“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.”
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