Drilling tested possible extensions of ore zones which will provide initial feed for the processing plant. With highlights including 3.4m grading 33.1 grams per tonne, the results suggest mine continuity and the potential for mining stope expansion.

"The Red Lake mine continues to produce significant, high-grade gold drill intercepts and today's results from areas planned for mining this year highlight local opportunities for mine expansion. We understand the orebody well and we are now demonstrating the potential for it to grow," said president and CEO Darin Labrenz. 

Diamond drilling has identified both extensions to existing stopes, and new zones that may be incorporated into future short-term mine plans. Underground development at the mine is about four months ahead of the feasibility schedule with first gold pour is expected during the first quarter.

The acquisition and installation of key infrastructure for underground mine operations has commenced, including the installation of new compressors and ventilation systems and the advancement of the existing ramp. Active de-watering of the underground mine is underway and on schedule.

Pure Gold opted to purchase an underground mining fleet to realise significant savings compared to the feasibility study plan of leasing equipment for the initial two years of production. Some C$6.1 million in equipment has been purchased and delivered to site including two haul trucks, two LHD scooptrams, two jumbos, a scissor lift, a minecat, a boom truck, a mine rescue/personnel carrier, and a telehandler. While this increases the initial capital requirements, total mine equipment expenditures will be reduced by about 30% over the first two years by eliminating mobile lease payments.

Shares in Pure Gold Mining are trading at C79c, valuing the company at $283 million.