Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Pure Gold Mining (TSXV: PGM) has reached a single day record of 1,037 dry tonnes of ore processed through the mill on August 31. That is 30% than the nameplate capacity of 800 t/d.
The record was achieved as the installation of six carbon-in-pulp interstate screens and a trommel screen on the semi-autogenous mill were installed last month. Average daily throughput for the month was 703 t/d, inclusive of planned downtime to install the screens and trommel. Steady 1,000 t/d operation will be reached by the end of this year.
A new record mining rate was also set: 2,050 tonnes of ore brought to the surface from underground on Aug. 17. The ore was removed from high grade stopes from both the Main and East ramp areas. The Main ramp is advancing at an average daily rate of 5.6 metres. The mine now has two independent haulage ramps operating at planned rates.
The average stope grade for the month was 6.5 g/t gold, and for mill feed was 5.6 g/t gold. And Pure Gold poured 5,535 oz. of gold during August.
The mine has an indicated resource of 7.2 million tonnes grading 8.9 g/t gold and containing 2 million oz. The inferred resource is 1.9 million tonnes grading 7.7 g/t gold and containing 467,000 ounces. Included in the indicated resources are probable reserves of 3.5 million tonnes grading 9 g/t gold and containing 1 million ounces.
The company plans to begin drilling the 8 zone from underground by the end of the year. It is seeking potential extensions at depth that will allow resources and reserves to increase.
(This article first appeared in the Canadian Mining Journal)
