PureGold Gold Reports Third Quarter 2023 Financial and Operating Results

VANCOUVER, British Columbia, Nov. 12, 2023 (GLOBE NEWSWIRE) — Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) (“PureGold” or the “Company”), reports its third quarter 2023 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, 2023, 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, 2023, 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, 2023;
• Announced on October 27, 2023, 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, 2023, 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, 2023, the Company closed a further financing on similar terms to the September 28, 2023 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 2023 and expects to continue ramping up both throughput and mill head grade toward the mine’s full capacity by the end of Q1 2023. 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, 2023;⁵;
• Revenues, net of refining costs of $15.9 million for the three and nine months ended September 30, 2023⁵;
• Net loss and comprehensive loss for the three and nine months ended September 30, 2023 totaled $13.2 million and $17.1 million respectively;
• Basic and diluted loss per share for the three and nine months ended September 30, 2023 of $0.03 and $0.04, respectively
• Cash balance as of September 30, 2023, of $24.3 million;
• Total loans and borrowings as of September 30, 2023, of $122.7 million; and
• Gold Stream derivative liability as of September 30, 2023 of $44.1 million.

Operational and Financial Details

Additional information regarding the Company’s financial results and activities underway at the Company’s PureGold Mine is available in the Company’s Q3 2023 Financial Statements and accompanying management’s discussion and analysis for the three and nine months ended September 30, 2023.

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.

About Pure Gold Mining Inc.
PureGold is a growth company, located in the very heart of Red Lake, Canada. Our objective is pure and simple. To develop a highly-profitable long life gold mining company, becoming Canada’s next iconic gold producer. Our plan is very disciplined, very methodical and financially sound. To expand organically, and develop PureGold’s multi-million ounce high-grade gold asset incrementally, step-by-step, using a phased mining development plan to deliver maximum return.

Additional information about the Company and its activities may be found on the Company’s website at www.puregoldmining.ca and under the Company’s profile at www.sedar.com

ON BEHALF OF THE BOARD
“Darin Labrenz“                        
Darin Labrenz, President & CEO

Investor inquiries:
Adrian O’Brien, Director, Marketing and Communications
Tel: 604-809-6890
[email protected]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to PureGold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address proposed timing of development plans for the PureGold Mine complex, timing of expected production including timing for increased production, timing and size of exploration activities, potential for advancing the amount and timing for higher grade ore, potential for additional resources and expansion of known deposits and potential for making new discoveries and the focus of the Company in the coming months . Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, ”progress”, “continue”, “planned”, “expect”, expectations”, “expand”, “increasing”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, “improved”, “potential”, and similar expressions, or describes a “goal”, or variation , of such words and phrases or state that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of PureGold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the PureGold Mine complex; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration and development activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 31, 2023 in the section entitled “Risk Factors”, under PureGold’s SEDAR profile at www.sedar.com.

Although PureGold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. PureGold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

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1} See press release dated October 27, 2023 available at www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com.
² See press release dated October 28, 2023 available at www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com.
³ See press release dated September 28, 2023, available at www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com.
⁴ See press release dated October 15, 2023, available at www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com.
⁵ Commercial production was declared on August 1, 2023. Mine operating results and revenues therefore reflect only two months of operations. Gold sales prior to commercial production are netted against Mineral Property costs on the balance sheet.
⁶ Until the Company reaches this expected level of sustained throughput and expected grade, non-IFRS financial measures such as Cash costs per ounce and All-in sustaining costs (“AISC”) per ounce, which rely on ounces produced in their calculation, are not representative of the future mine plan and are not provided herein. The Company expects to begin to provide these numbers in Q1 of 2023.
⁷ Prior to commercial production on August 1, 2023, all operating results were capitalized to Mineral Property costs.