VANCOUVER, British Columbia, July 07, 2020 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (PGM: TSX-V, LSE: PUR) (“PureGold” or the “Company”), is pleased to announce that underground exploration drilling, initiated in June, has intersected high-grade gold mineralization from both infill and step-out drill holes. Drilling has extended gold mineralization out from planned stopes, has discovered new gold zones that will be integrated into the mine plan, and has confirmed stopes scheduled for near term production.1
Drilling results highlights:
- 46.7 g/t gold over 7.0 metres from drill hole PGU-0118; including
193.5 g/t gold over 1.0 metre;
- 57.0 g/t gold over 1.0 metre from drill hole PGU-0121;
- 15.8 g/t gold over 2.3 metres from drill hole PGU-0117;
- 7.2 g/t gold over 5.0 metres from drill hole PGU-0113; including
22.3 g/t gold over 1.0 metre.
A summary table of results is set out at the end of this News Release.
“Over the last several years our team has developed a tremendous understanding of the PureGold mine deposit,” stated Darin Labrenz, President and CEO of PureGold. “We have established the scale of this gold system, with fantastic continuity along a seven kilometre trend, and we are building a mine that will be one of the highest grade mines in the world.2 Our 30,000 metre exploration program is designed to firmly establish growth and scalability beyond our initial phase 1 mine plan. But even within the footprint of our phase 1 mine, the deposit continues to exceed our expectations with broad, high-grade intercepts that demonstrate opportunities for near term growth. New drill results demonstrate that extensions of existing stopes and possible expansions of the mine plan occur very close to existing or planned development and as such, have the potential to impact near term mine cash flow.”
Diamond drilling has identified both extensions to feasibility stopes, providing opportunity for additional high grade tonnes from existing or planned development, and new gold mineralization that may be incorporated into future short term mine plans. For example, PGU-0117 intersected 15.8 g/t gold over 2.3 metres approximately 15 meters along strike from the planned MV1280-3815 stope providing potential for westward extension of that stope. PGU-0118 confirmed continuity and has extended the eastern margin of the MV1280-3815 stope by several metres, returning 46.7 g/t gold over 7.0 metres. PGU-0121 returned 57.0 g/t gold over 1.0 metre in a significant step out, 30 metres beyond the 3815 planned mining shape highlighting significant tonnage growth potential. This new mineralization is a near term opportunity for growth of the mine plan and will be targeted by future drilling and sill development.
Drilling has also confirmed stope mineralization, including drill hole PGU-0113 which intersected the planned MV1340 stope as an infill hole and returned a broad five metre zone of gold mineralization, widening the planned stope in this location.
Drilling Plans – Surface Drilling Begins
Results released herein represent results from just the initial 875 metres of drilling from an underground drilling program that commenced in June. In addition to the ongoing underground program, two surface drills have commenced drilling at the Wedge zone, located three kilometres from the PureGold milling facility. This is one of the key growth areas outside of the phase 1 mine plan. Previous drilling in the area includes 33.3 g/t gold over 8.3 metres from hole PG17-467 and 21.3 g/t gold over 10.3 metres from drill hole PG17-486.3
Exploration drilling is expected to continue into 2021, with over 30,000 metres of drilling planned through early 2021. The goal of the 2020 exploration program is to expedite the growth of our mineral resources and aggressively expand new high-grade discoveries.
Drill Results Summary
New assay results from select drill holes are outlined below:
|Hole ID||From (m)||To (m)||Length (m)||Gold (g/t)|
*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 an image of gold mineralization from drill hole PGU-0121, click link below:
For a complete list of 2020 drill results, click link below:
About Pure Gold Mining Inc.
The PureGold Red Lake Mine is Canada’s next gold mine. 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.
- For further information, see the technical report titled “Madsen Gold Project Technical Report Feasibility Study for the Madsen Deposit Red Lake, Ontario, Canada" with an effective date of February 5, 2019, and dated July 5, 2019 (the “Feasibility Study”), for further information, available at www.puregoldmining.ca or under the Company’s Sedar profile at www.sedar.com
- Source S&P Global Intelligence for producing mines with average annual production exceeding 80,000 ounces per annum
- For further information see news release dated January 31, 2018
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 (“NI 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 PureGold Red Lake Mine in Ontario, Canada. And become Canada’s next iconic gold company.
ON BEHALF OF THE BOARD
Darin Labrenz, President & CEO
Adam Buchanan, Manager, Investor Relations
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to PureGold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address proposed timing of development plans for the PureGold Red Lake Mine complex, timing of expected production, timing and size of exploration activities, potential for advancing the amount and timing for higher grade ore, potential for additional resources and expansion of known deposits and potential for making new discoveries and the focus of the Company in the coming months . Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of PureGold and there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Pure Gold Red Lake Mine complex; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration and development activities generally; delays in permitting; possible claims against the Company; the timing of future economic studies; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 26, 2020 in the section entitled "Risk Factors", under PureGold’s SEDAR profile at www.sedar.com.
Although PureGold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. PureGold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.