Pure Gold Mining Inc.
TSX VENTURE : PGM

Pure Gold Mining Inc.

March 02, 2015 06:30 ET

Pure Gold Discovers High Grade Gold in First Drilling From Alpha Target at Russet South, Madsen Gold Project

Results include 8.2 g/t gold over 11.0 metres in hole PG15-028 including a higher grade interval of 15.0 g/t gold over 5.0 metres

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 2, 2015) - Pure Gold Mining Inc. (TSX VENTURE:PGM) ("Pure Gold" or the "Company") is extremely pleased to announce initial assay results from the ongoing Russet South drilling program located on the Company's 100%-owned Madsen Gold Project in the prolific Red Lake gold district of northwest Ontario. The Company is conducting a 5,000 metre winter drilling program specifically designed to test prospective geologic structures in the Russet South and Fork Zone areas with the goal of discovering new zones of near-surface, high-grade gold mineralization.

To date, approximately 1,000 metres of diamond drilling has been completed in eight drill holes at Russet South testing multiple, parallel 'D2' shear zones identified during the 2014 exploration field program. The initial two drill holes were collared on the Alpha Target to test the intersection of one of these D2 shear zones with a re-folded mafic-ultramafic contact; a setting analogous to recent high-grade discoveries in the Red Lake gold district. Assay results from the initial two drill holes testing the Alpha Target have been received and are reported in Table 1. Results from the other targets at Russet South will be reported as received.

Table 1 - Russet South Significant Assay Results(*)
Hole ID From (m) To (m) Length (m) Au (g/t)
PG15-027 96.0 99.5 3.5 9.5
Including: 98.0 99.5 1.5 18.8
PG15-028 75.0 86.0 11.0 8.2
Including: 77.0 82.0 5.0 15.0
(*) Assay composites were calculated using uncut assays and are reported as drilled widths and interpreted to vary between 85% to 100% of true widths.

"Management is extremely pleased with the initial drilling results from Russet South which targeted a new D2 geologic structure discovered during the Company's 2014 comprehensive exploration program," stated Darin Labrenz, President and CEO of Pure Gold. "We believe this new discovery of high-grade mineralization along a newly identified D2 shear zone at the nose of a re-folded ultramafic validates the Company's exploration philosophy and supports the high grade discovery potential that the company believes does exist at the Madsen Gold Project. Given the early success in the Russet South area, Management plans to mobilize a second rig to complete the winter drilling program."

Drilling with the existing rig will continue to test the Alpha Target and other identified D2 geologic structures at Russet South. Over the past year the company has, in part, focused its exploration efforts at Russet South which has included more detailed structural and alteration mapping, soil and rock geochemical sampling, and geologic modeling that have further delineated a zone of intense shearing and quartz-carbonate-biotite alteration penetrating the hinge of a folded mafic-ultramafic contact. The coincident anomalies are analogous to the high-grade 8 Zone discovered at depth in the early 1970's and highlight Russet South as a potential up-dip surface expression of the high-grade 8 Zone of the Madsen Mine.

Management plans to have the second drill rig complete the Fork Zone portion of the program. The addition of a second rig will allow the company to continue work on the new discovery at Russet South while concurrently testing further the Fork Zone. For reference, of the 5,000 metre drill program, Pure Gold is planning to conduct approximately 1,000 metres of drilling at Fork Zone to continue to delineate the southern and depth extent of this high-grade gold structure identified during the 2014 drilling campaign. Drilling has traced the Fork Zone for over 300 metres of strike and it remains open for expansion. Recently reported results include 14.6 g/t gold over 1.8 metres, 6.8 g/t gold over 2.0 metres, and 17.2 g/t gold over 3.5 metres (drill holes PG14-006, PG14-009, and PG14-011, respectively). MMI soil sampling in late 2014 returned a significant gold-in-soil anomaly associated with the mineralized trend approximately 200 metres south of the 2014 drilling. The new drilling will test this MMI anomaly, and the southern and down-plunge extension of the high-grade structure, which is projected to intersect the prospective folded mafic-ultramafic contact recently identified by Pure Gold geologists.

For a drill map showing Russet South drill locations, please click here:
http://www.puregoldmining.ca/sites/default/files/NR1505drillmap.pdf

For a cross-section showing up-dip potential, please click here:
http://www.puregoldmining.ca/sites/default/files/NR1505drillsection.pdf

QA/QC and Core Sampling Protocols

Check samples were submitted to ALS Minerals in Thunder Bay, Ontario for sample preparation by crushing to 70% less than 2mm, rotary split off 1kg, and pulverize 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 30 gram 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 re-analyzed by a 1kg screen fire assay with screen to 100 microns. A duplicate 30g fire assay is conducted on the screen undersize while assaying of entire oversize fraction (code Au-SCR21). Control samples (accredited standards and blanks) were inserted on a regular basis.

Qualified Persons

Darren O'Brien, 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 multi-million-ounce gold 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

Neither TSX Venture Exchange 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.

Certain statements made and information contained in this news release and elsewhere constitutes "forward-looking information" within the meaning of Canadian securities legislation. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may constitute forward-looking statements. Such forward-looking statements are based on certain assumptions and are subject to risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements. Such factors include, but are not limited to, fluctuations in the price of gold and other commodities, continued exploration success, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration and development results including any pending results set out herein will not be consistent with past results or the Company's expectations, changes in government legislation, taxation, controls, regulations and political or economic developments in Canada, risks associated with mining or development activities, the speculative nature of exploration and development, including the risk of obtaining necessary licenses, financing risk, and other risks and uncertainties including those described under Risk Factors in each management discussion and analysis and in the Company's annual information form which are available under the Company's profile at www.sedar.com. Many of these uncertainties and contingencies can affect the Company's actual performance and could cause actual performance to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Readers are cautioned that forward-looking statements are not guarantees of future performance. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those acknowledged in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws. Accordingly, readers are advised not to place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

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