Pure Gold Mining drills 3.7 m of 126.6 g/t Au at Madsen
2016-09-27 06:49 ET - News Release
Mr. Darin Labrenz reports
PURE GOLD INTERSECTS 126.6 G/T GOLD OVER 3.7 METRES AT THE MADSEN GOLD PROJECT
Pure Gold Mining Inc. has released additional drill results from the continuing 51,000-metre drill program at the company's 100-per-cent-owned Madsen gold project. Results reported herein are from the four-drill-rig exploration program, designed to expand the high-grade gold resource in close proximity to the existing permitted infrastructure.
Highlights from new drilling include:
9.5 grams per tonne gold over 4.9 metres in hole PG16-185 (McVeigh);
Including 17.5 g/t gold over 2.3 metres;
8.3 g/t gold over 5.4 metres in hole PG16-191 (McVeigh);
Including 11.6 g/t gold over 3.5 metres;
126.6 g/t gold over 3.7 metres in hole PG16-195 (Austin);
Including 382.0 g/t gold over one metre.
"Our drilling to date has been successful in establishing that the McVeigh horizon is analogous to the Austin horizon, with similar style of alteration, and comparable widths and grades of gold mineralization," said Darin Labrenz, president and chief executive officer of Pure Gold. "Furthermore, drilling has demonstrated that the McVeigh is mineralized well below the shallow historic workings and has lateral continuity with deep roots. With this established, we are now stepping out more aggressively within the McVeigh, with the goal of testing the extents of the mineralization. These results, which include gold intercepts that are south of and deeper than any previous drilling by the company to date, clearly demonstrate that the McVeigh is wide open for expansion and represents an exciting modern exploration discovery in the Red Lake district."
Drilling confirms south plunge in the McVeigh horizon
Drill hole PG16-191 represents the southernmost and deepest intercept by the company to date, returning significant results from a 100-metre step-out from previously reported hole PG16-136 (see McVeigh West long section). Furthermore this hole lies 70 metres below mineralization reported in hole PG16-185 and 180 metres below mineralization reported in hole PG16-178. Together these three drill holes span a 200-metre vertical section that is farther to the south than previous drilling within the McVeigh horizon and confirm that mineralization is open downplunge to the south below the shallow historical workings.
High-grade gold within the Austin horizon
While drilling is primarily focused on the McVeigh horizon, continued geological modelling by Pure Gold suggests that the Austin horizon also holds significant potential for new mineralized zones. Through continuing drilling, the company has developed a better understanding of the controls on mineralization and believes that there is potential for additional mineralization in the Austin from both extensions of known zones, and from newly modelled, untested parallel targets. Drill hole PG16-195 intersected a strongly mineralized and altered zone with both coarse and fine visible gold scattered throughout the intercept, returning 126.6 g/t gold over 3.7 metres. This high-grade intercept occurs outside of proposed mining shapes defined in the preliminary economic assessment and confirms the significant resource potential of the Austin horizon.
Drill results summary
New assay results from select drill holes are outlined in the table.
MADSEN DRILL RESULTS
Hole ID From To Length Gold
(m) (m) (m) (g/t)
PG16-174 146.8 148.8 2.0 6.3
PG16-178 169.0 175.0 6.0 4.9
211.0 213.0 2.0 7.4
PG16-185 349.1 354.0 4.9 9.5
incl. 349.1 351.4 2.3 17.5
PG16-188 189.0 191.0 2.0 17.9
PG16-191 381.6 387.0 5.4 8.3
incl. 381.6 385.1 3.5 11.6
PG16-195 262.8 265.7 2.8 11.9
280.5 284.2 3.7 126.6
incl. 280.5 281.5 1.0 382.0
and incl. 283.0 284.2 1.2 58.8
(i) Assay composites were calculated using uncut assays and
are reported as drilled widths and interpreted to vary
between 50 per cent and 97 per cent of true widths.
The results of Pure Gold's continuing $9.1-million drill program continue to reinforce that McVeigh is a folded footwall continuation of the Austin horizon, is open in all directions and remains largely untested. While the Austin horizon, which is situated 150 metres in the hangingwall of the McVeigh horizon, produced over two million ounces from surface to a depth of 1.2 kilometres, McVeigh was only mined to a maximum depth of 230 metres. Pure Gold's work to date has identified significant endowment potential in the McVeigh horizon, with gold-bearing intersections present from surface to over one-kilometre vertical depth.
For an overview long section showing the McVeigh horizon, a detailed long section showing the recent McVeigh Central drill results, a detailed long section showing the recent McVeigh West drill results and a complete list of 2016 drill results to date, visit the company's website.
Pure Gold's 2016 exploration program is continuing with three drill rigs currently testing the McVeigh horizon and a fourth drill rig testing satellite targets, including Russet South. The program is expected to include 51,000 metres of core drilling, of which 41,610 metres have been completed and released to date. 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 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 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.
(1) See the National Instrument 43-101 technical report entitled "Technical report on the preliminary economic assessment for the Madsen gold project," prepared by Nordmin Engineering Ltd., dated effective April 20, 2016. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Quality assurance/quality control and core sampling protocols
Drill core samples are submitted to ALS Minerals in Thunder Bay, Ont., for sample preparation by crushing to 70 per cent less than two millimetres, a 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 atomic absorption spectroscoopy 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 also analyzed by a one 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 (accredited standards and non-accredited blanks) were inserted on a regular basis. Results are assessed for precision on a continuing basis.
Qualified persons and NI 43-101 disclosure
Phil Smerchanski, 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.
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