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PureGold Mine to be put on 'care and maintenance immediately'

Kitco Media
By Michael McCrae
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(Kitco News) - Company PureGold Mining said today that it is suspending operations and placing its PureGold Mine on care and maintenance immediately.

PureGold is a Canadian gold mining company, located in Red Lake, Ontario, Canada. The company owns and operates the PureGold Mine, which began gold production in 2021. PureGold announced a strategic review this summer after cost over runs and management churn in the spring. The mine is seeking fresh capital.

"The company has, so far, been unable to obtain alternative outside financing in order to continue operations, complete its ongoing Pre-Feasibility Study (“PFS”) and Life-of-Mine plan, and continue its ongoing strategic review process," wrote PureGold. "The Company is suspending operations and placing the PureGold Mine on care and maintenance immediately. This step follows an evaluation of several potential alternative scenarios and has become necessary because the mine has not yet achieved consistent positive site-level cash flow, notwithstanding recent reductions in operating costs and sequential quarter over quarter increases in production."

The company said it is working with its financial backer, Sprott Resource Lending, to evaluate several funding and strategic alternatives.

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Michael McCrae

Michael McCrae is leading Kitco's coverage of the mining sector. McCrae, who has both an MBA and CMA, knows how to build digital media properties. He was co-founder and publisher of MINING.com, an award-winning news site. Before coming to media, McCrae worked in IT and banking. Please reach out: mmccrae@kitco.com or (514) 670-1383. You can also follow him at @michaelmccrae.

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