UNDERGROUND

PureGold to revamp mine equipment

The company is targeting a minimum of 50% increase in average daily ore production

PureGold targets a 50% increase in dairy ore production.

PureGold targets a 50% increase in dairy ore production.

Vancouver-based PureGold will revamp parts of its mine infrastructure to improve ore production and reduce operating and sustaining capital costs.

PureGold operates the PureGold gold mine in Ontario, which has an indicated resource of 7.2 million tonnes at 8.9 g/t of gold for 2,063,000 ounces.

With a new management team, PureGold will improve ventilation planning and investment to increase the amount of ore delivered to the plant. It will also further integrate ventilation planning into mine planning.

Compressed air is needed for several underground production drills, and has included temporary electric and diesel compressors. However, the diesel units have struggled with the cold temperatures, which has resulted in low mechanical availability.

PureGold has now acquired three new electric air compressors. These will be delivered and installed in the June quarter.

The company has also identified the need for a better maintenance strategy for its mobile equipment fleet. Working with principal supplier Epiroc, the company will rapidly assess and repair the fleet, which will significantly reduce variability and also the size of the fleet required for current operations, PureGold said.

The assessment and repair phase will begin immediately, and will conclude in the June quarter.

Steps have also been taken to improve the speed of sill development and increase the quality of definition drilling.

It will also purchase and install an on-site camp which will feature two 44-person dormitory units, a five-unit kitchen and dining facility, and one recreation unit. PureGold has signed an operating contract with Shared Spirits LLP, a shared venture of Wabauskang and Lac Seul First Nations.

The company is also working with SRK Consulting to optimise the life-of-mine plan for the project, and will release updates in the September or December quarter.

PureGold has been able to process more than 800 tonnes per day, and is awaiting approval to process 1,000 tpd.

The company is targeting a minimum of 50% increase in average daily ore production, a 30% increase in average head grade, and a 20% reduction in monthly operating costs, compared to 2021 levels.

In the first half of 2022, PureGold expects to process between 600 and 700 tonnes per day at an average head grade of 4.0 to 5.0 g/t of gold with an average gold recovery rate of 95%. Total production in the first half will be between 15,000 ounces and 20,000 ounces.

PureGold will release second-half projections in June.

The company appointed a new president, CEO, COO, CFO, VP Mine General Manager, VP Finance, and VP Technical Services this year.

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