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Pure Gold at fresh high as first gold looms

Shares in Pure Gold Mining hit a one-year high on Friday as the company counts down to its first gold pour, expected by Christmas, at its high-grade PureGold mine in Ontario’s Red Lake district.
Pure Gold at fresh high as first gold looms Pure Gold at fresh high as first gold looms Pure Gold at fresh high as first gold looms Pure Gold at fresh high as first gold looms Pure Gold at fresh high as first gold looms

Core logging at Pure Gold Mining’s PureGold near-term mine in Ontario

Staff reporter

With a grade of 9g/t gold, the company describes its phase one mine as the fourth-highest grade in Canada and 16th-highest in the world.

Production from the project, previously known as Madsen, was forecast at 66,000 ounces in year one and set to average 102,000oz/y over the mine life. 

Pure Gold had last week reported more high-grade results from drilling, which it said demonstrated scalability and pointed to the potential of "building a multigenerational mine".

South Africa-based AngloGold Ashanti recently increased its stake in the company to about 16% through the exercise of warrants.

High-profile investor Eric Sprott and gold major Newmont are other strategic shareholders.

The company is fully funded to production.

Pure Gold shares reached a 52-week high intraday on Friday in both Toronto and London, where it listed last year.

Its Toronto-listed shares (TSXV: PGM) reached C$2.92 intraday, before closing up 7.8% to $2.90 to capitalise it at $1.1 billion (US$0.9 billion).