Pure Gold Mining (TSXV: PGM)(LSE: PUR) has launched an exploration and resource growth program at its Red Lake mine development project in Ontario.
Over 30,000 metres of diamond drilling, both underground and at surface, are planned at the site. Work is expected to carry into 2021.
The Red Lake mine is fully funded and on track to deliver its first output later this year
“We are now launching an aggressive exploration program designed to realize our vision for future growth at Canada’s next gold mine,” Pure Gold president and CEO Darin Labrenz stated a press release.
“Our drill program has been designed with the goal of: increasing indicated mineral resources through infill drilling, with potential to convert to future reserves; expand our gold resources through step-out drilling and make new high-grade discoveries through regional exploration.”
Underground drilling, which began Thursday, is designed to infill and expand mineral resources with the goal of optimizing and expanding the near-term mine plan, the company said. Initial drilling will occur in areas targeted for the first two years of production.
Previous drilling from the area returned 232.4 g/t gold over 5.2 metres in one hole and 50.2 g/t gold over 4.0 metres in another.
Surface drilling will focus on expanding new discoveries along Pure Gold’s over-seven-kilometre gold corridor. The goal of this program is to grow mineral resources in areas where the company believes has the potential to convert resources into future reserves and form part of an expanded mine plan. Diamond drilling is expected to start in July.
A third aspect of Pure Gold’s exploration strategy is unveiling and establishing the growth potential of high-grade zones such, the firm added.
The Red Lake mine is fully funded and on track to deliver its first output later this year.
Shares of Pure Gold Mining climbed 4.7% by midday Thursday to a near 52-week high. The Vancouver-based gold explorer has a market capitalization of C$493.7 million.