VANCOUVER, British Columbia, Feb. 15, 2018 (GLOBE NEWSWIRE) — Pure Gold Mining Inc. (TSX-V:PGM) (“Pure Gold” or the “Company”) is pleased to announce that the development of a 50 metre underground exploration drift has been completed in advance of scheduled test mining and extraction of a bulk sample. This exploration drift was driven in the hanging wall of the McVeigh zone and is designed to provide a drill platform for definition drilling of the upper portions of the current mineral resource. Underground drilling has commenced targeting the bulk sample location.
Test mining is scheduled to commence in the second quarter of 2018 with the extraction of 7,200 tonnes of mineralized material, with both lateral and vertical development to demonstrate continuity. The existing Madsen ramp will be driven approximately 200 linear metres to access the bulk sample location at a vertical depth of 160 metres. Recent underground drill holes in the area designated for test mining include 26.4 g/t gold over 12.7 metres from hole PGU-0051, 19.4 g/t gold over 9.8 metres from PGU-0028 and 9.1 g/t over 6.6 metres from hole PGU-0024. 1
Test mining will consist of 225 metres of lateral development, with development occurring within two proposed stopes from within the McVeigh zone. Test mining will also include 50 metres of vertical development designed to establish both lateral and vertical continuity. During the test mining program the Company plans to collect data including chips, muck samples, and mapping as well as complete diamond drilling to validate the resource model, and to test for parallel structures and splays. In addition, the 7,200 tonne bulk sample will provide material that may be used for additional metallurgical testwork, and will provide pre-production mineralized inventory.
Ken Donner, Vice President, Operations commented, “The test mining and bulk sample are key components in completing the definitive feasibility study of the Madsen Gold Project, including mine, process, and infrastructure design, putting the project firmly on the path to production in the shortest timeline possible. To date, the team has done a fantastic job in establishing mine services to the bottom of the ramp and developing a platform for underground drilling. Work underground has progressed rapidly, with all headings exhibiting excellent ground conditions. We look forward to our test mining program, and establishing new development in fresh mineralized material close to the existing Madsen ramp.”
Mineralized material recovered from test mining will be stockpiled and retained for mill commissioning. Historic records of mineral processing over the 36 years of continuous mining at Madsen are voluminous, demonstrating good metallurgical recoveries typically in the 93% to 96% range.3 Grade recovery relationships and optimization of mill design will be confirmed with metallurgical testing that has been initiated as part of the definitive feasibility study scheduled for completion in the fourth quarter of 2018.
In addition to the ongoing surface drilling at the newly discovered Wedge target and also at the Russet South deposit, a third drill rig has been mobilized to the underground exploration drift and has commenced drilling, initially targeting the proposed bulk sample location.
For a set of figures showing recent development activities and the location of test mining, click link below:
http://puregoldmining.ca/sites/default/files/Test-Mining-Figure-15022018.pdf
ABOUT MADSEN
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 world.2 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), the Project benefits from existing infrastructure including a mill and tailings facility, paved highway access, and access to power, water and experienced labour.3 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.
- See news releases dated November 16, 2017 and February 13, 2018.
- Sourced from the Natural Resource Holdings Global Gold Mines & Deposit Ranking of 2013
- See 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 14, 2017 for complete details, available on the Company’s website at www.puregoldmining.ca or Sedar profile at www.sedar.com.
Qualified Persons and 43-101 Disclosure
Ken Donner, P. Eng., Vice President, Operations 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”
Darin Labrenz, President & CEO
Investor inquiries:
Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000
[email protected]
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.