Pure Gold Mining Inc. [PGM-TSXV; LRTNF-OTC] reported results from diamond drilling targeting the McVeigh horizon at its 100%-owned Madsen Gold Project located 16 km west of Red Lake, northern Ontario. These holes are part of the ongoing 16,000-metre drill program designed to test and build continuity of high grade gold mineralization in close proximity to the historic mine.
“Our drilling confirms that the McVeigh horizon is open for expansion down plunge. The McVeigh is a folded continuation of the Austin horizon which historically produced over two million ounces of gold in 36 years of continuous mining at Madsen,” said Darin Labrenz, President and CEO of Pure Gold. “We have now intersected broad zones of high-grade gold mineralization in multiple locations beneath historic mining areas of the McVeigh and we believe the mineralization is open to expansion at depth. While historic mining of the Austin horizon continued to a depth of more than 1,200 metres, our deepest hole to date intersected the parallel McVeigh at less than 300 metres. We see this new understanding of folding and repetition as an important development for Madsen and for the Red Lake camp and we look forward to continuing to advance Madsen by drill testing the downward plunge of these high grade shoots.”
Drilling to date has targeted down plunge extensions of high grade gold mineralization within the McVeigh horizon which remains open for expansion below a depth of 230 metres. The results of our drilling confirm that the McVeigh is a fold continuation of the Austin horizon and demonstrate the expansion potential of the McVeigh. Geologically, the mineralized shoots of the McVeigh horizon share the same characteristics and similar widths and grades as the parallel Austin horizon which produced over two million ounces of gold from surface to a depth of 1,200 metres.
Drilling on the north end of the McVeigh intersected high grade mineralization approximately 50 metres below the deepest extent of historic mining including 10.3 g/t gold over 3.2 metresÂ in hole PG16-060, including 50.8 g/t gold over 0.6 metres
Drilling collared approximately 1km south intersected high-grade gold mineralization approximately 80 metres below historic mining, including the following three distinct intercepts from PG16-071:
- 0 g/t gold over 5.9 metres
- 0 g/t gold over 1.0 metre
- 9 g/t gold over 1.0 metre
Since January 2016, approximately 6,300 metres of diamond drilling has been completed in 24 drill holes near the Madsen Mine. This initial drilling is designed to test the continuity of plunging mineralized shoots within the McVeigh horizon to a maximum depth of approximately 300 metres below surface. An additional 2,200 metres of diamond drilling has been completed in 16 holes targeting the high grade Russet South discoveries, located 1.5 kilometres from the Madsen Mine headframe, with further results pending.
Assay results from nine drill holes targeting the Austin and McVeigh horizons have been received and included 11.9 g/t gold over 4.0 metres (Austin), 10.3 g/t gold over 3.2 metres McVeigh, and 11.0 g/t gold over 5.9 metres. See company press release for complete assays.
For a plan map showing the McVeigh horizon drill results, please click here:
For a long section showing the McVeigh horizon drill results, please click here:
For a complete list of 2016 drill results to date, please click here:
As previously reported, the company has engaged Nordmin Engineering to complete a Preliminary Economic Assessment of the Madsen Gold Project. The base-case assessment is designed to minimize capital expenditures by employing existing infrastructure and resources, and is based on throughput of 500 tpd. Pure Gold is in receipt of permits to allow expansion of the existing mill facility to more than double this rate. The study is underway with results anticipated within the current quarter.
The Madsen Mine operated for over 36 years with historic production of 2.5 million ounces averaging 9.9 g/t gold. The Madsen Gold Project hosts an operational headframe, 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 Au (in 0.79 million tonnes). 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 continuity of mineralization.
In addition to the resource, the Madsen Gold Project hosts a number of prospective new discoveries including the Fork Zone and Russet South targets where drilling in 2015 returned 15.0 g/t gold over 5.0 metres from hole PG15-028 and 39.1 g/t gold over 2.9 metres from hole PG15-031.