • LOM direct operating cash cost estimated at US$557 per oz of payable gold;
  • LOM AISC estimated at US$712 per oz of payable gold;
  • Mine life extension of 3.7 years with total production from the Fork, Russet South and Wedge deposits of 210,000 ounces of gold;
  • Pre-tax NPV5% and IRR of C$79 million and 57% respectively with a 1.6-year payback of initial capital; and
  • After-tax NPV5% and IRR of C$51 million and 39% respectively with a 2.0-year payback of initial capital.

The PEA is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

 The Company’s London Investor Presentation is now available on its website.

Velocity Trade Limited and Tamesis Partners LLP are acting as financial advisers to the Company and Memery Crystal LLP are as acting as English legal advisers.

 

-ENDS-

 

Enquiries: 

http://puregoldmining.ca/ 

Pure Gold Mining Inc.                                            +1 604 646 8000

 Adam Buchanan, Investor Relations    

 

PUBLIC RELATIONS 

 

Tavistock                                                                  +44 (0) 207 920 3150

Jos Simson

Gareth Tredway

Annabel de Morgan

 

FINANCIAL ADVISERS

 

Velocity Trade Capital Limited                            +1 (416) 323 2153

Rusty Bell

Daniel Belchers

 

Tamesis Partners LLP

 Richard Greenfield                                                   +44 (0) 203 882 2868

 

Non-GAAP Measures and Other Financial Measures

Alternative performance measures are furnished to provide additional information. These non-GAAP performance measures are included in this news release because these statistics are key performance measures that management uses to monitor performance, to assess how the Company is performing and to plan and assess the overall effectiveness and efficiency of mining operations. These performance measures do not have a standard meaning within International Financial Reporting Standards (“IFRS”) and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.

 

  1. See the National Instrument 43-101 technical report entitled “Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit and Preliminary Economic Assessment for the Fork, Russet South and Wedge Deposits Red Lake, Ontario, Canada” with an effective date of February 5, 2019 for complete details, available on the Company’s website at www.puregoldmining.ca or Sedar profile at www.sedar.com.

About Pure Gold Mining Inc.

Pure Gold is a Canadian focused gold developer. It has recently released the feasibility study for its flagship project, the Madsen Red Lake Gold Mine, which outlines a 12 year LOM, current probable reserves of one million ounces at 9 g/t Au in 3.5 million tonnes, 800 tonne per day underground mining operation with comparatively low initial capital cost of C$95 million and strong financial performance with an after-tax NPV5% of C$247 million and an after-tax internal rate of return of 36%. In addition, specific exploration targets and satellite resources not considered in the feasibility study suggest an opportunity for near-term growth to potentially further enhance the economics of the project.

Highlighting the scalability of the project, the Company also announced the results of a preliminary economic assessment for its Fork, Russet South, and Wedge deposits that demonstrate the potential to add approximately C$51 million to the Madsen Red Lake Gold Mine after-tax NPV5%. As a result of high gold grades, near surface resources, and use of existing infrastructure, mining of these zones will yield an after-tax internal rate of return of 39%.

Multiple high-grade gold discoveries and the infrastructure are in place to allow for the potential to turn those discoveries into mineable deposits on a short timeline which has attracted a highly passionate, skilled and experienced team. Our board, management, and technical team all have extensive experience in gold exploration and mining across the world. Perhaps more significantly, they have deep roots in Red Lake – and a rich and intimate knowledge acquired during their years mining and exploring in the area.

More than 29 million ounces of high-grade gold have been mined in the legendary Red Lake mining district of north western Ontario, making this one of the largest gold producing districts in Canada.  As a multi-generational asset, the Madsen Red Lake Gold Mine represents the future of this prolific gold district. With near term production from a robust feasibility mine plan, and a potential second phase of growth highlighted by our recent PEA, the Madsen-Red Lake orebody is an exceptional foundation on which to build Canada’s next iconic gold mining company.

Qualified Persons and 43-101 Disclosure

Ken Donner, P. Eng., Vice President, Operations 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.

 

Forward-looking statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, the growth potential of the Madsen Gold Mine and opportunities for scalability, the potential to increase after-tax net present value to the Madsen Gold Mine, the potential for Russet South, Fork and Wedge to be economically viable, planned mining methods, mineral processing and sources of power, expected annual production, potential profitability of the Madsen Gold Mine at lower metal prices, expected capital costs, expected IRR, anticipated permitting requirements and timing thereof, expected development schedule, expected timing of the completion of the Preliminary Economic Assessment for the Russet South, Fork and Wedge deposits, potential conversion of inferred resources to measured and indicated resources, potential extension and expansion of mineral resources and the focus of the Company in the coming months . Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.

 Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Madsen Gold Mine; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated June 11, 2018 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at www.sedar.com.

 Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

 

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NEWS RELEASE 19-10 May 14, 2019

This announcement is an advertisement for the purposes of the Prospectus Rules of the Financial Conduct Authority ("FCA") and not a prospectus and not an offer to sell, or a solicitation of an offer to subscribe for or to acquire, securities in any jurisdiction, including in or into the United States, Israel, Australia, Japan or the Republic of South Africa. 

Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. Investors should not purchase or subscribe for any shares referred to in this announcement other than solely on the basis of information that is contained in the prospectus published by the Company (“Prospectus”) in connection with the proposed admission of its common shares to the standard listing segment of the Official List of the FCA and to trading on the main market for listed securities of the London Stock Exchange plc (“LSE”). 

PUBLICATION OF PROSPECTUS
ADMISSION TO TRADING ON THE LONDON STOCK EXCHANGE EXPECTED ON MAY 21, 2019

 

VANCOUVER, B.C. – Pure Gold Mining Inc. (PGM: TSX-V) (“Pure Gold” or the “Company”), a Canadian focused gold development company that owns the high-grade Madsen Gold Project (“Madsen” or the “Project”) in Red Lake, Ontario, is pleased to announce that its Prospectus for the dual listing of the Company’s common shares (“Common Shares”) to the standard segment of the Official List and the LSE’s Main Market for listed securities (“Admission”) has been approved by the UK Listing Authority (“UKLA”) and was published today, Tuesday, 14 May 2019, on its website at http://puregoldmining.ca/investors/LSE-Listing and is available under the Company’s Sedar profile at www.sedar.com.

Subject to the UKLA’s final approval, the Company expects that Admission will become effective and that unconditional dealings in the Common Shares will commence at 08.00 a.m. on Tuesday, 21 May 2019, under the ticker “LSE: PUR”.

A copy of the Prospectus has been submitted to the National Storage Mechanism and is available for inspection (subject to securities laws) at www.morningstar.co.uk/uk/NSM. Hard copies of the Prospectus will also be available during normal business hours at the offices of the Company’s English legal advisers, Memery Crystal LLP, at 165 Fleet Street, London EC4A 2DY.

Enquiries:
http://puregoldmining.ca/
 
Pure Gold Mining Inc.
Adam Buchanan, Investor Relations
+1 604 646 8000
PUBLIC RELATIONS  
Tavistock
Jos Simson
Gareth Tredway
Annabel de Morgan
+44 (0) 207 920 3150 
FINANCIAL ADVISERS  
Velocity Trade Capital Limited
Rusty Bell
Daniel Belchers
+1 (416) 323 2153 
Tamesis Partners LLP
Richard Greenfield
+44 (0) 203 882 2868

Qualified Persons and 43-101 Disclosure
Ken Donner, P. Eng., Vice President, Operations 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.

Pure Gold is a Canadian focused gold developer. It has recently released the feasibility study for its flagship project, the Madsen Red Lake Gold deposit, which outlines a 12 year LOM, current probable reserves of one million ounces at 9 g/t Au in 3.5 million tonnes, 800 tonne per day underground mining operation with comparatively low initial capital cost of C$95m and strong financial performance with after-tax NPV 5% of C$247m and internal rate of return of 36%. In addition, specific exploration targets and satellite resources not considered in the feasibility study suggest an opportunity for near-term growth to potentially further enhance the economics of the project with after-tax NPV 5% of C$51m and internal rate of return of 39%. 
 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to timing of the LSE listing those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone,  the growth potential of the Madsen Gold Project and opportunities for scalability, the potential to increase after-tax net present value to the Madsen Gold Project, the potential for Russet South, Fork and Wedge to be economically viable,  expected annual production,. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated June 11, 2018 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at www.sedar.com.

Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
 

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NEWS RELEASE 19-09

 

Insiders have acquired three million shares over the past 60 days

VANCOUVER, B.C. – Pure Gold Mining Inc. (PGM – TSX-V) (“Pure Gold” or the “Company”), is pleased to announce that the Board and Senior Management have exercised 2,910,000 options that were granted April 8 and May 14, 2014 raising $1,014,000.  Over the past 60 days Directors and Senior Management of the Company have acquired and held 3,094,500 shares through option exercises and acquisitions in the public market.

 

Following these transactions, the Board and Senior Management currently own 12,018,243 shares or approximately 4.5% of the issued share capital of the Company.  The recent acquisition of shares is a strong testament to the positive fundamentals of the Madsen Red Lake Gold Project and alignment of the Board and management with all shareholders.

 

ABOUT PURE GOLD

Pure Gold is a TSX.V listed Canadian focused gold developer.  A recent feasibility study released by the Company outlines a long life high margin mine, with low initial capital requirements and a fast timeline to production. In addition, specific exploration targets and satellite resources not considered in the feasibility study suggest an opportunity for near-term growth to potentially further enhance the economics of the project. 

 

Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the Madsen Gold Project in Red Lake, Ontario. And become Canada’s next iconic gold company.

 

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"                                  

Darin Labrenz, President & CEO

 

Investor inquiries:

Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000

info@puregoldmining.ca

 

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, the growth potential of the Madsen Gold Project and opportunities for scalability, planned mining methods, mineral processing and sources of power, expected annual production, potential profitability of the Madsen Gold Project at lower metal prices, expected capital costs, anticipated permitting requirements and timing thereof, expected development schedule, expected timing of the completion of the Preliminary Economic Assessment for the Russet South, Fork and Wedge deposits, potential conversion of inferred resources to measured and indicated resources, potential extension and expansion of mineral resources and the focus of the Company in the coming months . Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.

 

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 20, 2019 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at www.sedar.com.

 

Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

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NEWS RELEASE 19-08                                                                                                                                                                                                      

 

This announcement is an advertisement for the purposes of the Prospectus Rules of the Financial Conduct Authority ("FCA") and not a prospectus and not an offer to sell, or a solicitation of an offer to subscribe for or to acquire, securities in any jurisdiction, including in or into the United States, Israel, Australia, Japan or the Republic of South Africa.

 

PURE GOLD ANNOUNCES INTENTION TO LIST ON THE MAIN MARKET OF THE LONDON STOCK EXCHANGE

Engages Financial Public Relations and Investor Relations Services Firm

 

  • Admission to trading on London Stock Exchange expected in Q2 2019.
  • Dual listing to increase international profile and facilitate improved access to UK and international gold-focused institutional investors.

 

VANCOUVER, B.C. – Pure Gold Mining Inc. (PGM – TSX-V) (“Pure Gold” or the “Company”), a Canadian focused gold development company that owns the high-grade Madsen Gold Project (“Madsen” or the “Project”) in Red Lake, Ontario, is pleased to announce its intention to seek a dual listing of the Company’s shares on the Standard Segment of the Main Market of the London Stock Exchange (“LSE”).

 

The Madsen Gold Project is a precious metals resource project located in the Red Lake district of Northwestern Ontario, Canada, an established mining jurisdiction where more than 29 million ounces (“Moz”) of gold has been produced to date from 28 historical mines at an average recovered grade of 15.6 g/t Au.1 The Project is centred around the historical Madsen Mine, which produced 2.5 million ounces of gold at an average grade of 9.7 g/t gold between 1938 and 1976 and again from 1997 to 1999.

 

Pure Gold, currently listed on the TSX Venture Exchange, recently released a technical report (“Technical Report”), containing the results of a feasibility study on the Project which highlighted a robust 12-year underground mining operation with a comparatively low initial capital cost of C$95 million (US$71 million) and strong financial performance with an after-tax net present value (“NPV 5%”) of C$247 million (US$185 million) and an after-tax internal rate of return (“IRR”) of 36%, using a gold price of US$1,275/oz.

 

In addition, several related discoveries on the Project, including the Fork, Russet South and Wedge deposits, suggest an opportunity to potentially further enhance the Project’s economics. The Technical Report also included the results of a Preliminary Economic Assessment (“PEA”) on these deposits, representing the first conceptual expansion scenario for the future phased growth of the Madsen Gold Project. The PEA demonstrates the potential of these deposits to add C$51 million (US$38 million) to the Madsen Project after-tax NPV 5% at an IRR of 39%.

 

Admission to trading on the LSE is expected in Q2 2019. The Company is not currently intending to raise capital in conjunction with Admission. Velocity Trade Capital Limited (“VT Capital”) and Tamesis Partners LLP are acting as advisers to the Company.

 

Darin Labrenz, President and CEO of Pure Gold, commented:

“We are pleased to be bringing Pure Gold Mining and our high-grade Madsen Gold Project to the London Stock Exchange ahead of our near-term transition to gold production. Madsen is located in Red Lake Ontario, the heart and home of Canada’s high-grade gold mining district that to date has produced 29 million ounces of gold at an average grade of 15.6 grams per tonne gold, making it one of the world’s highest grade gold regions.  The London market is known for its deep knowledge of the mining sector and as an investment destination for institutional capital from around the world. Our dual listing will increase the Company’s international profile, and facilitate improved access to UK and international gold-focused institutional investors that are attracted to an asset that boasts a 1 million ounce reserve at a high-grade of approximately 9 grams per tonne with a short 13 month construction period to production at a capital cost of C$95million.  We look forward to the higher profile that comes with a London listing and rapidly advancing our Madsen Gold Project to become Canada’s next gold mine.”

 

 

Key Highlights:

Madsen Gold Project Feasibility Highlights1

    • Current Probable Reserves at the Madsen Red Lake Gold Deposit are 1 million ounces of gold at an average grade of 9 g/t gold contained within 3.5 million tonnes;
    • Low initial capital requirement of C$95 million including an C$8M contingency with access to significant existing infrastructure including underground development and plant infrastructure;
    • Short 13-month construction period;
    • Peak annual production of approximately 125,000 ounces with average annual gold production in years 3 through 7 of approximately 102,000 ounces; and
    • Mine life of 12.3 years.

 

Senior management team with extensive operational experience

The Company’s board, management, and technical team all have extensive experience in gold exploration, development and production across the world. Significantly, they have deep roots in Red Lake – and a rich and intimate knowledge of the region acquired during their years mining and exploring in the area.

 

Engagement of Tavistock Communications

 

Pure Gold is also pleased to announce it has appointed Tavistock Communications Limited (“Tavistock”) to provide financial public relations and investor relations services in the U.K.  The appointment of Tavistock supports the Company’s communications strategy of building awareness of the Company in the UK and to international audiences and communicating with all its stakeholders.

 

Tavistock does not have any interest, directly or directly in Pure Gold Mining or its securities nor any right to acquire such an interest. Pursuant to the terms of the Company’s agreement with Tavistock, Tavistock will be responsible for a variety of financial public relations and investor relations activities, including development of the Company's communications strategy, dissemination of corporate information, presentations to and communications with brokers, analysts and investors, and handling shareholder enquiries regarding the Company in the U.K.

 

In consideration of the services to be provided, the monthly fees incurred by Pure Gold will be cash consideration of up to £5,000.

 

 

ON BEHALF OF THE BOARD

"Darin Labrenz"                                  

Darin Labrenz, President & CEO

 

 

Enquiries:

http://puregoldmining.ca/

Pure Gold Mining Inc                                   +1 604 646 8000

Adam Buchanan, Investor Relations 

                       

PUBLIC RELATIONS

 

Tavistock                                           +44 (0) 207 920 3150

Jos Simson

Gareth Tredway

Annabel de Morgan

 

 

 

FINANCIAL ADVISERS

 

Velocity Trade Capital Limited                    +1 (416) 323 2153

 

Rusty Bell

Daniel Belchers

 

Tamesis Partners LLP

 

Richard Greenfield                             +44 (0) 203 882 2868                        

 

 

 

Qualified Persons and 43-101 Disclosure

 

Ken Donner, P. Eng., Vice President, Operations 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.

 

 

Non-GAAP Measures and Other Financial Measures

 

Alternative performance measures are furnished to provide additional information. These non-GAAP performance measures are included in this news release because these statistics are key performance measures that management uses to monitor performance, to assess how the Company is performing and to plan and assess the overall effectiveness and efficiency of mining operations. These performance measures do not have a standard meaning within International Financial Reporting Standards (“IFRS”) and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.

 

 

  1. See the National Instrument 43-101 technical report entitled “Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit and Preliminary Economic Assessment for the Fork, Russet South and Wedge Deposits Red Lake, Ontario, Canada” with an effective date of February 5, 2019 for complete details, available on the Company’s website at www.puregoldmining.ca or Sedar profile at www.sedar.com.

 

About Pure Gold Mining Inc

Pure Gold is a Canadian focused gold developer. It has recently released the feasibility study for its flagship project, the Madsen Red Lake Gold deposit, which outlines a 12 year LOM, current probable reserves of one million ounces at 9 g/t Au in 3.5 million tonnes, and 800 tonne per day underground mining operation with comparatively low initial capital cost of C$95m. In addition, specific exploration targets and satellite resources not considered in the feasibility study suggest an opportunity for near-term growth to potentially further enhance the economics of the project. The Company is targeting H2 2020 for first production. 

 

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.

 

About Tavistock

Tavistock is a corporate and financial communications consultancy based in London. An independent firm, it has provided clients with an advice led communications service for more than 25 years.

 

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, the growth potential of the Madsen Gold Project and opportunities for scalability, the potential to increase after-tax net present value to the Madsen Gold Project, the potential for Russet South, Fork and Wedge to be economically viable, planned mining methods, mineral processing and sources of power, expected annual production, potential profitability of the Madsen Gold Project at lower metal prices, expected capital costs, expected IRR, anticipated permitting requirements and timing thereof, expected development schedule, expected timing of the completion of the Preliminary Economic Assessment for the Russet South, Fork and Wedge deposits, potential conversion of inferred resources to measured and indicated resources, potential extension and expansion of mineral resources and the focus of the Company in the coming months . Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.

 

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated June 11, 2018 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at www.sedar.com.

 

Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

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NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

 

VANCOUVER, B.C. – Pure Gold Mining Inc. (TSXV:PGM) ("Pure Gold" or the "Company") is pleased to announce that it has closed the bought deal private placement (the “Offering”) announced on March 14, 2019.

Pursuant to the Offering, the Company issued a total of 7,723,975 common shares of the Company issued on a flow-through basis (the “FT Shares”), at a price of C$0.67 per FT Share, for gross proceeds of C$5,175,063. This included the exercise in full of the Underwriters’ (as defined below) option of 1,007,475 FT Shares at a price of C$0.67 per FT Share.

The Offering was completed through a syndicate of underwriters led by Sprott Capital Partners LP and included Velocity Trade Capital Ltd. and Macquarie Capital Markets Canada Ltd. (collectively, the “Underwriters”). In consideration for their services, the Underwriters received an aggregate cash commission equal to 6.0% of the gross proceeds of the Offering.

The gross proceeds from the issuance of the FT Shares will be used for “Canadian exploration expenses” and will qualify as “flow-through mining expenditures” (the “Qualifying Expenditures”), as those terms are defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT Shares with an effective date no later than December 31, 2019 in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares, and, if the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each initial purchaser of FT Shares for any additional taxes payable by such subscriber as a result of the Company’s failure to renounce the Qualifying Expenditures as agreed. 

The FT Shares issued under the Offering have a hold period of four months and one day from closing, expiring on July 30, 2019.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

ABOUT PURE GOLD

Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the next major discovery at the Madsen Gold Project in Red Lake, Ontario. And become Canada's next iconic gold company.

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"  

Darin Labrenz, President & CEO

Investor inquiries:

Tel: 604-646-8000

info@puregoldmining.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note on Forward-Looking Information

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to, statements with respect to the expected use of proceeds of the Offering. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.

Such forward-looking information involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including the use of proceeds of the Offering and the qualification of the use of proceeds as Canadian Exploration Expenditures; risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 20, 2019 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at www.sedar.com.

Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

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VANCOUVER, B.C. – Pure Gold Mining Inc. (PGM – TSX-V) (“Pure Gold” or the “Company”) is pleased to announce financial results and operating highlights for the fiscal year ended December 31, 2018. All financial figures are in Canadian dollars, unless otherwise stated. The company also announces that a new Technical Report for the Madsen Gold Project has been filed on SEDAR.

 

Change of fiscal year-end

 

To better align its financial reporting with the calendar year and that of its industry peers, during the nine months ended December 31, 2018, the Company changed its fiscal year end to December 31, from March 31. The Company’s transition year is the nine months ended December 31, 2018, and the comparative period is the twelve months ended March 31, 2018.

 

Financial and Operating Highlights through and subsequent to December 31, 2018:

 

  • Released the results of an independent feasibility study for the Madsen deposit[1]. The feasibility study outlines a high-grade underground mining operation with a production rate of 800 tonnes per day (“tpd”) at modest initial capital cost and strong financial performance based upon a US$1,275/troy ounce gold.

 

Base case parameters in the feasibility study assume a gold price of US$1,275/oz and an exchange rate (Canadian $ to US $) of 0.75. Highlights of the feasibility study include:

 

  • Probable Mineral Reserves of 3.5 million tonnes at 9.0 grams per tonne (“g/t”) gold containing 1.0 million ounces gold;1[2]
  • Modest initial capital requirement of $95 million including a 9% contingency;
  • Mine life of 12.3 years with a 13-month pre-production period from a production decision;
  • Peak annual production of approximately 125,000 ounces of gold with average annual gold production in years 3 through 7 of approximately 102,000 ounces of gold;
  • Life of Mine (“LOM”) direct operating cash cost[3] estimated at US$607 per ounce of payable gold;
  • LOM all in sustaining cash cost (“AISC”)[4] estimated at US$787 per ounce of payable gold;
  • Pre-tax Net Present Value (“NPV”) at 5% and Internal Rate of Return (“IRR”) of $353 million and 43% respectively with a 3.0-year payback of initial capital;
  • After-tax NPV at 5% and IRR of $247 million and 36% respectively with a 3.4-year payback of initial capital.

 

The feasibility study supports a high-grade underground mining operation with engineered stopes containing 1.0 million ounces of gold in probable mineral reserves. The project benefits from significant mining, milling and tailings infrastructure already in place.  Mining will be conducted from new ramp development utilizing a combination of cut and fill and longhole methods.   A new hoist house and double drum production hoist will use the existing shaft infrastructure to hoist ore and waste from the mine, commencing in year four of operations.

 

The proposed Madsen implementation schedule is over a period of 13 months, with underground mine development commencing approximately nine months before the first gold pour. The project requires initial capital of $95 million (including contingency) to support the construction of an underground mine and associated infrastructure, including the expansion of existing milling capacity to 800 tonnes of ore per day. 

 

  • Announced the results of a Preliminary Economic Assessment (“PEA”) for the Fork, Russet South, and Wedge deposits that demonstrates the potential to add approximately $51 million to the Madsen after-tax net present value at an IRR of 39%.

 

The PEA provides a blueprint of how Pure Gold might extend mine life or with further resource definition and permitting work, possibly increase the annual production profile at Madsen. The PEA represents the first conceptual expansion scenario for the future phased growth of the Madsen Mine. 

 

Highlights of the PEA include1:

 

  • Base case parameters assume a gold price of US$1,275/ounce and an exchange rate (C$ to US$) of 0.75.
  • Mine life extension of 3.7 years with total production from the Fork, Russet South and Wedge deposits of 210,000 ounces of gold;
  • LOM direct operating cash cost3 estimated at US$557 per ounce of payable gold;
  • LOM AISC4 estimated at US$712 per ounce of payable gold;
  • Pre-tax NPV5% and IRR of $79 million and 57% respectively with a 1.6-year payback of initial capital; and
  • After-tax NPV5% and IRR of $51 million and 39% respectively with a 2.0-year payback of initial capital; and
  • Initial capital requirement of $57 million including a 14% contingency

 

  • Announced an updated mineral resource estimate for Madsen that was used for the basis of the feasibility study and PEA. This mineral resource estimate includes updated and expanded mineral resources for all previously reported deposits, including Madsen, Fork and Russet South and includes first time disclosure of mineral resources at the Company’s Wedge deposit.  Details include1:

 

  • Indicated mineral resources increase by 319,000 ounces of gold to a total of 2,063,000 ounces of gold (7,196,000 tonnes at an average grade of 8.9 g/t gold) at a 4.0 g/t gold cut-off;
  • Additionally, inferred mineral resources increase by 171,000 ounces of gold to a total of 467,000 ounces of gold (1,880,000 tonnes at an average grade of 7.7 g/t gold) at a 4.0 g/t cut-off;
  • Russet South, Fork and Wedge indicated resources grew by 114% to 206,000 ounces of gold (767,000 tonnes at an average grade of 8.4 g/t gold) and inferred resources grew by 91% to 226,000 ounces of gold (991,000 tonnes at 7.1 g/t gold) at a 4.0 g/t gold cut-off; and
  • First time disclosure of indicated mineral resources at Wedge of 107,000 ounces of gold (322,000 tonnes at an average grade of 10.3 g/t gold) and inferred mineral resources of 79,000 ounces of gold (307,000 tonnes at an average grade of 8.0 g/t gold) at a 4.0 g/t cut-off.

 

  • Surface drilling during the year continued to expand gold mineralization in the Wedge Deposit, reinforcing the importance of Wedge as a key component of the large high-grade mineral system in place at Madsen. Drilling highlights from Wedge during the year included[5][6] :

 

  • 32.9 g/t gold over 1.7 metres from drill hole PG18-600;
  • 14.5 g/t gold over 1.5 metres from drill hole PG18-599;
  • 12.7 g/t gold over 1.7 metres from drill hole PG18-603;
  • 11.8 g/t gold over 2.3 metres from drill hole PG18-602;
  • 12.4 g/t gold over 3.0 metres, including 32.7 g/t gold over 1.0 metre from drill hole PG18-      620;
  • 23.1 g/t gold over 2.0 metres including 33.4 g/t gold over 1.0 metre from drill hole PG18-      616.

 

  • Underground test mining in 2018 was successful in highlighting the strong visual nature of the mineralization, demonstrating excellent ground conditions, and confirming the geologic model that underpins the mine plan for the feasibility study1.  Results exceeded expectations, with tonnes, grade and mining width greater than predicted from the resource model.   Overall, an average grade of 10.2 g/t gold was returned from 1,555 muck samples collected during mining of the bulk sample.  The average grade of 10.2 g/t gold is a capped, diluted mined grade, which comprises all muck samples from 70 rounds of freshly blasted rock, each of which averaged above a cut-off of 4.0 g/t gold.

 

Key points from the test mining were:

 

  • At a 4.0 g/t gold cut-off, the bulk sample estimate includes 46% more tonnes, 8% higher gold grade and an estimated 56% more ounces of gold than predicted from the resource model blocks;
  • Overall mining width of 5.3 metres, exceeding the predicted width of the mineralized structures by 53%;
  • In the two planned stoping areas, mined tonnes were within 1% of the predicted tonnes from the resource model, with an estimate of 14% more gold mined than expected due to a higher than predicted average diluted grade of 10.9 g/t gold at a 4.0 g/t gold cut-off;
  • Underground drilling conducted during test mining defined a third stoping area, resulting in the mining of an estimated 440 additional ounces of gold from 1,575 tonnes at a grade of 8.7 g/t gold;
  • Further underground drill results continue to identity opportunities for potential extensions to mining. 

 

New underground drilling highlights from the year include[7][8]:

 

  • 57.1 g/t gold over 22.1 metres, including 232.4 g/t gold over 5.2 metres which includes 1175.0 g/t gold over 1.0 metre from drill hole PGU-0109;
  • 19.6 g/t gold over 4.5 metres from drill hole PGU-0087;
  • 16.6 g/t gold over 4.0 metres from drill hole PGU-0088;
  • 20.1 g/t gold over 6.0 metres from drill hole PGB-0131, including 38.6 g/t gold over 2.0 metres;
  • 47.6 g/t gold over 6.0 metres from drill hole PGB-0134;
  • 30.3 g/t gold over 2.0 metres and 133.0 g/t gold over 1.0 metre from drill hole PGB-0140;
  • 15.2 g/t gold over 2.9 metres from drill hole PGB-0152.

 

Outlook

 

With the feasibility study now complete Pure Gold will continue to advance Madsen towards development.  In August 2018 the Company announced that it had appointed Endeavour Financial as its financial advisor to provide advisory services with respect to debt financing for the construction and development of Madsen.   This process is well advanced and discussions are underway and advancing with multiple potential financiers. 

 

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

 

    • Continuing working with First Nations to promote a cooperative and mutually respectful relationship concerning Pure Gold’s development plan, and to finalize an agreement to govern this relationship;
    • Advancing project finance opportunities;
    • Optimizing the project execution schedule, including detailed engineering, procurement and permitting;
    • Continuing environmental studies and documentation to support the update and filing of existing permits and filing for additional permits that may be required;
    • Commencing detailed engineering and design activities; and
    • Continuing exploration with the aim of making new discoveries and continuing growth of the resource base.

The feasibility study, focused exclusively on the Madsen deposit, outlines a robust high-grade, low capital mining operation.  Exploration by the Company to date has demonstrated that Madsen has outstanding potential for growth and opportunities for scalability.  Key opportunities to enhance the project over the project life include potential expansion of the Madsen resource, through application of the Company’s geologic model to target extensions to the known resource, including:

 

  • Potential conversion of the inferred resources in the Madsen deposit to measured and indicated, currently totaling 241,000 ounces of gold (0.9 million tonnes at 8.4 g/t gold)1;
  • High-grade 8 Zone expansion potential beyond the reserve scheduled to commence mining in year four of operations;
  • Growth of the Fork Footwall resource down plunge in a similar target setting the Madsen deposit 8 zone; and
  • Potential depth extensions of the Madsen deposit which remains open as supported by drill hole PG17-456 which intersected 34.6 g/t gold over 4.3 metres at a depth of 1,373 metres below surface, and AD-11-01 which returned 14.3 g/t gold over 2.0 metres at a depth of approximately 2,100 metres below surface;

With the addition of the PEA for the Fork, Russet South, and Wedge zones, Pure Gold has demonstrated the potential to either add mine life or improve annual production throughput at Madsen with further advancement of these deposits.  Subject to availability of funds, the Company plans to continue exploring these zones to define further mineralization and upgrade the resource classification with the goal of determining the feasibility of adding production from these zones to the Madsen mine production profile, as early as practical in the mine life.

 

Non-GAAP Measures and Other Financial Measures

Alternative performance measures are furnished to provide additional information. These non-GAAP performance measures are included in this news release because these statistics are key performance measures that management uses to monitor performance, to assess how the Company is performing, to plan and to assess the overall effectiveness and efficiency of mining operations. These performance measures do not have a standard meaning within International Financial Reporting Standards (“IFRS”) and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.

 

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 consolidated financial statements and Management’s Discussion and Analysis for the fiscal period ended December 31, 2018. These documents can be found on the Company’s website (www.puregoldmining.ca) or on SEDAR at www.sedar.com. All dollar figures are expressed in Canadian $.

 

 

 

 

Nine months ended

December 31

  Year ended

   March 31

      

2018

2018

2017

Net Loss for the period

$21,901,184

$26,161,068

$24,532,025

Exploration and evaluation expenditures

$19,360,713

$26,343,021

$22,897,880

Total Comprehensive Loss for the period

$21,901,184

$26,161,068

$24,982,799

Basic and diluted loss per share

$0.09

$0.13

$0.15

             

 

 

 

        As at      

 

                December 31,

                    2018

March 31,
2018

March 31,
2017

Cash and short-term investments

$4,277,624

$7,443,078

$16,531,815

Working capital (current assets less current liabilities)

 

$3,857,475

$5,245,238

$13,153,928

Total assets

$20,871,965

$24,661,551

$35,311,795

Current liabilities

$1,019,408

$3,317,770

$5,103,527

Non-current liabilities

$2,438,919

$2,372,958

$2,529,001

Shareholders’ equity

$17,413,638

$18,970,823

$27,679,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This press release should be read in conjunction with Pure Gold’s Consolidated Financial Statements and Management’s Discussion and Analysis for the fiscal period ended December 31, 2018. In addition, for further information please see Pure Gold’s Annual Information Form for the fiscal period ended December 31, 2018. These documents can be found on the Company’s website (www.puregoldmining.ca) or under the Company’s profile on SEDAR at www.sedar.com. Shareholders may receive a printed copy of the audited consolidated financial statements, free of charge, upon request.

 

Qualified Persons and 43-101 Disclosure

Phil Smerchanski, P. Geo., Vice President, Exploration 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.

 

Pure Gold Files Technical Report

 

Pure Gold is also pleased to announce the filing on SEDAR of a technical report for the updated mineral resource estimate and feasibility study for Madsen and PEA for the Fork, Russet South and Wedge Deposits. The mineral resource estimate, feasibility study and PEA were previously disclosed in the Company’s news releases dated February 5, 2019, February 11, 2019 and February 27, 2019, respectively.

 

The technical report is titled "Madsen Gold Project Technical Report, Feasibility Study for the Madsen Deposit and Preliminary Economic Assessment for the Fork, Russet South and Wedge Deposits Red Lake, Ontario, Canada“ has an effective date of February 5, 2019 and was signed on March 21, 2019 (the “Technical Report”). The Technical Report was authored by independent Qualified Persons and is in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

 

The Technical Report is available under the Company’s profile at www.sedar.com and will also be available on the Company’s website at www.puregoldmining.ca.

 

ABOUT PURE GOLD

Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the Madsen Gold Project in Red Lake, Ontario. And become Canada’s next iconic gold company.

 

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"                                  

Darin Labrenz, President & CEO

 

Investor inquiries:

Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000

info@puregoldmining.ca

 

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, the growth potential of the Madsen Gold Project and opportunities for scalability, planned mining methods, mineral processing and sources of power, expected annual production, potential profitability of the Madsen Gold Project at lower metal prices, expected capital costs, anticipated permitting requirements and timing thereof, expected development schedule, expected timing of the completion of the Preliminary Economic Assessment for the Russet South, Fork and Wedge deposits, potential conversion of inferred resources to measured and indicated resources, potential extension and expansion of mineral resources and the focus of the Company in the coming months . Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution..

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Not for Distribution to United States News Wire Services or for Dissemination in the United States

 

 

 

VANCOUVER, B.C. – March 14, 2019 - Pure Gold Mining Inc. (TSXV:PGM) ("Pure Gold" or the "Company") is pleased to announce that it has entered into an agreement with Sprott Capital Partners LP to act as lead underwriter (the “Lead Underwriter”), on its own behalf and, if applicable, on behalf of a syndicate of underwriters (collectively with the Lead Underwriter, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase for their own account or arrange for substituted purchasers to purchase on a bought-deal private placement basis 6,716,500 common shares of the Company issued on a flow-through basis (the “FT Shares”), at a price of C$0.67 per FT Share, for gross proceeds of up to C$4,500,055 (the “Offering”).     

 

The Company shall grant the Underwriters an option, exercisable, in whole or in part, at any time up to three days prior to the closing of the Offering, to purchase up to such number of FT Shares as is equal to 15% of the number of FT Shares initially purchased as part of the Offering.

 

The gross proceeds from the issuance of the FT Shares will be used for “Canadian exploration expenses” and will qualify as “flow-through mining expenditures” (the “Qualifying Expenditures”), as those terms are defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT Shares with an effective date no later than December 31, 2019 in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares, and, if the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each initial purchaser of FT Shares for any additional taxes payable by such subscriber as a result of the Company’s failure to renounce the Qualifying Expenditures as agreed. 

 

It is anticipated that closing of the Offering will occur on or about March 29, 2019 or such other date or dates as the Company and the Lead Underwriter may agree. The Offering is subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals including the approval of the TSX Venture Exchange.  The securities to be issued under the Offering have a hold period of four months and one day from the applicable closing date in accordance with applicable securities laws.

 

In consideration for their services, the Underwriters will receive a cash commission equal to 6.0% of the gross proceeds of the Offering.

 

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

 

 

ABOUT PURE GOLD

Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the next major discovery at the Madsen Gold Project in Red Lake, Ontario. And become Canada's next iconic gold company.

 

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"  

Darin Labrenz, President & CEO

Investor inquiries:

Tel: 604-646-8000

info@puregoldmining.ca

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note on Forward-Looking Information

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to, statements with respect to the expected use of proceeds of the Offering, the anticipated closing dates of the Offering and the anticipated size and structure of each of the Offering. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.

Such forward-looking information involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including the closing date of the Offering, the use of proceeds of the Offering and the qualification of the use of proceeds as Canadian Exploration Expenditures, risks relating to the ability of the Company to obtain required regulatory approvals, complete definitive documentation, fulfill all conditions precedent and complete the Offering on the terms announced; risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated June 11, 2018 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at www.sedar.com.

Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

 

 

 

 

 

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PURE GOLD ANNOUNCES C$4.5 MILLION BOUGHT DEAL PRIVATE PLACEMENT

 

 

VANCOUVER, B.C. – March 14, 2019 - Pure Gold Mining Inc. (TSXV:PGM) ("Pure Gold" or the "Company") is pleased to announce that it has entered into an agreement with Sprott Capital Partners LP to act as lead underwriter (the “Lead Underwriter”), on its own behalf and, if applicable, on behalf of a syndicate of underwriters (collectively with the Lead Underwriter, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase for their own account or arrange for substituted purchasers to purchase on a bought-deal private placement basis 6,716,500 common shares of the Company issued on a flow-through basis (the “FT Shares”), at a price of C$0.67 per FT Share, for gross proceeds of up to C$4,500,055 (the “Offering”).     

 

The Company shall grant the Underwriters an option, exercisable, in whole or in part, at any time up to three days prior to the closing of the Offering, to purchase up to such number of FT Shares as is equal to 15% of the number of FT Shares initially purchased as part of the Offering.

 

The gross proceeds from the issuance of the FT Shares will be used for “Canadian exploration expenses” and will qualify as “flow-through mining expenditures” (the “Qualifying Expenditures”), as those terms are defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT Shares with an effective date no later than December 31, 2019 in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares, and, if the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each initial purchaser of FT Shares for any additional taxes payable by such subscriber as a result of the Company’s failure to renounce the Qualifying Expenditures as agreed. 

 

It is anticipated that closing of the Offering will occur on or about March 29, 2019 or such other date or dates as the Company and the Lead Underwriter may agree. The Offering is subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals including the approval of the TSX Venture Exchange.  The securities to be issued under the Offering have a hold period of four months and one day from the applicable closing date in accordance with applicable securities laws.

 

In consideration for their services, the Underwriters will receive a cash commission equal to 6.0% of the gross proceeds of the Offering.

 

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

 

 

ABOUT PURE GOLD

Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the next major discovery at the Madsen Gold Project in Red Lake, Ontario. And become Canada's next iconic gold company.

 

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"  

Darin Labrenz, President & CEO

Investor inquiries:

Tel: 604-646-8000

info@puregoldmining.ca

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note on Forward-Looking Information

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to, statements with respect to the expected use of proceeds of the Offering, the anticipated closing dates of the Offering and the anticipated size and structure of each of the Offering. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.

Such forward-looking information involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including the closing date of the Offering, the use of proceeds of the Offering and the qualification of the use of proceeds as Canadian Exploration Expenditures, risks relating to the ability of the Company to obtain required regulatory approvals, complete definitive documentation, fulfill all conditions precedent and complete the Offering on the terms announced; risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated June 11, 2018 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at www.sedar.com.

Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

 

 

 

 

 

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