CORRECTION – PureGold Achieves Third Quarter Gold Production Guidance and Announces Fourth Quarter Outlook

VANCOUVER, British Columbia, Oct. 06, 2022 (GLOBE NEWSWIRE) — In a release issued under the same headline earlier today by Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR), please note in the 5th paragraph, the last sentence should read “The Company expects costs to continue to trend downward…”, rather than “The Company expects costs and revenues to continue to trend downward…”, as previously stated. The corrected release follows:

Pure Gold Mining Inc. (TSX-V:PGM, LSE:PUR) (“PureGold” or the “Company”), today announced that it achieved gold production guidance for the third quarter of 2022 for its 100% owned and operated PureGold Mine located in Red Lake, Ontario. PureGold also announced production guidance for the fourth quarter of 2022.

Terry Smith, PureGold Chief Operating Officer, stated: “Our quarterly gold production results are a positive step in the operational transformation underway at the PureGold Mine. Our short-range planning and execution are working well and with that, we can aggressively pursue further optimization of the business. Looking ahead to the fourth quarter we expect another consecutive quarter over quarter step up in production for the PureGold Mine. We remain on track for delivery of the updated life of mine plan and pre-feasibility study in the fourth quarter of 2022, which will form the basis for 2023 guidance.”

As shown in the table above, gold production was 9,041 ounces in the third quarter of 2022, which was within the guidance range. Head grade and recovery were also within guidance. As previously disclosed, the PureGold resumed full time mill operations in July, delivering strong back-to-back monthly ore tonnage in July and August, and achieving record monthly gold production in August.

Results for the third quarter would have been better, but for nine unexpected days of lost production in September due to downtime of the contract crusher and an unrelated issue with automation control electronics in the mill. These one-time issues have now been fully addressed with strong average daily throughput in the last week of September carrying through into October. However, the nine lost days caused the volume of ore processed in the third quarter to be below guidance.

Production costs for the third quarter are still being finalized but are expected to be in the range of $9.5 – $10.5 million per month, in line with previously announced guidance.  Notably, current costs represent an absolute reduction in costs of approximately 25% and a cost-per-tonne reduction of approximately 50%, when compared with Q1 2022. The Company expects costs to continue to trend downward through the fourth quarter.

Fourth Quarter Production Outlook

Fourth quarter production guidance for the PureGold Mine is summarized in the table below.

Pre-Feasibility Study Update

The Company remains on track to deliver a new Pre-Feasibility Study (“PFS”) in Q4. The new PFS will incorporate an updated life of mine (“LOM”) plan and is based on the recently announced updated Mineral Resource Estimate (“Updated MRE”) completed by SRK Consulting (Canada) Inc (“SRK”). The Company is working collaboratively with SRK to ensure a smooth integration beginning in January 2023 of the new Life of Mine plan into the Mine’s existing planning system. The LOM plan is focused around continued targeted production growth well beyond the Company’s Q4 production guidance.

The Updated MRE has reaffirmed a multi-million-ounce, high-grade gold deposit and the Company expects the PFS to outline a long-life, profitable mining operation in a top-tier jurisdiction with significant benefits to our shareholders along with the community of Red Lake and our First Nations partners. PureGold expects to share the results with the market in near future.

Qualified Persons and NI 43-101 Disclosure

Terrence Smith, P.Eng. Chief Operating Officer for the Company, is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

About Pure Gold Mining Inc.

PureGold is a Canadian gold mining company, located in Red Lake, Ontario, Canada. The Company owns and operates the PureGold Mine, which began gold production in 2021 after the successful construction of an 800 tpd underground mine and processing facility. The PureGold Mine is centered on a forty-seven square kilometre property with significant discovery potential.

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

ON BEHALF OF THE BOARD
      “Mark O’Dea“           
Mark O’Dea, President & CEO

Investor inquiries:
Adrian O’Brien,
Director, IR & 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, including the proposed Pre-Feasibility Study and updated Life-of-Mine plan, updated NI 43-101 Technical Report and timing and content of such Technical Report; expectations regarding third quarter operating and sustaining capital costs; expectations regarding fourth quarter and 2023 gold production, ore tonnage, head grade, and recovery; expectations regarding the effectiveness of new initiatives to improve stope access and result in increased throughput, improved grades and reduced costs in 2022; achievement of minimum targets with respect to ore production, average head grade and reduction in monthly operating costs by the end of 2022 compared to 2021; potential for extending the mine life of the PureGold Mine; the timing and results of the new Pre-Feasibility Study and updated Life of Mine Plan; the potential to convert resources to reserves; the transition of mining from the McVeigh Zone to the South Austin and Austin Zones; and 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”, “progress”, “confirms”, “continue”, “planned”, “expect”, “expectations”, “expand”, “enhanced”, “increasing”, “optimize”, “project”, “predict”, “potential”, “supports”, “targeting”, “intends”, “believe”, “improved”, “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”, “confirms”, “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 liquidity and the Company’s ability to continue as a going concern; mine closure and rehabilitation; failure to achieve estimates or material increases in costs; history of net losses and negative operating cash flow, indebtedness; interpretation of results at the PureGold Mine complex, including reserve and resource estimates may prove to be incorrect; 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 30, 2022 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.