TIDMPUR
RNS Number : 6802A
Pure Gold Mining Inc.
31 May 2019
NEWS RELEASE 19-13 May 31, 2019
PURE GOLD COMMENCES 2019 EXPLORATION PROGRAM
Drilling targeting expansion of mineral resources at Wedge, Fork
and Russet South
VANCOUVER, B.C. - 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 deposits(1,2) . 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 focussed 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)
Wedge:
o 33.3 g/t gold over 8.3 metres from drill hole PG17-467;
o 21.3 g/t gold over 10.3 metres from drill hole PG17-486;
o 15.1 g/t gold over 5.4 metres from drill hole PG16-215;
o 19.9 g/t gold over 3.3 metres from drill hole PG18-564;
and
o 354.0 g/t gold over 1.0 metre from drill hole PG18-540.
Russet South:
o 76.0 g/t gold over 2.1 metres from drill hole PG16-233;
o 27.1 g/t gold over 5.8 metres from drill hole PG17-364;
o 39.1 g/t gold over 2.9 metres from drill hole PG15-031;
and
o 15.0 g/t gold over 5.0 metres from drill hole PG15-028.
Fork / Starratt:
o 17.2 g/t gold over 3.5 metres from drill hole PG17-467;
o 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:
http://puregoldmining.ca/sites/default/files/Resource-Location-Map-31052019.pdf
ABOUT MADSEN
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)
(1) 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.
(2) 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
(3) 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 Minein 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
Investor inquiries:
Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000
info@puregoldmining.ca
Media inquiries:
Gareth Tredway / Annabel de Morgan - Tavistock
Tel: +44 (0) 20 79207150
puregold@tavistock.co.uk
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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