TIDMPUR
RNS Number : 1225B
Pure Gold Mining Inc.
28 January 2020
NEWS RELEASE 20-01 January 28, 2020
Pure Gold DRILLING INTERSECTS HIGH-GRADE GOLD INCLUDING 33.1 G/T
GOLD OVER 3.4 METRES
Gold intercepts target expansion of orebody close to 2020 mine
development
VANCOUVER, B.C. - Pure Gold Mining Inc. (PGM:TSX-V, LSE:PUR)
("Pure Gold" or the "Company"), is pleased to announce that mine
development at the Pure Gold Red Lake Mine, initiated as part of
the test mining program, has resumed, and exploration drilling in
close proximity to this development has intersected high-grade gold
mineralization from both infill and step-out drill holes. Drilling
tested potential for growth of ore zones that will provide initial
feed for the mine processing plant, and has yielded positive
results suggesting strong mine continuity and the potential for
mining stope expansion.
Results received and compiled will be integrated into short-term
mine planning. Access development completed through the test mining
program will facilitate production from some of these areas in
2020. The Pure Gold Red Lake Mine is currently under construction
and, to date, underground development is approximately four months
ahead of the feasibility schedule, construction is moving forward
at a rapid pace, and first gold pour is expected in Q4 2020.(1)
Drilling results highlights:
o 24.9 g/t gold over 1.0 metre from drill hole PG19-708;
o 34.1 g/t gold over 2.2 metres from drill hole PG19-710;
including
64.6 g/t gold over 1.0 metre;
o 33.1 g/t gold over 3.4 metres from drill hole PG19-719;
including
79.4 g/t gold over 1.4 metres;
o 13.2 g/t gold over 6.3 metres from drill hole PG19-735;
including
26.3 g/t gold over 2.0 metres.
A summary table of results is set out at the end of this News
Release.
"The Pure Gold Red Lake Mine continues to produce significant,
high-grade gold drill intercepts and today's results from areas
planned for mining this year highlight local opportunities for mine
expansion", stated Darin Labrenz, President and CEO of Pure Gold.
"Similar to the 2018 test mining program where the discovery of a
new hanging wall zone resulted in 56% more ounces than predicted,
these drill holes have identified both potential extensions to mine
stopes and opportunities to test and develop new stopes.(2) Since
announcing the commencement of construction in 2019, we have
rapidly built out our operations team and our ongoing test mining
program has provided development within reach of several of these
planned stoping areas. We understand the orebody well and we are
now demonstrating the potential for it to grow. With construction
well underway, we look forward to first gold production expected in
late 2020."
Diamond drilling has identified both extensions to existing
stopes, and new zones that may be incorporated into future short
term mine plans. Drill holes PG19-714, PG19-716, PG19-717 and
PG19-722 represent step outs of 4 metres to 18 metres from existing
mining shapes. Drill hole PG19-719 suggests a new hanging wall
zone, while PG19-735 highlights an opportunity for potential
additions to the mine plan, with 6 metres grading 13.2 g/t gold
occurring more than 50 metres away from the current mine plan.
Underground Development
The acquisition and installation of key infrastructure for
underground mine operations has commenced at site, including the
installation of new compressors and ventilation systems and the
advancement of the existing ramp. Active de-watering of the
underground mine is well underway and on schedule, with the mine
water level currently at approximately 240 metres below
surface.
The feasibility study contemplated leasing certain equipment for
the first two years of production, however, further research done
on the Company's equipment needs and an analysis of current
equipment costs demonstrated that significant savings could be
achieved from the feasibility study over the initial two years by
purchasing the underground mining fleet.(1) To date, approximately
$6.1 million in equipment has been purchased and delivered to site.
The equipment includes two haul trucks, two LHD scooptrams, two
jumbos, a scissor lift, a minecat, a boom truck, a mine
rescue/personnel carrier, and a telehandler among other mobile
equipment. While this expenditure increases the initial capital
requirements, total mine equipment expenditures will be reduced by
approximately 30% over the first two years by eliminating the
mobile lease payments.
Underground services including water and electrical supply and
communications have been upgraded in the ramp and haulage of
stockpiled test mining material to surface is underway. As part of
the test mining program, pre-production underground ramp
development was initiated ahead of schedule and is progressing at
an accelerated pace.
Drill Results Summary
New assay results from select drill holes are outlined
below:
Hole ID From (m) To (m) Length Gold (g/t)
(m)
PG19-701 73.0 75.0 2.0 7.5
--------- ------- ------- -----------
PG19-708 77.5 78.5 1.0 24.9
--------- ------- ------- -----------
PG19-710 81.3 83.5 2.2 34.1
--------- ------- ------- -----------
incl. 81.3 82.3 1.0 64.6
--------- ------- ------- -----------
PG19-714 69.0 71.0 2.0 6.1
--------- ------- ------- -----------
76.0 77.0 1.0 7.0
--------- ------- ------- -----------
89.0 90.5 1.5 5.6
--------- ------- ------- -----------
PG19-715 72.9 74.0 4.1 5.1
--------- ------- ------- -----------
PG19-716 36.3 37.4 1.0 10.6
--------- ------- ------- -----------
PG19-717 15.0 17.0 2.0 8.9
--------- ------- ------- -----------
44.2 45.1 0.9 8.2
--------- ------- ------- -----------
PG19-719 46.0 48.0 2.0 7.6
--------- ------- ------- -----------
incl. 46.0 47.0 1.0 12.6
--------- ------- ------- -----------
81.1 84.5 3.4 33.1
--------- ------- ------- -----------
incl. 83.1 84.5 1.4 79.4
--------- ------- ------- -----------
PG19-720 45.7 48.0 2.3 11.2
--------- ------- ------- -----------
PG19-722 117.0 118.0 1.0 14.3
--------- ------- ------- -----------
PG19-726 82.5 88.5 6.0 4.6
--------- ------- ------- -----------
incl. 82.5 83.5 1.0 8.6
--------- ------- ------- -----------
incl. 87.5 88.5 1.0 9.4
--------- ------- ------- -----------
PG19-727 86.9 87.9 1.0 6.9
--------- ------- ------- -----------
PG19-735 87.4 93.7 6.3 13.2
--------- ------- ------- -----------
incl. 91.7 93.7 2.0 26.3
--------- ------- ------- -----------
PG19-736 42.4 44.5 2.1 9.7
--------- ------- ------- -----------
*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 complete list of 2019 drill results, click link below:
http://puregoldmining.ca/sites/default/files/2019-DH-Intercepts-Table-January-28.pdf
ABOUT THE PURE GOLD RED LAKE MINE
Pure Gold is building Canada's highest-grade gold development
project, the Pure Gold Red Lake Mine. With project financing
secured, Pure Gold Red Lake Mine is on track to deliver first
production into a rising gold market in late 2020. The orebody is
open for expansion and forms a part of a seven kilometre long
mineral system under active exploration, with opportunity for
transformative growth through discovery.
1. For further information, 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
2. For further information, see news release dated November 28,
2018 titled "Pure Gold Test Mining Returns an Estimated 56% More
Gold Than Predicted From Resource Model".
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 Pure
Gold Red Lake Mine in Ontario, Canada. 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.com
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", "expansion", "intends", "suggests", "believe",
"opportunity", 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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