PureGold Mining is North America's Newest High-Grade Gold Producer

PureGold Mining (TSX.V:PGM)(OTC:LRTNF)(LSE:PUR) is North America’s newest high-grade gold producer. The gold grades at our mine are 6.5x the global industry average.¹ And our growth story has only just begun…

We started pouring our first million ounces on December 29, 2020. And we expect our production to be fully ramped up to commercial levels later this year. We are located in one of the top mining jurisdictions in the world.

And our PureGold Mine is one of the highest-grade gold mines on the planet. Our mine is expected to be the 4th highest-grade gold mine in Canada and 16th highest-grade in the world.¹

But PureGold is more than just a high-grade mine in a tier one jurisdiction.

• Our team has extensive experience in finding, building, and operating mines. It’s what we do. It’s in our DNA. All of this is happening at a time of historic strength for gold.
• Key strategic investors include AngloGold Ashanti, Newmont (which acquired Goldcorp in 2019), and legendary investor and billionaire Eric Sprott, all of whom recognize the value proposition and potential for growth, underpinning PureGold’s mine plan.
• Simultaneous with our Phase One mining operations, we will be continuing our aggressive discovery program with the goal of expanding our gold resources. Our growth story is just beginning. We believe we’ve only barely scratched the surface in terms of defining the scale of our high-grade gold deposit.

We are committed to becoming Canada’s next iconic high-grade gold producer, and to developing one of the greatest gold mines in Red Lake’s rich history of gold production.

We hope you’ll take the time to discover more about PureGold Mining (TSX.V:PGM)(OTC:LRTNF)(LSE:PUR).

HISTORIC LOCATION and HIGH GRADE GOLD

Not only is our PureGold Mine in Canada, with its low geopolitical risk, it is situated in one of the world’s richest and most prolific gold mining camps. Red Lake is a Tier One jurisdiction, and a birthplace of gold mining giants.

Red Lake has seen over a century of gold production. More than 30 million ounces of high-grade gold has been produced in the Red Lake camp. Over 90% of that has come from just two producing gold operations; the Red Lake Mine Operation, and PureGold’s own property, located right next door.

This equates to over US$54 billion total value of gold mined in Red Lake to date.²

In less than six years, PureGold has defined a 2.1-million-ounce Indicated Resource (7.2 Mt @ 8.9 g/t Au), and a 0.5-million-ounce Inferred Resource (1.9Mt @ 7.7 g/t au) at the PureGold Mine. Mineral resources are inclusive of Probable Mineral Reserves of 1 million ounces of gold grading 9 g/t.³

Our team, with its extensive experience of mining gold in the area, recognized that the size of the deposit had potential to be much larger than previously thought. New ideas led to new geological models, and when tested by drilling, led to multiple discoveries at surface and at depth, across a 7-kilometre trend.

Our system is also deep rooted (we’re finding high-grade gold at more than 2km underground). The PureGold Mine deposit was formed exactly the same way as the legendary Red Lake Mine 15 km to the North. We have similar rocks, structure, timing and geology. Both deposits exceed 7 kilometres in length and are considered high-grade.

Note: Conceptual mineralization shapes indicated are conceptual only and have been interpreted from very limited drilling data including re-logging of drill hole AD-11-01. While it is geologically reasonably that additional exploration below the Madsen deposit could identify additional resources of the same style and nature, there is no certainty that such mineralization would form mineral resources or that these would be converted into mineral reserves, once economic considerations are applied. 1. Mineral Resources are inclusive of Mineral Reserves; see Page titled ‘Mineral Reserves & Resources’ for full report tables https://www.puregoldmining.ca/our-mine/reserve-resources/

In short, we believe our deposit is similar to the high-grade deposits at the nearby Red Lake Mine Complex. The high-grade Red Lake Mine ultimately transformed Goldcorp (now part of Newmont) from a small junior producer to the largest gold mining company in the world by market capitalization, with a peak market cap of USD $45 billion.⁴

But the Red Lake Mine has been mined for the past 75 years and is still going strong today, at a depth of up to 3000 metres. At our PureGold Mine, we’re just getting started… We plan to be here, mining high-grade gold, for a very long time.

IN RED LAKE ONE DRILL HOLE CAN CHANGE EVERYTHING

PureGold is focused on increasing the overall scale and size of our mineral resources.

And while we’re busy mining our first million ounces of gold…

Our next million ounces, have already been discovered.

Through 2021, we’re completing an additional 50,000 metres of highly focused exploration and expansion drilling along our 7km Gold Corridor.

And, we are working to accelerate access to deeper, very high-grade zones that lie near the base of our Phase One Mine.

Some of the highest known grades on our property are located 1km beneath the surface in an area called the “8 Zone.”

Early drilling in our 8 Zone returned several very high-grade results, including 466 g/t over 4.3 m (Using that drill intercept as an example, that means the drill contained 4.3 metres of rock that averaged 466 grams of gold per tonne).⁵ That grade is more than 51x the average grade of the rest of the PureGold Mine.^5,6

We believe our 8 Zone is geologically similar to the famous High Grade Zone – or “HGZ” – at the Red Lake Mine Complex, which transformed the fortunes of Goldcorp in the early 2000s and propelled the company to a peak valuation of $45 billion. ^4,10

The HGZ was a zone within the deposit that held around 6 million ounces of high-grade gold—averaging about 10-times higher-grade than the mine’s production averages at the time. With this discovery, by 2004, Goldcorp’s Red Lake Mine increased annual gold production from 54,000 ounces to over 550,000 ounces, and its average gold grade increased from 8 grams to over 77 grams per ton, making it the lowest-cost gold mine on the planet at the time.⁷

But to put things in perspective, Goldcorp’s High Grade Zone had nine initial drill holes that returned an average intercept of 280 g/t gold over 2.4 metres.

We’re sprinting to further develop our 8 Zone. And we’re excited to share the results. We believe the high-grade gold in the 8 Zone is one of the keys to PureGold’s transformational growth to an iconic gold producer.

Notably, the very first outside investor to support PureGold’s entry into Red Lake was Goldcorp founder and CEO Rob McEwen.

Eric Sprott, another of our cornerstone investors, says that PureGold reminds him of another gold company in which he was a key strategic investor, Kirkland Lake Gold. Similar to Goldcorp, Kirkland Lake Gold was transformed after it made two high-grade discoveries – one at its Macassa mine in Canada, and another at Fosterville in Australia.

Macassa jumped from producing 31,000 oz. per year in the 2000’s to 241,297 oz. of gold in 2019.⁸ Fosterville’ s production jumped from 82,000 oz. in 2007 to 619,366 oz. in 2019.⁸ And over that period, Kirkland Lake Gold’s value jumped from $200 million to over $10 billion today, thanks largely to the explosive transformative growth of these new high-grade discoveries.^8,11

Mr. Sprott says of PureGold’s 8-Zone:

The ultra-high grade hits in the 8-Zone remind me a lot of the HG Zone that built Goldcorp, as well as SMC at Macassa and the Swan Zone at Fosterville. These are the types of discoveries that have the potential to be company makers and tend to lead to a much higher production profile than originally given credit.⁹

It’s an outstanding endorsement to have a mining visionary like Eric Sprott, who has experienced this scenario repeatedly, support our team’s thesis and put his capital to work at our PureGold Mine.

FOUR TITANS OF GOLD MINING ALREADY INVESTED IN PUREGOLD

While many investors are not yet familiar with PureGold and our Mine, four titans of our industry are already major investors:

• AngloGold Ashanti, the world’s 3^rd largest gold mining company
• Newmont, the world’s largest gold mining company (which acquired Goldcorp in 2019)
• Legendary resource investor and billionaire Eric Sprott. After initially investing $20M in PureGold, Sprott invested another $10M in May of 2020.
• Goldcorp founder Rob McEwen, was the lead investor in PureGold. McEwen obviously knows Red Lake as well as anyone, having discovered the high grade zone, and developed the nearby Goldcorp’s Red Lake Mine Complex as Goldcorp’s Founder and CEO.

Together they own over 30% of PureGold. We think their continuing endorsement of our company speaks volumes about its intrinsic value and tremendous growth potential.

And with our leadership team’s extraordinary wealth of experience in finding, building, and operating mines, we are excited to continue to demonstrate the true growth potential of the PureGold Mine.

Our team at PureGold are proven mine finders and builders. Our Founders Team have been involved in the discovery of 64 deposits, many of which have gone on to become mines. We have collectively built and operated 68 mines around the world, including the historic Red Lake Mine Complex, which has produced 25 million ounces right here in Red Lake Ontario. We have six board members and executives with deep Red Lake experience, including our CEO, Darin Labrenz, who was the head geologist in the mid 1990’s for mining giant Placer Dome at The Campbell Mine, part of the Red Lake Mine Complex.

In fact, our Owners Team has a collective 135 years of Red Lake experience, amassed over 10 projects in the camp, including exploring and operating at the Red Lake Mine. We cut our teeth and launched our careers in the Red Lake Camp.

DISCOVER MORE ABOUT PUREGOLD (TSX.V: PGM)(OTC:LRTNF)(LSE:PUR)

We invite you to discover more about our company and the PureGold Mine, North America’s Newest High-Grade Gold Producer. We are committed to making PureGold Canada’s next iconic gold producer.

We have created a short documentary video that tells our story and explains why we are so excited about the future of PureGold Mining. You can watch it here.

 

Should you have any questions, please free to contact our investor relations team.

Contact Our Investor Relations Team