Pure Gold Mining (TSX-V: PGM) - We can get started for life (tonight)

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Interview with Darin Labrenz, President & CEO of gold developer, Pure Gold Mining (TSX-V: PGM)

'32 weeks to Production. (We'll pour gold before Christmas.)'

An intriguing gold mining story. Pure Gold Mining is a Canadian gold development company that is hoping to get into production by the end of 2020. There has been a radical rise in Pure Gold Mining's share price since we last spoke to them as the market appreciates the company's path towards production. So what is the next phase of growth?

What is the asset and what are the headlines stats? The company released a feasibility study on the PureGold Red Lake Mine, Ontario in February 2019, outlining a 12-year, high-grade underground mining operation with a production rate of 800tpd per day. A construction decision was made in August 2019.

The economics around the project are outstanding. The project is fully-funded as far as its CAPEX. The AISC is a remarkably low US$787/oz. The average grade is an extremely high 9g/t. This makes the PureGold Red Lake Mine the highest-grade development stage gold deposit in Canada today. It will also place the project in the top 8 percentile globally when it enters production: 17th in the world. The NPV (5%) stands at US$390M with a 51% IRR and $ revenue. What makes these figures all the more impressive is that they have been calculated based on a gold price of US$1,500/oz, rather than today's price of more than US$1,700/oz.

The Resource looks exceptional, and the team is experienced with good commercial and technical experience. As a company founded by Oxygen Capital, the company has a "tier-1 team" in a "tier-1 mining jurisdiction." Several members of the team have worked on gold juniors before, which is always useful. What shareholders will want to understand is the next phase of growth after the PureGold Mine enters production.

The first phase is the production phase, as Pure Gold Mining tries to lead the Red Lake camp to become 'Canada’s next large-scale, iconic gold producer.' What is the next phase? Labrenz is very confident on a technical front and doesn't forsee any issues, citing the orebody as consistent and de-risked. The body has also been proven to "persist at depth." Labrenz is coy on consolidating Pure Gold's land position, but he states the company is always looking for new ground to acquire. Pure Gold Mining has strong organic growth aspirations within its property but will continue to look outside the property for promising opportunities in the shape of land assets. He has no desire for Pure Gold Mining to be a single asset company; it is simply a case of timing.

Pure Gold Mining has listed in London; does Labrenz regret it? He states he doesn't regret it one bit. It has helped relevant the international profile of the company, and while it will take time to continue to spread awareness, this was an important first step. He is trying to drive stock liquidity and he claims this is evolving as the company grows closer to production, with some strong institutional ownership coming in over the last few years. He expects this to continue to evolve as the company targets the GDXJ.

Has COVID-19 had a negative impact on proceedings? Labrenz states that mining is an essential service in Ontario, even exploration. Thus far, there have been no impacts at the site, and there are "ZERO" new COVID-19 cases in all of north-western Ontario where Pure Gold Mining is based. It is a relatively straightforward area to build a mine.

Exciting moments for 2020 will be drilling the high-grade (20-30g/t) "8 Zone." It forms part of the company's mine plan and it is easily accessible. The company is substantially ahead of schedule, and the company will have more areas opened up to mine in addition to the startup being substantially de-risked.

What did you make of Darin Labrenz and Pure Gold Mining? Comment below: we will respond!

And a FREE 'Not A Mug' Crux Investor mug to the first person to guess the song name and artist featured in the title of this video! (One mug per person).

2:07 - Company & Asset Overview
3:25 - Journey of Pure Gold: Steps That Defined the Company
7:09 - New Plan, New Growth Strategy: Continuing to Build Value & Reward Shareholders
12:34 - Building a Mine: Team Experience
15:16 - Listing in London, Driving Liquidity and Getting onto the GDXJ
17:45 - Phase 2: Technical Concerns, and M&A Possibilities
21:00 - Gold Market: Value Accretion Possibilities
22:37 - Impact of COVID-19 on the Production Timeline
23:49 - Optimism for 2020 and Things to be Excited About

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