Pure Gold Mining – Production and Exploration update – Commercial Production expected shortly and a large drill program focused on growth

April 26, 2021

Darin Labrenz, President and CEO of Pure Gold Mining (TSX.V:PGM – OTC:LRTNF) joins me to provide a comprehensive update on the ramp up of production at the Red Lake Mine in Red Lake Ontario. After the first gold pour at the very end of last year the Company is expecting commercial production to be announced in the very near term. There is also a large exploration program ongoing focused on resource growth and following up on recent new discoveries.

From a number of emails I received I know a lot of you are shareholders or simply following the Company. Please keep the questions coming to

Click here to visit the Pure Gold Mining website and read over the recent news.

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    Apr 26, 2021 26:44 AM

    Thanks Cory for this interview. I have a small position which I am thinking of increasing. The stock has been hit because of grade problems as they started up…….will this change? Grade is king. My Sprott broker sez this is the BIG question which is yet to be answered.

      Apr 26, 2021 26:05 PM

      Good interview guys. It was nice to get the update from Darin, and for him to address the initial ramp up challenges on water/pumping and the over-break dilution in the ore initially, which as he noted in the interview, have already now been overcome.

      In my opinion, the fickle resource investors have over-reacted to the kinds of challenges we see almost every time when a new mine gets commissioned and goes into ramp up, and much of the chatter seen on resource boards over at, stockhouse, fintwit, etc… is still focused on the issues that have already been resolved.

      It is typically a good contrarian indicator when the retail mob starts bashing a quality asset, or throws in the towel due to FUD (Fear Uncertainty and Doubt), at exactly the wrong time, so I’ve started to add back to my Pure Gold position.

      The biggest aspect being missed currently is the enormous exploration upside potential on their property around the mine, but also at depth. The grades they hit at the 8 Zone are eye popping, and very reminiscent of the kind of grades that Goldcorp hit when they really broke out at their Red Lake Mine next door (now operated by Evolution Mining). If Pure Gold can keep hitting as they go deeper, similar to the Red Lake Mine, then it could very well be a game changer.

        Apr 26, 2021 26:06 PM

        Pure Gold has become Poor Gold! LOL! DT

          Apr 26, 2021 26:42 PM

          That’s just the thing, they are Gold rich, with their known resources, and also the massive exploration upside.

          Most investors, with only a short-term attention span, sold out during the ramp-up hiccups, which I pretty much expect from any new mining operation, and have driven the share price back down to where it is quite attractive again.

          If anyone listens to the interview with Darin it is quite clear that they’ve turned the corner on those challenges and are now operating at the stated throughput and gearing up for commercial production in the near future.

          The only ones that will be poor are the resource investors that keep selling at the wrong times and buying at the wrong times. I sold 2/3 of my PGM position in December near their first gold pour at much higher prices, anticipating it would have these initial challenges, then sell off for the first few months when folks rotated out to go chase other shiny objects, and then wait for my chance to accumulate lower. Now that opportunity has arrived, and I’ve just started adding to my position again, when most “poor” investors are going to be selling at the wrong time. I actually hope the share price pulls back a bit further so I can accumulate into that weakness, and will happily buy the shares the weak hands are selling. 😉

    Apr 26, 2021 26:49 AM

    Thanks, Cory. I bought some Pure Gold last week as I like the chart.

      Apr 26, 2021 26:16 PM

      I’m the original Gold Bull. I can’t get no respect !!!!

        Apr 26, 2021 26:49 PM

        I’ve been waiting for over 8 years since Bill Holter and Harvey said gold would be up over $10,000 “”overnight””. Sinclair’s and Holter says no problema. Mucho grande now it’s $50,000 gold. Just don’t look at the Comex price. Theoretically, your rich. Don’t pay attention to the price. It’s all an illusion. Experts are right. Just can’t argue with them. They don’t return phone calls or emails. 😂

    Apr 26, 2021 26:28 PM

    What you didnt ask is if they will achieve their 9g/t or not. Commercial production at a lower grade wouldnt cut it.

    Apr 26, 2021 26:12 PM

    PGM is impaired until they restore investors confidence. That will happen when they produce the volume and grade they said they would for 2+ quarters. Owned it and sold it. Big disappointment and CEO may be out of a job soon.

      Apr 26, 2021 26:41 PM

      There has been insider selling……..I assume on the run up in December

      Apr 26, 2021 26:45 PM

      They are running the stated throughput now, as Darin mentioned in the interview, and I seriously doubt he’ll be out of a job soon, unless another larger company takes over Pure Gold. That may happen down the road, after they start showing the market just how many more resources they can build though the drill bit, but I hope that is still 2-3 years away.

        Apr 26, 2021 26:00 PM

        I exited recently, but I still like Red Lake.

          Apr 26, 2021 26:24 PM

          I exited for tax purposes. You never know why people trade. The same issue arises when insiders sell…Seda never asks why.

        Apr 26, 2021 26:02 PM

        I would like to buy Pure Gold at just under $1. The sellers aren’t happy as they bought at much higher prices. If you want to be successful you must be a shark. DT

          Apr 26, 2021 26:22 PM

          Great points DT. Yes, the sellers now are crying in their soup because they bought into the first gold pour hype, instead of selling into it. The time to buy Pure Gold was a year or so out from the first gold pour in the “Golden Runway” phase of the mining cycle, and they’d have had fantastic returns. I know I sure did.

          Now the same retail horders are selling at a loss after the corrective move in the stock, was was partially due to the initial ramp-up issues and also partially due to weaker gold market the last 7-8 months, at precisely the wrong time.

          Like we’ve discussed on here so often, so many investors claim they want “Buy Low, and Sell High,” but rarely do. Instead most investors “Cry Low, and then Buy High.”

          Some things never change… 😉

            Apr 26, 2021 26:32 PM

            Doc and I bought Pure Gold last week. Looks like the bottom is in from the chart.

          Apr 26, 2021 26:44 PM

          Many bought at 40 cents and then sat at 60 cents for a long time. Pure Gold made good profits and $1 was not a bad exit. It was getting up to the higher levels that took time. But, a lot of profits.

            Apr 26, 2021 26:50 PM

            Clarify: $1 not a bad exit on the way down after the exiting on the way up from 40/60 cents.

            Apr 26, 2021 26:21 PM

            I have also owned KL and sold to buy Great Bear which I sold some to buy who knows what. Since I sold Pure Gold doesn’t mean I couldn’t buy KL with it or maybe Sun Summit….

        Apr 26, 2021 26:19 PM

        I don’t disagree with you Ex, but it still comes back to grade. Darin has to show it for a couple of quarters as mentioned above. I will be following the price closely & add some I expect.

          Apr 26, 2021 26:28 PM

          What I took away from the interview is that the grade is there, and always has been.

          In Q1 they ran lower-grade stockpiles through the mill to get it ramped up, like almost every company does when commissioning a new mine, so that clearly wouldn’t be the normal grade, but is to be expected. Nobody commissions a new mine with their best grade right of the gate during ramp up.

          The main challenge was the over-break (where they diluted the good grade with too much dilution from the surrounding waste rock). It was a mining issue, not a grade issue, and as Darin mentioned, they’ve learned their lesson there, and are now mining effectively.

          If someone at Sprott doesn’t understand that, then they may want to do a little bit more homework as to what the issue actually was, instead of spreading false information. It was not grade, it was dilution of the ore from the overbreak, and the initial lower grade ore used during the ramp-up of the mill. The grade of their mineral reserves is not in question.

            Apr 26, 2021 26:11 PM

            Ex, you are in my belief the smartest trader on this site, but I believe the bottom in Pure Gold has yet to come, but this is just one stock of many that you are knowledgeable about. DT

            Apr 26, 2021 26:14 PM

            Thanks DT. That is nice of you to say.

            Yeah, I’m not sure where PGM will bottom, but it is much more attractive to start accumulating now, than where I was selling the middle of December. If anything, the project is more de-risked now, after working through most of their start-up challenges, the shares have pulled back by about 58%+; and yet, all their gold is still in the ground like it was 5 months ago, they’re ramping up to commercial production in the next 2 months, and they have some very intriguing exploration drilling planned for this season.

            As a result, I see the current valuation at $1.25 far more attractive, from a risk reward perspective, than were it was at $3 before their first gold pour. If it pulls back down even lower closer to $1 then I’ll be accumulating into that weakness.

            Apr 26, 2021 26:23 PM

            It should also be noted that if they keep finding the kind of high grade they did in a few holes into the “8 Zone” at depth, and end up showing they have similar grades going further down, similar to what their neighbors at the Red Lake Mine has, then even those retail investors that bought near the top will be bailed out, as PGM will be going much higher than $3 in that kind of scenario.

            Apr 26, 2021 26:55 PM

            I am looking to see how the Roxgold deal works out over the next few days…may be back in Pure Gold.

            Apr 26, 2021 26:21 PM

            Ex’s trading and knowledge is very impressive. I appreciate all he does.

            Apr 26, 2021 26:02 PM

            Thanks for the kind words David. It is appreciated.

            Yes, I’m glad you mentioned the Roxgold takeover by Fortuna. It’s another Silver company acquiring more Gold production assets. I didn’t want to see Roxgold get picked off this early in the cycle before they got their 2nd mine built, and I was hoping it would be part of a larger Gold producer. It’s kind of an odd business combination, and I’m trying to understand the synergies between a Latin American Silver producer and a West African Gold producer, but maybe it’s just diversification in jurisdiction and commodities to form a larger precious metals vehicle for investors. (?)


            (FSM) (FVI) Fortuna and (ROXG) (ROGFF) Roxgold Agree to Business Combination Creating a Low-Cost Intermediate Global Precious Metals Producer

            April 26, 2021


            Apr 26, 2021 26:20 PM

            I find the news somewhat confusing. They say .283 shares of Fortuna for each share of Roxgold. But then say a price of $2.73 C. If the price is good, then that is around $2.20 US. But the price of Fortuna dropped and the market appears to think the price now equates to $1.80 or so. So I guess I am confused whether the .283 applies to the price of Fortuna at the time of transfer or is the $2.73 C a guarantee. Not clear to anyone.

            Apr 27, 2021 27:03 AM

            You’re getting .283 shares of fortuna,they just say it’s worth $2.73 to roxgold shareholders as that’s what it was worth at the time of the deal …….. I don’t understand the synergies at all and am not waiting around hoping for another higher bidder(an African based gold producer which is what I expected when I bought it)… sold as soon as I could and moved it into my copper exploration plays…… as for pure gold I’m hoping to add again but am being really particular with price….eyeing for the gap from its huge run last year to fill

    Apr 26, 2021 26:55 PM

    Gold drop. Platinum Copper Lithium continue.

    Apr 26, 2021 26:20 PM

    I’ve owned Pure Gold for some time and sold none on the move higher—I’m still sitting with profits and will add when I think it bottoms in the next 4 weeks. It’s one of those stocks that I want to hold for the long term due their indicated gold and the potential gold that they have not drilled yet.

      Apr 26, 2021 26:00 PM

      Why hold it on its way down when there are a zillion better opportunities in the PM space right now? Support for PGM is around $1.00. Held the stock for 3 years and made > 100%. No, didn’t sell at the exact top because Oxygen Group has stellar mgmt record. Redeployed capital to better opportunities. PGM will get its act together, but the stock needs a lot of time to repair.

      Apr 26, 2021 26:37 PM

      Doc, I bought my 1st shares of Pure Gold last week@1.03 so you know the bottom is in, unless I am mistaken, as I often am… Melania Trump turns 51 today.

    Apr 26, 2021 26:51 PM

    Didn’t see PGM shares at $1.03 recently. More likely at $1.30 (typo maybe?). See that it was even at $1.25 today. Although I have reservations as to how soon Pure Gold can achieve self sufficiency and pay it’s bills from operations, I firmly believe they are doing all the right things to eventually produce results. Not overly keen of management having to go back “hat in hand” to Sprott or any of the other major shareholders for additional monies to fund daily operations. Commercialization coupled with cashflow self sufficiency from operations is what I, as an investor, eagerly await. Management needs to demonstrate it not only has the capability to deliver but actually do so.

      Apr 27, 2021 27:22 AM

      Satch, Bonzo is probably buying in US dollars, not Canadian.

        Apr 28, 2021 28:41 PM

        Thanks Matt. Appreciate the logical explanation… was an oversight on my part.
        Solid group of contributors here. Definitely knowledgeable and helpful!

    Apr 26, 2021 26:40 PM

    If you can’t beat them, join them? JP Morgan to create BITCOIN FUND after caving to clients’ crypto-lusts
    27 Apr, 2021 00:54

      Apr 27, 2021 27:22 AM

      JP Morgan: A “paper derivative” of the real thing. Where have I heard that before.

      Apr 27, 2021 27:04 AM

      Yes, using the Stan Weinstein method of the 30 week MA, it was sell as you pointed out. I sold out 2/3 of my PGM position on Dec 11, 2020, anticipating the typical selloff after first gold pour (which ended up being Dec 30, 2020).

      Matthew – Good reminder on using the 30 week MA. I need to run some other stocks the Weinstein lens and see what “stage” they are at.

    Apr 27, 2021 27:32 AM
      Apr 27, 2021 27:59 AM

      Nice to see a couple of weeks break out of that upper declining trendline of the compression triangle in GDX. Encouraging.

    Apr 27, 2021 27:35 AM

    The week has just begun but I bet this weekly MACD buy signal sticks as the miners foreshadowed weeks ago (and I bet the breakout will also stick, of course):

      Apr 27, 2021 27:23 AM

      Isn’t there a Fed meeting or something to do with the Fed this week? If so, we need that farce behind us.

        Apr 27, 2021 27:21 AM

        Yes, a two day meeting that ends tomorrow. It sure is annoying that so many care so much about Fed drivel even when the central planners are cornered by their own mismanagement.

    Apr 27, 2021 27:38 AM

    The low for gold vs oil happened 2 months ago and is likely THE low for months at least.

    Apr 27, 2021 27:44 AM

    The bears lost control weeks ago but many don’t seem to realize it:

    Apr 27, 2021 27:31 AM

    Galleon Gold Reports Near Surface Intercepts at West Cache Gold Project – 9.37 g/t Au over 6.0 m

      Apr 27, 2021 27:56 AM

      Yup…..looking like the force of Matthew is stronger than the curse of the Wolfster. 😎

      Apr 27, 2021 27:26 AM

      Somebody mentioned that Galleon is looking at a reverse split. Can anyone verify if that has any legs? I am just asking the question and have no source for any truth to its validity. Do your own research for sure on that issue.

        Apr 27, 2021 27:59 AM

        The shares WILL be consolidated and I’d bet that it will be at least one for ten (ten shares become one).

          Apr 27, 2021 27:13 AM

          Thanks Matthew. Good to know.

        Apr 27, 2021 27:16 AM

        The president, CEO and chairman, David Russell, indicated that it could be announced along with the new resource estimate and PEA that’s coming soon and that seems like a good idea to me since there is sure to be more volume then. Either way, it’s probably already priced-in for the most part since it will come as no surprise to any large holder.
        It’s .125 now so I’m glad I was a buyer at .065 not long ago!

          Apr 27, 2021 27:34 PM

          Glad to join the ride just regret having only nibbled. Solid day. Thanks for the heads up Matthew

    Apr 27, 2021 27:05 AM

    Thanks you guys for putting it out there. Still growing trees….