Pure Gold Launches 2014 Exploration Program at the Madsen Gold Project
July 08 2014 - 5:30AM
Marketwired Canada
Pure Gold Mining Inc. (TSX VENTURE:PGM) ("Pure Gold" or the "Company") is
pleased to announce the launch of the 2014 exploration program at its 100% owned
Madsen Gold Project in the prolific Red Lake gold district of northwest Ontario.
The goal of the program is to prioritize drill targets designed to expand the
current mineral resource, while concurrently developing a new predictive geology
model for targeting high-grade, 8 Zone-style mineralization. This program is an
extension of ongoing consolidation and evaluation of the large historic database
consisting of historic drill, mining and exploration results.
"We are excited to kick off our 2014 exploration program, which will prioritize
drill targets based on our 'proof of concept' exploration model," stated Darin
Labrenz, President & CEO of Pure Gold. "We intend to discover new zones of
high-grade mineralization along the 10 km-long ultramafic contact within the
Madsen property, which we believe has the potential to host the next
multi-million ounce deposit in the Red Lake district."
A new interpretation of the role of folded ultramafic contacts and structural
controls have resulted in multiple recent discoveries in the Red Lake district,
including Goldcorp's High Grade Zone at the Red Lake Mine Complex, the Bruce
Channel system at the Cochenour Mine, and the F2 Gold System at Rubicon's
Phoenix Mine. The environment and mineralization at Madsen's 8 Zone is similar
to other recent high grade discoveries in the district. Recent resampling of
historic drilling at the 8 Zone returned 38.26 g/t gold over 7.5 metres (see
Table 1). Pure Gold believes the opportunity exists to apply modern exploration
science and a new understanding of the district to achieve similar success along
the ultramafic contact at the Madsen Gold Project.
Pure Gold's current program will be split into two phases. Phase 1, now
underway, is designed to better define drill-ready targets and generate new
targets. Exploration crews have been mobilized to site and are re-logging and
sampling drill core, compiling historic geologic data, conducting structural
mapping, and interpreting a new airborne magnetic geophysical survey. Phase 2
will follow later in the summer and is anticipated to include a 9,000 metre
drill program designed to test the initial targets generated in Phase 1.
Highlights of the Phase 1 exploration program include:
-- Consolidating historic archives from former operators into a common
digital platform;
-- Conducting a high resolution airborne magnetic survey (complete);
-- Defining sampling and assaying protocols suitable for Red Lake coarse
gold;
-- Prioritizing near surface drill targets designed to expand the current
mineral resource;
-- Developing new predictive vectoring tools for targeting high-grade, 8
Zone-style mineralization; and,
-- Developing a geological "footprint" of high-grade gold zones by
constructing new 3D stratigraphic, structural, and alteration models,
allowing more predictive drill targeting of ultramafic contact 8 Zone-
style mineralization.
Geological "Footprint" Modeling
Pure Gold has commenced a Footprint Modeling program designed to create
stratigraphic, structural, and alteration models for the Madsen property
utilizing the +200,000 metres of drill core available at the mine's core farm.
The overall objective of the modeling exercise is to define structural controls
and alteration vectors ("footprints") associated with gold mineralization using
ultra-trace geochemistry, magnetic susceptibility, Terraspec (ASD) and XRF
technologies ("lithgeochemical sampling"). This footprint modeling technique has
proven successful at recent Red Lake discoveries and will be utilized when drill
targeting 8 Zone-style mineralization.
To date, Pure Gold geologists have re-logged over 6,000 metres of core from
seven historic drill holes completed by previous operators in 2008/2009. Initial
re-logging and sampling efforts focused on underground drill core that
intersected the ultramafic contact near the 8 Zone. Lithogeochemical results
will be incorporated into a new 3D geological model and utilized for drill
targeting.
Concurrent with the re-logging of some historic drill core and modeling,
geologists are sampling mineralized zones for gold analysis as a check sampling
exercise. Gold assays have been received from the initial five drill holes.
Significant assay results are reported below:
Table 1- Significant Check Assay Results(1)
----------------------------------------------------------------------------
Hole ID From (m) To (m) Length (m) Au (g/t) Zone
----------------------------------------------------------------------------
MUG08-01 51.0 54.0 3.0 7.59 Austin
---------------------------------------------------------------
882.91 883.66 0.75 127.12(2) 8 Zone
----------------------------------------------------------------------------
MUG09-02B 890.0 891.0 1.0 8.04 8 Zone
----------------------------------------------------------------------------
MUG09-03 915.0 920.0 5.0 20.86 8 Zone
---------------------------------------------------------------
933.5 934.5 1.0 4.23 8 Zone
----------------------------------------------------------------------------
MUG09-04 910.0 917.5 7.5 38.26(3) 8 Zone
----------------------------------------------------------------------------
MUG09-08 No significant results 8 Zone North
----------------------------------------------------------------------------
(1) Assay composites were calculated using uncut assays and may include
internal dilution. Composites are reported as drilled widths and
interpreted to vary between 70% to 85% of true widths.
(2) Interval removed for core display and not available for re-sampling.
Original result reported at 127.12 g/t Au.
(3) Interval 916.0m to 916.5m removed for core display and not available
for re-sampling. Original assay of 72.45 g/t Au used to calculated
weighted average composite.
(2,3) Original assays here-in were reported by Accurassay Laboratories in
Thunder Bay, Ontario. Samples were analyzed by 30g fire assay using
atomic absorption, gravimetric, and/or screen fire techniques.
All five historic drill holes were collared from 10 Level of the underground
workings and targeted the Russet Lake ultramafic near the 8 Zone. Four of the
holes intersected gold mineralization that successfully extended the 8 Zone by
150 metres down-plunge below the historic mine workings. Hole MUG09-08 targeted
the ultramafic contact approximately 240 metres north of the 8 Zone. This drill
hole was re-logged and sampled in order to collect ultratrace geochemistry
outside of the mineralized zone and therefore widen the geologic footprint.
Airborne Geophysical Survey
CGG Canada Services Ltd. recently completed a 1,653 line-kilometre,
helicopter-borne geophysics survey covering the entire +50 km2 Madsen Gold
Project. The MIDAS high resolution magnetic survey is designed from a base layer
in property-scale exploration programs. Final results have been received and are
being utilized by Pure Gold's exploration team in constructing a
lithology-structural framework for the property and delineating lithological,
alteration, and structural controls on gold mineralization. Initial
interpretations are being incorporated in the exploration targeting process.
ABOUT THE MADSEN GOLD PROJECT
Pure Gold recently consolidated its position in the Red Lake district with the
acquisitions of the Madsen Gold property and the adjacent Newman-Madsen property
(see news releases dated March 4, 2014 and June 25, 2014). Together, these
properties make up a 50 square kilometre land package of contiguous, patented
ground, collectively known as the Madsen Gold Project. Pure Gold now holds the
third largest land package in the Red Lake region.
The property is host to two past-producing mines; existing mine infrastructure
including an operational headframe, a 1,275 metre-deep shaft, and a 500 tonne
per day mill; an Indicated mineral resource of 928,000 ounces gold (3.24 million
tonnes grading 8.93 g/t gold) and an Inferred mineral resource of 297,000 ounces
gold (0.79 million tonnes grading 11.74 g/t gold)1; and, multiple highly
prospective exploration targets in a geological setting analogous to other
modern high-grade discoveries in the Red Lake district.
At Madsen, the 10 km-long ultramafic contact is highly prospective for
additional high-grade discoveries, and numerous recent discoveries along this
contact have only been partially advanced. Pure Gold is pursuing a strategy of
exploring for additional near surface high-grade mineralization along the 12
km-long Madsen Mine trend and the 10 km-long ultramafic contact.
(1) See the National Instrument 43-101 technical report entitled "Technical
Report for the Madsen Gold Project Red Lake, Ontario, Canada", prepared by SRK
Consulting (Canada) Inc. dated effective February 18, 2014. Mineral Resources
are not Mineral Reserves and do not have demonstrated economic viability.
QA/QC and Core Sampling Protocols
Check samples were submitted to ALS Minerals in Thunder Bay, Ontario for sample
preparation by crushing to 70% less than 2mm, rotary split off 1kg, and
pulverize the split to better than 85% passing 75 microns. Sample pulps are
shipped to the ALS assay laboratory in North Vancouver, B.C. for gold analysis
with a 30 gram fire assay and AAS finish (code Au-AA23). Samples returning
greater than 5 g/t Au are re-assayed with a gravimetric finish (code GRA21).
Mineralized zones with visible gold are re-analyzed by a 1kg screen fire assay
with screen to 100 microns. A duplicate 30g fire assay is conducted on the
screen undersize while assaying of entire oversize fraction (code Au-SCR21).
Control samples (accredited standards and blanks) were inserted on a regular
basis. Results were monitored on receipt of assays by Gary Lustig, MSc, P.Geo,
an independent consultant to Pure Gold and a Qualified Person as defined by
National Instrument 43-101.
Qualified Persons
Darren O'Brien, 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.
ABOUT PURE GOLD
Our mandate is pure and simple. To dream big. To colour outside the lines. To
use smart science and creativity to unlock the next multi-million-ounce gold
discovery at the Madsen Gold Project 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
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
Certain statements made and information contained in this news release and
elsewhere constitutes "forward-looking information" within the meaning of
Canadian securities legislation. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or performance are not
statements of historical fact and may constitute forward-looking statements.
Such forward-looking statements are based on certain assumptions and are subject
to risks and uncertainties which could cause actual events or results to differ
from those reflected in the forward-looking statements. Such factors include,
but are not limited to, fluctuations in the price of gold and other commodities,
continued exploration success, risks and uncertainties relating to the
interpretation of drill results and the estimation of mineral resources and
reserves, the geology, grade and continuity of mineral deposits, the possibility
that future exploration and development results will not be consistent with the
Company's expectations, changes in government legislation, taxation, controls,
regulations and political or economic developments in Canada, risks associated
with mining or development activities, the speculative nature of exploration and
development, including the risk of obtaining necessary licenses and other risks
and uncertainties including those described under Risk Factors in each
management discussion and analysis and in the Company's annual information form
which are available under the Company's profile at www.sedar.com. Many of these
uncertainties and contingencies can affect the Company's actual performance and
could cause actual performance to differ materially from those expressed or
implied in any forward-looking statements made by, or on behalf of, the Company.
Readers are cautioned that forward-looking statements are not guarantees of
future performance. There can be no assurance that such statements will prove to
be accurate and actual results and future events could differ materially from
those acknowledged in such statements. The Company disclaims any intention or
obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except to the extent
required by applicable laws. Accordingly, readers are advised not to place undue
reliance on forward-looking statements. The Company does not undertake to update
any forward-looking statement that may be made from time to time by the Company
or on its behalf, except in accordance with applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Investor inquiries:
Blaine Monaghan
Tel: 604-801-5020
info@puregoldmining.ca
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