Pure Gold Mining Inc. Launches 2014 Exploration Program at the Madsen Gold Project
Re-sampling of historic '8 Zone' drill hole returns 38.26 g/t gold over 7.5 metresVANCOUVER, Jul 8, 2014 - Pure Gold Mining Inc. (TSX VENTURE:PGM) ("Pure Gold" or the "Company") is pleased to announce the launch of the 2014 exploration program at its 100% owned Madsen Gold Project in the prolific Red Lake gold district of northwest Ontario. The goal of the program is to prioritize drill targets designed to expand the current mineral resource, while concurrently developing a new predictive geology model for targeting high-grade, 8 Zone-style mineralization. This program is an extension of ongoing consolidation and evaluation of the large historic database consisting of historic drill, mining and exploration results.
"We are excited to kick off our 2014 exploration program, which will prioritize drill targets based on our 'proof of concept' exploration model," stated Darin Labrenz, President & CEO of Pure Gold. "We intend to discover new zones of high-grade mineralization along the 10 km-long ultramafic contact within the Madsen property, which we believe has the potential to host the next multi-million ounce deposit in the Red Lake district."
A new interpretation of the role of folded ultramafic contacts and structural controls have resulted in multiple recent discoveries in the Red Lake district, including Goldcorp's High Grade Zone at the Red Lake Mine Complex, the Bruce Channel system at the Cochenour Mine, and the F2 Gold System at Rubicon's Phoenix Mine. The environment and mineralization at Madsen's 8 Zone is similar to other recent high grade discoveries in the district. Recent resampling of historic drilling at the 8 Zone returned 38.26 g/t gold over 7.5 metres (see Table 1). Pure Gold believes the opportunity exists to apply modern exploration science and a new understanding of the district to achieve similar success along the ultramafic contact at the Madsen Gold Project.
Pure Gold's current program will be split into two phases. Phase 1, now underway, is designed to better define drill-ready targets and generate new targets. Exploration crews have been mobilized to site and are re-logging and sampling drill core, compiling historic geologic data, conducting structural mapping, and interpreting a new airborne magnetic geophysical survey. Phase 2 will follow later in the summer and is anticipated to include a 9,000 metre drill program designed to test the initial targets generated in Phase 1.
Highlights of the Phase 1 exploration program include:
- Consolidating historic archives from former operators into a common digital platform;
- Conducting a high resolution airborne magnetic survey (complete);
- Defining sampling and assaying protocols suitable for Red Lake coarse gold;
- Prioritizing near surface drill targets designed to expand the current mineral resource;
- Developing new predictive vectoring tools for targeting high-grade, 8 Zone-style mineralization; and,
- Developing a geological "footprint" of high-grade gold zones by constructing new 3D stratigraphic, structural, and alteration models, allowing more predictive drill targeting of ultramafic contact 8 Zone-style mineralization.
Geological "Footprint" Modeling
Pure Gold has commenced a Footprint Modeling program designed to create stratigraphic, structural, and alteration models for the Madsen property utilizing the +200,000 metres of drill core available at the mine's core farm. The overall objective of the modeling exercise is to define structural controls and alteration vectors ("footprints") associated with gold mineralization using ultra-trace geochemistry, magnetic susceptibility, Terraspec (ASD) and XRF technologies ("lithgeochemical sampling"). This footprint modeling technique has proven successful at recent Red Lake discoveries and will be utilized when drill targeting 8 Zone-style mineralization.
To date, Pure Gold geologists have re-logged over 6,000 metres of core from seven historic drill holes completed by previous operators in 2008/2009. Initial re-logging and sampling efforts focused on underground drill core that intersected the ultramafic contact near the 8 Zone. Lithogeochemical results will be incorporated into a new 3D geological model and utilized for drill targeting.
Concurrent with the re-logging of some historic drill core and modeling, geologists are sampling mineralized zones for gold analysis as a check sampling exercise. Gold assays have been received from the initial five drill holes. Significant assay results are reported below:
| Table 1- Significant Check Assay Results(1) |
| Hole ID | From (m) | To (m) | Length (m) | Au (g/t) | Zone |
| MUG08-01 | 51.0 | 54.0 | 3.0 | 7.59 | Austin |
| 882.91 | 883.66 | 0.75 | 127.12(2) | 8 Zone | |
| MUG09-02B | 890.0 | 891.0 | 1.0 | 8.04 | 8 Zone |
| MUG09-03 | 915.0 | 920.0 | 5.0 | 20.86 | 8 Zone |
| 933.5 | 934.5 | 1.0 | 4.23 | 8 Zone | |
| MUG09-04 | 910.0 | 917.5 | 7.5 | 38.26(3) | 8 Zone |
| MUG09-08 | No significant results | 8 Zone North | |||
| (1) | Assay composites were calculated using uncut assays and may include internal dilution. Composites are reported as drilled widths and interpreted to vary between 70% to 85% of true widths. |
| (2) | Interval removed for core display and not available for re-sampling. Original result reported at 127.12 g/t Au. |
| (3) | Interval 916.0m to 916.5m removed for core display and not available for re-sampling. Original assay of 72.45 g/t Au used to calculated weighted average composite. |
| (2,3) | Original assays here-in were reported by Accurassay Laboratories in Thunder Bay, Ontario. Samples were analyzed by 30g fire assay using atomic absorption, gravimetric, and/or screen fire techniques. |
All five historic drill holes were collared from 10 Level of the underground workings and targeted the Russet Lake ultramafic near the 8 Zone. Four of the holes intersected gold mineralization that successfully extended the 8 Zone by 150 metres down-plunge below the historic mine workings. Hole MUG09-08 targeted the ultramafic contact approximately 240 metres north of the 8 Zone. This drill hole was re-logged and sampled in order to collect ultratrace geochemistry outside of the mineralized zone and therefore widen the geologic footprint.
Airborne Geophysical Survey
CGG Canada Services Ltd. recently completed a 1,653 line-kilometre, helicopter-borne geophysics survey covering the entire +50 km2 Madsen Gold Project. The MIDAS high resolution magnetic survey is designed from a base layer in property-scale exploration programs. Final results have been received and are being utilized by Pure Gold's exploration team in constructing a lithology-structural framework for the property and delineating lithological, alteration, and structural controls on gold mineralization. Initial interpretations are being incorporated in the exploration targeting process.
ABOUT THE MADSEN GOLD PROJECT
Pure Gold recently consolidated its position in the Red Lake district with the acquisitions of the Madsen Gold property and the adjacent Newman-Madsen property (see news releases dated March 4, 2014 and June 25, 2014). Together, these properties make up a 50 square kilometre land package of contiguous, patented ground, collectively known as the Madsen Gold Project. Pure Gold now holds the third largest land package in the Red Lake region.
The property is host to two past-producing mines; existing mine infrastructure including an operational headframe, a 1,275 metre-deep shaft, and a 500 tonne per day mill; an Indicated mineral resource of 928,000 ounces gold (3.24 million tonnes grading 8.93 g/t gold) and an Inferred mineral resource of 297,000 ounces gold (0.79 million tonnes grading 11.74 g/t gold)1; and, multiple highly prospective exploration targets in a geological setting analogous to other modern high-grade discoveries in the Red Lake district.
At Madsen, the 10 km-long ultramafic contact is highly prospective for additional high-grade discoveries, and numerous recent discoveries along this contact have only been partially advanced. Pure Gold is pursuing a strategy of exploring for additional near surface high-grade mineralization along the 12 km-long Madsen Mine trend and the 10 km-long ultramafic contact.
(1) 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.
QA/QC and Core Sampling Protocols
Check samples were submitted to ALS Minerals in Thunder Bay, Ontario for sample preparation by crushing to 70% less than 2mm, rotary split off 1kg, and pulverize the split to better than 85% passing 75 microns. Sample pulps are shipped to the ALS assay laboratory in North Vancouver, B.C. for gold analysis with a 30 gram 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 are re-analyzed by a 1kg screen fire assay with screen to 100 microns. A duplicate 30g fire assay is conducted on the screen undersize while assaying of entire oversize fraction (code Au-SCR21). Control samples (accredited standards and blanks) were inserted on a regular basis. Results were monitored on receipt of assays by Gary Lustig, MSc, P.Geo, an independent consultant to Pure Gold and a Qualified Person as defined by National Instrument 43-101.
Qualified Persons
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 multi-million-ounce gold 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 |
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements made and information contained in this news release and elsewhere constitutes "forward-looking information" within the meaning of Canadian securities legislation. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may constitute forward-looking statements. Such forward-looking statements are based on certain assumptions and are subject to risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements. Such factors include, but are not limited to, fluctuations in the price of gold and other commodities, continued exploration success, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration and development results will not be consistent with the Company's expectations, changes in government legislation, taxation, controls, regulations and political or economic developments in Canada, risks associated with mining or development activities, the speculative nature of exploration and development, including the risk of obtaining necessary licenses and other risks and uncertainties including those described under Risk Factors in each management discussion and analysis and in the Company's annual information form which are available under the Company's profile at www.sedar.com. Many of these uncertainties and contingencies can affect the Company's actual performance and could cause actual performance to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Readers are cautioned that forward-looking statements are not guarantees of future performance. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those acknowledged in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws. Accordingly, readers are advised not to place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
Contact
Investor inquiries:
Blaine Monaghan
Tel: 604-801-5020
info@puregoldmining.ca