Operations resume after more than two and a half years on care and maintenance, with first gold pour targeted for November as the Company advances towards the final close of its current financing and planned H1 2027 public listing
CALGARY, AB / ACCESS Newswire / November 3, 2026 / Pilar Gold Inc. ("Pilar Gold" or the "Company") is pleased to announce the restart of underground mining operations at its flagship Pilar de Goiás Desenvolvimento Mineral ("PGDM") gold complex in Goiás, Brazil, marking a major milestone in the Company's return to production and preparations for a planned public listing in the first half of 2027.
The restart comes as Pilar Gold moves towards the final close of its current C$0.30 per share financing, which has attracted subscriptions of more than C$10 million against an initial C$5 million target. (More information here)
Following the completion of an extensive underground safety and infrastructure upgrade programme and receipt of the necessary government approval, operations recommenced on 20 October 2026, with ore now being hauled from the underground workings. The Company is targeting its first gold pour by the end of November, followed by a phased production ramp-up towards approximately 40,000 ounces of annual gold production in 2027 and approximately 80,000 ounces in 2028.
Operational Restart and Production Ramp-Up
Pilar Gold's PGDM complex includes an existing 4,500-tonne-per-day gold processing plant, three underground mines and an open-pit development project.
The restart follows more than two and a half years on care and maintenance, during which the Company undertook extensive work to upgrade underground safety systems, refurbish infrastructure and prepare the operation for renewed production.
The Company has also invested in a new underground mining fleet, including equipment supplied by Resemin, Sotrex and JCHX, alongside the refurbishment of its existing Sandvik equipment. The upgraded fleet is expected to improve operational efficiency, equipment availability and reliability as production increases.
The embargo affecting the tailings dam licence has also been lifted, allowing the Company to advance the remaining activities required for its anticipated first gold pour.
Production Growth Strategy
Pilar Gold's production growth strategy is structured around two principal phases.
Phase 1 - 2027: Ramp-up of underground mining operations, targeting approximately 40,000 ounces of annual gold production.
Phase 2 - 2028: Expansion through the addition of further underground production, including Maria Lázara and Caiamar, together with development of the Três Buracos open-pit project, supporting the Company's target of approximately 80,000 ounces of annual gold production.
With an established processing facility, developed underground workings and substantial existing infrastructure, PGDM benefits from significantly reduced development requirements compared with a new greenfield mining operation.
Enrique de Alvear, Chief Executive Officer of Pilar Gold, commented:
"It is an exciting day for Pilar Gold and marks the beginning of the long-awaited production restart at PGDM."
Production Restart Supports Planned H1 2027 Public Listing
The resumption of mining operations represents an important step in Pilar Gold's preparations for its proposed public listing during the first half of 2027.
The Company's strategy is to approach the public markets with mining operations re-established, gold production underway and a clearly defined programme for increasing output across the PGDM complex.
Management believes that achieving key operational milestones ahead of the proposed listing will strengthen the Company's investment proposition by allowing prospective public-market investors to evaluate Pilar Gold on the basis of its operating assets, production performance and future growth potential.
The anticipated first gold pour, subsequent production ramp-up and continued development of the Company's mineral resource base are expected to provide additional operational milestones as Pilar Gold progresses towards the proposed listing.
The proposed listing remains subject to market conditions, regulatory approvals and completion of the necessary corporate arrangements.
Mineral Resource Update
Alongside the operational restart, Pilar Gold has commenced work on an updated mineral resource estimate across the PGDM complex.
The Company currently reports a mineral resource of approximately 4.07 million ounces of gold, based on its June 2023 NI 43-101 technical report and a gold price assumption of US$1,700 per ounce.
The updated work will assess the effect of revised gold-price assumptions and corresponding lower cut-off grades on the existing mineral resource base.
Management believes this work has the potential to increase the reported mineral resource without additional drilling, although the final outcome remains subject to completion of the technical assessment and appropriate independent review.
Financing Update
Pilar Gold's current private placement financing at C$0.30 per share has attracted subscriptions exceeding C$10 million, compared with the Company's original C$5 million target and is now in its final stages. More information here.
The financing has therefore exceeded its initial target as the Company advances the restart of operations, its production growth programme and preparations for a planned public listing.
The proceeds are expected to support the production restart and ramp-up, working capital requirements and the Company's broader development plans.
Outlook
With underground mining operations now restarted, Pilar Gold's immediate priorities are to achieve its first gold pour, advance the production ramp-up and continue preparations for its proposed public listing.
The combination of established processing infrastructure, a substantial existing mineral resource base and a phased production expansion strategy provides the Company with a platform for its next stage of growth.
Further updates will be provided as Pilar Gold achieves additional operational and corporate milestones.
About Pilar Gold Inc.
Pilar Gold Inc. is a Canadian gold mining company focused on the production and development of gold assets in Brazil.
Its flagship Pilar de Goiás Desenvolvimento Mineral complex in Goiás comprises an established 4,500-tonne-per-day gold processing facility, multiple underground mines and an open-pit development project.
The Company's strategy is focused on increasing production from its existing operations, developing additional mineral resources and advancing towards a planned public listing during the first half of 2027.
For further information on Pilar Gold, please see here.
Investor and Media Enquiries
Edward Balme
Pilar Gold Inc.
Edward.Balme@PilarGold.com
SOURCE: Pilar Gold Inc
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/metals-and-mining/pilar-gold-restarts-underground-mining-operations-in-brazil-advancing-plans-for-h-1245740
