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Gold on the up again
Can’t be long before some results and an update can it?
Good summary Mick. You have covered all the rationale behind why Pure Gold could become the next KL especially once they start drilling the 8 Zone next year. This could really transform the company like it did for Goldcorp all those years ago.
Btw, in case people are wondering, it appears drill results have been very slow to come out in Canada and elsewhere, mainly due to COVID-19 slowing things down and also the high number of companies drilling in the summer. Eric Sprott mentions this in his latest podcast. So I would not read too much into why it is taking so long for assay results to come out. I have some other companies which are also drilling and which are also pending assay results. So hang tight and wait for drill results which should be round the corner now!
First pour is scheduled before the end of the year and before too long the mine could be producing 100,000 oz/year from their phase 1 plans alone. The first phase has a mine life of 12 .3 years and Phase 2/3 could see production rise to 150/200k oz/year.
The resource is pretty impressive, being spread over 47 square kilometres and with a number of underground mining zones. The high gold grades rank the mine the 17th highest grade in the world with an average grade of 9g/tonne. These high grades help drive low costs which are only $787/oz. There is a higher grade deposit in “Zone 8” which will come in phase 2. It was exciting to hear that prospecting had been faster and with better results than originally anticipated.
The management team have plenty of gold mining experience across the globe as well as a lot of experience working in the Red Lake region of Ontario. Between them they own 5% of the company and have also attracted a number of very experienced gold investors including Rob McEwen, Eric Sprott, AngloGold Ashanti and Newmont who together own over 30% of the shares.
The mine is fully funded and once in production will produce significant free cash flows. Initially these cash flows will enable expansion of the existing ore body, further exploration of the area and developing the phase 2 and Phase 3 plans but over time there could be a lot of cash coming back to shareholders.
Hmm, looks like I cannot post any links.
It's on Youtube and is dated 8 Sept 2020 and posted by O&M Partners.
Brookstreet, SpaceHoppa
Glad I can contribute to this board. Been a regular reader but never felt the need to post.
In any case, here's a very informative presentation about PUR. This is the same presentation long term investors would be familiar with. However, I would recommend you listen to the management Q&A which starts around the 45 mins mark. Some of the questions from the audience is quite technical but very useful in understanding the potential of land package and the resource which are not yet included in the initial phase 1 mine. Based on my limited understanding, I would not be surprised if they at least double the 2.5 million oz they have identified to date. Happy listening!
https://www.youtube.com/watch?v=ZHZV4PjhEos
Zeratul, all fair comment and I am also one of those who sees a great long term future for my investments in Pure.
The director sells are an opportunity to aquire more shares, as I have done, however the drip feed Rns of sells is annoying, even if they have good reasons and need the money.
Nicely summed up Zeratul , SP will sit between £1-25/£1-35 until we get more good news , gold price picking up again , this is a great long term hold , as ive previously said top up in the dips and hold . Good to see some a bit more chat on here .
SpaceHoppa
Ken Donner holds 1.5 million shares. He exercised his options and sold in the open market to raise some cash. His original holding has not changed.
I suspect we are during the options expiry period. So we may see more insiders exercise and monetise their options , which is part of their remuneration. It is time like this that shareholders should consider topping up when the share price has dipped. Once the drill results come out in the coming weeks, we should head back to the previous highs and ultimately to new highs as we approach first pour.
Eric Sprott believes PUR has the potential to be the next Kirkland Lake, which is good enough for me. KL used to trade less than $2 just 5 years ago and now trades at nearly $50. I'm not saying we will experience the same performance for PUR but I am willing to take a chance and will hold on to my shares and enjoy the biggest gold bull market we're likely to see in our life time over the next few years.
Just my 2 cents.
Another director flogs of his almost free shares , 300,000 in this case. Never a good luck.
On the plus side I found out I had 35,000 shares now, just hope directors don't keep sending out the wrong signal
It is almost as if they are trying to drive down the share price!
Thanks to the rather dumb market reaction,
to the rather small % sells of some directors,
as they trousered some cheap share money,
I managed to pick up another 7,000 shares, at 123p :-) Thanks
30,000 shares now, though hoping to increase as I rebalance my goldies.
"The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett.
131.25k buy at £131.25p before close! NICE
"The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett.
Thank you.
At the bottom of today's RNS;
The PureGold Mine, located in the heart of Red Lake Ontario, is Canada's next gold mine. Fully funded, the project is on track to deliver near term gold production into a rising Canadian gold price environment, with first gold pour scheduled for late 2020. The orebody is situated within a seven-kilometre-long gold system that is wide open for expansion at depth and along strike, and multiple discoveries by the Company suggest potential opportunities for near-term growth.