Yahoo Finance

Darin Labrenz, President & CEO of PureGold, commented, “The second quarter was one of achieving critically important milestones and making key investment decisions for the PureGold Mine, balancing both long-term and short-term objectives. As we continue opening up the mine and accelerating the development of our two key haulage ways, we are seeing consistent quarter-over-quarter improvements in all key operating metrics and, importantly, excellent grade reconciliation to our Mineral Reserves. With two active ramps now mining ore, an additional dedicated crew to focus on Main Ramp development beginning in July, and nearly 30,000 tonnes of longhole stopes developed in front of us, we are entering the third quarter in our strongest position ever.”

Second Quarter Ramp-Up Summary

During the second quarter, 63% of the mill feed was comprised of high-grade stope and development ore grading 5.8 g/t Au on average, in line with expectations and a significant increase from 46% grading 3.8 g/t Au in the first quarter. The balance of the mill feed has been comprised of low-grade development ore and stockpiles to date. Increasing the proportion of high-grade ore in the mill feed to 100% going forward remains the primary focus for the Company during ramp-up, with the key performance metrics being ramp development rates and number of active ore headings and stopes. Commencement of high-grade stope production from the East Ramp and acceleration of the Main Ramp development in July are expected to jointly drive continued and sustained quarter-over-quarter increases of high-grade ore production and average grades for the third quarter and for the balance of the year.

Underground Drilling Update
PureGold is also pleased to report high-grade drill intercepts returned from underground drilling completed during the second quarter of 2021. This new drilling targeted zones in close proximity to both the Main Ramp and the East Ramp and has been designed to further delineate stopes planned for the second half of 2021 with the goal of expanding mineable inventory and increasing the grade of longhole stopes in the near-term mine plan. This drilling has been highly successful in confirming the tenor of high-grade mineralization within planned stopes and has also expanded the mineable inventory in areas close to the main haulage ways.
Underground drilling results highlights:

East Ramp:

• 14.7 g/t gold over 1.7 metres from drill hole PGU-0203; including
  21.6 g/t gold over 1.0 metre.

• 84.2 g/t gold over 1.0 metre from drill hole PGU-0210;

• 21.4 g/t gold over 2.1 metres from drill hole PGU-0212;

• 120.8 g/t gold over 1.0 metre from drill hole PGU-0214;

• 9.2 g/t gold over 7.9 metres from drill hole PGU-0222; including
  15.2 g/t gold over 1.0 metre and 33.0 g/t gold over 1.0 metre.

Main Ramp:

• 33.1 g/t gold over 2.2 metres from drill hole PGU-0188; including
  68.5 g/t gold over 1.0 metre;

• 65.6 g/t gold over 2.0 metres from drill hole PGU-0198;

• 41.6 g/t gold over 1.0 metre from drill hole PGP-00007;

• 14.2 g/t gold over 4.3 metres from drill hole PGP-00009; including
  21.2 g/t gold over 1.0 metre;

• 16.7 g/t gold over 3.6 metres from drill hole PGP-00012; including
  27.6 g/t gold over 1.6 metres;

• 6.4 g/t gold over 8.4 metres from drill hole PGP-00018; including
  32.3 g/t gold over 1.0 metre;

• 15.1 g/t gold over 5.6 metres from drill hole PGP-00019; including
  20.8 g/t gold over 1.0 metre and 30.4 g/t gold over 1.0 metre;

• 12.4 g/t gold over 5.0 metres from drill hole PGP-00019 including
  29.8 g/t gold over 1.0 metre.

A summary table of results is set out at the end of this News Release.

Results from drilling continue to be integrated into short-term mine planning, with production planned from most of these areas in 2021. High-grade results from the East Ramp include PGU-0210, PGU-0212 and PGU-0214 which confirm the first stoping area scheduled to be mined from PureGold’s East Ramp. Development of two stopes in this area is underway with sills on multiple levels currently delivering high-grade development ore. Stoping from the East Ramp in the third quarter will enhance mine flexibility and will increase the availability of high-grade ore inventory and mill feed from underground and is expected to commence in August.

In addition to confirming high-grade stopes close to the main haulage ways, underground drilling also continues to identify new zones that are not part of the current mineral reserves. Drillholes PGP-00017, PGP-00018 and PGP-00019 each returned broad zones of high-grade gold mineralization, including 15.1 g/t gold over 5.6 metres and 12.4 g/t gold over 5.0 metres in a new zone that lies west of a high-grade longhole stope that was mined in the second quarter of 2021. Ore development is currently underway in this area with stoping anticipated to occur in the third quarter.

“Ongoing underground drilling programs such as these are a hallmark of Red Lake deposits, responsible for the nearly 100 years of high-grade discovery and mining in the district,” stated Darin Labrenz, President & CEO of PureGold. “Our underground drilling program continues to be highly successful at confirming stopes within our near-term production plan as well as identifying opportunities for discovery and growth near our existing development. We expect this trend to continue as we continue to open up the mine and establish underground access to an increasing number of ore production areas into the third quarter and for many quarters to come at the PureGold Mine.”

As of the end of the second quarter, three air-powered underground core diamond drills were active on the site and focused on delineating gold mineralization with both infill and extension drilling. Results from this underground drilling will continue to be reported on a quarterly basis.

Commercial Production
Commercial production will be declared on the first day of the calendar month following the achievement of certain criteria including ore throughput and gold production levels achieving a pre-determined percentage of design capacity. These criteria are reviewed monthly. Inaugural production and cost guidance will follow shortly after a positive commercial production decision.

Underground Drill Results Summary
New assay results from select drill holes are outlined below:

*Assay composites were calculated using uncut assays and true widths are interpreted to vary from 80-95% (90%, on average) of reported core lengths above.

QA/QC and Core Sampling Protocols
Underground drill core samples are submitted to SGS Minerals in Red Lake. Underground core samples are whole core sampled after being detail logged and photographed. Sample shipments are bagged and sealed and picked up at the mine site by SGS Minerals employees. Samples reported herein include BQ and ATK-size whole core samples and are prepared by drying and crushing to 75% less than 2 mm, a riffle split of 250 g, and pulverization of the split to better than 85% passing 106 microns at the SGS Red Lake facility. Gold analysis is completed in the SGS Red Lake lab with a 30 g fire assay and AAS finish (code GO-FAA30V10 for mine samples and GE-FAA30V5 for exploration samples). Mine samples returning >100 g/t Au and exploration samples returning >5 g/t Au are re-assayed with a gravimetric finish (code GO-FAG30V). Mineralized zones with visible gold are also analyzed by a 500 g screen fire assay with screening to 106 microns (code GO-FAS30M). Duplicate 30 g fire assays are conducted on the screen undersize and combined with an assay of the entire oversize fraction.

Control samples (certified standards and uncertified blanks), along with field, prep and pulp duplicates, are inserted on a regular basis. Results are assessed for accuracy, precision, and contamination on an ongoing basis.

Further details of drilling, analytical process, quality assurance and control, and sampling are available in the Feasibility Study¹ technical report.

Qualified Persons and 43-101 Disclosure
Ken Donner, P. Eng., Vice President, Operations and Phil Smerchanski, P. Geo., Vice President, Exploration for the Company, are the designated Qualified Persons for this news release within the meaning of National Instrument 43-101 (“NI 43-101”). Mr. Donner has reviewed and verified that the mine operational technical information contained herein is accurate and approves the written disclosure of same. Mr. Smerchanski has reviewed and verified the underground drilling technical information contained herein is accurate and approves of the written disclosure of same.

About Pure Gold Mining Inc.
PureGold is a growth company, located in the very heart of Red Lake, Canada. Our objective is pure and simple. To develop a highly-profitable long life gold mining company, becoming Canada’s next iconic gold producer. Our plan is very disciplined, very methodical and financially sound. To expand organically, and develop PureGold’s multi-million ounce high-grade gold asset incrementally, step-by-step, using a phased mining development plan to deliver maximum return.

Additional information about the Company and its activities may be found on the Company’s website at www.puregoldmining.ca and under the Company’s profile at www.sedar.com

1. For further information, see the technical report titled “Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit Red Lake, Ontario, Canada” with an effective date of February 5, 2019, and dated July 5, 2019 (the “Feasibility Study”), for further information please see www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com
   

ON BEHALF OF THE BOARD
"Darin Labrenz"_______
Darin Labrenz, President & CEO

Investor inquiries:
Adrian O’Brien, Director, Marketing and Communications
Tel: 604-809-6890
aobrien@puregoldmining.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to PureGold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address proposed timing of development plans for the PureGold Mine complex, timing of expected production, potential for accelerating development of the two main ramps, potential for advancing the amount and timing for higher grade ore, potential for additional resources and expansion of known deposits and potential for making new discoveries and the focus of the Company in the coming months . Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of PureGold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Pure Gold Red Lake Mine complex; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration and development activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 31, 2021 in the section entitled "Risk Factors", under PureGold’s SEDAR profile at www.sedar.com.

Although PureGold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. PureGold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.