Pure Gold intersects 19.4 g/t gold over 9.8 metres at McVeigh, Madsen Gold Project
Friday, Nov 17, 2017
Pure Gold Mining Inc. (TSX-V:PGM) (“Pure Gold” or the “Company”) is pleased to announce additional drilling results from its 100% owned Madsen Gold Project (“Madsen”). Drilling from underground continues to confirm mineralization in the McVeigh and South Austin Deposits and highlights the expansion potential within the Madsen mineral resource.

Drilling highlights:

  • Multiple new drill holes collared from the underground mine workings have expanded the known mineralization outside of the current mineral resource, including 13.7 g/t gold over 6.8 metres from hole PGU-0033 and 9.1 g/t gold over 6.6 metres from drill hole PGU-0024 within the McVeigh and 11.3 g/t gold over 2.2 metres from PGU-0035 within the South Austin;
  • Infill drilling has confirmed near surface resources in close proximity to the Madsen ramp, with 19.4 g/t gold over 9.8 metres returned from drill hole PGU-0028 and 15.4 g/t gold over 4.0 metres from drill hole PGU-0042 in the McVeigh Deposit.
“Today’s results have returned exceptional widths and grades from underground drilling collared from the Madsen ramp” said Darin Labrenz, President and CEO of Pure Gold.  “Drilling within the Madsen deposit has intersected gold mineralization both external to, and within, near surface and early mine life stopes from our recently released preliminary economic assessment (“PEA”)2, both de-risking the project and highlighting the potential for mineral resource expansion.   With existing infrastructure including a shaft, ramp, mill and tailings facility, Madsen represents a unique low capital development opportunity in one of Canada’s premier high grade gold camps.”

Infill Underground Drilling Confirms Gold Mineralization

Drill hole PGU-0028 targeted the McVeigh Deposit within one of the first scheduled mining stopes from the Company’s recently released PEA, returning 19.4 g/t gold over 9.8 metres, including 39.9 g/t gold over 4.5 metres at a vertical depth of 150 metres.  Drill hole PGU-0042, designed to target the limits of the same stope, returned multiple intercepts including 57.0 g/t gold over 1.0 metre, and 15.4 g/t gold over 4.0 metres. Drill hole PGU-0027 targeted the McVeigh approximately 150 metres below surface and intersected 35.5 g/t gold over 1.5 metres in the footwall of the known mineralization.

Underground Drilling Expands Mineralized Zones

In addition to targeting initial stope shapes from the recent PEA, ongoing underground drilling is also designed to test for extensions to the current resource in the upper portion of the Madsen deposit.   Drill hole PGU-0025 targeted the South Austin and returned 23.4 g/t gold over 1.0 metre, outside of the mineral resource. Drill hole PGU-0035 also targeted the South Austin intersecting 11.3 g/t gold over 2.2 metres in a new area.  Additionally, drill hole PGU-0033 targeted the McVeigh outside of the resource, returning 13.7 g/t gold over 6.8 metres, including 28.7 g/t gold over 3.2 metres. 

Next Steps

Over the coming months, the Company will be focused on:

  • completing a detailed Project Development schedule which will provide a critical path to a production decision, including detailed engineering and permitting;

  • resource definition drilling from the Madsen ramp, designed to test for extensions to the current mineral resource;

  • exploration drilling from surface with the goal of identifying and extending new zones of gold mineralization close to existing mine infrastructure, including up-dip of the 8 zone and down dip of the Russet South Deposit;

  • Resource modelling of satellite deposits with a goal of releasing an updated mineral resource estimate for Madsen in the fourth quarter of 2017;

  • continuing environmental baseline work to support the update of existing permits and the application of new permits and the filing of a Project Definition in the first quarter of 2018; and

  • undertaking a feasibility level study in 2018.

The Madsen Gold Project has historic production of 2.5 million ounces of gold and remains one of the highest-grade, undeveloped gold projects in the world.1  With an indicated resource of 1,648,000 ounces gold at 8.9 g/t gold (in 5.79 million tonnes) and an inferred resource of 178,000 ounces gold at 9.4 g/t gold (in 0.59 million tonnes), the Project benefits from existing infrastructure including a mill and tailings facility, paved highway access, and access to power, water and experienced labour.

For more information, please visit: http://puregoldmining.ca

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