Page 50 Pur e Gold on tr ac k to pour gold Q4 Page 50 MLEN SPRING 2020 By Kevin V incent As the rest of the world struggled with the challenges of a global pan demic Pure Gold Mining was oblivi ous to the chaos The company has enjoyed a spectacular run through the frst half of 2020 that started in January when they released drill in tercepts from their Red Lake prop erty that included 331 gpt The Pure Gold Red Lake Mine continues to produce signifcant highgrade gold drill intercepts and today s results from areas planned for mining this year highlight local opportunities for mine expansion said Darin Labrenz President and CEO of Pure Gold Similar to the 2018 test mining pro gram where the discovery of a new hanging wall zone resulted in 56 more ounces than predicted these drill holes have identifed both po tential extensions to mine stopes and opportunities to test and de velop new stopes Since announcing the commence ment of construction in 2019 Pure Gold has rapidly built out opera tions team An ongoing test mining program has provided development within reach of several planned stoping areas W e understand the orebody well and we are now demonstrating the potential for it to grow With con struction well underway we look forward to frst gold production ex pected in late 2020 Highlights of the drill program in cluded numbers like these 249 gt gold over 10 metre 341 gt gold over 22 metres 646 gt gold over 10 metre 331 gt gold over 34 metres 794 gt gold over 14 me tres 132 gt gold over 63 metres and 263 gt gold over 20 metres From there the company turned to equipment needs A feasibility study contemplated leasing certain equipment for the frst two years of production however further re search done on the Company s equipment needs and an analysis of current equipment costs dem onstrated that signifcant savings could be achieved from the feasi bility study over the initial two years by purchasing the underground mining feet Approximately 61 million in equip ment has been purchased and delivered to site The equipment includes two haul trucks two LHD scooptrams two jumbos a scissor lift a minecat a boom truck a mine rescuepersonnel carrier and a telehandler among other mobile equipment While this expendi ture increases the initial capital re quirements total mine equipment expenditures will be reduced by approximately 30 over the frst two years by eliminating the mo bile lease payments In the company s frst quarter re port to shareholders Labrenz painted an encouraging picture for the balance of 2020 In Au gust 2019 we announced a US90 million project fnance package and construction decision for the Pure Gold Red Lake Mine This decision was based on our robust 2019 feasibility study which was completed at US1275 per ounce of gold and an exchange rate that translates to a Canadian dollar gold price of C1700oz T oday gold prices have rallied to a record C2300oz which translates directly to the bottom line resulting in the potential to add nearly C600 million in un discounted pretax free cash fow over the life of mine he added Our team has rapidly come to gether to commence underground Contd on pg 52