Pure Gold Announces Additional Results from Ongoing Drill Program at Madsen Gold Project

Pure Gold Mining Inc. is pleased to announce additional drill results from the ongoing 51,000 metre drill program at the Company’s 100% owned Madsen Gold Project (“Madsen”). 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 g/t 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 1.0 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 CEO 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 further to the south than previous drilling within the McVeigh horizon and confirm that mineralization is open down plunge, 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 ongoing 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 PEA and confirms the significant resource potential of the Austin horizon.    

Drill Results Summary

New assay results from select drill holes are outlined below:

*Assay composites were calculated using uncut assays and are reported as drilled widths and interpreted to vary between 50% to 97% of true widths.

The results of Pure Gold’s ongoing $9.1 million drill program continue to reinforce that the 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 hanging wall of the McVeigh horizon, produced over two million ounces from surface to a depth of 1.2 kilometres, the 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 a kilometre vertical depth.

For an overview long section showing the McVeigh horizon, click link below:
http://puregoldmining.ca/sites/default/files/McVeigh-Long-Section-09-27-2016.pdf

For a detailed long section showing the recent McVeigh Central drill results, click link below:
http://puregoldmining.ca/sites/default/files/McVeigh-Central-Long-Section-09272016.pdf

For a detailed long section showing the recent McVeigh West drill results, click link below:
http://puregoldmining.ca/sites/default/files/McVeigh-West-Long-Section-09272016.pdf

For a complete list of 2016 drill results to date, click link below:
http://puregoldmining.ca/sites/default/files/2016-DH-Intercepts-Table-September-27.pdf

Pure Gold’s 2016 exploration program is on-going 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.