Pure Gold Mining Inc.
TSX VENTURE : PGM

Pure Gold Mining Inc.

October 23, 2014 06:30 ET

Pure Gold Intersects Near Surface High-Grade Gold at Madsen, Including 14.6 g/t Au Over 1.8 Metres

Assays Pending for Two Holes Containing Visible Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 23, 2014) - Pure Gold Mining Inc. (TSX VENTURE:PGM) ("Pure Gold" or the "Company") is pleased to provide an update regarding the ongoing exploration program at its 100% owned Madsen Gold Project in the prolific Red Lake gold district of northwest Ontario. The $4.0 million exploration program, which includes 9,000 metres of diamond drilling, is designed to test and expand the current mineral resources1, while concurrently developing and drill testing high-grade, 8 Zone-style targets through ongoing evaluation of the large historic database.

Phase I of the exploration program is currently focused on near-surface high-grade mineralization along the 12-km long Madsen Mine Trend, which includes the Madsen Mine, Red Lake's second largest past producer with over 2.4 million ounces produced. Initial target areas include McVeigh Ramp, Fork Zone, Junction, and Point. Phase II, to begin in the winter months, will focus on targets along the 10 kilometre-long ultramafic contact, including Russet South.

Highlights from the ongoing exploration program include:

  • Approximately 4,000 metres in twelve (12) diamond drill holes have been completed to date testing the McVeigh Ramp, Junction, and Fork Zone target areas. Assay results from the first seven (7) drill holes are reported below, with results from the remaining five (5) holes pending.
  • Drilling in the Fork Zone has identified a silicified feeder structure that has been delineated for approximately 275 metres along strike and to a depth of 200 metres. Assay results are reported from the initial three (3) holes and include 14.6 g/t Au over 1.8 metres from hole PG14-006 which contains visible gold.
  • Drill holes PG14-009 and PG14-011 also contain visible gold. Assay results are pending from drill holes PG14-008 through to PG14-011, which intersected the silicified structure in Fork Zone.
  • Limited drilling at McVeigh Ramp intersected multiple mineralized horizons of garnet and biotite alteration representing the McVeigh, Austin, and South Austin horizons. Significant assays include 8.3 g/t Au over 2.0 metres and 5.3 g/t Au over 5.0 metres.
  • Structural and alteration mapping, soil, and rock geochemical sampling programs completed at the Fork Zone, Junction, Point, and Russet South target areas continue to advance new drill targets.

"The application of modern exploration techniques are already leading to an improved understanding of the geology, and delivering outstanding new targets at the Madsen Gold Project," stated Darin Labrenz, President & CEO of Pure Gold. "Our initial drilling in the Fork Zone has identified a gold-bearing structure that has been targeted and traced for approximately 275 metres. Modeling of this structure and the recognition of the related folded mafic - ultramafic contact has defined a shallow southerly plunge control to higher grade mineralization. The intersection of this structure and the ultramafic contact has been identified as an exciting new target. We look forward to testing this target in the coming months when access will be facilitated by winter freeze-up."

REPORTED RESULTS:

Fork Zone Target:

Pure Gold has completed 7 drill holes in the Fork Zone utilizing oriented core to identify a previously unrecognized fold in the mafic-ultramafic volcanic stratigraphy. The fold is associated with a steeply dipping, north-south striking silicified structure with chlorite-garnet-magnetite-biotite alteration and anastomosing grey quartz veinlets that host specks of visible gold. Folding of the stratigraphy in conjunction with the associated silicified structure imply a shallow, southerly plunge to high-grade intercepts in the Fork Zone.

The high-grade silicified structure ranges from 1 to 2 metres in true width, has been traced for approximately 275 metres in strike length to a vertical depth of 200 metres, and visible gold has been identified in 3 drill holes (holes PG14-006, PG14-009, and PG14-011). Assay results for PG14-006 are reported in Table 1. Other results are pending.

Table 1 - Fork Zone Significant Assay Results(*)
Hole ID From (m) To (m) Length (m) Au (g/t)
PG14-005 212.0 213.0 1.0 1.2
PG14-006 85.0 86.8 1.8 14.6
Including: 85.0 86.0 1.0 22.5
PG14-006 302.7 304.0 1.3 1.1
PG14-007 77.9 80.1 2.2 1.2
PG14-007 238.9 240.2 1.3 1.8
(*) Assay composites were calculated using uncut assays and are reported as drilled widths and interpreted to vary between 85% to 95% of true widths.

The silicified structure has been identified in surface outcrop and is open to depth and along strike. Initial modelling of the structure by Pure Gold highlights where the structure could potentially intersect and thicken at the Russet ultramafic contact and/or the Balmer-Confederation unconformity. This area is currently being sampled by MMI soils to assist in target delineation and will be further drill tested following winter freeze-up.

McVeigh Ramp Target:

Pure Gold completed 3 drill holes in the McVeigh Ramp targeting extensions of the McVeigh, Austin, and South Austin mineralized horizons at the southern boundary of the historic mine workings. Significant assay results are reported in Table 2.

All 3 drill holes successfully intersected the McVeigh horizon but the up-dip extension of historic drill hole 4M-224 (5.6 metres grading 26.4 g/t Au1) could not be tested from the current drill site due to surface conditions and the proximity to the ramp and other underground workings. This potential high-grade mineralized shoot will be tested after the completion of the Fork Zone drilling.

Table 2 - McVeigh Ramp Significant Assay Results(*)
Hole ID From (m) To (m) Length (m) Au (g/t)
PG14-001 205.3 206.0 0.7 2.0
PG14-002 70.0 72.0 2.0 8.3
PG14-002 92.0 97.0 5.0 5.3
PG14-002 216.9 230.0 13.1 0.7
Including: 216.9 217.55 0.65 3.1
PG14-003 161.0 167.0 6.0 2.5
PG14-004(**) abandoned
(*) Assay composites were calculated using uncut assays and may include internal dilution. Composites are reported as drilled widths and interpreted to vary between 70% to 95% of true widths.
(**) Hole PG14-004 was abandoned at 84m after intersecting underground workings prior to reaching target depth

Drill hole PG14-002 intersected all 3 horizons returning 5.3 g/t Au over 5.0 metres from South Austin and 8.3 g/t Au over 2.0 metres from the Austin horizon approximately 50 metres up-dip of historic mine workings. Geological modeling and collection of oriented drill core continues to develop a better understanding of high-grade controls on mineralization, and additional targets will be drill tested later in the drilling campaign.

EXPLORATION DRILLING TARGETS:

Junction Target:

Structural mapping and regional MMI soil sampling recently completed at the Junction target has highlighted the potential of this target. Additionally the high grade gold mineralized structure identified at the Fork Zone has now been traced towards the Balmer-Confederation unconformity in the Junction area where historic drill hole ST-10-33 returned 7.0 g/t gold over 2.0 metres1. An 80 to 100 metre wide zone of strong biotite-garnet alteration occurs along the unconformity in this target area, and Pure Gold believes that this structural intersection provides high potential for increased thickness of the high-grade mineralization identified at the Fork Zone. Pure Gold has targeted the area with an initial drill hole designed to intersect the unconformity and the altered zone on the Balmer Assemblage side of the contact. Assay results are pending. The target area has historically been under-explored, and provides an opportunity to define and extend Austin Zone mineralization along the unconformity more than one kilometre south of the Madsen Mine development.

Point Target:

The Point target was identified by surface mapping in July 2014, which outlined a thickened zone of biotite-garnet alteration associated with a sinistral jog in the unconformity, corresponding with historically mined stopes of the Austin Zone at depth. Follow-up detailed mapping at this target in August and September identified a strong shear zone axial planar to this sinistral jog, now positively identified as a D2 fold. MMI soil sampling in the vicinity returned high copper, lead, zinc, and elevated arsenic pathfinder elements in the vicinity. Planned drill holes at the Point target have now been refined based on this new mapping and will test this deformation zone, known as the Pumpshack Shear. Pure Gold is testing this prospective, near-surface hydrothermal alteration and structural deformation with the goal of identifying mineralization similar to the Austin Zone, which was mined at depth below 10 level.

Russet South Target - 8 Zone Up Dip:

The Russet South target is located approximately 1,400 metres west of the Madsen Shaft, and approximately 1,600 metres up-dip of the 8 Zone resource. The target lies on the western flank of the Russet ultramafic contact and was explored historically in 1944-1947, 1968, 1974 and 1987-88 prior to consolidation of the property. This historic work highlights the potential of the target to produce high-grade gold bearing alteration. Several zones of strong alteration characterized by carbonatization, biotitization, quartz veining, and pervasive silicification have been recognized at surface where they associated with intense shearing. Historic drill results at the target area include 0.7 metres grading 63.77 g/t gold from hole 87, 4.0 metres grading 14.40 g/t gold from hole UBT-88-48 and 0.8 metres grading 78.38 g/t gold and 0.6 metres grading 529.54 g/t gold from hole UBT-88-44.1

Geologic fieldwork completed at the Russet South target this summer includes structural mapping, prospecting, and detailed MMI soil sampling which continues to advance drill targeting and highlight the 8 Zone up-dip potential of the area. MMI soil sampling identified a 700 metre long by 200 metre wide plan width gold-in-soil anomaly which correlates with a mapped northwest trending shear zone, cutting re-folded ultramafic and banded iron formation contacts. Outcrop grab samples from limited surface prospecting within the shear zone returned 1.65 g/t, 2.39 g/t, and 6.14 g/t Au. The shear zone and associated MMI soil anomaly are open to the northwest, where the sampling grid requires expansion, and to the southeast, where the shear zone is mapped to the edge of Russet Lake on strike with the 8 Zone.

Pure Gold is currently modeling results of the 2014 summer fieldwork with the goal of drill testing the Russet South target and other ultra-mafic targets in the Q1 2015 winter drill program.

ABOUT THE MADSEN GOLD PROJECT

Owned 100% by Pure Gold, Madsen is located in the Red Lake gold district of northwest Ontario and is over 50 square kilometres in size, which makes it the third largest land package in the Red Lake region.

The Project is host to two past-producing mines; existing mine infrastructure, including an operational head frame, a 1,275 metre-deep shaft, and a permitted 500 tonne per day mill; an Indicated mineral resource of 928,000 ounces gold (3.24 million tonnes grading 8.93 g/t gold) and an Inferred mineral resource of 297,000 ounces gold (0.79 million tonnes grading 11.74 g/t gold)1; and, a number of highly prospective exploration targets in a geological setting analogous to other modern high-grade discoveries in the Red Lake district.

A new interpretation of the role of folded ultramafic contacts and structural controls have resulted in multiple recent discoveries in the Red Lake district, including Goldcorp's High Grade Zone at the Red Lake Mine Complex, the Bruce Channel system at the Cochenour Mine, and the F2 Gold System at Rubicon's Phoenix Mine. The environment and mineralization at Madsen's 8 Zone is similar to other recent high-grade discoveries in the district. Recent resampling of historic drilling at the 8 Zone returned 38.26 g/t gold over 7.5 metres (see news release dated July 7, 2014). Pure Gold believes the opportunity exists to apply modern exploration science and a new understanding of the district to achieve similar success along the ultramafic contact at the Madsen Gold Project.

At Madsen, the 10 kilometre-long ultramafic contact is highly prospective for additional high-grade discoveries, and numerous recent discoveries along this contact have been only partially advanced. Pure Gold is pursuing a strategy of exploring for additional near surface high-grade mineralization along the 12 km-long Madsen Mine trend and the 10 km-long ultramafic contact.

(1) See the National Instrument 43-101 technical report entitled "Technical Report for the Madsen Gold Project Red Lake, Ontario, Canada," prepared by SRK Consulting (Canada) Inc. dated effective February 18, 2014. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

Historic drill hole results listed in the McVeigh Ramp and Russet South target areas were completed prior 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 for the Madsen Gold Project Red Lake, Ontario, Canada," prepared by SRK Consulting (Canada) Inc. dated effective February 18, 2014.

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. Results were monitored on receipt of assays by Gary Lustig, MSc, P.Geo, an independent consultant to Pure Gold and a Qualified Person as defined by National Instrument 43-101.

The information provided herein reflects the results received by the Company from seven (7) of the twelve (12) diamond drill holes completed to date. Assay results from the first seven (7) drill holes are disclosed with results from the remaining five (5) holes still pending. The Company cannot provide any assurances with respect to the pending results and no inferences should be made with respect thereto.

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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