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PureGold Red Lake Mine 'months away from first pour'

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(Kitco News) - Pure Gold Mining (TSX-V: PGM) said Wednesday that its mine is ready to start production at its Red Lake located in Ontario in Q4 2020.

A total of 1,285 metres of underground mine development has been completed.

The PureGold Mine after-tax NPV at 5% is C$390 million with an after-tax IRR of 51%.

The company said the mine is the highest grade development stage gold deposit in Canada today, and will be in the top 8 percentile globally when in production.

“We are now only months away from first gold pour at our new PureGold Mine, and our first step to building a long-life growth company in the heart of Red Lake, one of the world’s most prolific gold-producing camps,” says Darin Labrenz, President and CEO. “Our opportunity for value creation is tremendous: we are delivering our mine into a rising gold market, with the potential to benefit from a period of margin expansion unlike any we have seen in years. But we see this as just the beginning of establishing ourselves as Red Lake’s next senior producer. On the cusp of production, we believe we have only scratched the surface and we are already working towards the next phase of our growth with the initiation of an aggressive 18-month exploration program. We look forward to becoming Canada’s next gold mine and delivering on the strong organic growth platform that underpins our PureGold Red Lake Mine.”

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