"These exciting new results from Russet South continue to demonstrate the near-surface, high-grade gold endowment of the Madsen Gold Project," said Darin Labrenz, President and CEO of Pure Gold. "Our goal is to unlock the exploration potential of the Madsen Project by concurrently advancing satellite targets such as Russet South, while drill testing the expansion potential of the Madsen Mine mineral resource, as was recently reported on April 4, 2016 from the McVeigh horizon. The presence of high grade gold mineralization at Russet South coupled with a new model for high grade expansion within the McVeigh horizon of the Madsen Mine, provide a compelling exploration opportunity."
Russet South is a high grade gold occurrence that lies approximately 1.5 kilometres west of the McVeigh horizon and associated Madsen mine infrastructure. While the current drill program is prioritized on potential resource expansion within the McVeigh, a smaller subset of drilling has been allocated to the Russet South area where earlier drilling and channel sampling by Pure Gold defined high grade gold at three separate targets. These targets share a similar geologic environment to Madsen's high grade 8 Zone resource which is situated 1.6 kilometres down dip on the same geologic contact as the near surface Russet South targets. In 2015, Pure Gold drill testing of the northernmost of the three targets ("Alpha") returned 8.2 g/t gold over 11.0 metres from hole PG15-028 and 9.5 g/t over 3.5 metres from hole PG15-027(1).
Drilling reported herein has further established the presence of a wide zone of alteration, veining and gold mineralization within a folded contact zone. All six holes reported today tested the Alpha target and include higher grade intervals of:
-- 56.2 g/t gold over 1.3 metres in hole PG16-067 -- 22.1 g/t gold over 3.5 metres in hole PG16-069 -- Including 36.9 g/t gold over 1.8 metres
"The reported high grade gold intervals represent a 25 metre lateral step out on our discovery holes at Alpha from 2015. While we continue to delineate and gain understanding of the mineralization at Russet South, we are highly encouraged that our predictive targeting is proving successful. Folded geologic contacts across the property, including those that host the 8 Zone at depth and Alpha near surface, remain high priority targets for us," said Phil Smerchanski, Director, Geoscience of Pure Gold.
Assay results from six drill holes targeting Alpha at Russet South are highlighted in the table below:
Russet South - Alpha Target Significant Assay Results(i)
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From To Length Au
Hole ID (m) (m) (m) (g/t) Zone
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PG16-067 111.4 115.4 4.0 2.9 Alpha
incl. 114.9 115.4 0.5 15.0
128.0 129.3 1.3 56.2 Alpha
159.1 160.3 1.2 4.4 Alpha
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PG16-069 183.5 187.0 3.5 22.1 Alpha
incl. 185.2 187.0 1.8 36.9
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PG16-070 No Significant Results Alpha
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PG16-072 86.0 87.3 1.3 2.2 Alpha
101.0 101.5 0.5 10.6 Alpha
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PG16-074 120.2 120.6 0.4 1.9 Alpha
184.1 185.7 1.6 1.8 Alpha
210.0 210.7 0.7 2.3 Alpha
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PG16-077 130.0 135.0 5.0 2.2 Alpha
202.5 203.0 0.5 2.7 Alpha
270.7 271.5 0.8 4.5 Alpha
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