TIDMPUR
RNS Number : 2881O
Pure Gold Mining Inc.
01 October 2019
NEWS RELEASE 19-24 October 1, 2019
DRILLING NEARLY DOUBLES STRIKE EXTENT of WEDGE, extends Madsen
red lake mine GOLD system to Seven kilometres
VANCOUVER, B.C. - Pure Gold Mining Inc. (PGM - TSX-V, PUR - LSE)
("Pure Gold" or the "Company"), is pleased to announce that ongoing
drilling along the Madsen Red Lake Mine Trend has added 530 metres
of mineralized strike length to the Wedge Zone, expanding the
deposit footprint by 85% and continuing the rapid progression of
this zone. In early 2018, the Company announced the discovery of
the Wedge deposit with multiple high grade intercepts reported
three kilometres south of the Madsen Red Lake Mine. In early 2019,
incorporating just nine months of drilling, Pure Gold reported the
maiden resource estimate for this new discovery. Such quick
advancement from discovery to resource, and today's near doubling
of the mineralized strike length of the zone, provides a compelling
example of the strong growth potential of the area and the
potential to impact future plans at the Madsen Red Lake Mine.
Drilling highlights:
-- A 90 metre northeast step-out on the Wedge deposit has
intersected near surface, high grade gold in hole PG19-677,
returning 24.4 g/t gold over 1.0 metre;
-- A 440 metre southwest step out has intersected 12.4 g/t gold
over 1.1 metres from hole PG19-657, extending the length of the
Wedge zone to 1,150 metres and importantly extending 7 kilometres
from the northeastern extents of the Madsen deposit;
-- Drilling aimed at extending and upgrading resources in the
Wedge area continues to be successful, with drill highlights
including:
o 11.7 g/t gold over 1.0 metre from drill hole PG19-661;
o 5.1 g/t gold over 7.0 metres from drill hole PG19-664,
including 19.3 g/t gold over 1.0 metre;
A summary table of the results is set out at the end of this
News Release.
"From day one our mandate has been discovery, delineation and
resource conversion to give investors a full and current picture of
the value that underpins Pure Gold and our platform for growth,"
stated Darin Labrenz, President and CEO of Pure Gold. "At a gold
price of US$1500, and without consideration of new mineral
resources at Fork, Wedge or Russet South, our project has a current
after-tax net present value of C$390 million and internal rate of
return of 51%.(1) In a dynamic project like Madsen Red Lake, this
is only part of the picture. Today's results showcase the
tremendous potential of the Madsen mineral system to continue to
grow, by nearly doubling the strike length of Wedge and by
extending the gold structural corridor that controls the Madsen
orebody to seven kilometres. Importantly, these results continue to
support our record of discovery to mineral resource in a phased
approach to bring a brand new, fully funded mine to life."
Defining the "Wedge Zone"
The Wedge zone is a part of the property-wide structural
architecture associated with gold mineralization at Madsen, Fork,
and Russet South. As an extension of the Madsen orebody, it shares
the same alteration, timing and structural controls on gold
mineralization with the gold lodes directly controlled by the
intersection of the mineralized structure and geologic contacts.
Initial work by Pure Gold quickly established an indicated resource
in this area of 322,000 tonnes grading 10.3 g/t gold and an
inferred resource of 307,000 tonnes grading 8.0 g/t gold over a
partially tested strike length of 620 metres. Current drilling
continues to infill within this footprint with a goal of upgrading
resources from inferred to indicated, and expanding inferred
resources, while step-out drilling is targeting new zones of
mineralization.
Surface mapping outside of the known resource areas has traced
the Madsen structural corridor south of the Wedge area, exposing a
continuous deformed corridor of quartz veining with alteration
typical of the Madsen gold system. Drill hole PG19-657, a
significant step-out of 440 metres southwest step out from the
Wedge zone resource, intersected high grade gold mineralization at
a shallow depth of 102 metres down hole. On the north end of the
Wedge zone resource, drill hole PG19-677, a 90 metre step-out from
the resource establishes the potential for resource expansion to
the north with 24.4 g/t gold over 1.0 metre returned from shallow
drilling. This drilling correlates with previous drilling including
PG17-444 which returned 10.6 g/t gold over 3.1 metres including
22.9 g/t gold over 1.1 metres.(2) These two step outs clearly
highlight both the overall potential of the Wedge area (now drill
tested with high-grade intercepts over a 1,150 metre strike
length), and the strength of the seven kilometre long gold system
emerging at Madsen.
Drill Results Summary
New assay results from select drill holes are outlined
below:
Hole ID From (m) To (m) Length Gold (g/t) Zone
(m)
PG19-657 102.0 103.0 1.1 12.4 Wedge-OL
--------- ------- ------- ----------- ---------
PG19-661 172.0 177.4 5.4 7.0 Wedge-CK
--------- ------- ------- ----------- ---------
incl. 172.0 173.0 1.0 6.8
--------- ------- ------- ----------- ---------
and incl. 173.0 174.0 1.0 11.7
--------- ------- ------- ----------- ---------
PG19-664 284.0 289.8 5.8 5.6 Wedge-CK
--------- ------- ------- ----------- ---------
incl. 287.8 289.8 2.0 11.8
--------- ------- ------- ----------- ---------
Incl. 288.8 289.8 1.0 19.3
--------- ------- ------- ----------- ---------
PG19-666 336.5 337.5 1.0 4.4 Wedge-DV
--------- ------- ------- ----------- ---------
PG19-671 230.0 231.0 1.0 9.1 Wedge-86
--------- ------- ------- ----------- ---------
PG19-677 239.2 240.2 1.0 24.4 Wedge-86
--------- ------- ------- ----------- ---------
PG19-678 246.2 247.3 1.1 6.9 Wedge-86
--------- ------- ------- ----------- ---------
*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 set of figures showing mineral resource locations, click
link below:
http://puregoldmining.ca/sites/default/files/ResourceLocation-01102019.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-01.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 seven 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 to the production plan.
1. For gold price sensitivity see news release dated February
11, 2019 and 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 releases dated September 5, 2017.
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.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", "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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