Matthew Gordon spoke to Troy Fierro, President & CEO of Pure Gold Mining (TSX-V:PGM) to discuss the company’s disappointing past year and the turnaround plans it has for this year.
Our previous interview: https://youtu.be/2ZnMK-JUkZU
Pure Gold Mining operates one of the newest high-grade gold mines in North America, the aptly named Pure Gold Mine.
The company experienced a disappointing 2021 with various targets not being met. The disappointing year has led to the company’s share price being 30% of what it was at the beginning of 2021. The company does have positive opportunities for turn around including a phased development approach and a higher ore grade with lower production costs as mining depth increases. The company remains optimistic and believes that the mine has a multi-generational mining possibility.
The company believes that 2021 was a disappointing year due to amongst other things, the company not executing on its mining plan. The inadequate definition drilling led to a mining program with insufficient data causing the company to not have a steady stream of high-grade high confidence build material to feed to its mill at 800 tons/day.
Pure Gold Mining is currently underway with an initiative to improve its equipment availability through the implementation of computerized maintenance. Various other initiatives are being implemented to assist the company in achieving its nameplate capacity of 800 tons/day with a grade of 5-7 g/ton of Au in Q1 of 2022. The company aims to reach 1000 tons/day at the end of 2022.
The company is positive that it will be able to reach a cash neutral position shortly from where it will start to generate cash in Q2 of 2022.
The company will continue to focus on advancing its 8 zone deposit this year, which hosts 16 g/ton of Au, as well as rebuilding its credibility with its shareholders.
00:00 – Company Overview
01:40 – Definition Drilling Program, Brief UnderGround Period & TurnAround
05:25 – Underway Initiatives, Significant Difference & Cost Numbers
08:54 – Computerised Maintenance, Startup Issues & Grades
14:54 – Below Average Grades, Deployed Capital & Cash Burn
19:40 – Financing Opportunity, Gross Component & Refinancing Credit Facility
25:54 – Current Focus, Targets & Small Programs
30:17 – Outro
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