Gold and Silver miners (Jr and Exploration)

[Edge83]

Pure Gold Makes New Discovery at Russet South, Madsen Gold Project
BY Market Wire
— 6:30 AM ET 03/27/2017
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/27/17 -- Pure Gold Mining Inc. ( LRTNF) ("Pure Gold" or the "Company") is pleased to announce that a new zone of near surface gold mineralization has been discovered at the Russet South target on the Company's 100% owned Madsen Gold Project ("Madsen"). These new discovery holes add critical mass to Russet South, which is shaping up to be an important component of Pure Gold's modern development strategy. Consistent drill results from new areas such as Russet South, McVeigh, A3 and Starratt, reinforce the resource expansion program that is underway and the widespread untapped potential of the Madsen Gold Project.

Highlights from new drilling at Russet South include:
23.1 g/t gold over 1.9 metres in hole PG17-310
8.3 g/t gold over 1.7 metres in hole PG17-316
4.4 g/t gold over 12.0 metres in hole PG17-335
Including 14.3 g/t gold over 2.0 metres
21.4 g/t gold over 1.9 metres in hole PG17-341

"Our drilling has been highly successful in intersecting widespread gold mineralization at Russet South," said Darin Labrenz, President and CEO of Pure Gold. "The mineral system is similar in setting and style to that of significant portions of the existing resource at Madsen, and results released today have expanded this satellite gold target significantly. Drilling has now intersected gold mineralization across a 650 metre by 650 metre footprint, to depths less than 250 metres demonstrating the near-term, near-surface potential for meaningful resources within a short distance of Madsen's permitted mine infrastructure.1"

New Zone of Mineralization Discovered
The new gold zone at Russet South is highlighted by hole PG17-335 which returned 4.4 g/t gold over 12.0 metres. This zone lies on the eastern side of Russet South, approximately 200 metres north and along strike of intercepts drilled in 2015 and 2016, including 12.3 g/t gold over 2.9 metres in PG15-0452 and 17.7 g/t Gold over 1.0 metre in PG16-0993. Gold mineralization in all of these holes is associated with deformed blue-grey quartz veins hosted in a 200 metre thick wedge of Basalt located between two distinct Ultramafic units. This near surface setting is structurally and stratigraphically analogous to known deep mineralization that forms the Madsen 8-Zone deposit which has Indicated Resources of 132,000 ounces gold at 12.21 g/t Au (in 0.34 million tonnes) and Inferred Resources of 185,000 ounces gold at 18.14 g/t Au (in 0.32 million tonnes)1, 5.

Drilling at Russet South expands Mineralized Zones and Builds Continuity
Additionally, new drill holes reported herein have intersected gold mineralization in the hanging wall of the previously reported mineralization on the western extent of Russet South, expanding the scale of, and demonstrating continuity of mineralization in this area. The reported intercepts from PG17-310 are 150 metres along strike to the southwest from a previously reported intercept in PG15-028 of 8.2 g/t gold over 11.0 metres4, with both intercepts hosted in a package of folded quartz veins on the lower contact of an Ultramafic unit. The intercept reported from PG16-341 was a 50 metre step out to the North from this visible gold mineralized intercept in PG17-310 highlighting the along strike continuity of the mineralized quartz vein envelope.

For a plan map showing the setting of the Russet South targets, click link below:
http://puregoldmining.ca/sites/default/files/Russet-plan-03272017.pdf
For a complete list of 2017 drill results to date, click link below:
http://puregoldmining.ca/sites/default/files/2017-DH-Intercepts-Table-March_27.pdf

Pure Gold's 2017 exploration program is on-going with four drill rigs currently testing resource growth potential near the mine infrastructure and along the more than five kilometre strike length of the Madsen mineral system. The program is expected to include 70,000 metres of core drilling, and will include underground drilling, expected to commence in Q2 2017. Further results will be released as available.

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 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 gold (in 3.24 million tonnes) and an Inferred Resource of 297,000 ounces gold at 11.74 g/t gold (in 0.79 million tonnes)5. 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 the geology and continuity of mineralization.

In addition to the mineral resource, the Madsen Gold Project hosts a number of prospective new discoveries including the Fork Zone and Russet South targets, as well as, two significant historic underground mines. Pure Gold believes the opportunity exists to advance these targets through the application of modern exploration science and a new understanding of the district.