Pure Gold Mining Inc. [PGM-TSXV; LRTNF-OTC] has extended the Madsen decline by 87 metres and commenced test mining within the first of two planned stopes from the McVeigh zone.Â The 100%-owned Madsen Gold Project is located 16 km west of Red Lake northern Ontario.
Mining through 13 metres of new linear development along the mineralized structure has returned muck samples averaging 18.8 g/t gold and chip samples averaging 15.3 g/t gold.Â Results thus far have exceeded expectations in terms of grades and widths and have highlighted the clear visual nature of the mineralization.
The test mining is scheduled for completion in September 2018 with the planned extraction of approximately 7,200 tonnes of mineralized material.Â Results from test mining will be used to demonstrate lateral and vertical continuity of mineralization, as a validation of the resource model, and to provide geotechnical data in support of the ongoing definitive feasibility study.
To date, mineralization is strongly visual, characterized by silicification, diopside veining, brown biotite, and pale pink to brown potassium feldspar alteration, and the presence of visible gold.Â Mineralization mined thus far supports the geometry of the geological model, exceeds the estimated resource with respect to gold grades, and exhibits excellent geotechnical conditions.
Ken Donner, Vice President, Operations, commented, â€œOur test mining and bulk sample program are key components of the Madsen Gold Project Definitive Feasibility Study. Ramp development was rapidly completed in excellent ground conditions, allowing lateral development to commence in late June.Â Thus far, the underground geological team has demonstrated the ability to identify and follow the mineralized structure, and development has returned wide zones of high-grade mineralization through the first stoping unit.Â Grade control results to date have exceeded the resource model in this area.Â Near surface, ramp-accessible high grade gold will form an important component of the mine schedule during a period when capital payback is important.â€
The bulk sample program is designed to partially test two proposed stopes from the McVeigh zone, with an expected overall grade of approximately 8.1 g/t gold estimated from within the two stopes.Â Within the area tested by mining thus far, the resource model estimated an average grade of 14.3 g/t gold, with an average width of approximately 4 metres.Â To date, the company has completed 87 metres of ramp development to access the bulk sample location at a vertical depth of approximately 160 metres and 20 metres of lateral development including 13 metres of development along the mineralized structure.
In addition to bazooka drilling from underground, the company continues to drill from surface as part of an expanded exploration program. Currently, two drill rigs are targeting the Wedge area, with a goal of expanding the mineralized zones and declaring maiden resources for the area in Q4 2018.
The Madsen Gold Project has historic production of 2.5 million ounces of gold and a current indicated resource of 1,744,000 ounces gold at 8.7 g/t gold (in 6.2 million tonnes) and an inferred resource of 296,000 ounces gold at 7.9 g/t gold (in 1.2 million tonnes), the Project benefits from existing infrastructure including a mill and tailings facility, paved highway access, and access to power, water and experienced labour.1Â A feasibility study is underway with results expected in the fourth quarter of 2018.