Pure Gold Mining

Pure Gold Mining test mining results at Madsen a ‘resounding success’

The test mining program returned 56% more gold than predicted

At the company's Madsen project, underground drilling identified expansion opportunities

Pure Gold Mining Inc (CVE:PGM) announced encouraging news this week after reporting that test mining at its Madsen project returned higher-than-expected results, with tonnes, grade and mining width greater than predicted from the resource model.

“Overall, test mining returned an estimated 56% more gold than predicted, with limited dilution achieved through average widths that exceed five metres,” said Pure Gold president and chief executive officer, Darin Labrenz.

The company’s flagship Madsen project is located in the Red Lake gold district of Ontario and has the potential to become Ontario’s next gold mine.

Using a 4.0 grams per ton (g/t) gold cut-off, the bulk sample estimate includes 46% more tons, 8% higher gold grade and an estimated 56% more ounces of gold than predicted from the resource model.

An overall average grade of 10.2 grams per tonne gold was returned from 1,555 muck samples collected.

“From the first round blasted in the ramp to the completion of the program in November, our team has demonstrated it can visually identify, and easily follow gold mineralization underground providing a strong validation of our geologic model.”

Madsen has strong potential

The Madsen gold project is a near-term, high grade, quality gold project, located in a mining friendly jurisdiction. Pure Gold says it is aiming to build a scalable, long life mine, with attractive economics. 

Madsen also has the benefit of positive infrastructure, including a mill, tailings facility and underground development, located by a provincial highway and power grid.



Underground drilling identifies expansion opportunities

Pure Gold said underground drilling has identified additional mineralized structures, which have the potential to expand the mine.

The new drilling highlights included:

  • Hole PGB-0131: 20.1 g/t gold over 6.0 metres, including 38.6 g/t gold over 2.0 metres;

  • Hole PGB-0134: 47.6 g/t gold over 6.0 metres;

  • Hole PGB-0140: 30.3 g/t gold over 2.0 metres and 133.0 g/t gold over 1.0 metre; and

  • Hole PGB-015: 15.2 g/t gold over 2.9 metres.

Feasibility study set to come out soon

The fully-funded feasibility study, along with a new resource estimate, is set to come out in January.

“With test mining now complete, delivering a strong validation of both geologic model and resource, we look forward to finalizing our definitive feasibility study as the next step to building a modern, scalable mining operation at Madsen,” said Labrenz.

Pure Gold applies a disciplined approach to resource estimation

According to the company, the positive results of this mining highlight the disciplined and conservative approach it has applied to resource estimation.

“Our resource work is well supported by comparison to this test program and also the extensive previous mining records at Madsen,”  said vice-president of exploration, Phil Smerchanski.

“It has been invigorating to get to work mapping and mining this gold mineralized rock that we have focused so much study on over the last four years. Our whole team is very excited about the growth possibilities at Madsen,” he added.

Quick facts: Pure Gold Mining

Price: $0.63

Market: TSX-V
Market Cap: $222.78 m

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