Gold loses some luster after Trump’s decisive win
Gold’s slide is a marked turnaround for a commodity that had surged by more than 30% in the year leading up to the US vote.
PureGold’s Red Lake mine is expected to pour first gold in the fourth quarter of this year as development progresses ahead of schedule.
The company has purchased 95% of the major equipment items for the site and completed 1,285 metres of underground development, at an advance rate that is 60% ahead of the mine plan. PureGold is focusing on development of the main ramp to open up mining areas and drive the deeper development.
The company is now working to access longhole stopes on multiple levels with the development rate expected to increase in July as more mining crews are hired.
At the processing plant, old equipment has been removed and the new ball mill is expected at the end of August; a new gravity circuit is also scheduled to arrive in July. Construction of the surface infrastructure is underway with over 80 contractors on site.
Construction at the Red Lake mine started at the end of last year; to date 45% of the capital costs have been committed
“We are now only months away from first gold pour at our new PureGold mine, and our first step to building a long-life growth company in the heart of Red Lake, one of the world’s most prolific gold-producing camps,” Darin Labrenz, the company’s president and CEO, said in a release.
“On the cusp of production, we believe we have only scratched the surface and we are already working towards the next phase of our growth with the initiation of an aggressive 18-month exploration program.”
Construction at the Red Lake mine started at the end of last year; to date 45% of the capital costs have been committed. According to PureGold, the company is fully funded through to the start of gold production in the fourth quarter.
The developer has also received regulatory approval for its Air and Noise permit amendment and anticipates an amendment of the Industrial Effluent permit to go through an expedited approval process.
Earlier this month, PureGold announced that it restarted drilling at the Red Lake mine – this 30,000-metre surface and underground program will be focused on upgrading resources and growing resources to optimize the near-term mine plan.
The company has also expanded its site-level management team, with Rickardo Welyhorsky joining the company as general manager of the Red Lake mine. Additional hiring is underway for development and maintenance roles.
A feasibility study for the mine released last year outlined an operation producing up to 125,000 oz. of payable gold annually.
Probable reserves for the project stand at 3.5 million tonnes grading 9 g/t gold for a total of 1 million oz. Mineral reserves are reported using cut-off grades between 4 g/t gold and 4.75 g/t gold. The PureGold property covers 47 sq. km and the existing orebody is within a 7-km long system, which remains open.
(This article first appeared in the Canadian Mining Journal)
