Pure Gold Minerals Inc.

Pure Gold Minerals Inc.

August 03, 2005 17:00 ET

Pure Gold Minerals Inc.: Drilling on Three Targets at Buffalo Hills Property in Alberta

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 3, 2005) - Donald R. Sheldon, President of Pure Gold Minerals Inc. ("Pure Gold") (TSX:PUG) is pleased to announce details of the summer drilling program on the Buffalo Hills property in north-central Alberta. Three large geophysical anomalies will be drilled as part of the 2005 exploration program approved by Pure Gold and its joint venture partners, EnCana Corporation ("EnCana") and Ashton Mining of Canada Inc. ("Ashton"), earlier in the year. Fieldwork will commence in mid-August with drill site preparation.

The three targets were identified through airborne and ground geophysical surveys completed in 2003, 2004 and 2005. The joint venture is particularly encouraged by the size of these targets, each of which has electromagnetic and gravity signatures approximately 500 metres in width.

As indicated on the map shown at www.puregold.ca/Alberta030805.cfm, the Buffalo Hills property is located approximately 400 kilometres north of Edmonton and approximately 85 kilometres northeast of Peace River. The three drill targets on the property are situated within four kilometres of existing access roads. Given the extensive infrastructure that is already present in north-central Alberta because of oil and gas activity, the economic threshold for a diamond deposit in this region may be lower than in other more remote regions of Canada.

The joint venture has thus far discovered 38 kimberlites on or near the Buffalo Hills property, 26 of which are diamondiferous. Samples larger than ten tonnes have been collected from five of these bodies, three of which have returned a diamond content greater than 10 carats per hundred tonnes ("cpht"). Two of these kimberlites, K14 and K91, are exposed on surface or under shallow till and each has an estimated size greater than five hectares. Samples from these bodies have returned an estimated diamond content of 12 and 13 cpht respectively. A sample collected from K252 returned the highest diamond content, 55 cpht. The estimated size of this body is two hectares.

As reported on February 3, Pure Gold and Ashton have elected to fund the 2005 exploration program. At year-end, the beneficial interests of the parties are expected to be Ashton 46.5 percent, EnCana 44.1 percent, and Pure Gold 9.4 percent.

Contact Information

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