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Underground drilling expands mineralized zones
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 5, 2017) – Pure Gold Mining Inc. (TSX VENTURE:PGM) (“Pure Gold” or the “Company”) is pleased to announce additional drill results from its 100% owned Madsen Gold Project (“Madsen”). Drilling from underground highlights expansion potential within the mineral resource, while surface drilling continues to identify and extend new zones of gold mineralization close to existing mine infrastructure.
Significant release highlights:
- Multiple drill holes collared underground from the Madsen ramp have intersected gold mineralization within the McVeigh deposit and outside of the current resource including drill hole PGU-0012 which returned 48.4 g/t gold over 6.0 metres and drill hole PGU-0004 which returned 12.5 g/t gold over 8.2 metres;
- Significant gold mineralization, modelled as a potential southward extension of the Fork Zone, has been intersected near surface in the footwall of the Starratt target, including 10.6 g/t gold over 3.1 metres in hole PG17-444 and 13.9 g/t gold over 2.0 metres in hole PG17-427;
- Drill hole PG17-454 returned 32.5 g/t gold over 2.0 metres in a near surface extension of the Austin that lies up dip of the current resource.
“Today’s results have returned exceptional widths and grades outside of the current resource and within a short distance of the existing underground infrastructure demonstrating the near surface resource growth potential that exists within the Madsen mine,” said Darin Labrenz, President and CEO of Pure Gold. “Further underground drilling will continue to target resource growth as well as firmly establish geologic and grade continuity in the McVeigh, Austin and A3 deposits. Additionally concurrent surface drilling, which remains an important part of Pure Gold’s growth strategy, continues to identify and extend gold mineralization well outside of the Madsen mineral resource highlighting the large mineral system in place at the Madsen Gold Project.”
Underground Drilling in the McVeigh Expands Mineralized Zones
Initial underground drilling from the Madsen ramp has been designed to test extensions to the current resource in the upper portion of the Madsen Mine. Drill hole PGU-0002 targeted lower grade mineralization on the margins of the mineralized resource within the McVeigh and returned results as expected. Extensions to this mineralization were targeted by drill hole PGU-0004 which returned 12.5 g/t gold over 8.2 metres and by drill hole PGU-0005 which returned 4.8 g/t gold over 10.8 metres, extending known mineralization outside the current resource by more than 10 metres. Similarly drill holes PGU-0008, PGU-0009, and PGU-0014 successfully targeted extensions to the McVeigh resource, expanding known mineralization by as much as 30 metres. Drill hole PGU-0012 returned 48.5 g/t gold over 6.0 metres above a zone of lower grade mineralization, and remains open for follow-up and expansion up dip.
Step-out Drilling Intersects Gold Mineralization 1,150 Metres South of Portal in Extension of Fork Zone
Additionally, drilling south of the Fork Zone has intersected 7.5 g/t gold over 1.1 metres in a 260 metre step out from hole PG17-359 which returned 13.9 g/t gold over 1.5 metres. Additional step out drilling reported herein includes hole PG17-427 which returned 13.9 g/t gold over 2.0 metres and drill hole PG17-444 which returned 5.4 g/t gold over 7.3 metres including 10.6 g/t gold over 3.1 metres. This drilling expands mineralization in the shallow plunging Fork Zone to over a 700 metre strike length. Additional surface work and target modelling demonstrates that the mineralized system has further potential for expansion to the south and to depth.
New Gold Mineralization Intersected In the Austin Outside of Current Resource
Drill hole PG17-454 targeted shallow gold mineralization in the Austin outside of the current resource The hole returned 32.5 g/t gold over 2.0 metres at a vertical depth of approximately 135 metres and located approximately 180 metres up dip of the resource model in this area. Drill hole PG17-429, which also targeted up dip extensions to the Austin resource, returned 8.5 g/t gold over 1.0 metre.
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|
|PG17-402||47.0||48.1||1.1||7.5||Fork – 8600E|
|PG17-427||30.5||32.5||2.0||13.9||Fork – 8600E|
|PG17-444||93.0||100.3||7.3||5.4||Fork – 8600E|
*Assay composites were calculated using uncut assays and true widths are interpreted to vary from 70-90% (80%, on average) of reported core lengths above.
For a set of figures showing the setting of drill results, click link below:
For a complete list of 2017 drill results to date, click link below:
The Madsen Gold Project has historic production of 2.5 million ounces of gold and remains one of the highest-grade, undeveloped gold projects in the world.1 With an indicated resource of 1,648,000 ounces gold at 8.9 g/t gold (in 5.79 million tonnes) and an inferred resource of 178,000 ounces gold at 9.4 g/t gold (in 0.59 million tonnes), the Project benefits from existing infrastructure including a mill and tailings facility, paved highway access, and access to power, water and experienced labour.2
(1) Sourced from the Natural Resource Holdings Global Gold Mines & Deposit Ranking of 2013
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 lab 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 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.
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 16, 2017 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.