VANCOUVER, British Columbia, Oct. 01, 2019 (GLOBE NEWSWIRE) -- 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.
- 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:
- 11.7 g/t gold over 1.0 metre from drill hole PG19-661;
- 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 (m)||Gold (g/t)||Zone|
*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:
For a complete list of 2019 drill results to date, click link below:
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.
- 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
- 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.
ON BEHALF OF THE BOARD
Darin Labrenz, President & CEO
Adam Buchanan, Manager, Investor Relations
Gareth Tredway / Annabel de Morgan – Tavistock
Tel: +44 (0) 20 79207150
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.