Pure Gold shares jump nearly 10%
(Kitco News) - Pure Gold Mining (PUR:LSE) shares have risen in the London session following a successful share placement in Canada. The firm reported last week that it has raised CAD 10,001,600 through an agreement with brokerage firm Clarus Securities. Now, due to strong demand, the firm has agreed to increase the size of the offering to 9,868,400 flow-through common shares for aggregate gross proceeds of CAD 14,999,968. This move has led the shares to jump nearly 10%.
In terms of operations, drilling results and a ramp-up at Red Lake was confirmed after drilling results showed high-grade mineralization close to planned near-term production areas at Red Lake and mine plans are being adjusted to ensure that these zones are incorporated. The firm said "the reserve grade from the 2019 Feasibility Study2 is 9.0 g/t gold for the life-of-mine, with average annual grades ranging from 6.3 g/t gold to 13.7 g/t gold, and a projected grade for year one of operations of 7.0 g/t gold. Initial longhole stopes mined in the first quarter of 2021 near the ramp had expected grades between 5 and 6 g/t and incurred up to 50% external dilution upon mining due to overbreak in excess of what was planned.".
In Q4 2020 the Pure Gold processed 3,535 tonnes of ore at a grade of 7.8 g/t gold to produce 860 ounces at a 96.6% recovery rate. From January 1st to March 29th 2021, the Company processed 47,182 tonnes of ore at a grade of 2.8 g/t gold to produce 4,011 ounces at a 95.0% recovery rate.
Looking at the technicals on the daily chart there has been a big rise in volume recently. This has obviously been helped by the rise in the gold price but also the change in outlook from the company, there are two key levels to keep an eye on now. One is the 100p psychological area and the other is the previous wave low at 70.6p per share. The 100p area has been a strong area on the chart with two very strong bounces at that zone. If the price does break the zone it could be a positive sign of things to come.