PureGold achieves third quarter gold production guidance

Gold production was 9041 oz in 3Q22, which was within the guidance range. Head grade and recovery were also within guidance. As previously disclosed, the PureGold resumed full time mill operations in July, delivering strong back-to-back monthly ore tonnage in July and August, and achieving record monthly gold production in August.

Results for 3Q22 would have been better, but for nine unexpected days of lost production in September, due to downtime of the contract crusher and an unrelated issue with automation control electronics in the mill. These one-time issues have now been fully addressed, with strong average daily throughput recorded in the last week of September, carrying through into October. However, the nine lost days caused the volume of ore processed in the third quarter to be below guidance.

Production costs for the third quarter are still being finalised but are expected to be in the range of US$9.5 – 10.5 million per month, in line with previously announced guidance. Notably, current costs represent an absolute reduction in costs of approximately 25% and a cost-per-tonne reduction of approximately 50%, when compared with 1Q22. The company expects costs and revenues to continue to trend downward through the fourth quarter.

Terry Smith, PureGold Chief Operating Officer, stated:

“Our quarterly gold production results are a positive step in the operational transformation underway at the PureGold Mine. Our short-range planning and execution are working well and with that, we can aggressively pursue further optimisation of the business. Looking ahead to the fourth quarter we expect another consecutive quarter over quarter step up in production for the PureGold Mine. We remain on track for delivery of the updated life of mine plan and pre-feasibility study in 4Q22, which will form the basis for 2023 guidance.”

Read the article online at: https://www.globalminingreview.com/mining/06102022/puregold-achieves-third-quarter-gold-production-guidance/