Pure Gold Mining Inc (CVE:PGM) (LSE:PUR) (OTCMKTS:LRTNF) announced Thursday that it has intersected high-grade gold mineralization outside the current resource area at its PureGold operation in Red Lake.
The company said exploration drilling intersected high-grade mineralization at the Wedge, Treasure Box and No 1 Vein targets at the property. Results included 16.6 grams per ton (g/t) gold over 5 metres (including 33 g/t gold over 1 metre and 19.5 g/t gold over 1 metre) at Wedge; with another hole on the target intersecting 10.5 g/t gold over 3.5 metres including 28.9 g/t over 1 metre.
At Treasure Box, the company drilled 9.9 g/t gold over 1.1 metres and 13.5 g/t over 1.1 metres in one hole and 19.2 g/t gold over 1.1 metres in another. At the No 1 vein target, one intersection returned 16.1 g/t gold over 2 metres.
The results support Pure Gold’s objective to add ounces beyond the Phase 1 mine by discovering new zones of high grade gold on the 47-square-kilometre property. An updated mineral resource estimate is in progress and is anticipated to be published in the second quarter 2021, the company said.
“The latest results from our ongoing surface exploration program are consistent with our strategy of continuing to expand our resource base well beyond our current Mineral Reserves to support organic growth of the PureGold Mine for many years to come,” CEO Darin Labrenz said in a statement.
“As we continue to systemically discover new zones and expand the areas of known high-grade gold mineralization on our property, results such as these broad, high-grade intervals are exciting, as they reinforce the continuity of high-grade gold mineralization across our seven-kilometre gold corridor both laterally and at depth. With our PureGold Mine now pouring gold and nearing commercial production, we remain as committed as ever to growth through exploration as we continue our mission to unlock the full potential of the PureGold Mine in Red Lake, Canada.”
The company currently has two surface exploration drills active on the project and will continue to drill throughout the year with around 21,000 metres planned.
Stifel GMP raises production forecast
Separately on Thursday, analyst Alex Terentlew at Stifel GMP is increasing the 2021 production forecast from the PureGold mine by 8%.
Earlier this week, Pure Gold updated shareholders on the status of the ramp-up at PureGold, saying that performance to date had met or exceeded their expectations.
“Commercial production is now guided to be achieved in Q2 2021, behind prior guidance of ‘end of Q1 2021,’” Terentlew noted.
“Given the pace of ramp-up, however, we are not concerned and would not be surprised to see commercial production declared in April. We have increased our 2021 production forecast by 8% on the back of this update.”
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