Pure Gold Minerals Inc.

Pure Gold Minerals Inc.

August 22, 2005 19:24 ET

Pure Gold Minerals Inc.: Courageous Lake Field Program Completed-Drilling Planned Immediately

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 22, 2005) - Donald R. Sheldon, President of Pure Gold Minerals Inc. ("Pure Gold" or the "Corporation") (TSX:PUG), is pleased to announce the completion of the surface exploration program to select drill targets on the Courageous Lake Property, which 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. The Corporation has entered into a drill contract and mobilization of the drill has commenced.

Previous exploration on the Property by De Beers Canada Exploration Inc. ("De Beers") included extensive till sampling for Kimberlite Indicator Minerals (KIM), airborne and ground magnetic and electromagnetic surveys and geological mapping and studies. Widespread KIM's were recovered from the till sampling completed by De Beers indicating possible indicator trains. A number of the geophysical anomalies appear to be at or near the source of indicator mineral trains defined by the KIM results. Ten targets identified by the Corporation were investigated during the recently completed field program. Each was prospected and further samples were collected as necessary for follow-up KIM sampling. These samples have been shipped to the De Beers laboratory in Sudbury, Ontario for processing. To expedite the results from this sampling the concentrates from these samples will in turn be sent to HMD Laboratories in Colorado for observation.

Five drill targets have been selected from the results of the surface exploration program. The targets were selected based on positive KIM results from the previous sampling, the review of the results from the geophysical surveys and surface prospecting. The samples collected for KIM analysis during the recent program will be processed as quickly as possible and may affect the final drill target selection. A diamond drill is now under contract and the drilling program is expected to commence before the end of August. At least three of the selected targets will be tested during this first phase of diamond drilling. Farrell Andersen, P.Geol., Qualified Person, is responsible for the design and implementation of the work program.

Under the terms of the option agreement with De Beers, 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.

Certain statements contained in this document, including statements regarding events and financial trends that may affect our future operating results, financial position and cash flows, may constitute forward-looking statements within the meaning of the federal securities laws. These statements are based on our assumptions and estimates and are subject to risk and uncertainties. You can identify these forward-looking statements by the use of words like "strategy", "expects", "plans", "believes", "will", "estimates", "intends", "projects", "goals", "targets", and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. We wish to caution you that such statements contained are just predictions or opinions and that actual events or results may differ materially. The forward-looking statements contained in this business plan are made as of the date hereof and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward-looking statements. Where applicable, we claim the protection of the safe harbor for forward-looking statements provided by the (United States) Private Securities Litigation Reform Act of 1995.

Contact Information

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