New Discovery At Russet South, Madsen Gold Project

VANCOUVER - Pure Gold Mining Inc. reported that a new zone of near surface gold mineralization has been discovered at the Russet South target on the Company’s 100% owned Madsen Gold Project. These new discovery holes add critical mass to Russet South, which is shaping up to be an important component of Pure Gold’s modern development strategy.  Consistent drill results from new areas such as Russet South, McVeigh, A3 and Starratt, reinforce the resource expansion program that is underway and the widespread untapped potential of the Madsen Gold Project.

“Our drilling has been highly successful in intersecting widespread gold mineralization at Russet South,” said Darin Labrenz, President and CEO. “The mineral system is similar in setting and style to that of significant portions of the existing resource at Madsen, and results released today have expanded this satellite gold target significantly. Drilling has now intersected gold mineralization across a 650 meter by 650 meter footprint, to depths less than 250 meters demonstrating the near-term, near-surface potential for meaningful resources within a short distance of Madsen’s permitted mine infrastructure.”

The new gold zone at Russet South is highlighted by hole PG17-335 which returned 4.4 g/t gold over 12.0 meters.  This zone lies on the eastern side of Russet South, approximately 200 meters north and along strike of intercepts drilled in 2015 and 2016, including 12.3 g/t gold over 2.9 meters in PG15-0452 and 17.7 g/t Gold over 1.0 meter in PG16-0993. Gold mineralization in all of these holes is associated with deformed blue-grey quartz veins hosted in a 200 meter thick wedge of Basalt located between two distinct Ultramafic units. This near surface setting is structurally and stratigraphically analogous to known deep mineralization that forms the Madsen 8-Zone deposit which has Indicated Resources of 132,000 ounces gold at 12.21 g/t Au (in 0.34 million tonnes) and Inferred Resources of 185,000 ounces gold at 18.14 g/t Au (in 0.32 million tonnes)1, 5. 

New drill holes reported herein have intersected gold mineralization in the hanging wall of the previously reported mineralization on the western extent of Russet South, expanding the scale of, and demonstrating continuity of mineralization in this area. The reported intercepts from PG17-310 are 150 meters along strike to the southwest from a previously reported intercept in PG15-028 of 8.2 g/t gold over 11.0 meters, with both intercepts hosted in a package of folded quartz veins on the lower contact of an Ultramafic unit. The intercept reported from PG16-341 was a 50 meter step out to the North from this visible gold mineralized intercept in PG17-310 highlighting the along strike continuity of the mineralized quartz vein envelope.

The Madsen Mine operated for over 36 years with historic production of 2.5 million ounces at an average grade of 9.9 g/t gold. The Madsen Gold Project hosts a permitted mill and tailings facility, and access to power, water and labour. The Madsen Gold Project has an Indicated Resource of 928,000 ounces gold at 8.93 g/t gold (in 3.24 million tonnes) and an Inferred Resource of 297,000 ounces gold at 11.74 g/t gold (in 0.79 million tonnes)5. The mineral resource is based on 13,624 drill holes, evenly dispersed throughout the mineral resource. A robust geologic model based on 27 levels of geological mapping and chip sampling provides a solid understanding of the geology and continuity of mineralization.