VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 27, 2017) - Pure Gold Mining Inc. (TSX VENTURE:PGM) ("Pure Gold" or the "Company") is pleased to announce that a new zone of near surface gold mineralization has been discovered at the Russet South target on the Company's 100% owned Madsen Gold Project ("Madsen"). These new discovery holes add critical mass to Russet South, which is shaping up to be an important component of Pure Gold's modern development strategy. Consistent drill results from new areas such as Russet South, McVeigh, A3 and Starratt, reinforce the resource expansion program that is underway and the widespread untapped potential of the Madsen Gold Project.
Highlights from new drilling at Russet South include:
- 23.1 g/t gold over 1.9 metres in hole PG17-310
- 8.3 g/t gold over 1.7 metres in hole PG17-316
- 4.4 g/t gold over 12.0 metres in hole PG17-335
- Including 14.3 g/t gold over 2.0 metres
- 21.4 g/t gold over 1.9 metres in hole PG17-341
"Our drilling has been highly successful in intersecting widespread gold mineralization at Russet South," said Darin Labrenz, President and CEO of Pure Gold. "The mineral system is similar in setting and style to that of significant portions of the existing resource at Madsen, and results released today have expanded this satellite gold target significantly. Drilling has now intersected gold mineralization across a 650 metre by 650 metre footprint, to depths less than 250 metres demonstrating the near-term, near-surface potential for meaningful resources within a short distance of Madsen's permitted mine infrastructure.1"
New Zone of Mineralization Discovered
The new gold zone at Russet South is highlighted by hole PG17-335 which returned 4.4 g/t gold over 12.0 metres. This zone lies on the eastern side of Russet South, approximately 200 metres north and along strike of intercepts drilled in 2015 and 2016, including 12.3 g/t gold over 2.9 metres in PG15-0452 and 17.7 g/t Gold over 1.0 metre in PG16-0993. Gold mineralization in all of these holes is associated with deformed blue-grey quartz veins hosted in a 200 metre thick wedge of Basalt located between two distinct Ultramafic units. This near surface setting is structurally and stratigraphically analogous to known deep mineralization that forms the Madsen 8-Zone deposit which has Indicated Resources of 132,000 ounces gold at 12.21 g/t Au (in 0.34 million tonnes) and Inferred Resources of 185,000 ounces gold at 18.14 g/t Au (in 0.32 million tonnes)1, 5.
Drilling at Russet South expands Mineralized Zones and Builds Continuity
Additionally, new drill holes reported herein have intersected gold mineralization in the hanging wall of the previously reported mineralization on the western extent of Russet South, expanding the scale of, and demonstrating continuity of mineralization in this area. The reported intercepts from PG17-310 are 150 metres along strike to the southwest from a previously reported intercept in PG15-028 of 8.2 g/t gold over 11.0 metres4, with both intercepts hosted in a package of folded quartz veins on the lower contact of an Ultramafic unit. The intercept reported from PG16-341 was a 50 metre step out to the North from this visible gold mineralized intercept in PG17-310 highlighting the along strike continuity of the mineralized quartz vein envelope.
Drill Results Summary
New assay results from select drill holes are outlined below:
|*Assay composites were calculated using uncut assays and true widths are interpreted to vary from 70-90% (80%, on average) of reported core lengths above.
For a plan map showing the setting of the Russet South targets, click link below:
For a complete list of 2017 drill results to date, click link below:
Pure Gold's 2017 exploration program is on-going with four drill rigs currently testing resource growth potential near the mine infrastructure and along the more than five kilometre strike length of the Madsen mineral system. The program is expected to include 70,000 metres of core drilling, and will include underground drilling, expected to commence in Q2 2017. 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)5. 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 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.
- The proximity and geologic similarities to Madsen does not mean that Pure Gold will obtain similar results at Russet South or other exploration targets on the Madsen Property. Russet South is an early stage exploration project and does not contain any current mineral resource estimates. The potential to define a mineral resource at Russet South or other targets is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration at these or other targets at Madsen will yield a mineral resource
- See news release dated June 16, 2015
- See news release dated May 4, 2016
- See news release dated March 2, 2015
- 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 bagged and sealed and submitted to SGS in Red Lake, Ontario for sample preparation by crushing to 75% less than 2mm, a riffle split of 1kg, and pulverization of the split to better than 85% passing 75 microns. Gold analysis is completed in the SGS Red Lake lab with a 30g fire assay and AAS finish (code GE-FAA313). Samples returning >5 g/t Au are re-assayed with a gravimetric finish (code GO-FAG303). Mineralized zones with visible gold are also analyzed by a 1kg screen fire assay with screening to 106 microns (code GO-FAS51K). Two 30g fire assays are conducted on the screen undersize and combined with an assay of the entire oversize fraction. Control samples (accredited standards and non-accredited blanks) were inserted on a regular basis. Results are assessed for accuracy, precision and contamination on an ongoing 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", "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.