Source: Streetwise Reports 04/07/2020
The latest news and a construction update on Pure Gold Mining’s Canadian project are provided in an Echelon Wealth Partners report.
In a March 30 research note, Echelon Wealth Partners analyst Ryan Walker reported that Pure Gold Mining Inc. (PGM:TSX.V; PUR:LSE) remains on schedule for first gold production in late 2020 at its Red Lake project in Ontario.
“We highlight the potential for the mine to begin ramping up production amid our expectations of a stronger post-COVID-19 gold price environment,” added Walker.
He relayed what recently happened with the Red Lake project and its current status in terms of development.
As for the financial aspect of Red Lake, Pure Gold updated the definitive budget for it to $124.6 million, up from $95 million in the 2019 feasibility study, relayed Walker. Also, the Vancouver-headquartered company opted for replacing versus refurbishing mill components to maximize availability and minimize startup risks, and that will cost $18.1 million.
As for progress with development at Red Lake, regarding surface work, significant upgrades of earthworks, road and utility infrastructure along with installation of new equipment are done. New mine support buildings have been built. There now are a administration complex that is fully operational and a mill warehouse.
In terms of underground progress, about 740 meters of development are finished. Ramp building, which was started ahead of schedule, is moving forward quickly. Due to that earlier start and significant recent efficiency in development, Pure Gold might be able to access the main stopes, optimize the mine plan and commence ore stockpiling earlier than anticipated.
Engineering and permitting remain on track. “Federal and provincial authorities have confirmed the project will not trigger a new environmental assessment,” Walker highlighted. With respect to procurement, Pure Gold already placed an order for equipment with a long lead time, including a new ball mill, gold room and electrical equipment, and gravity and leaching systems.
Walker also noted that the mining firm finished preliminary screening of major applications with both First Nations and Ontario ministries. In December 2019, it hosted many community and First Nations meetings about permitting and the amended mine closure plan. “Pure Gold contends that there remains strong support for project development from both the local communities and First Nations,” Walker wrote.
He concluded, “We continue to highlight the mine’s high-grade nature, potential for solid near-term, high-margin production and substantial exploration potential, all in a prolific Canadian mining camp.”
Echelon has a Speculative Buy rating and a CA$1.35 per share price target on Pure Gold, the stock of which is trading today at about CA$0.70 per share.
Sign up for our FREE newsletter at: www.streetwisereports.com/get-news
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Disclosures from Echelon Wealth Partners, Pure Gold Mining Inc., March 30, 2020
Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.
I, Ryan Walker, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.
Important Disclosures:
Is this an issuer related or industry related publication? Issuer.
Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? No
The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer. No
Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No
Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No
During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? No
During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No
Has the Analyst had an onsite visit with the Issuer within the last 12 months? No
Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No
Has the Analyst received any compensation from the subject company in the past 12 months? No
Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No
( Companies Mentioned: PGM:TSX.V; PUR:LSE,
)