Feb 2 2016
Pure Gold Mining Inc. ("Pure Gold" or the "Company") is pleased to announce that diamond drilling has commenced at its 100% owned Madsen Gold Project in the prolific Red Lake gold district. The 6,000 metre drilling program is designed to test and advance new interpretations of near-surface high-grade targets, in close proximity to the historic mine.
"We are very excited to kick-off our 2016 exploration program targeting new zones of high-grade mineralization within the footprint of the historic mine," stated Darin Labrenz, President and CEO of Pure Gold. "Over two million ounces were produced from surface to a depth of 1,200 metres in Madsen's Austin horizons, yet the parallel McVeigh horizon was only mined to 230 metres depth. We believe mineralization within the McVeigh continues to depth and our program is designed to test and potentially expand the extents of high-grade gold mineralization near surface."
Mineralization at McVeigh defines a steep south-plunging zone that was mined historically from near surface to a maximum depth of 230 metres. Historic drilling immediately below the mined stopes includes intercepts of 22.9 g/t gold over 11.8 metres from M-6-15150-NW and 8.7 g/t gold over 4.6m from 4-12525-N. McVeigh has had minimal testing at depth, but mineralization is highlighted by hole M-9-14825-NW, which returned 39.8 g/t gold over 0.8 metres at a depth of 450 metres1.
Please click here for a schematic long section of the McVeigh horizon: www.puregoldmining.ca/sites/default/files/McVeigh_1601.pdf
Pure Gold's $1.6 million winter drilling program is fully funded and is expected to take approximately three months to complete. The Company is continuing engineering studies to assess the existing mining and milling infrastructure, and assess potential development opportunities within the existing resource base and nearby prospects.
ABOUT MADSEN
The historic Madsen Mine operated for over 36 years with historic production of 2.5 million ounces grading 9.9 g/t gold. The Madsen Gold Project hosts an operational head frame, 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 Au (in 3.24 million tonnes) and an Inferred Resource of 297,000 ounces gold at 11.74 g/t Au (in 0.79 million tonnes)2. The mineral resource is based on 13,624 drill holes, the majority being underground holes evenly dispersed throughout the mineral resource, and a robust geologic model based on 27 levels of geological mapping and sampling.
In addition to the mineral resource, the Madsen Gold Project hosts a number of highly prospective new discoveries including the Fork Zone and Russet South targets where drilling in 2015 returned 15.0 g/t gold over 5.0 metres from hole PG15-028 and 39.1 g/t gold over 2.9 metres from hole PG15-0313. Pure Gold believes the opportunity exists to advance these near-surface, high-grade exploration targets through the application of modern exploration science and a new understanding of the district.
(1) Historic drill hole results from the McVeigh horizon were completed prior to the implementation of National Instrument 43-101. A full discussion and cautionary language regarding historic sampling practices can be found in the NI 43-101 Technical Report entitled "Technical Report for the Madsen Gold Project Red Lake, Ontario, Canada," prepared by SRK Consulting (Canada) Inc. dated effective February 18, 2014. (2) See the National Instrument 43-101 technical report entitled "Technical Report for the Madsen Gold Project Red Lake, Ontario, Canada," prepared by SRK Consulting (Canada) Inc. dated effective February 18, 2014. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. (3) See news releases dated March 2, 2015 and March 16, 2015.
Qualified Persons and 43-101 Disclosure
Darren O'Brien, 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.
ABOUT PURE GOLD
Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the next major discovery at the Madsen Gold Project in Red Lake, Ontario. And become Canada's next iconic gold company.
Additional information about the Company and its activities may be found on the Company's website at www.puregoldmining.ca and under the Company's profile at www.sedar.com.
ON BEHALF OF THE BOARD
Darin Labrenz, President & CEO