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January 28, 2020
VANCOUVER, B.C. – Pure Gold Mining Inc. (PGM:TSX-V, LSE:PUR) (“Pure Gold” or the “Company”), is pleased to announce that mine development at the Pure Gold Red Lake Mine, initiated as part of the test mining program, has resumed, and exploration drilling in close proximity to this development has intersected high-grade gold mineralization from both infill and step-out drill holes. Drilling tested potential for growth of ore zones that will provide initial feed for the mine processing plant, and has yielded positive results suggesting strong mine continuity and the potential for mining stope expansion.
Results received and compiled will be integrated into short-term mine planning. Access development completed through the test mining program will facilitate production from some of these areas in 2020. The Pure Gold Red Lake Mine is currently under construction and, to date, underground development is approximately four months ahead of the feasibility schedule, construction is moving forward at a rapid pace, and first gold pour is expected in Q4 2020.1
Drilling results highlights:
64.6 g/t gold over 1.0 metre;
79.4 g/t gold over 1.4 metres;
26.3 g/t gold over 2.0 metres.
A summary table of results is set out at the end of this News Release.
“The Pure Gold Red Lake Mine continues to produce significant, high-grade gold drill intercepts and today’s results from areas planned for mining this year highlight local opportunities for mine expansion”, stated Darin Labrenz, President and CEO of Pure Gold. “Similar to the 2018 test mining program where the discovery of a new hanging wall zone resulted in 56% more ounces than predicted, these drill holes have identified both potential extensions to mine stopes and opportunities to test and develop new stopes.2 Since announcing the commencement of construction in 2019, we have rapidly built out our operations team and our ongoing test mining program has provided development within reach of several of these planned stoping areas. We understand the orebody well and we are now demonstrating the potential for it to grow. With construction well underway, we look forward to first gold production expected in late 2020.”
Diamond drilling has identified both extensions to existing stopes, and new zones that may be incorporated into future short term mine plans. Drill holes PG19-714, PG19-716, PG19-717 and PG19-722 represent step outs of 4 metres to 18 metres from existing mining shapes. Drill hole PG19-719 suggests a new hanging wall zone, while PG19-735 highlights an opportunity for potential additions to the mine plan, with 6 metres grading 13.2 g/t gold occurring more than 50 metres away from the current mine plan.
The acquisition and installation of key infrastructure for underground mine operations has commenced at site, including the installation of new compressors and ventilation systems and the advancement of the existing ramp. Active de-watering of the underground mine is well underway and on schedule, with the mine water level currently at approximately 240 metres below surface.
The feasibility study contemplated leasing certain equipment for the first two years of production, however, further research done on the Company’s equipment needs and an analysis of current equipment costs demonstrated that significant savings could be achieved from the feasibility study over the initial two years by purchasing the underground mining fleet.1 To date, approximately $6.1 million in equipment has been purchased and delivered to site. The equipment includes two haul trucks, two LHD scooptrams, two jumbos, a scissor lift, a minecat, a boom truck, a mine rescue/personnel carrier, and a telehandler among other mobile equipment. While this expenditure increases the initial capital requirements, total mine equipment expenditures will be reduced by approximately 30% over the first two years by eliminating the mobile lease payments.
Underground services including water and electrical supply and communications have been upgraded in the ramp and haulage of stockpiled test mining material to surface is underway. As part of the test mining program, pre-production underground ramp development was initiated ahead of schedule and is progressing at an accelerated pace.
Drill Results Summary
New assay results from select drill holes are outlined below:
|Hole ID||From (m)||To (m)||Length (m)||Gold (g/t)|
*Assay composites were calculated using uncut assays and true widths are interpreted to vary from 70-90% (80%, on average) of reported core lengths above.
For a complete list of 2019 drill results, click link below:
ABOUT THE PURE GOLD RED LAKE MINE
Pure Gold is building Canada’s highest-grade gold development project, the Pure Gold Red Lake Mine. With project financing secured, Pure Gold Red Lake Mine is on track to deliver first production into a rising gold market in late 2020. The orebody is open for expansion and forms a part of a seven kilometre long mineral system under active exploration, with opportunity for transformative growth through discovery.
QA/QC and Core Sampling Protocols
Drill core samples are submitted to ALS Minerals in Thunder Bay, Ontario for sample preparation by crushing to 70% less than 2 mm, a rotary split of 1 kg, and pulverization of the split to better than 85% passing 75 microns. Sample pulps are shipped to the ALS assay laboratory in North Vancouver, BC for gold analysis with a 30 g 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 and shoulder samples are also analyzed by a 1 kg screen fire assay with screening to 100 microns. A duplicate 30 g fire assay is conducted on the screen undersize with assaying of the entire oversize fraction (code Au-SCR21). Control samples (certified standards and uncertified blanks), along with field, prep and pulp duplicates, are inserted on a regular basis. Results are assessed for accuracy, precision, and contamination on an ongoing basis.
Qualified Persons and 43-101 Disclosure
Phil Smerchanski, 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.
Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the Pure Gold Red Lake Mine in Ontario, Canada. 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, President & CEO
Adam Buchanan, Manager, Investor Relations
Gareth Tredway / Annabel de Morgan – Tavistock
Tel: +44 (0) 20 79207150
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