VANCOUVER, BRITISH COLUMBIA–(Marketwired – April 27, 2017) – Pure Gold Mining Inc. (TSX VENTURE:PGM) (“Pure Gold” or the “Company”) is pleased to announce drill results from the ongoing 70,000 metre, four drill rig, exploration program at the Company’s 100% owned Madsen Gold Project (“Madsen”). Results reported herein include a number of significant achievements for Pure Gold and include the following highlights:
- The highest grade result to date returned from McVeigh being 133.4 g/t gold over 2.0 metres in hole PG17-307 including 264.9 g/t gold over 1.0 metre
- The deepest gold mineralized intercept drilled to date by Pure Gold intersecting the A3 zone at 600 metres vertical and returning 6.2 g/t gold over 3.3 metres in hole PG17-320
- Extension of the structures hosting mineralization in the McVeigh over 600 metres to the southwest in drill hole PG17-359 which returned 13.9 g/t gold over 1.5 metres in the Fork Zone. This confirms that McVeigh, Fork and Starratt target areas link into a common mineral system extending for over five kilometres.
Higher Grades at McVeigh
Drill hole PG17-307 intersected the highest grade result by Pure Gold to date in the McVeigh, returning 133.4 g/t gold over 2.0 metres, including 264.9 g/t gold over 1.0 metres at a depth of 225 metres below surface. This intercept lies approximately 150 metres below mined stopes on 2 Level and outside of conceptual areas studied for potential mining development in the 2016 PEA1. Drilling of the McVeigh continues to support geologic models highlighting internal continuity in south plunging mineralized shoots. The McVeigh remains open in all directions, with drilling currently focused on broader step-outs, outside the known extents of mineralization, with a goal of expanding the resource in proximity to the established infrastructure.
Drilling at the A3 Continues to Show Continuity of Gold Mineralization
Results reported herein have identified gold mineralization in a 60 metre step out on previously reported results from the A3 Target of 14.3 g/t over 1.0 metres in drill hole PG16-2822. Drill hole PG17-320 is the deepest gold mineralized intercept returned by Pure Gold to date in the A3 Target, highlighting gold mineralization at a depth of 600 vertical metres. Drilling targeting the A3, which is situated immediately in the hanging wall of the McVeigh, has now established a 500 metre plunge extent on the mineralized structure (see A3 long section).
Step-out Drilling Intersects Mineralization 900m South of McVeigh Portal at the Fork Zone
Drilling by Pure Gold intersected 3.9 g/t gold over 6.6 metres, including 13.9 g/t gold over 1.5 metres in a 150 metre step-out from PG14-011 which returned 17.2 g/t gold over 3.5 metres at a vertical depth of 130 metres3. This intercept establishes a strike length at Fork of 450 metres in a shallow south-dipping gold bearing structure which remains open for expansion. More importantly, drill hole PG17-359 has extended the gold mineralized structure that hosts the McVeigh Zone approximately 600 meters to the south of the southernmost McVeigh drilling to date.
New geologic modelling based on recent drilling has established the structural framework for the Fork Zone and reinforces the scale of the Madsen mineral system. This new work confirms the earlier postulation of strike continuity of the gold mineralized system between the Madsen and Starratt Mines, with approximately 2.5 kilometres from the Madsen #2 shaft to the Starratt Target (see Fork Plan Map) and 5 kilometres total strike length of the high grade gold-mineralized system.
“Our drilling has firmly established the expansion of the Madsen mineral system,” said Darin Labrenz, President and CEO of Pure Gold. “Today’s results show high gold grades intersected outside the limits of the existing resource and more importantly, significant step-out drilling has linked what were previously viewed as separate target areas into a common geologic model, demonstrating the potential size of the Madsen mineral system.”
Drill Results Summary
New assay results from select drill holes are outlined below:
| Hole ID | From (m) | To (m) | Length (m) | Gold (g/t) | Zone | |||||
| PG17-307 | 281.7 | 283.7 | 2.0 | 133.4 | McVeigh | |||||
| Incl. | 282.7 | 283.7 | 1.0 | 264.9 | ||||||
| PG17-320 | 697.0 | 700.3 | 3.3 | 6.2 | A3 | |||||
| PG17-338 | 502.8 | 504.8 | 2.0 | 5.9 | McVeigh | |||||
| PG17-359 | 164.0 | 170.6 | 6.6 | 3.9 | Fork | |||||
| Incl. | 165.0 | 166.5 | 1.5 | 13.9 |
*Assay composites were calculated using uncut assays and true widths are interpreted to vary from 50-100% (80%, on average) of reported core lengths above.
For a detailed long section showing the recent McVeigh West drill results, click link below:
http://puregoldmining.ca/sites/default/files/McVeigh-West-LS-04272017.pdf
For a detailed long section showing the recent A3 drill results, click link below:
http://puregoldmining.ca/sites/default/files/Austin-A3-LS-04272017.pdf
For a detailed long section showing the recent Fork drill results, click link below:
http://puregoldmining.ca/sites/default/files/Fork-Plan-Map-04272017.pdf
For a complete list of 2017 drill results to date, click link below:
http://puregoldmining.ca/sites/default/files/2017-DH-Intercepts-Table-April-27.pdf
Pure Gold’s 2017 exploration program is on-going with four drill rigs currently testing resource growth potential near the mine infrastructure and along the more than five kilometre strike length of the Madsen mineral system. The program is expected to include 70,000 metres of core drilling, and will include underground drilling, projected to commence in Q2 2017. Further results will be released as available.
ABOUT MADSEN
The Madsen Mine operated for over 36 years with historic production of 2.5 million ounces at an average grade of 9.9 g/t gold. The Madsen Gold Project hosts a permitted mill and tailings facility, and access to power, water and labour. The Madsen Gold Project has an Indicated Resource of 928,000 ounces gold at 8.93 g/t gold (in 3.24 million tonnes) and an Inferred Resource of 297,000 ounces gold at 11.74 g/t gold (in 0.79 million tonnes)1. The mineral resource is based on 13,624 drill holes, evenly dispersed throughout the mineral resource. A robust geologic model based on 27 levels of geological mapping and chip sampling provides a solid understanding of the geology and continuity of mineralization.
In addition to the mineral resource, the Madsen Gold Project hosts a number of prospective new discoveries including the Fork Zone and Russet South targets, as well as, two significant historic underground mines. Pure Gold believes the opportunity exists to advance these targets through the application of modern exploration science and a new understanding of the district.
(1) See the National Instrument 43-101 technical report entitled “Technical Report on the Preliminary Economic Assessment For the Madsen Gold Project,” prepared by Nordmin Engineering Ltd., dated effective April 20, 2016. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
(2) See Pure Gold news release dated February 28, 2017.
(3) See Pure Gold news release dated October 29, 2014.
QA/QC and Core Sampling Protocols
Drill core samples are bagged and sealed and submitted to SGS in Red Lake, Ontario for sample preparation by crushing to 75% less than 2mm, a riffle split of 1kg, and pulverization of the split to better than 85% passing 75 microns. Gold analysis is completed in the SGS Red Lake, Lakefield or Burnaby labs with a 30g fire assay and AAS finish (code GE-FAA313). Samples returning >5 g/t Au are re-assayed with a gravimetric finish (code GO-FAG303). Mineralized zones with visible gold and adjacent samples are also analyzed by a 1kg screen fire assay with screening to 106 microns (code GO-FAS51K). Two 30g fire assays are conducted on the screen undersize and combined with an assay of the entire oversize fraction. Control samples (accredited standards and non-accredited blanks) were inserted on a regular basis. Results are assessed for accuracy, precision and contamination on an ongoing basis.
Qualified Persons and 43-101 Disclosure
Phil Smerchanski, P. Geo., Vice President, Exploration for the Company, is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 (“NI 43-101”) and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.
ABOUT PURE GOLD
Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the next major discovery at the Madsen Gold Project in Red Lake, Ontario. And become Canada’s next iconic gold company.
Additional information about the Company and its activities may be found on the Company’s website at www.puregoldmining.ca and under the Company’s profile at www.sedar.com.
ON BEHALF OF THE BOARD
Darin Labrenz, President & CEO
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “planned”, “expect”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, “potential”, and similar expressions, or describes a “goal”, or variation of such words and phrases or state that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated June 17, 2016 in the section entitled “Risk Factors”, under Pure Gold’s SEDAR profile at www.sedar.com.
Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
Investor inquiries:
Adam Buchanan
Manager, Investor Relations
604-646-8000
[email protected]
