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Pure Gold Mining Begins 2017 Exploration Program at Madsen Gold Project

Pure Gold Mining Inc. (TSX VENTURE:PGM) ("Pure Gold" or the "Company") is pleased to announce the launch of its 2017 exploration program at the Company's 100% owned Madsen Gold Project ("Madsen"). The phased exploration program is designed to focus on resource growth and concurrently advance Madsen towards operational readiness. Drilling has re-commenced on the project with four diamond drill rigs prioritized for the McVeigh, Austin and A3 targets of the Madsen Mine. In addition, Pure Gold has now received the necessary approvals to re-open the McVeigh Portal ("Portal") and ramp and mining contractors have been mobilized to site to commence site preparations.

2017 Exploration Program Commences

Phased Approach to Resource Growth:

  • a four-rig program with up to 70,000 metres of diamond drilling, collared from both surface and underground;
    • surface drilling to expand resource through wider step-outs at the McVeigh, Austin and A3 targets (commenced January 2017); and
    • underground drilling to drill off near surface mineralization and better define anticipated mining shapes (scheduled commencement late Q1).
  • a H2-2017 resource update to incorporate >150,000 metres of new diamond drilling since last resource.

McVeigh Underground Exploration Project:

  • re-establish services to the existing Portal and ramp including power, heating and ventilation;
  • assess and secure ground conditions and complete detailed geologic mapping and sampling; and,
  • establish underground drill bays to optimize delineation of near-surface mineralization in the McVeigh and Austin horizons.

"Exploration drilling has been highly successful in expanding gold mineralization in multiple targets, all in close proximity to the existing infrastructure and open for expansion," stated Darin Labrenz, President and CEO of Pure Gold. "With the completion of the 2016 program, we look forward to the next phase of Madsen's evolution as we re-open the Portal and commence exploring from underground, utilizing the existing ramp which provides access to the top 150 vertical metres. Our team is focused on expanding the current resource and providing a framework for expanding the current base case production scenario at Madsen."

Receipt of Approval to Re-Open the Existing Portal and Ramp

Approval to re-open the Portal to allow for underground exploration was received from Ontario's Ministry of Northern Development and Mines in late December 2016. The Company now has all necessary approvals and work has begun to re-establish required services to the Portal and ramp.

The Portal, established in the 1990s, is located approximately one kilometer from the mill and provides ramp access to the top 150 vertical metres of mine workings. Currently, the ramp declines in the footwall of the McVeigh horizon, extending for 1,080 linear metres from surface to just above three level. Opening the Portal will provide immediate access to the footwall of the McVeigh and Austin horizons allowing for cost effective underground drilling which is expected to provide sufficient drill density to better define possible mining shapes, as well as allow exploration drilling to continue to expand the resource. It will also allow for a field inspection of the underground headings, including rock mass characterization, as well as detailed underground geological mapping and sampling to refine the structural setting. Work either completed or in progress includes:

  • awarding of the mining contract for support of the advanced exploration project to Dumas Contracting Ltd;
  • clearing of powerline from Pure Gold's milling facility to re-connect the Portal and ramp to grid power;
  • purchase of power components as well as ramp ventilation and heating systems; and
  • establishment of surface support infrastructure at the Portal

Currently it is anticipated that the Portal will be re-opened in February with underground diamond drilling scheduled to begin by the end of the first quarter.

Completion of the 2016 Exploration Program

With receipt of final assays, Pure Gold has completed its 2016 exploration work program, successfully intersecting gold mineralization in multiple, related targets with the drilling of approximately 78,800 metres from a total of 237 drill holes. Previously unreported results from the 2016 program include:

  • 14.3 g/t gold over 1.0 metres in hole PG16-282 (A3)
  • 8.0 g/t gold over 1.8 metres in hole PG16-290 (McVeigh)

The 2016 exploration program led to a breakthrough in geologic understanding, genetically and spatially linking mineralization in multiple settings and demonstrating that intersected gold mineralization remains open for expansion. At Madsen, drilling traced near surface gold mineralization across a 1.2 kilometre strike length, with mineralization remaining open for expansion. Concurrent drilling of the Austin horizon has led to a better understanding of the controls of high grade mineralization resulting in the development of the A3 target, an Austin-parallel gold bearing structure.

Mineralization at Madsen is hosted preferentially in the McVeigh and Austin horizon, and these preferred host rocks have been traced over two kilometres southward to the past-producing Starratt Olsen mine where initial drilling has returned high grade gold mineralization in a setting that is directly related to mineralization encountered at Madsen. Together with drilling at the McVeigh, Austin, and A3 targets of Madsen, these holes define a five kilometre mineralized horizon that is now well-understood and prospective for additional discovery and resource expansion.

Additionally, Pure Gold drilling at Russet South, located 1.5 kilometres west of Madsen, has expanded the known mineralization of this target and established a clear geologic relationship between this mineralization and mineralization hosted in the Madsen Mine.

For overview and detailed long sections highlighting the McVeigh horizon results, click link below:

For a complete list of 2016 drill results, click link below:


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