Pure Gold Mining management was fielding uncomfortable questions from concerned shareholders during a conference call Tuesday following the company’s release of what investors termed a ‘tortuous’ second-quarter operations update and financial report.
While the company cited an expected “significant improvement in production” in the third quarter, it says it remains on track to complete an updated mine plan and prefeasibility study by year-end. However, the extreme focus on near-term production does little to ease shareholder apprehension over the asset’s muddled longer-term outlook.
Pure Gold said output fell during the second quarter due in part to cash-preservation measures taken by the company while negotiating financing agreements. For the three months, the PureGold mine in Ontario’s famed Red Lake District saw a reduction in workforce, and the mill was operating at only 50% capacity. Main ramp development remained halted in favour of near-term production.
