High Grade Gold Reported At Madsen Gold Project

 

VANCOUVER, BC - Pure Gold Mining Inc. reported additional results from drilling at Russet South located on the Company’s 100% owned Madsen Gold Project. Results from the Beta and Kappa targets intersected high grade, near surface gold mineralization within close proximity to the existing mining infrastructure.

“Our winter drill program at Russet South has successfully extended outcropping mineralization discovered in 2015, with results continuing to support the potential for Russet South to provide near-mill resources in the future,” stated Darin Labrenz, President & CEO of Pure Gold. “Together with Alpha, the Beta and Kappa gold zones highlight the near surface potential of the Russet South area, with both of these targets outcropping at surface, intersected to a vertical depth of 70 meters, and open at depth. The extension of high grade gold in multiple target areas at Russet South, combined with the ongoing two-rig drill testing of expansion potential within the McVeigh horizon continues to advance our goal of unlocking the exploration potential of Madsen.”

The Russet South target is a series of high grade, near-surface gold zones, located approximately 1.5 kilometers west of the McVeigh horizon and associated mine infrastructure. While the on-going drill program is focused on potential resource expansion within the McVeigh, a smaller subset of drilling was completed in early 2016 at the Russet South area where previous drilling and channel sampling by Pure Gold defined three separate targets – Alpha1, Beta and Kappa. These targets share a similar geologic environment to Madsen’s 8 Zone resource which is situated 1.6 kilometers down dip on the same geologic contacts.

Nine short drill holes were drilled at the Beta target in winter 2016 to follow-up on 2015 outcrop sampling and drilling results which included 39.1 g/t gold over 2.9 meters in drill hole PG15-0312 and a surface chip sample of 53.0 g/t gold over 1.1 meters. Results reported herein have extended the strike and depth extent of the outcropping mineralization. The current strike extent of the gold bearing silicified zone, based on previous sampling and 2016 drill results, is approximately 40 meters near surface and the zone remains open to depth.

Four short holes were drilled at the Kappa target in winter 2016 to follow-up on 2015 channel sample results, including 4.8 g/t gold over 2.3 meters, and drill results, including an intercept of 12.3 g/t gold over 2.9 meters in PG15-0454. All four drill holes intersected the 160 meter long gold mineralized quartz vein zone. One drill hole reported in this release returned high grade gold with the remaining three holes returning broad intervals of near-surface gold mineralization.

2,858 meters of diamond drilling was completed this season in 20 drill holes at the Russet South target. With the winter phase of drilling at Russet South now complete, the drill rig was re-located to the McVeigh horizon, where drilling is targeting down plunge extensions of gold mineralization below the historical mine workings at shallow depths. To date a total of approximately 11,184 meters of diamond drilling has been completed in 44 drill holes testing the McVeigh horizon and the upper portions of the Austin horizon at the Madsen Mine site. Additional results from drill holes at the McVeigh horizon are pending.