Pure Gold Minerals Inc.

Pure Gold Minerals Inc.

July 11, 2005 12:33 ET

Pure Gold Minerals Inc.: Agreement Completed with De Beers on the Courageous Lake Property, NWT

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 11, 2005) - Donald R. Sheldon, President of Pure Gold Minerals Inc. (TSX:PUG) ("Pure Gold" or the "Corporation"), is pleased to announce that the Corporation has entered into an option agreement with De Beers Canada Exploration Inc. ("De Beers") concerning the Courageous Lake Property ("the Property"). The Property is located to the southwest of the Ekati Diamond Mine and to the west of the Diavik Diamond Mine in the Lac De Gras area of the Northwest Territories.

Previous exploration on the Property by De Beers has included extensive till sampling for Kimberlite Indicator Minerals (KIM), airborne ground magnetic and electromagnetic surveys and geological mapping and studies. Widespread KIM's were recovered from the till sampling and several anomalies were identified from a review by the Corporation's technical consultants or the magnetic and electromagnetic surveys. Furthermore, a number of the geophysical anomalies appear to be located at the source of indicator mineral trains defined by the KIM results from the till sampling completed by De Beers. Pure Gold plans to prioritize the selected anomalies using further detailed sampling and ground geophysics. The best anomalies that are defined by this surface exploration program will then be tested by diamond drilling. Drilling is planned before the end of the 2005 summer field season. Pure Gold will be Operator of the Program.

Pure Gold is very pleased to have entered into this agreement and is looking forward to again working with De Beers with respect to ongoing exploration and development of the Courageous Lake Property. Under the terms of the option agreement, Pure Gold must spend $1.2 million on exploration of the Property over four years to earn an 85% interest in the Property. Over a certain threshold value of a development project, as defined by a feasibility study, De Beers has the right to back in for a 70% interest by reimbursing Pure Gold for two times the amount expended by Pure Gold on the development project and procuring production debt financing. The agreement is subject to requisite approvals and due diligence.

Contact Information

  • Pure Gold Minerals Inc.
    Donald R. Sheldon
    (604) 687-2038
    (604) 687-3141 (FAX)