PRECIOUS METALS

COVID-19 threatens PureGold's production after tough 2021

Any drop in output likely to be small, miner says

Nathan Richardson
COVID-19 threatens PureGold's production after tough 2021

The announcement followed a challenging year for the company.

"For a temporary period, administrative staff are working remotely where possible and other on-site staff has been reduced to essential workers only," PureGold told shareholders.

"During this time, production is expected to continue, albeit at a slightly reduced rate. While the ultimate impact on monthly or quarterly production, if any, is not yet known, the company expects to make up any production shortfall shortly after returning to full production," the miner said.

The PureGold mine began production at the end of 2020 and had a challenging start-up. There have been issues with maintaining access to enough high-confidence, high-grade stops to provide high-grade product to the mill.

Last week, Canaccord Genuity analyst Kevin Mackenzie noted that PureGold's 2021 gold production of 27,437 ounces grading at 4.3 grams per tonne was well below the 59,000oz grading 7.0g/t outlined for the first year of production in the 2019 feasibility study.

PureGold said on January 4 that the mine is targeting production in the range of 600-700 tonnes per day, or 60%-70% of mill capacity, for the first quarter of 2022.

"The company continues to monitor the situation very closely and will provide updates as necessary," PureGold said in relation to the COVID-19 measures.

PureGold last traded at C$0.72/share.

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Q1 Mining Equities Report 2023

Discover new trends in mining investment with insights into capital raisings and share price performance of more than 2,500 companies.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.