Grants incentive stock options
VANCOUVER, British Columbia, Dec. 16, 2019 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (PGM – TSX-V) (“Pure Gold” or the “Company”), is pleased to announce that exploration drilling near the Madsen Red Lake Mine, currently under construction, has intersected high-grade gold mineralization from a second drill hole targeting the widespread gap between the Company’s 8 zone at depth and the Russet South zone, which outcrops at surface.1 This latest drill hole confirms the discovery potential of this new target area and supports continuity of the gold system between Russet South and 8 zone.
In addition, ongoing drilling along the Madsen Red Lake Mine Trend continues to rapidly expand the footprint of the Wedge zone with multiple drill holes returning drill intercepts anticipated to upgrade the current mineral resource and also likely to expand the resource footprint including the deepest Wedge intercept to date. The results highlight the down plunge continuity of the zone, reinforcing the Wedge as a high priority for resource growth. Importantly, in addition to the 500 metre strike extension identified in the October 1, 2019 news release, two additional new gold mineralized shoots appear to be taking shape adjacent to current resources.2
New Wedge drilling highlights:
- 167.0 g/t gold over 1.1 metres from drill hole PG19-693;
- 51.5 g/t gold over 1.5 metres from drill hole PG19-713;
- 9.0 g/t gold over 1.0 metre from drill hole PG19-691;
- 8.7 g/t gold over 1.7 metres from drill hole PG19-700;
- 6.9 g/t gold over 2.0 metres from drill hole PG19-696.
Additionally, a new drill hole targeting the expansive gap between the 8 Zone and Russet South mineral resources has intersected 51 metres of gold mineralization, including 9.9 g/t gold over 0.9 metre;
A summary table of these results is set out at the end of this News Release.
“Over the last several months we have seen an exciting major resurgence in investment and interest in the Red Lake District and Pure Gold continues to lead this charge,” stated Darin Labrenz, President and CEO of Pure Gold. “Today’s exploration results include a new gold-bearing pierce-point in the gap between Russet South at surface and the deeper 8 zone, confirming the new mineralized corridor described in the October 9, 2019 news release and establishing geologic continuity between these two high grade zones.3 With this new discovery, and the continued exploration success at Wedge we are pushing well beyond the boundaries of our previous feasibility study.1 Deep pierce points along the entire seven kilometer trend intersecting the same style of mineralization, geology, alteration and high-grade gold support the opportunity for growth and scalability of the project for the long term. Today’s results continue to crystallize this opportunity, with drilling successfully pushing the envelope downward at Wedge and a second test of the 8 zone gap returning high grade gold. Importantly, all of this sits within reach of a mine and milling complex expected to be in production in Q4 2020, providing clear support for the opportunity for a phased approach to growth of the Madsen Red Lake Mine into a major regional producer.”
Successfully Testing the 8 Zone Gap
The 8 Zone is the highest grade gold zone discovered to date 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 Characterized by a mafic-ultramafic rock association, blue-grey quartz veins and numerous high grade drill intercepts, the 8 Zone is geologically analogous to the High Grade Zone at Newmont Goldcorp’s Red Lake Mine, and remains open for expansion.
On October 9, Pure Gold announced the results of its first drill hole testing an expansive gap between the high grade 8 Zone and its up-dip continuation at Russet South.3 This hole successfully intersected the altered structure linking the two widely separated zones, returning a 10 metre gold bearing zone approximately 750 metres up-dip of the 8 Zone. Today’s results include drill hole PG19-689, which targeted the same gap, approximately 100 metres up dip of previously reported hole PG19-667, and returned a 51 metre wide gold bearing zone (1.0 g/t gold over 51.0 metres), with abundant blue-grey quartz veins and including 9.9 g/t gold over 0.9 metres. Both holes to date have returned wide gold bearing zones providing demonstrated potential of the strength of the gold mineralized alteration system and highlighting the tremendous prospectivity of this important high-grade target.
Expanding the Wedge
As an extension of the structure that hosts the Madsen orebody, the Wedge zone is a part of the structural architecture associated with gold mineralization across the property. Drilling at Wedge has recently established a 500 metre extension to the mineralized structure at surface and has clearly demonstrated the strength of the seven-kilometre-long gold system at Madsen2. Ongoing drilling at Wedge continues to show potential to both upgrade and expand mineral resources in the Wedge area, including drill hole PG19-693 which returned 167.0 g/t gold over 1.0 metre at a depth of approximately 300 metres below surface.
Today’s results also include several holes which have the potential to expand the resource, including the deepest test of the Wedge zone to date Drill hole PG19-697 intersected mineralization at a depth of approximately 600 metres below surface, characterized by intense alteration, visible gold and grading 5.2 g/t gold over 1.8 metres. This hole represents a 300 metre down dip step out from previously drilling in this area. A second hole in the area intersected 51.5 g/t gold over 1.5 metres in a step out from the current resource which suggests development of a new gold mineralized shoot. On the north edge of the Wedge area, a 100 metre down dip step out returned 8.7 g/t gold over 1.7 metres and together with earlier results confirms the presence of a second new gold mineralized shoot. Together, these two drill holes represent significant step outs from current mineral resources and clearly highlight the potential for resource growth in the Wedge area.
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|
|PG19-689||734.0||736.1||2.1||6.4||Up-dip of 8 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:
Grant of Incentive Options
Pure Gold also announces that it has granted incentive stock options to its directors, employees, and a consultant exercisable to purchase up to 4,735,000 common shares in the capital of the Company until December 13, 2024 at an exercise price of $0.74 per share. The incentive stock options were granted in accordance with the Company’s Stock Option Plan.
ABOUT THE MADSEN RED LAKE MINE
Pure Gold is building Canada’s highest-grade gold development project, Madsen Red Lake Mine. With project financing secured, Madsen Red Lake 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.
- 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
- For further information, see news release dated October 1, 2019 titled “Drilling Nearly Doubles Strike Extent of Wedge, Extends Madsen Red Lake Mine Gold System to Seven Kilometres”.
- For further information, see news release dated October 9, 2019 titled “New Gold-Bearing Intercepts Open Up Exciting Target Area at Pure Gold’s Madsen Complex - Drilling Program Expanded to 20,000 Metres”.
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.