Pure Gold Mining Inc (CVE:PGM) (LON:PUR) told investors on Friday, as it released its second-quarter results statements, that development of its Red Lake mine in Ontario is advancing rapidly and the company remains on track to deliver the first ore to the processing mill before the end of the year.
The firm is building Canada's next gold mine, for which it is fully funded. Engineering is substantially complete, while the procurement of major equipment is 95% complete, the firm said.
During the three months to June 30, 2020, the company received the first of three significant amended permits for the project, namely an amended Environmental Compliance Approval (ECA) for air and noise. It is now awaiting an amendment to the Industrial Effluent permit, for which the firm has applied for an expedited approval.
Pure Gold has also filed its mine closure plan amendment and is awaiting approval.
In June, the firm started underground exploration drilling, which hit high-grade gold mineralization from both infill and step-out holes, including 46.7 grams per ton (g/t) gold over 7 metres, including 193.5 g/t gold over one metre.
During the quarter and after its end, PureGold has also raised around C$13.5 million from the exercise of share purchase warrants with a strike price of C$0.85, it said.
In keeping with its pre-revenue status, the firm posted a net loss for the three months to June 30, 2020, of C$0.7 million, compared to a net loss for the same period of 2019 of C$4 million.
Shares in London added 4.63% to 113p. In Toronto, the stock gained 0.5% to C$2.01.
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