TIDMPUR
RNS Number : 2577P
Pure Gold Mining Inc.
09 October 2019
NEWS RELEASE 19-25 October 9, 2019
NEW Gold-bearing INTERCEPTS open up exciting target area at PURE
GOLD's madsen complex - Drilling program expanded to 20,000
metres
VANCOUVER, B.C. - Pure Gold Mining Inc. (PGM - TSX-V, PUR - LSE)
("Pure Gold" or the "Company") is pleased to announce that it has
intersected gold mineralization in a widespread gap midway between
the Company's high grade 8 Zone at depth and near surface Russet
South mineral resources, clearly establishing the prospectivity of
this setting and opening up a brand new target area for
discovery.
Building predictable gold continuity and expanding the scale of
the high grade Madsen gold complex has been a central focus and
achievement for Pure Gold's exploration team over the past four
years. During that period, resource growth and transformative
discoveries have been made at the Austin, McVeigh, Russet South,
Fork and Wedge zones; which, although referred to by different
names, are all part of one semi-continuous, coherent gold system
(see figure 1).
One widely anticipated target area that has received very little
previous exploration focus is the altered structure that links the
high grade 8 Zone (below 1,000 metres depth) and the up-dip
continuation at Russet South which outcrops over a broad area. This
panel of connective real estate, centered near Balmer assemblage
mafic-ultramafic contacts, has a known dip length of 1,500 metres
and stretches over seven kilometres. In the 8 Zone at depth, this
mafic-ultramafic contact boasts some of the highest grades ever
drilled at Madsen including 466.0 g/t over 4.3 metres, including
3,262.5 g/t over 0.6 metres (24-14923-SW), and 342.4 g/t over 5.5
metres, including 4,739.3 g/t over 0.4 metres (24-14923-SW-1).(1)
The outcropping Russet south zone too is characterized by high
grade gold including 76.6 g/t over 2.1 metres (PG16-233) and 39.1
over 2.9 metres (PG15-031).(2)
An extensive relogging program by Pure Gold has established
structural control of mineralization in the 8 Zone and has
identified the right host rock and alteration updip of the 8 Zone.
A new drill hole targeting the midpoint between these two widely
separated zones has intersected a 10 metre wide, gold bearing zone
(2.2 g/t gold over 10.4 metres) including 4.9 g/t gold over 2.1
metres situated within ultramafic rocks of the Balmer assemblage.
This result is more than just another gold bearing intercept at
Madsen. It establishes a vital mineralized pierce point into an
expansive gap, highlighting the potential for a new gold corridor
that stretches from the outcropping Russet South zones to the
deeper high grade 8 Zone, and demonstrates the tremendous
prospectivity of this setting. See figure 2 for a cross section
through Russet South and the 8 Zone.
Drilling highlights:
-- Visible gold and intense alteration approximately 750 metres
up dip from the 8 Zone mineral reserve, returned 4.9 g/t gold over
2.1 metres from drill hole PG19-667. This intercept is localized
within a ten metre interval characterized by numerous gold-bearing
blue grey quartz veins, with 20 occurrences of visible gold noted
over the interval. Importantly, these blue-grey quartz veins are
diagnostic of 8 Zone style mineralization;
-- With the continued success of the exploration program, the
Company has expanded the 2019 drill program to 20,000 metres, with
two surface rigs currently active. A third rig will commence in
late November to begin production level underground drilling in
long hole stopes scheduled for development early in the mine
life.
"Madsen continues to be a dynamic project with resource and
production potential well beyond the feasibility base case. Outside
of the feasibility mine plan we have made multiple discoveries and
established new mineral resources within a system that keeps
expanding along strike" stated Darin Labrenz, President and CEO of
Pure Gold. "This latest drilling represents a sea change in
exploration prospectivity, establishing the tremendous potential of
a brand new mineralized corridor that is anchored by the high grade
8 Zone at depth and the outcropping Fork and Russet South zones at
surface."
Defining the "8 Zone"
The 8 Zone is the highest grade zone known on the property, with
an indicated resource grading 20.5 g/t gold (458,000 tonnes
containing 301,000 ounces), and an inferred resource grading 12.4
g/t gold (202,000 tonnes containing 80,000 ounces). (1) It is
characterized by numerous high grade drill intercepts such as those
referenced above and others such as 674.0 g/t gold over 1.8 metres
(including 3,066.5 g/t gold over 0.27 metres) from hole 24-14850-SV
and 120.4 g/t gold over 8.2 metres (including 1,362.5 g/t gold over
0.25 metres and 2,244.3 g/t gold over 0.18 metres) from drill hole
24-14850-S.(3) The 8 Zone remains open for expansion and, as
modelled, has dimensions of approximately 130 metres of strike
extent, 700 metres of dip extent and widths ranging from 2 to 18
metres.
Geologically analogous to the High Grade Zone at Newmont
Goldcorp's Red Lake Mine, Pure Gold's 8 Zone is located near to a
mafic-ultramafic contact, exhibits strong amphiphole-biotite
alteration and deformed blue-grey quartz veins often carrying
abundant visible gold.(4) The near surface discoveries at Wedge
(MJ), Fork (footwall) and Russet South share a similar style of
mineralization and geologic setting with the 8 Zone, and together
form a prospective corridor that spans more than 3.5 kilometres of
strike extent and over 1.5 kilometres of dip extent (see figure
3).
For a set of figures showing mineral resource locations in
relation to drilling and a cross section of Russet South to the 8
Zone, click link below:
http://puregoldmining.ca/sites/default/files/Release_Figures-09102019.pdf
For a complete list of 2019 drill results to date, click link
below:
http://puregoldmining.ca/sites/default/files/2019-DH-Intercepts-Table-October-09.pdf
ABOUT THE MADSEN RED LAKE MINE
The Madsen Red Lake Mine is Canada's highest grade
development-stage gold project. Fully funded, the project is on
track to deliver near term gold production into a rising Canadian
gold price environment, with first production scheduled for late
2020. The orebody is situated within a six kilometre long gold
system that is wide open for expansion at depth and along strike
and multiple discoveries by the Company suggest potential
opportunities for near-term growth.
1. Historic drill hole results listed from the 8 Zone 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 titled "Madsen Gold Project Technical Report Feasibility
Study for the Madsen Deposit Red Lake, Ontario, Canada" with an
effective date of February 5, 2019, and dated July 5, 2019 (the
"Feasibility Study").
2. For further information, see news releases dated November 14, 2016 and March 16, 2015.
3. See the technical report titled "Madsen Gold Project
Technical Report Feasibility Study for the Madsen Deposit Red Lake,
Ontario, Canada" with an effective date of February 5, 2019, and
dated July 5, 2019 (the "Feasibility Study"), for further
information, available at www.puregoldmining.ca or under the
Company's Sedar profile at www.sedar.com
4. Geological similarities to Newmont-Goldcorp's Red Lake Mine
High Grade Zone are not necessarily indicative of the
mineralization at Madsen's 8 Zone.
QA/QC and Core Sampling Protocols
Drill core samples are submitted to ALS Minerals in Thunder Bay,
Ontario for sample preparation by crushing to 70% less than 2 mm, a
rotary split of 1 kg, and pulverization of the split to better than
85% passing 75 microns. Sample pulps are shipped to the ALS assay
laboratory in North Vancouver, BC for gold analysis with a 30 g
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 and shoulder samples are also
analyzed by a 1 kg screen fire assay with screening to 100 microns.
A duplicate 30 g fire assay is conducted on the screen undersize
with assaying of the entire oversize fraction (code Au-SCR21).
Control samples (certified standards and uncertified blanks), along
with field, prep and pulp duplicates, are 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.
Our mandate is pure and simple. To dream big. To colour outside
the lines. To use smart science and creativity to unlock the Madsen
Red Lake Gold Mine 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"
Darin Labrenz, President & CEO
Investor inquiries:
Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000
info@puregoldmining.ca
Media inquiries:
Gareth Tredway / Annabel de Morgan - Tavistock
Tel: +44 (0) 20 79207150
puregold@tavistock.co.uk
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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, the growth potential of the Madsen Gold
Project and opportunities for scalability, the potential for the
Russet South, Fork and Wedge deposits to be economically viable,
potential conversion of inferred resources to measured and
indicated resources, potential extension and expansion of mineral
resources and the focus of the Company in the coming months .
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; the timing of future economic studies; 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 March 20, 2019 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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