VANCOUVER, British Columbia, Feb. 13, 2018 (GLOBE NEWSWIRE) — Pure Gold Mining Inc. (TSX-V:PGM) (“Pure Gold” or the “Company”) is pleased to announce that its unaudited condensed interim consolidated financial statements (“Financial Statements”) for the third quarter ended December 31, 2017 and the accompanying Management’s Discussion and Analysis are available for download on the Company’s website at www.puregoldmining.ca at under the Company’s SEDAR profile at www.sedar.com.
Quarterly highlights and recent developments:
- Announced a new discovery (the Wedge Target) south of the existing mine site, adding 1,100 metres of strike length to the Madsen Mine trend, with high grade gold mineralization outcropping at surface and returned from four zones (CK, DV, MJ, and 86), including 33.3 g/t gold over 8.3 metres from hole PG17-467; 21.3 g/t gold over 10.3 metres and 10.7 g/t gold over 4.2 metres returned from drill hole PG17-486, 25.2 g/t gold over 2.1 metres and 22.0 g/t gold over 2.0 metres from drill hole PG17-482 and 27.8 g/t gold over 1.4 metres and 19.4 g/t gold over 2.0 metres from drill hole PG17-4701.
- Completed mineral resource estimates from two satellite deposits, Russet South and Fork, at its 100% owned Madsen Gold Project (“Madsen”).
New indicated mineral resources at Russet South total 56,000 ounces (259,000 tonnes at an average grade of 6.7 g/t gold) and inferred mineral resources total 71,000 ounces (322,000 tonnes at an average grade of 6.8 g/t gold) at a 4.0 g/t cut-off2;
New indicated mineral resources at Fork total 40,000 ounces (194,000 tonnes at an average grade of 6.5 g/t gold) and inferred mineral resources total 47,000 ounces (255,000 tonnes at an average grade of 5.8 g/t gold) at a 4.0 g/t cut-off2;
The Fork and Russet South deposits have the potential to positively impact annual throughput and the production profile at Madsen.
- Commenced a Definitive Feasibility Study (“DFS”) on Madsen, with the objective of making a positive production decision by the end of the fourth quarter of calendar 2018. The DFS will determine the optimum mine plan, underground mining methods and mining rate, while leveraging the existing mine infrastructure at Madsen.
- Closed a bought deal private placement for aggregate gross proceeds of C$19.2 million upon the issuance of an aggregate of 31,613,292 common shares of the Company. The offering consisted of three tranches. The first tranche consisted of 8,690,000 common shares of the Company that qualify as “flow-through shares” for the purposes of the Income Tax Act (Canada) (“Super FT Shares“)3 and were issued at a price of C$0.725 per Super FT Share. The second tranche consisted of 8,061,125 common shares of the Company that qualify as flow-through shares (“FT Shares“) and were issued at a price of C$0.64 per FT Share. The third tranche consisted of 14,862,167 common shares of the Company (“Common Shares“) and were issued at a price of C$0.52 per Common Share.
- Drilling from underground continued to confirm mineralization in the McVeigh and South Austin gold mineralized zones and highlights the expansion potential within the Madsen mineral resource4.
Multiple new drill holes collared from the underground mine workings expanded the known mineralization outside of the current mineral resource, including; 20.0 g/t gold over 3.8 metres from hole PGU-0044; 13.7 g/t gold over 6.8 metres from hole PGU-0033 and 9.1 g/t gold over 6.6 metres from drill hole PGU-0024 within the McVeigh and 10.5 g/t gold over 2.0 metres from PGU-0037 and 11.3 g/t gold over 2.2 metres from PGU-0035 within the South Austin;
Infill drilling confirmed near surface resources in close proximity to the Madsen ramp, with 26.4 g/t gold over 12.7 metres from drill hole PGU-0051; 19.4 g/t gold over 9.8 metres returned from drill hole PGU-0028 and 15.4 g/t gold over 4.0 metres from drill hole PGU-0042 in the McVeigh Zone.
- Continued with underground infrastructure work at the Madsen Ramp and initiated development work to access a 7,200 tonne bulk sample from the Madsen deposit.
Selected Financial Data
The following selected financial data is derived from our Financial Statements and related notes thereto for the periods indicated, as prepared in accordance with International Financial Reporting Standards. Details of these results are described in the unaudited condensed interim consolidated financial statements and Management’s Discussion and Analysis for the three and nine months ended December 31, 2017. These documents can be found on the Company’s website (www.puregoldmining.ca) or on SEDAR at www.sedar.com. All dollar figures are expressed in Canadian $.
|Three months ended
|Nine months ended
|Net Loss for the period||$||3,975,538||$||6,907,596||$||18,964,129||$||17,027,032|
|Exploration and Evaluation expenditures||$||5,371,902||$||5,570,608||$||18,723,755||$||15,324,095|
|Total Comprehensive Loss for the period||$||3,975,538||$||6,907,596||$||18,964,129||$||17,477,806|
|Basic and diluted loss per share||$||0.02||$||0.04||$||0.10||$||0.11|
|Cash and short-term investments||$||14,879,993||$||16,531,815|
This press release should be read in conjunction with Pure Gold’s Interim Financial Statements and Management’s Discussion and Analysis for the three and nine months ended December 31, 2017. In addition, for further information please see Pure Gold’s Annual Information Form for the year ended March 31, 2017. These documents can be found on the Company’s website (www.puregoldmining.ca) or under the Company’s profile on SEDAR at www.sedar.com. Shareholders may receive a printed copy of the audited consolidated financial statements, free of charge, upon request.
The Madsen Gold Project has historic production of 2.5 million ounces of gold and remains one of the highest-grade, undeveloped gold projects in the world5. With an indicated resource of 1,744,000 ounces gold at 8.7 g/t gold (in 6.2 million tonnes) and an inferred resource of 296,000 ounces gold at 7.9 g/t gold (in 1.2 million tonnes)6, Madsen benefits from existing infrastructure including a mill and tailings facility, paved highway access, and access to power, water and experienced labour. A feasibility study is underway with results expected in the fourth quarter of 2018 and the Madsen Gold Project is firmly on the path to becoming Ontario’s next gold mine.
QA/QC and Core Sampling Protocols
Drill core samples are bagged and sealed and submitted to SGS in Red Lake, Ontario for sample preparation by crushing to 75% less than 2mm, a riffle split of 1kg, and pulverization of the split to better than 85% passing 75 microns. Gold analysis is completed in the SGS Red Lake lab with a 30g fire assay and AAS finish (code GE-FAA313). Samples returning >5 g/t Au are re-assayed with a gravimetric finish (code GO-FAG303). Mineralized zones with visible gold are also analyzed by a 1kg screen fire assay with screening to 106 microns (code GO-FAS51K). Two 30g fire assays are conducted on the screen undersize and combined with an assay of the entire oversize fraction. Control samples (accredited standards and non-accredited blanks) were 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.
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 gold discovery at the Madsen Gold Project in Red Lake, Ontario. And become Canada’s next iconic gold company.
ON BEHALF OF THE BOARD
Darin Labrenz, President & CEO
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. 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 Pure Gold 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 Madsen Gold Project; 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 activities generally; delays in permitting; possible claims against the Company; 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 June 16, 2017 in the section entitled “Risk Factors”, under Pure Gold’s SEDAR profile at www.sedar.com.
Although Pure Gold 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. Pure Gold 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.
1 See press release dated January 31, 2018 for further details about these drill intercepts, available on the Company’s website at www.puregoldmining.ca or under the Company’s SEDAR profile at www.sedar.com.
2 See the technical report titled “Technical Report for the Madsen Gold Project – Restated Preliminary Economic Assessment and Initial Satellite Deposit Mineral Resource Estimates”, available on the Company’s website at www.puregoldmining.ca or the Company’s SEDAR profile at www.sedar.com.
3 For Super FT shares, the Company has committed to conducting work from surface to ensure qualifying expenditures qualify for federal tax credits, whereas the commitment for FT shares was for the work to qualify as qualifying resource expenditures only.
4 See press releases dated February 13, 2018, and November 16, 2017 for further details on exploration drill results released during the quarter available on the Company’s website at www.puregoldmining.ca or under the Company’s SEDAR profile at www.sedar.com. .
5 Historic drill hole results and production figures and other details from the Madsen and Starratt-Olsen mines disclosed in this document were completed prior to the implementation of National Instrument 43-101. A full discussion and cautionary language can be found in the National Instrument 43-101 Technical Report entitled “Technical Report for the Madsen Gold Project – Restated Preliminary Economic Assessment and Initial Satellite Deposit Mineral Resource Estimates” with an effective date of December 14th, 2017, which can be found on Pure Gold’s website at www.puregoldmining.ca or profile on SEDAR at www.sedar.com.
6 See the technical report titled “Technical Report for the Madsen Gold Project – Restated Preliminary Economic Assessment and Initial Satellite Deposit Mineral Resource Estimates”, available on the Company’s website at www.puregoldmining.ca or the Company’s SEDAR profile at www.sedar.com.