VANCOUVER, BRITISH COLUMBIA–(Marketwired – Nov. 14, 2016) – Pure Gold Mining Inc. (TSX VENTURE:PGM) (“Pure Gold” or the “Company”) is pleased to announce results from drilling at the Russet South target located at the Company’s 100% owned Madsen Gold Project (“Madsen”). These holes are part of the ongoing 77,000 metre drill program designed to expand the high grade Austin and McVeigh gold resource and to test and build continuity of high grade gold mineralization at Russet South and other satellite targets. Three drill rigs are currently testing the McVeigh and Austin horizons and one rig is testing satellite targets.
Highlights from drilling at the Russet South target include:
- 76.0 g/t gold over 2.1 metres in hole PG16-233
- Including 132.0 g/t gold over 1.1 metres
- 15.9 g/t gold over 1.0 metre in hole PG16-241
- 6.6 g/t gold over 9.9 metres in hole PG16-243
- Including 46.4 g/t gold over 1.0 metre
“These results demonstrate the near surface potential of the high grade gold system at Russet South,” stated Darin Labrenz, President and CEO of Pure Gold. “Our drilling to date has returned an exceptional hit ratio with nearly two thirds of the drill holes at Russet returning gold mineralized quartz veins. The mineral system at Russet South is related in setting and style to high grade mineralization at Madsen, and the continuity encountered highlights the potential to establish a near-surface resource within a short distance of the permitted mine infrastructure.”
Drilling at the Madsen Gold Project has successfully identified and expanded the footprint of gold mineralization in five related zones, all of which are open for resource expansion. Mineralization located near surface at Russet South shares a similar geologic environment to Madsen’s 8 Zone resource, situated 1.6 kilometres down dip on the same geologic contact. Similarly, recent drilling at the Starratt target has returned alteration and gold mineralization that also suggests a direct relationship to mineralization present at Madsen, including the A3 target within the Austin horizon, and the south-plunging gold mineralization present at the McVeigh horizon. Together these targets define a five kilometre long gold system that is open for drill expansion. Currently,four drill rigs are active on the five kilometre trend, with three drill rigs prioritized on potential resource expansion of the Austin and McVeigh horizons and a fourth rig targeting gold mineralization at the Starratt target.
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|
|*||Assay composites were calculated using uncut assays and are reported as drilled widths and interpreted to vary between 50% to 97% of true widths.|
For a plan map showing the setting of the Russet South targets and relationship to other Madsen zones, click link below: http://puregoldmining.ca/sites/default/files/Russet_plan_Nov14.pdf
For a cross section showing the Russet South targets, click link below: http://puregoldmining.ca/sites/default/files/Russet_S_xs_Nov14.pdf
For a complete list of 2016 drill results to date, click link below: http://puregoldmining.ca/sites/default/files/2016-DH-Intercepts-Table-November14.pdf
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 current 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.
- 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.
QA/QC and Core Sampling Protocols
Drill core samples are submitted to ALS Minerals in Thunder Bay, Ontario for sample preparation by crushing to 70% less than 2mm, a rotary split of 1kg, and pulverization of the split to better than 85% passing 75 microns. Sample pulps are shipped to the ALS assay laboratory in North Vancouver, B.C. for gold analysis with a 30g fire assay and AAS finish (code Au-AA23). Samples returning >5 g/t Au are re-assayed with a gravimetric finish (code GRA21). Mineralized zones with visible gold are also analyzed by a 1kg screen fire assay with screening to 100 microns. A duplicate 30g fire assay is conducted on the screen undersize with assaying of the entire oversize fraction (code Au-SCR21). Control samples (certified standards and uncertified blanks), along with field, prep and pulp duplicates, are inserted on a regular 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”, “upside”, “target”, “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.