Pure Gold Mining drills 5.9 m of 11 g/t Au at Madsen
2016-04-04 06:36 ET - News Release
Mr. Darin Labrenz reports
PURE GOLD CONFIRMS MCVEIGH DEPTH POTENTIAL WITH MULTIPLE HIGH GRADE DRILL INTERCEPTS BELOW HISTORIC MINE WORKINGS AT MADSEN
Pure Gold Mining Inc. has released results from diamond drilling targeting the McVeigh horizon at the company's 100-per-cent-owned Madsen gold project. These holes are part of the continuing 16,000-metre drill program designed to test and build continuity of high-grade gold mineralization in close proximity to the historic mine.
"Our drilling confirms that the McVeigh horizon is open for expansion downplunge. The McVeigh is a folded continuation of the Austin horizon which historically produced over two million ounces of gold in 36 years of continuous mining at Madsen," said Darin Labrenz, president and chief executive officer of Pure Gold. "We have now intersected broad zones of high-grade gold mineralization in multiple locations beneath historic mining areas of the McVeigh and we believe the mineralization is open to expansion at depth. While historic mining of the Austin horizon continued to a depth of more than 1,200 metres, our deepest hole to date intersected the parallel McVeigh at less than 300 metres. We see this new understanding of folding and repetition as an important development for Madsen and for the Red Lake camp, and we look forward to continuing to advance Madsen by drill testing the downward plunge of these high-grade shoots."
Drilling to date has targeted downplunge extensions of high-grade gold mineralization within the McVeigh horizon which remains open for expansion below a depth of 230 metres. The results of the company's drilling confirm that the McVeigh horizon is a fold continuation of the Austin horizon and demonstrate the expansion potential of the McVeigh horizon. Geologically, the mineralized shoots of the McVeigh horizon share the same characteristics, and similar widths and grades, as the parallel Austin horizon, which produced over two million ounces of gold from surface to a depth of 1,200 metres.
Drilling on the north end of McVeigh intersected high-grade mineralization approximately 50 metres below the deepest extent of historic mining including:
10.3 grams per tonne gold over 3.2 metres in hole PG16-060;
Including 50.8 g/t gold over 0.6 metre.
Drilling collared approximately one kilometre to the south intersected high-grade gold mineralization approximately 80 metres below historic mining including the following three distinct intercepts from PG16-071:
11.0 g/t gold over 5.9 metres;
30.0 g/t gold over one metre;
10.9 g/t gold over one metre.
Since January, 2016, approximately 6,300 metres of diamond drilling have been completed in 24 drill holes near the Madsen mine. This initial drilling is designed to test the continuity of plunging mineralized shoots within the McVeigh horizon to a maximum depth of approximately 300 metres below surface. An additional 2,200 metres of diamond drilling have been completed in 16 holes targeting the high-grade Russet South discoveries, located 1.5 kilometres from the Madsen Mine head frame, with further results pending.
Assay results from nine drill holes targeting the Austin and McVeigh horizons are highlighted in the table.
MCVEIGH TARGET SIGNIFICANT ASSAY RESULTS(i)
Hole ID From To Length Au
(m) (m) (m) (g/t)
PG16-059 246.9 248.0 1.1 6.0
PG16-060 243.0 247.0 4.0 11.9
incl. 246.0 247.0 1.0 24.1
429.2 432.4 3.2 10.3
incl. 431.8 432.4 0.6 50.8
PG16-061 235.0 238.2 3.2 6.0
378.5 383.0 4.5 4.6
incl. 378.5 381.0 2.5 5.9
PG16-062 181.9 184.0 2.1 1.8
PG16-063 244.5 250.0 5.5 1.0
PG16-064 245.7 246.5 0.8 4.6
PG16-065 Hole abandoned
PG16-066 391.4 398.1 6.6 2.9
PG16-068 333.5 336.7 3.2 3.2
PG16-071 279.6 285.5 5.9 11.0
incl. 283.3 285.5 2.2 22.5
298.3 299.3 1.0 30.0
310.0 311.0 1.0 10.9
(i) Assay composites were calculated using uncut assays and are
reported as drilled widths and interpreted to vary between 75
per cent and 100 per cent of true widths.
For a plan map showing the McVeigh horizon drill results, a long section showing the McVeigh horizon and a complete list of 2016 drill results to date, please visit the company's website.
As previously reported, the company has engaged Nordmin Engineering Ltd. to complete a preliminary economic assessment of the Madsen gold project. The base-case assessment is designed to minimize capital expenditures by employing existing infrastructure and resources, and is based on throughput of 500 tonnes per day. Pure Gold is in receipt of permits to allow expansion of the existing mill facility to more than double this rate. The study is under way with results anticipated within the current quarter.
About Madsen
The Madsen mine operated for over 36 years with historic production of 2.5 million ounces at an average grade of 9.9 g/t gold. The Madsen gold project hosts an operational head frame, a permitted mill and tailings facility, and access to power, water and labour. The Madsen gold project has an indicated resource of 928,000 ounces gold at 8.93 g/t Au (in 3.24 million tonnes) and an inferred resource of 297,000 ounces gold at 11.74 g/t Au (in 790,000 tonnes)(1). The mineral resource is based on 13,624 drill holes, evenly dispersed throughout the mineral resource. A robust geologic model based on 27 levels of geological mapping and chip sampling provides a solid understanding of continuity of mineralization.
In addition to the mineral resource, the Madsen gold project hosts a number of highly prospective new discoveries including the Fork zone and Russet South targets where drilling in 2015 returned 15.0 g/t gold over five metres from hole PG15-028 and 39.1 g/t gold over 2.9 metres from hole PG15-0313. Pure Gold believes the opportunity exists to advance these near-surface, high-grade exploration targets through the application of modern exploration science and a new understanding of the district.
(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 Feb. 18, 2014. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Quality assurance/quality control and core-sampling protocols
Drill core samples were submitted to ALS Minerals in Thunder Bay, Ont., for sample preparation by crushing to 70 per cent less than two millimetres, rotary split of one kilogram and pulverization of the split to better than 85 per cent 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 five g/t Au are reassayed with a gravimetric finish (code GRA21). Mineralized zones with visible gold are reanalyzed by a one kg screen fire assay with screen to 100 microns. A duplicate 30 g 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.
Qualified persons and National Instrument 43-101 disclosure
Darren O'Brien, PGeo, vice-president of exploration for the company, is the designated qualified person for this news release within the meaning of National Instrument 43-101, and has reviewed and verified that the technical information contained herein is accurate, and approves of the written disclosure of same.
We seek Safe Harbor.
© 2016 Canjex Publishing Ltd. All rights reserved.
