Pure Gold Mining Inc. (TSX-V:PGM) (LSE:PUR) is pleased to announce that ongoing drilling along the Madsen Red Lake Mine Trend has added 530 metres of mineralized strike length to the Wedge Zone, expanding the deposit footprint by 85% and continuing the rapid progression of this zone. In early 2018, the Company announced the discovery of the Wedge deposit with multiple high grade intercepts reported three kilometres south of the Madsen Red Lake Mine. In early 2019, incorporating just nine months of drilling, Pure Gold reported the maiden resource estimate for this new discovery. Such quick advancement from discovery to resource, and today’s near doubling of the mineralized strike length of the zone, provides a compelling example of the strong growth potential of the area and the potential to impact future plans at the Madsen Red Lake Mine.
A summary table of the results is set out at the end of this News Release.
“From day one our mandate has been discovery, delineation and resource conversion to give investors a full and current picture of the value that underpins Pure Gold and our platform for growth,” stated Darin Labrenz, President and CEO of Pure Gold. “At a gold price of US$1500, and without consideration of new mineral resources at Fork, Wedge or Russet South, our project has a current after-tax net present value of C$390 million and internal rate of return of 51%.1 In a dynamic project like Madsen Red Lake, this is only part of the picture. Today’s results showcase the tremendous potential of the Madsen mineral system to continue to grow, by nearly doubling the strike length of Wedge and by extending the gold structural corridor that controls the Madsen orebody to seven kilometres. Importantly, these results continue to support our record of discovery to mineral resource in a phased approach to bring a brand new, fully funded mine to life.”
Defining the “Wedge Zone”
The Wedge zone is a part of the property-wide structural architecture associated with gold mineralization at Madsen, Fork, and Russet South. As an extension of the Madsen orebody, it shares the same alteration, timing and structural controls on gold mineralization with the gold lodes directly controlled by the intersection of the mineralized structure and geologic contacts. Initial work by Pure Gold quickly established an indicated resource in this area of 322,000 tonnes grading 10.3 g/t gold and an inferred resource of 307,000 tonnes grading 8.0 g/t gold over a partially tested strike length of 620 metres. Current drilling continues to infill within this footprint with a goal of upgrading resources from inferred to indicated, and expanding inferred resources, while step-out drilling is targeting new zones of mineralization.
Surface mapping outside of the known resource areas has traced the Madsen structural corridor south of the Wedge area, exposing a continuous deformed corridor of quartz veining with alteration typical of the Madsen gold system. Drill hole PG19-657, a significant step-out of 440 metres southwest step out from the Wedge zone resource, intersected high grade gold mineralization at a shallow depth of 102 metres down hole. On the north end of the Wedge zone resource, drill hole PG19-677, a 90 metre step-out from the resource establishes the potential for resource expansion to the north with 24.4 g/t gold over 1.0 metre returned from shallow drilling. This drilling correlates with previous drilling including PG17-444 which returned 10.6 g/t gold over 3.1 metres including 22.9 g/t gold over 1.1 metres.2 These two step outs clearly highlight both the overall potential of the Wedge area (now drill tested with high-grade intercepts over a 1,150 metre strike length), and the strength of the seven kilometre long gold system emerging at Madsen.
Drill Results Summary
New assay results from select drill holes are outlined below:
|Hole ID||From (m)||To (m)||Length (m)||Gold (g/t)||Zone|
*Assay composites were calculated using uncut assays and true widths are interpreted to vary from 70-90% (80%, on average) of reported core lengths above.
For a set of figures showing mineral resource locations, click link below:
For a complete list of 2019 drill results to date, click link below:
ABOUT THE MADSEN RED LAKE MINE
The Madsen Red Lake Mine is Canada’s highest grade development-stage gold project. Fully funded, the project is on track to deliver near term gold production into a rising Canadian gold price environment, with first production scheduled for late 2020. The orebody is situated within a seven kilometre long gold system that is wide open for expansion at depth and along strike and multiple discoveries by the Company suggest potential opportunities for near-term growth to the production plan.
QA/QC and Core Sampling Protocols
Drill core samples are submitted to ALS Minerals in Thunder Bay, Ontario for sample preparation by crushing to 70% less than 2 mm, a rotary split of 1 kg, and pulverization of the split to better than 85% passing 75 microns. Sample pulps are shipped to the ALS assay laboratory in North Vancouver, BC for gold analysis with a 30 g fire assay and AAS finish (code Au-AA23). Samples returning >5 g/t Au are re-assayed with a gravimetric finish (code GRA21). Mineralized zones with visible gold and shoulder samples are also analyzed by a 1 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 (certified standards and uncertified blanks), along with field, prep and pulp duplicates, are inserted on a regular basis. Results are assessed for accuracy, precision, and contamination on an ongoing basis.
Qualified Persons and 43-101 Disclosure
Phil Smerchanski, P. Geo., Vice President, 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.
Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the Madsen Red Lake Gold Mine in Red Lake, Ontario. And become Canada’s next iconic gold company.
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We acknowledge the [financial] support of the Government of Canada.