VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 31, 2016) - Pure Gold Mining Inc. (TSX VENTURE:PGM) ("Pure Gold" or the "Company") is pleased to announce additional drill results from the ongoing 77,000 metre drill program at the Company's 100% owned Madsen Gold Project ("Madsen"). Results reported herein include the first two drill holes from A3, a new high grade gold target within the Austin horizon, located in close proximity to existing infrastructure.
Highlights from drilling at the A3 target include:
- 25.4 g/t gold over 8.0 metres in hole PG16-229
- Including 41.3 g/t gold over 4.6 metres
- 16.7 g/t gold over 1.0 metre in hole PG16-231
"This new discovery continues to highlight the significant exploration upside at Madsen" stated Darin Labrenz, President and CEO of Pure Gold. "These are the first modern drill holes in what was previously an unrecognized target area of the Austin Horizon, located more than 100 metres from historic stopes. The fact that these initial holes returned such impressive results is a testament to the scale of the large mineralized system at Madsen and highlights the opportunity for near-term resource growth."
A3 - New Target Identified at Madsen
This new target lies beyond the southern limits of the historic mining in the Austin horizon and is interpreted to be another sub-parallel gold bearing structure that is open in all directions. Drill hole PG16-229, characterized by strong silicification and abundant visible gold, anchors the A3 at a vertical depth of 400 metres. Limited historic drilling that intersected what is now understood to be the A3 target includes 68.0 g/t gold over 3.1 metres from hole 7-13000 at a vertical depth of 330 metres and 18.3 g/t gold over 10.0 metres from hole 11-14125-NU at a vertical depth of 500 metres(1). The A3 discovery, a direct result of the application of modern geoscience on a data-rich project, has strong potential for mineralization over a one-kilometre dip extent. New geologic mapping of the surface expression along with current and historic drilling support this target model.
Four Drill Rigs Active at Site
Drilling of the Austin and McVeigh horizons is ongoing with three rigs on site. At the McVeigh horizon, drilling continues to expand the south-plunging gold mineralized system. Holes currently in progress have encountered strong alteration and mineralization in the southernmost step-outs on McVeigh to date. Additional deeper step outs designed to define the endowment potential of the McVeigh horizon are planned.
A fourth drill rig is currently active at Russet South with the goal of expanding the near surface, high grade mineralization discovered to date. This rig recently completed the first modern exploration program at the historic Starratt Olsen Mine, which shares a similar geologic setting to Madsen (see news release dated October 3, 2016). Hole PG16-215, previously reported as partial results, returned 15.1 g/t gold over 5.4 metres at the south end of the historic mine and together with previously reported hole PG16-198 represents a strike extent of approximately 1,100 metres. Further testing of the extent and nature of mineralization at Starratt is planned in 2016.
Drill Results Summary
New assay results from select drill holes are outlined below:
|*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 long section highlighting the location of results at the A3 target, click link below:
For a plan map showing the setting of the A3 target and relationship to other Madsen zones, click link below:
For overview and detailed long sections highlighting the McVeigh horizon results, click link below:
For a complete list of 2016 drill results to date, click link below:
Pure Gold's 2016 exploration program is ongoing with three drill rigs currently testing the Austin and McVeigh horizons and a fourth drill rig testing satellite targets, including Russet South and Starratt. The program is expected to include 77,000 metres of drilling in 2016. Further results will be released as available.
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)(2). 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.
||Historic drill hole results listed from the A3 target were completedprior to the implementation of National Instrument 43-101. A full discussion and cautionary language regarding historic sampling practices can be found in the NI 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.
||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.
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", "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.