Gold intercepts target expansion of orebody close to 2020 mine development
VANCOUVER, British Columbia, Jan. 28, 2020 (GLOBE NEWSWIRE) -- 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:
- 24.9 g/t gold over 1.0 metre from drill hole PG19-708;
- 34.1 g/t gold over 2.2 metres from drill hole PG19-710; including
64.6 g/t gold over 1.0 metre;
- 33.1 g/t gold over 3.4 metres from drill hole PG19-719; including
79.4 g/t gold over 1.4 metres;
- 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.
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 (m)||Gold (g/t)|
*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:
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.
- 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 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.
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", “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.