SOURCE: Broadway Gold Mining Ltd

Broadway Gold Mining Ltd

November 07, 2016 09:00 ET

Broadway Gold Commences Underground Work

VANCOUVER, BC--(Marketwired - November 07, 2016) - Broadway Gold Mining Ltd. (TSX VENTURE: BRD) ("Broadway" or the "Company") is pleased to announce that it has contracted Groundhog Mining of Dillon, MT to immediately commence rehabilitation of the underground workings at Broadway's Madison copper and gold project ("Madison"). The rehab work will enable the Company's technical and operational team to access underground workings from which high-grade copper-gold mineralization was previously mined and Broadway believes there is potential for additional ore in these stopes. By shoring up the drifts and stopes, Broadway will be in a position to commence with a systematic sampling program including underground drilling as a first start of building a reserve, if deemed economically feasible, for future mining.

Previous Underground Results

Past sampling of the 600-level drift returned average grades of:

  • 0.429 ounces per ton (oz/t) Au with 155 truck grab samples and 13 chip or channel samples ranging from 0.010 to 2.728 oz/t Au.

Sampling from the 600-level stopes returned grades from:

  • 0.012 to 0.272 oz/t Au averaging 0.088 oz/t Au from 23 truck grab samples and 10 chip or channel samples; and,
  • 0.012 to 1.924 oz/t Au averaging 0.663 oz/t Au from 45 truck grab samples and one chip sample.

Seven underground drill holes into the 600-level stopes returned grades ranging from:

  • 0.272 oz/t Au across 11.5 feet in hole U10-03 to hole U10-02, which returned 74 feet at 0.743 oz/t Au.

Underground Work Underway

Concurrent to rehabilitation of the historic workings, planning for underground exploration at Madison is underway. The Company's geological team is conducting baseline studies and compiling all historic data to support the exploration program design. Systematic sampling is planned to include multiple underground drill holes scheduled to commence in Q1 2017. This drilling would test the down dip continuation of gold mineralization at the bottom of the mine workings, below the lowest level of the Broadway Mine.

Situated within Broadway's Madison project, the Broadway Mine operated from the 1880s to the 1950s and produced an estimated 144,000 ounces of gold (450,000 tons averaging 0.32 oz/t gold) from 6,000 feet of underground workings to a vertical depth of 750 feet. The deeper porphyry targets remain untested.

Madison is located near Silver Star, Montana in the Butte-Anaconda mining region, southwest of Montana's world famous Butte copper mine. Major producers in the area include Barrick Gold's Golden Sunlight gold mine and Montana Resources' Continental Pit copper mine.

All intersections are core widths that were not converted to true widths by the previous owner. All noted underground and core assaying was completed by Norris Laboratory of Norris, Montana, a non-ISO facility, with occasional check sampling done by the ISO-accredited ALS Minerals Lab in North Vancouver, BC.

Qualified Person

R. Tim Henneberry, P.Geo., a Qualified Person as defined by NI 43-101 prepared and approved the technical information contained in this release. All geological information provided in this press release, including all information on the Madison project, has been gathered during the Company's due diligence process and has not been independently verified by management.

About Broadway Gold Mining Ltd.

Broadway Gold Mining Ltd. is focused on the development of world-class assets with near-term production potential. The Madison gold and copper project, near Silver Star, Montana in the Butte-Anaconda mining region, provides an exciting opportunity as the area has never been fully exploited or explored. Broadway has identified a series of existing gold and copper zones that remain open for expansion.

Neither the TSX Venture Exchange Inc. nor its regulation services provider (as that term is defined in the policies of The TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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