Among the highlight intercepts are 2.9m grading at 23.4 grams per tonne, including 1m at 50.1g/t, and 2.2m grading 13.7g/t.

These intervals are at higher grades than the average reserve grade of 9g/t.

The intersections are also close to the underground ramp access at the 1300 access drift, next to levels four and five.

"These latest high-grade gold intercepts continue to bolster our belief that continued high-grade growth will add to the mine plan as we open up new zones. Our continued underground drilling success in concert with our ongoing surface exploration programme, forms the foundation of our near-term and extended growth plan for the PureGold mine," said president and CEO Darin Labrenz.

Haywood Securities says the new results and ongoing underground drilling present "a compelling opportunity" to extend exploitable gold mineralisation and enhance the current mine plan, including lowering development costs, given the proximity of intersected mineralisation to existing stopes and infrastructure.

"We expect the integration of such work to be reflected in a larger-scale operation outline within the upcoming LOM plan update due in mid-2021," said analyst Geordie Mark.

Haywood recommends accumulating Pure Gold shares despite them trading at a premium to the company's exploration and production peers, given it is on the cusp of pouring first gold this month.

Pure Gold shares (TSXV:PGM) last traded just shy of its 12-month high at C$2.75, capitalising it at $1 billion (US$781.5 million).