Tough lessons for Pure Gold in Red Lake – by Ian Ross (Northern Ontario Business – August 18, 2022)

https://www.northernontariobusiness.com/

“We paid the price for that,” says company CEO in positioning the northwestern Ontario mine for late 2022 turnaround

Pure Gold Mining president-CEO Mark O’Dea offered a simple explanation for last year’s stumbling production start at its Red Lake mine. The company began mining at the wrong end of the deposit.

The Vancouver gold miner delivered a conference call update this week on its second quarter results and the progress made at its namesake mine after embarking on an operational “turn-around” process last January.

Soon after entering production last August, the mine began falling short of meeting targets for production, grades and mill throughput. It was hemorrhaging cash with out-of-control operating costs that was rapidly depleting the treasury.

O’Dea said they are now “rounding the corner” of that process and are pointed in a “better and healthier direction.” Armed with a new resource model and a more accurate mineral resource estimate, costs are under control and gold production is building in a more “predictable and systemic way.”

For the rest of this article: https://www.northernontariobusiness.com/industry-news/mining/tough-lessons-for-pure-gold-in-red-lake-5712004