Drilling targeting expansion of mineral resources at Wedge, Fork and Russet South
VANCOUVER, British Columbia, May 31, 2019 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (PGM – TSX-V) (“Pure Gold” or the “Company”) is pleased to announce the launch of the 2019 Exploration Program at its 100% owned Madsen Red Lake Gold Mine (“Madsen”) in Red Lake, Ontario.
The phased exploration program is designed to focus on the Company’s Wedge, Fork, and Russet South discoveries with the goal of converting and growing the mineral resources that form the foundation of the recently completed Preliminary Economic Assessment of these deposits1,2. The 2019 Exploration Program will include up to 12,000 meters of diamond drilling and is expected to be largely directed at our Wedge discovery and along strike extensions, with a limited amount of focused work at the Fork and Russet South deposits.
Drilling has already re-commenced on the project with the first phase incorporating one diamond drill rig, targeting upgrading of the inferred resources at the Wedge deposit, as well as testing along its strike and down plunge extensions.
Drilling plans also include the initial testing of the Fork EXT target which is located down-plunge of the near-surface Fork deposit and hosts strong alteration, blue-grey quartz veins, and anomalous gold in limited drill testing. The Fork EXT target is hosted along the upper contact of the Russet Lake Ultramafic unit in an analogous target setting to the high grade 8 Zone of the Madsen deposit. The 2019 exploration program will also continue surface work to prepare a further 24 current high priority exploration targets across the Madsen Property for future discovery drilling.
The program is expected to be completed in December, with results released during the course of the activities.
“Just over a year ago our team began to test the southern extents of our geological model of Madsen in the Wedge area. Our drilling resulted in the discovery of the Wedge deposit and since that time we have rapidly progressed our understanding of the scale and tenor of gold mineralization, resulting in the first time disclosure of mineral resources and a Preliminary Economic Assessment of those resources,” stated Darin Labrenz, President and CEO of Pure Gold. “The rapid progression of Wedge, and other near surface discoveries, from discovery to engineering and economics is testament to the strength of our team’s geologic model, and the tremendous exploration upside evident at Madsen. With this new program our exploration team is focused on growth of the current resource and providing the framework for a second phase of development with the goal of not only extending, but potentially expanding the base case production scenario at Madsen.”
Previously released drilling highlights from Wedge, Russet South and Fork include:2,3
33.3 g/t gold over 8.3 metres from drill hole PG17-467;
21.3 g/t gold over 10.3 metres from drill hole PG17-486;
15.1 g/t gold over 5.4 metres from drill hole PG16-215;
19.9 g/t gold over 3.3 metres from drill hole PG18-564; and
354.0 g/t gold over 1.0 metre from drill hole PG18-540.
76.0 g/t gold over 2.1 metres from drill hole PG16-233;
27.1 g/t gold over 5.8 metres from drill hole PG17-364;
39.1 g/t gold over 2.9 metres from drill hole PG15-031; and
15.0 g/t gold over 5.0 metres from drill hole PG15-028.
Fork / Starratt:
17.2 g/t gold over 3.5 metres from drill hole PG17-467;
104.1 g/t gold over 3.0 metres from drill hole PG16-198.
For a set of figures showing mineral resource locations, click link below:
The Madsen Red Lake Gold Mine has historical production of 2.6 million ounces of gold and a current indicated resource of 1,744,000 ounces gold at 8.7 g/t gold (in 6.2 million tonnes), an inferred resource of 296,000 ounces gold at 7.9 g/t gold (in 1.2 million tonnes), and benefits from existing infrastructure including a mill and tailings facility, paved highway access, and access to power, water and experienced labour. The recently released feasibility study for the Madsen Red Lake Gold Mine outlines an 800 tonne per day underground mining operation with a 12 year life-of-mine (“LOM”), Probable Reserves of one million ounces at 9 g/t Au in 3.5 million tonnes, and a low initial capital cost of C$95 million (US$71 million), putting the Madsen Red Lake Gold Mine firmly on the path to becoming Canada’s next iconic gold mine.2
Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be considered for estimation of mineral reserves, and there is no certainty that the inferred mineral resources will be converted to indicated resources or a mineral reserve.
See the technical report titled “Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit and Preliminary Economic Assessment for the Fork, Russet South and Wedge Deposits Red Lake, Ontario, Canada“ for further information, available at www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com
See news releases October 29, 2014, March 16, 2015, October 3, 2016, October 31, 2016, November 16, 2016, May 11, 2017, January 31, 2018 and June 18, 2018 for additional disclosure
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 1kg, 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 30g 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 Russet South, Fork and Wedge 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.