PureGold Mine Ore Production Improvements Continue

VANCOUVER - Darin Labrenz, President & CEO of Pure Gold Mining Inc. said, “The third quarter was a strong operational quarter for the PureGold Mine, in Red Lake, Ontario, with quarter-over-quarter improvements in ore production, underground development rates, and mill head grades. We expect mill throughput and mill head grades to continue trending positively through the end of 2021 and into 2022 as ongoing accelerated development and definition drilling programs continue to open up access and build inventory in both the East Ramp and Main Ramp areas of the mine. Underground drilling continues to confirm the high-grade nature of this deposit and we are excited by what lies ahead.”

Several key upgrades were completed at the milling facilities during the third quarter including the installation of interstage screens on each of the six CIP tanks, installation of a trommel screen on the SAG mill discharge, and several pump upgrades. These upgrades have increased the steady-state milling capacity by 25% from 800 tpd to 1,000 tpd. Significant progress was made on permit amendments to increase annual ore production limits from 292,000 tonnes (800 tpd) to 360,000 tonnes (1,000 tpd) in the quarter, and final approval of the amendment is on track to be received well in advance of the current limit becoming a constraint on production.

Development of the Main Ramp averaged 4.7 meters per day in the third quarter. The Main Ramp remains the critical path to 8-Zone access and drilling. As of September 30, the Main Ramp was at a depth of approximately 420 meters below surface and is expected to reach approximately 490 meters vertical depth by the end of 2021. The Company is evaluating opportunities to continue developing the Main Ramp at an accelerated rate into 2022 to further expedite 8-Zone access.

East Ramp development averaged 2.7 meters per day in the quarter as development activities in the East Ramp area of the mine were split between ramp development and lateral development. The first stopes were mined from the East Ramp area of the mine early in the third quarter. To date, a total of 6,290 tonnes of stope ore has been mined at a grade of 9.0 g/t gold. The next block of stopes to be mined beginning in Q4 2021 is under development with sill development currently underway on three levels. Sill development is showing exceptional continuity of high-grade gold mineralization, with the 1420 sill returning approximately 64 lateral meters grading 7.4 g/t gold, significantly longer and higher grade than what was initially modeled. Recent drilling in the area also indicates strong potential for stope expansion along strike and to depth, beyond the currently defined reserve stopes. These East Ramp area stopes currently under development represent a key growth opportunity for the PureGold Mine in Q4 2021 and into 2022.

The Company has designed a phase one 18-hole drill program to target the high-grade 8-Zone with drills to be positioned in a drill bay off the Main Ramp at a vertical depth of approximately 400 meters. The goal of this initial 8-Zone drilling program is to upgrade 8-Zone mineral resources ahead of planned mining in 2024 and to explore possible extensions of 8-Zone. The Company will provide further updates following commencement of the 8-Zone drilling program.

An updated Mineral Resource Estimate for the PureGold Mine including satellite deposits Wedge, Russet South and Fork is expected to be completed in Q4 2021. Following completion of the updated resource estimate, an updated Technical Report is expected to be completed including an updated Mineral Reserve. Expected timing for the updated Technical Report is H1 2022.

For the first three quarters of 2021, accelerated ramp development and definition drilling have been successful in opening up the underground mine which, in turn, has driven steady improvements in throughput and grade year to date. The Company is confident that these programs will continue to deliver steady improvements going forward, though the forecasted pace of ramp-up has been revised based on trends observed to date. As such, the Company is targeting a production rate of approximately 600-700 tpd at an average head grade of 5.5-6.5 g/t Au for the fourth quarter of 2021 and expects to continue ramping up both throughput and mill head grade toward the mine’s full capacity by the end of Q1 2022. The Company now expects to sustain 1,000 tpd by mid-2022.