PureGold Gold Reports Third Quarter 2021 Financial and Operating Results

Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) (“PureGold” or the “Company”), reports its third quarter 2021 summary financial and operating results. The Company’s unaudited condensed interim financial statements and related management’s discussion and analysis for the three and nine months ended September 30, 2021, will be available for download on SEDAR and on the Company’s website. All amounts are expressed in Canadian dollars (“$”), unless otherwise noted).

A summary of the highlights for the three months ended September 30, 2021, and subsequent period to date for the Company and its 100% owned PureGold Mine Project (“PureGold Mine” or the “Project”) are as follows:

• Declared commercial production on August 1, 2021;
• Announced on October 27, 2021, that Maryse Bélanger, director, and experienced mine operator and builder, has agreed to step into the role of Mine General Manager at the PureGold Mine, following retirement by the incumbent. In this role, Ms. Bélanger will oversee all aspects of the day-to-day operations of the PureGold Mine;[1]
• Average daily throughput of 685 tonnes per day (“tpd”) at the PureGold Mine for the quarter, a 35% increase compared to the second quarter driven by increased stope access and mill upgrades;
• Gold production of 9,260 ounces, a 54% increase compared to the second quarter driven by higher grades and increased tonnage;
• Average mill head grade of 4.8 g/t Au, a 15% increase on the second quarter;
• Completion of mill upgrades to increase processing capacity, 1,000 tpd achieved for a number of days;
• Continued progress on permit amendments to increase annual ore production limits from 292,000 tonnes (800 tpd) to 360,000 tonnes (1,000 tpd);
• Announced quarterly results from drilling used to support near-term mine production from both the Main and East Ramp areas, with highlights as follows:[2]
  • 55.4 g/t gold over 5.0 metres from drill hole PGP-00072; including
    • 83.2 g/t gold over 2.0 metres; and including
    • 50.3 g/t gold over 2.0 metres;
  • 14.5 g/t gold over 13.2 metres from drill hole PGP-00086; including
    • 116.7 g/t gold over 1.0 metre;
  • 10.1 g/t gold over 7.8 metres from drill hole PGP-00091; including
    • 44.2 g/t gold over 1.0 metre;
  • 18.2 g/t gold over 3.9 metres from drill hole PGP-00070; including
    • 30.1 g/t gold over 1.9 metres.
• On September 28, 2021, the Company closed a bought deal offering of 21,905,200 units of the Company (“Units”) at a price of C$1.05 per Unit for gross proceeds to the Company of C$23.0 million (the “Offering”). Each Unit is comprised of one common share (each a “Common Share”) and one-half Common Share purchase warrant (each such full warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of C$1.36 until March 28, 2023. [3]
• On October 15, 2021, the Company closed a further financing on similar terms to the September 28, 2021 financing, when it issued a total of 3,307,619 Units of the Company to a subsidiary of AngloGold Ashanti International Exploration Limited (“AngloGold”) at a price of C$1.05 per Unit, for aggregate gross proceeds of approximately C$3.5 million. This private placement financing brought AngloGold’s then ownership percentage in the Company to 14.96% of the issued and then outstanding common shares on a non-diluted basis. Each Unit consists of one Common Share of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, an “AngloGold Warrant”). Each AngloGold Warrant is transferrable and entitles the holder to acquire one Common Share of the Company until April 15, 2023, at a price of C$1.36.[4]

In the third quarter, the Company approved an increase from two to four rigs for its ongoing underground and surface drill program with the goal of further delineation and growth of our near-term mine plan. Looking ahead, the Company is targeting a production rate of approximately 600-700 tpd at an average head grade of 5.5-6.5 g/t Au for the fourth quarter of 2021 and expects to continue ramping up both throughput and mill head grade toward the mine’s full capacity by the end of Q1 2022. The Company expects to sustain 1,000 tpd by mid-2022.

Financial Results

• Mine operating loss of $5.9 million for the three and nine months ended September 30, 2021;[5];
• Revenues, net of refining costs of $15.9 million for the three and nine months ended September 30, 20215;
• Net loss and comprehensive loss for the three and nine months ended September 30, 2021 totaled $13.2 million and $17.1 million respectively;
• Basic and diluted loss per share for the three and nine months ended September 30, 2021 of $0.03 and $0.04, respectively
• Cash balance as of September 30, 2021, of $24.3 million;
• Total loans and borrowings as of September 30, 2021, of $122.7 million; and
• Gold Stream derivative liability as of September 30, 2021 of $44.1 million.

Additional information regarding the Company’s financial results and activities underway at the Company’s PureGold Mine is available in the Company’s Q3 2021 Financial Statements and accompanying management’s discussion and analysis for the three and nine months ended September 30, 2021.

Management Change

The Company wishes to announce that Mr. Ken Donner, VP Operations has indicated he will retire from the Company effective as of the date of this release. Maryse Bélanger, in her role as Mine General Manager, will be responsible for operational leadership at the PureGold Mine.

Management and the Board of directors wish to thank Ken for his many years of service and want to acknowledge his key role in the successful build of the PureGold Mine in 2020, on time and on budget. We wish Ken a happy retirement and all the best in his future endeavours.

Qualified Persons and 43-101 Disclosure

Darin Labrenz, P.Geo, PureGold’s President & CEO, is the Company’s QP for the purposes of NI 43-101 and has reviewed and validated that the scientific or technical information contained in this press release related to the PureGold Mine Technical Report, is consistent with that provided by the independent QPs responsible for preparing the PureGold Mine Technical Report and has verified the technical data disclosed in this document relating to those projects in which the Company holds an interest. Mr. Labrenz has consented to the inclusion of the Technical Information in the form and context in which it appears in this press release.

News in full

Below is a short interview with CEO Darin Labrenz, filmed in June 2020, in which he outlines the potential of the PureGold mine