Ontario’s next gold mine ‘perfectly timed’ – by Mariaan Webb (MiningWeekly.com – June 25, 2020)

https://www.miningweekly.com/

Construction of Canada’s next gold mine is rapidly advancing and is now only months away from its first gold pour.

The PureGold Red Lake mine, which dual listed Pure Gold Mining is building in the Red Lake mining district of north-western Ontario, will pour its first gold towards the tail-end of the fourth quarter.

The company is delivering its mine into a rising gold market, with the potential to benefit from a period of margin expansion “unlike any we have seen in years”, president and CEO Darin Labrenz said on Wednesday.

“We think we are perfectly timed to realise some of the incredible cash flow margin expansion that we have seen since we originally completed our feasibility study,” he said in a webinar hosted by New York-based specialist investment management and corporate finance firm Amvest Capital.

The PureGold Red Lake mine is highly levered to the gold price. At $1 500/oz, the aftertax net present value, at a 5% discount, is C$390-million with an aftertax internal rate of return of 51%.

For the rest of this article: https://www.miningweekly.com/article/ontarios-next-gold-mine-perfectly-timed-2020-06-25

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