Pure Gold posts net loss of $13.2 million in Q3, gold production up 54%
(Kitco News) - Pure Gold Mining (TSX-V: PGM) reported gold production of 9,260 ounces in Q3 2021 at its PureGold mine in Ontario, a 54% increase compared to the second quarter driven by higher grades and increased tonnage.
The company said it 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 now expects to sustain 1,000 tpd by mid-2022.
Effective August 1, 2021, the company said it declared the PureGold mine to be in commercial production and as a result started recognizing revenues and operating expenses on its Statement of Loss and Comprehensive Loss.
The company added that during the three month period ended September 30, 2021, the company incurred a loss of $13.2 million, compared to a loss of $2.7 million recorded during the three month period ended June 30, 2021 and a loss of $9.7 million during the three months ended September 30, 2020.
Importantly, Pure Gold noted that as a result of the company's shortfall in expected gold production and therefore cash generated from gold sales during the first half of 2021, the company obtained additional sources of funding through an amendment to its credit facility with Sprott Resources Lending, as well as a bought-deal financing.
Pure Gold is in the business of the acquisition, exploration and development of gold and other precious and base metal properties in Canada. Currently, the company's principal mineral property is the PureGold mine project located near Red Lake, Ontario.
By Vladimir BasovFor Kitco News
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