Area Map
Madsen Portal and Ramp Entrance
Madsen headframe, mill and tailings facility
Reconditioning the Madsen Ramp

Madsen Gold Project

Advancing towards operational readiness and resource growth with a 2017 PEA that projects over 900,000 oz. of gold produced over 14 years and a robust after-tax IRR of 47%1

On August 2, 2017, the Company announced a new and significantly expanded mineral resource estimate for the Madsen Gold Project. The Madsen Gold Project resource includes the high-grade Austin, South Austin, A3, McVeigh, and 8-Zone deposits. These deposits are adjacent to existing underground mine infrastructure1.

This was followed by a September 14, 2017 announcement of a new Preliminary Economic Assessment (PEA) for an underground mining operation based on the August 2017 Resource Estimate

Q4 2017 Resource Estimate Update - Including Two Satellite Deposits
The Company plans to update the August 2017 resource estimate in Q4 2017, by incorporating initial mineral resource estimates for the satellite deposits Russet South and Fork.

PROJECT HIGHLIGHTS

Location: Located in Red Lake, Ontario, an established mining jurisdiction with more than 28 million ouncesof high grade gold produced to date
High Grade: Madsen is one of the highest grade undeveloped Gold deposits in the world3. Structurally controlled high grade gold mineralization is hosted near ultramafic and basalt contacts.

August 2017 Mineral Resources Estimate: Current mineral resources from four zones within the historic Madsen Mine include:

  • Indicated mineral resource of 1,648,000 oz gold in 5.78 million tonnes grading 8.9 g/t Gold(4 g/t cut-off);
  • Inferred mineral resource of 178,000 oz gold in 0.57 million tonnes grading 9.4 g/t Gold4 (4 g/t cut-off)
  • Additional Resource Update planned for Q4 2017 including, for the first time, two satellite deposits
  • The Madsen Gold Project is connected to roads and power and has access to an experienced mining workforce in the Red Lake area.

2017 Preliminary Economic Assessment (PEA): In September 2017, the Company released a new Preliminary Economic Assessment (PEA) for an underground mining operation based on an August 2017 Resource Estimate which outlined a long life high margin mine, with low initial capital requirements and fast timeline to production. The 2017 PEA showed a robust after-tax net present value (at a 5% discount rate) of $258 million and an internal rate of return of 47% with a 2.8 year payback of initial capital. The mine would produce a total of 911,497 ounces of gold during a mine life of 14 years. The pre-production construction period would be 12 months with an initial capital investment of $51 million.1

Past Producer: The property is host to two significant past producing mines, including the Madsen Mine which produced 2.4 million ounces of gold

Permitted: Located on patented ground with permitted tailings facility

Infrastructure: Existing mining infrastructure in place, including:

  • 27 levels of underground workings
  • 1,275 metre deep shaft and headframe
  • Mill and Tailings Facility: Existing Environmental Compliance Approval allows for operation of a 1,089 tonne per day mill & CIP circuit

Madsen Portal and Ramp:

  • The PEA study contemplates underground mining with access via the Madsen Portal and Ramp.
  • The Madsen Portal currently provides ramp access to the upper 150 vertical meters of mine workings including the Austin, South Austin, and McVeigh Deposits.
  • Underground exploration and delineation drilling commenced July 2017.

 (1) See News Release 17-18, Pure Gold Announces Positive Preliminary Economic Assessment For The Madsen Gold Project, September 14, 2017.

(2) Compiled from Ontario geological survey reports

(3) Source: Natural Resources Holdings Global Gold Mines & Deposit Rankings of 2013

(4) The resource estimate reported herein for the Madsen Gold Project is set out in the NI 43-101 technical report “Madsen Gold Project 2017 Mineral Resource” with an effective date of August 2, 2017. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

Phil Smerchanski, P.Geo, Vice President Exploration of the Company, is a Qualified Person within the meaning of NI 43-101. Mr. Smerchanski has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of the same.

Background:

The Madsen property is host to two significant past-producing mines, mining and milling infrastructure, current Mineral Resources, and multiple exploration targets in a geological setting analogous to other modern high grade discoveries in the Red Lake District. 

 

Virtual Tour: Madsen Gold Project

Madsen Location
Madsen Geology
Structural Geology
Pure Gold Underground Geologist Robert Scott Mapping Geology at the Madsen Gold Project

The Madsen Gold Project is located in the Red Lake greenstone belt, one of Canada's most prolific gold producing districts, with over 28 million ounces of gold produced since 1927 at an average grade of 15.6 g/t Au1. The greenstone sequence occurs within the Uchi Subprovince of the Superior Province of the Canadian Precambrian Shield.

The Madsen Mine produced 2.5 million ounces of gold at an average grade of 9.7 g/t Au1 from two sub-parallel composite, stratigraphic units known historically as the Austin and McVeigh "Tuffs". These "Tuff" horizons are defined by a heterogeneous assemblage of Archean (approximately 3000 to 2960 Ma) mafic volcanic tuff, breccia, pillowed and massive basalts and volcano-sedimentary rocks that occur at the top of the more regionally extensive Balmer Assemblage. Here, the Balmer Assemblage is juxtaposed in angular unconformity against the much younger (approximately 2748 to 2739 Ma) Confederation Assemblage, which is defined by sequences of predominantly mafic to intermediate, calc-alkaline and tholeiitic volcanic rocks. This unconformity is a fundamental geological break spanning more than 200 million years of earth history; and the vast majority of the gold produced from the Red Lake district was mined from within 1.5 kilometres of this major structure.

At the deposit scale, gold mineralization is mainly replacement-style disseminated gold hosted in Balmer mafic volcanic rocks adjacent to ultramafic intrusive rock units, while quartz vein-hosted gold mineralization dominates in the 8 Zone deposit. Historic mining focused on high grade pods within the hanging wall Austin horizon, and less so in the McVeigh footwall horizon. The high grade pods are clustered in sheared, folded and attenuated corridors that transect the stratigraphy at a low angle.

(1) Lichtblau, A.F., Ravnaas, C., Storey, C.C., Tuomi, R.D., Tims, A., Debicki, R.L., Pettigrew, T.K., Paju, G.F. and Wetendorf, J. 2016. Report of Activities 2015, Resident Geologist Program, Red Lake Regional Resident Geologist Report: Red Lake and Kenora Districts; Ontario Geological Survey, Open File Report 6314, 130p.

Phil Smerchanski, P.Geo, Vice President Exploration of the Company, is a Qualified Person within the meaning of NI 43-101. Mr. Smerchanski has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of the same.

 

MINERAL RESOURCES:

The Madsen Gold Project has an Indicated mineral resource of 1,648,000 oz gold in 5.79 million tonnes grading 8.9 g/t Au, and an Inferred mineral resource of 178,000 oz gold in 0.59 million tonnes grading 9.4 g/t Au1.

The mineral resource statement prepared for the Madsen Gold Project considers data from 14,627 boreholes drilled between 1936 and 2017. The resource estimation work was completed by Mark Jutras, P.Eng., M.A.Sc., Principal, Ginto Consulting Inc. an "independent qualified person" as defined in NI 43-101. The effective date of this mineral resource statement is August 02, 2017.

The mineral resource reported only considers gold mineralization from four zones accessible from the historic Madsen Mine underground workings. Other gold mineralized zones occurring on the Madsen property were not included.

Consolidated Mineral Resource Statement for the Madsen Gold Project - August 02, 20171

Table 1.  Mineral Resource Statement for Madsen Gold Project*

Resource Classification

Tonnes

Grade

(Au g/t)

Contained Gold (oz.)

Indicated

5,785,000

8.9

1,648,000

Inferred

587,000

9.4

178,000

*   Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. The CIM definitions were followed for the classification of Indicated and Inferred Mineral Resources. The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an Indicated Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated Mineral Resource category. All figures have been rounded to reflect the relative precision of the estimates. Mineral Resources are reported at a cut-off grade of 4.0 g/t gold based on US$1,200 per troy ounce gold and gold metallurgical recoveries of 92 percent.

(1) The mineral resource estimate reported herein for the Madsen Gold Project is set out in the NI 43-101 technical report “Madsen Gold Project 2017 Mineral Resource” with an effective date of August 2, 2017.

Madsen mine complex
Madsen mill
Interior of Madsen mill
Madsen headframe
Permitted tailings facility
Madsen Portal and Ramp: ventilation, air and water lines - access to upper 150m of mine workings including Austin, South Austin, and McVeigh Deposits
Mill Conceptual Flowsheet

Infrastructure

The existing infrastructure on-site at Madsen Gold Project combined with the high-grade mineral resources contributes to a robust project. 

The Madsen Gold Project was the second largest historic producer in Red Lake over a 38 year period and was rebuilt, permitted, and mined briefly in the late 1990’s.

Madsen is located approximately ten kilometres southwest of the town of Red Lake, Ontario. Located on patented claims, there is year-round access to the property via Ontario Highway 618.  Numerous secondary roads transect the 4,700 hectare property providing simple access for exploration programs.

The Madsen Mine infrastructure includes:

  • 550 tonne per day mill
  • Tailings management facility; Existing Environmental Compliance Approval allows for operation of a 1,089 tonne per day operation
  • 5 compartment,1,275 metre deep shaft and headframe
  • 27 levels of underground workings, recently dewatered and rehabilitated to 16 level
  • Portal and Decline: Underground exploration and delineation drilling commenced via the Madsen portal in July 2017. The portal provides ramp access to the top 150 meters of mine workings including Austin, South Austin, and McVeigh Deposits. The PEA study contemplates underground mining with access through the portal.

Madsen Gold Project is connected to roads and power and has access to an experienced workforce in the Red Lake area.

The mill consists of a single stage crushing circuit and a two stage grinding circuit, which is then followed by cyanide leaching. The leached gold is collected in a carbon-in-pulp circuit which is subsequently stripped using mild caustic and collected on stainless steel mesh cathodes by electrowinning. The product from electrowinning is refined into dore bars in an induction furnace. Ontario Hydro supplies power via overhead lines at 44KV to a step-down transformer on the Madsen property.

The mill has been kept on care and maintenance since 1999. Other infrastructure includes the headframe, hoists, vent raises, coreshack/warehouse, shop, project offices, and ancillary buildings.

(1)  See the Company's National Instrument 43-101 technical report entitled "Technical Report on the Preliminary Economic Assessment for the Madsen Gold Project", prepared by Nordmin Engineering Ltd., dated effective April 20, 2016. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

(2)  Phil Smerchanski, P.Geo, Vice President Exploration of the Company, is a Qualified Person within the meaning of NI 43-101. Mr. Smerchanski has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of the same.

Madsen, 1949
Madsen 1960's
Starratt-Olsen Mine 1949
Drilling at Russet Lake

Gold was originally reported in the Red Lake area in 1897 by R.J. Gilbert of the North Western Ontario Development Company. The exploration and mining history of the Red Lake Mining district dates back to 1925, when significant gold was first discovered by prospector L.B. Howey. The gold bearing veins he discovered were developed into Red Lake's first producing mine, the Howey Mine.

Since 1925, a total of 28 mines have operated in the district producing approximately 28 million ounces of gold. Over 85 percent of this gold was produced from two mines; Goldcorp’s Red Lake Mine Complex and Pure Gold's Madsen Mine. The Madsen Mine was the first million ounce gold producer in the Red Lake district.

The history of the Madsen Mine can be sub-divided into five main periods:

  • Operation between 1938 and 1976, where 2.5 million ounces of gold were produced at an average grade of 9.9 grams per tonne;
  • Acquisition, exploration, underground development, permitting, and installation of the mill complex and tailings management facility by Claude Resources from 1997 to 1999;
  • Brownfield exploration completed by Placer Dome under an option from Claude between 2001 and 2006. Discovery of several new zones including Fork and Treasure Box;
  • Dewatering, surface and underground drilling, and maiden resource estimate completed by Claude between 2006 and 2013;
  • Purchase of the project by Pure Gold in 2014 with the goal of consolidating the Madsen Mine Trend and expanding the mineral resource through focused exploration.

Madsen Gold Project 2017 – New Resource Estimate & PEA

Underground exploration and infill resource delineation drilling commenced in July 2017 and a new Resource Estimate and  PEA have been completed, an update to the Resource Estimate is planned for Q4 2017   

Pure Gold’s 2017 exploration program is designed to focus on resource growth and concurrently advance the Madsen Gold Project towards operational readiness. The 2017 exploration plans include a multi-rig, 70,000 metre diamond drill program from both surface and underground.

Madsen Portal – Underground advanced exploration & resource delineation drilling in the Austin, South Austin, McVeigh, and A3 Zones

Surface drilling at Madsen is designed to expand the current resource estimate through wider step-outs at the Austin, South austin, McVeigh and A3 deposits. The Madsen Portal provides ramp access to these deposits allowing for cost effective underground drilling which is expected to allow higher drill density to better define possible mining shapes, and allow exploration drilling to continue to expand the resource.  It will also facilitate field inspection of the underground headings, including rock mass characterization, and detailed underground geological mapping and sampling to refine the structural setting. The ramp provides access to the top 150 meters of mine workings. In a production scenario, the 2017 PEA proposed to access the deposits through the expansion of ramp-based development to a depth of 1,430 meters.

Pure Gold recently updated its resource estimate and PEA. A site visit for analysts and investment managers is planned in Q4.

Pure Gold's exploration benefits from:

  • A management team with expert technical knowledge of the Red Lake district geology and operations and a track record of successfully advancing mining projects to operational readiness and/or production and;
  • Utilizing data and learnings from historical 14,627 drill holes evenly spaced throughout mineral resource from previous operators, and;
  • ~ 67km of underground development and 38 years of active mining from previous operators, and;
  • 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, and;
  • Completing a total of 150,000m of drilling by Q4 2017 (2016 & 2017 drill plans)

 

 

 

Russet South Cross Section
Targets Overview
Russet South plan map
Russet South cross section - setting of Russet South Targets (May 2017)

Russet South – high grade, near surface satellite target

“We expect…in the fourth quarter of 2017, a first ever mineral resource estimate for our satellite deposits Russet South and the Fork Zone” (Pure Gold Mining News Release, August 2, 2017)

The Russet South Deposit is an important part of Pure Gold’s growth strategy of focusing on resource expansion close to the existing Madsen mine infrastructure.The deposit is road accessible and is located approximately 1.5km from the Madsen Mine (13 Kilometres by existing roads). Pure Gold will incorporate the Russet South and Fork satellite deposits in a new Madsen Gold Project mineral resource update planned for Q4 20171.

Pure Gold drilling in 2015, 2016 and 2017 has intersected gold in multiple zones at Russet South. High-grade mineralization is exposed at surface and has been intersected by drilling to vertical depths up to 250 meters, across a broad area spanning 650 meters by 650 meters. All mineralized zones remain open for expansion. The next phase of drilling planned at Russet South is expected to test for depth extensions of the gold mineralized zones beyond approximately 200 metres below surface.

The association of very high gold grades hosted in deformed quartz veins and silicified zones along the contacts of folded ultramafic units is directly analogous to the setting of the High Grade Zone at Goldcorp’s Red Lake Mine as well as the 8 Zone Deposit at Madsen Mine, which occurs 1,600m down dip from Russet South3. The Russet South mineralization represents the near-surface, up-dip expression of the 8 Zone geologic setting. Drilling at the Russet South Deposit has met with considerable success, with 37 out of 101 holes drilled to date by Pure Gold showing visible gold and reporting intercepts in excess of 5 g/t gold5.

Drill results from 2017 to date include:

  • Significant gold mineralization has been intersected along the lower contact of a key ultramafic unit with 27.1 g/t gold over 5.8 metres returned in hole PG17-3645, building continuity with a zone previously described as Alpha;
  • The sparsely tested upper contact of the same ultramafic unit returned 80.7 g/t gold over 1.0 metre in hole PG17-391 and 11.3 g/t gold over 1.0 metre approximately 200 metres to the north in hole PG17-3715;
  • Drill hole PG17-352 returned 17.7 g/t gold over 2.0 metres, 190 metres north of recent discovery hole PG17-335 that returned 4.4 g/t gold over 12.0 metres on the same geologic contact2,5.

Drilling at Russet South expands Mineralized Zones
The mineralization targeted by 2017 drilling was associated with both the footwall and hanging wall contacts of a folded ultramafic unit that forms the center of the Russet South Target.  Drill hole PG17-364 intersected gold mineralization on the western, footwall side of the ultramafic returning 27.1 g/t gold over 5.8 metres approximately 50 metres down dip of PG17-341 which returned 21.4 g/t gold over 1.9 metres, and approximately 150 metres along strike to the southwest from a previously reported intercept in PG15-028 of 8.2 g/t gold over 11.0 metres2,4.  This zone is open for expansion to the south and down plunge where it has seen limited drill testing.

Additionally, drilling has intersected gold mineralization on the eastern, hanging wall contact of the same ultramafic, with hole PG17-391 returning 80.7 g/t gold over 1.0 metre to the south, and PG17-371 returning 11.3 g/t gold over 1.0 metre approximately 190 metres to the north.  The hanging wall contact of this unit has only been sparsely tested by Pure Gold and is open for expansion in all directions.

Drill hole PG17-352 expands the recently reported discovery zone on the eastern side of Russet South to a total strike length of 320 metres with 17.7 g/t gold over 2.0 metres returned approximately 190 metres north of drill hole PG17-335 which intersected 4.4 g/t gold over 12.0 metres2.  Mineralization is associated with deformed blue-grey quartz veins hosted in a 200 metre thick wedge of altered Basalt spatially located between two distinct ultramafic units, and remains open in all directions. It is expected that the next phase of drilling at Russet South will continue to test these gold zones beyond the current vertical extents of approximately 200-250 metres below surface. Drilling is expected to continue once seasonal conditions allow.

Drill Results Summary

Most recent assay results (May 2017) from select drill holes are outlined below:

Table 2 – Russet South Significant Assay Results(2)

PG17-352

44.8

58.2

13.4

1.6

Russet South

 

170.0

172.0

2.0

17.7

 

PG17-364

157.0

162.8

5.8

27.1

Russet South

incl.

157.0

160.8

3.8

39.2

 

incl.

159.8

160.8

1.0

115.8

 

 

180.0

182.0

2.0

3.9

 

PG17-371

27.3

31.6

4.3

3.2

Russet South

 

55.6

56.6

1.0

11.3

 

PG17-375

29.1

30.1

1.0

5.0

Russet South

PG17-377

35.3

38.3

3.0

3.2

Russet South

PG17-391

18.2

19.2

1.0

80.7

Russet South

 

22.2

23.2

1.0

5.4

 

PG17-396

222.5

224.0

1.5

7.6

Russet South

*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(1)

For a May 2017 plan map showing the setting of the Russet South targets, click link below:
http://puregoldmining.ca/sites/default/files/Russet-plan-05112017.pdf

For a May 2017 cross section showing the setting of the Russet South targets, click link below:
http://puregoldmining.ca/sites/default/files/Russet-xsection-05112017.pdf

Footnotes for Russet South Section (2017)

(1)   The mineral resource estimate reported herein for the Madsen Gold Project is set out in the NI 43-101 technical report “Madsen Gold Project 2017 Mineral Resource” with an effective date of August 2, 2017.

(2)   See news release dated March 27, 2017.

(3)   The proximity and geologic similarities to Madsen Mine, the 8 Zone or Goldcorp’s Red Lake Mine High Grade Zone does not mean that Pure Gold will obtain similar results at Russet South or other exploration targets on the Madsen Property. Russet South is an early stage exploration project and does not contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at Russet South or other targets is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration at these or other targets at Madsen will yield a mineral resource

(4)   See news release dated March 2, 2015

(5)   See News Release dated, May 11, 2017

Previous Pure Gold Exploration, 2014 - 2016

Soil sampling, prospecting, and structural mapping supported by high resolution airborne magnetics conducted by Pure Gold in 2014 identified multiple target areas at Russet South. These targets are defined by alteration zones hosted adjacent to the geologic contacts of ultramafic units. Drilling at Russet South delineated three discrete zones - Alpha, Beta and Kappa - which together formed part of a large altered mineral system measuring approximately 600 metres long by 350 metres wide at surface (now expanded to 650m X 650m)2. This target was drilled to a depth of approximately 200 metres, with gold mineralization encountered from surface, remaining open in all directions. Importantly the individual zones have now been linked with further drilling. Significant drill results from 2014-2016 are displayed in Table 1 below:

Table 1 – Russet South Significant Assay Results(2)

Hole ID

From (m)

To (m)

Length (m)

Au (g/t)

Zone-Target

PG15-027

96.0

99.5

3.5

9.5

Russet South

Including:

98.0

99.5

1.5

18.8

 

 

PG15-028

75.0

86.0

11.0

8.2

Russet South

Including:

77.0

82.0

5.0

15.0

 

 

PG15-031

13.2

16.1

2.9

39.1

Russet South

Including:

13.2

14.9

1.7

34.4

 

 

And including:

14.9

15.4

0.5

36.2

 

 

And including:

15.4

16.1

0.7

52.4

 

 

PG15-032

47.3

49.0

1.7

37.5

Russet South

Including:

47.3

48.0

0.7

83.8

 

 

PG15-038

173.8

174.5

0.7

20.0

Russet South

PG16-067

111.4

115.4

4.0

2.9

Russet South

Including:

114.9

155.4

0.5

15.0

 

 

128.0

129.3

1.3

56.2

 

PG16-069

183.5

187.0

3.5

22.1

Russet South

Including:

185.2

187.0

1.8

36.9

 

 

PG16-089

16.8

17.8

1.0

17.3

Russet South

PG16-091

24.2

27.1

2.9

20.1

Russet South

Including:

24.2

25.2

1.0

42.2

 

 

PG16-099

  92.0

93.0

1.0

17.7

Russet South

(1) Assay composites were calculated using uncut assays and are reported as drilled widths and interpreted to vary between 60% to 100% of true widths.

 

 

 

Targets Overview
Fork Zone Relationship to Other Targets (April 2017)

Fork Zone - near surface and adjacent to the Madsen Mine infrastructure

“We expect…in the fourth quarter of 2017, a first ever mineral resource estimate for our satellite deposits Russet South and the Fork Zone” (Pure Gold Mining News Release, August 2, 2017)1

The Fork Deposit, like the Russet South Deposit, is a satellite deposit with mineralization exposed at surface in close proximity to the Madsen Mine infrastructure. Step-out drilling completed in H1 2017 intersected gold mineralization at the Fork Zone. These results confirmed an expansion of the geologic host environment from the McVeigh Zone at the Madsen Mine through to the Fork Deposit and extending along strike to the Starratt Target2.

Following the August 2017 update to the Madsen Gold Project mineral resource, Pure Gold will, for the first time, incorporate the Russet South and Fork satellite deposits in an additional mineral resource update planned for Q4 20171. The Company is confident that the mineral resource estimate will continue to expand with additional new drilling both within the historic Madsen Mine area and at the satellite deposits1.

Pure Gold drill hole PG17-359  intersected 3.9 g/t Gold over 6.6 metres, including 13.9 g/t Gold over 1.5 metres in a 150 metre step-out from Fork Zone drill hole PG14-011 which returned 17.2 g/t Gold over 3.5 metres at a vertical depth of 130 metres2,3.  This intercept establishes a current strike length at the Fork Zone of 450 metres in a shallow south-dipping gold bearing structure which remains open for expansion2.

Drill Results Summary

April 2017 assay results from select drill hole PG17-359 is outlined below(2):

Hole ID

From (m)

To (m)

Length (m)

Gold (g/t)

Zone

PG17-359

164.0

170.6

6.6

3.9

Fork

Incl.

165.0

166.5

1.5

13.9

 

*Assay composites were calculated using uncut assays and true widths are interpreted to vary from 50-100% (80%, on average) of reported core lengths above.

New geologic modelling based on both recent drilling and re-logging of historical drill core has established the structural framework for the Fork Zone and reinforces the scale of the Madsen mineral system. This new work confirms the earlier postulation of strike continuity of the gold mineralized system between the Madsen and Starratt Mines, with approximately 2.5 kilometres from the Madsen #2 shaft to the Starratt Target (see Fork Plan Map) and 5 kilometres total strike length of the high grade gold-mineralized system2.

These drill results show high gold grades intersected outside the limits of the existing Madsen resource and more importantly, this step-out drilling has linked what were previously viewed as separate target areas into a common geologic model, demonstrating the size of the Madsen mineral system.

For an April 2017 plan map showing the setting of the recent Fork drill results, click link below:

http://puregoldmining.ca/sites/default/files/Fork-Plan-Map-04272017.pdf

(1)  The mineral resource estimate reported herein for the Madsen Gold Project is set out in the NI 43-101 technical report “Madsen Gold Project 2017 Mineral Resource” with an effective date of August 2, 2017.

(2) See Pure Gold Mining News Release dated April 27, 2017

(3)   See Pure Gold Mining News Release dated October 29, 2014

(4)   See Pure Gold Mining News Release dated May 27, 2015

Previous Exploration 2014 - 2016 

The Fork Zone is a near-surface Gold mineralized zone located midway between the Madsen and Starratt-Olsen Mines. Surface drilling by Placer Dome and Claude Resources in this vicinity intersected gold mineralization defining a mineralized corridor measuring approximately 300 metres along strike, with drill intersections up to 10.3 metres grading 12.11 g/t Gold. No geologic model or mineral resource was defined

Pure Gold has re-logged and re-sampled the historical drill core at Fork Zone to gain a better understanding of mineralization controls and to produce a new geologic model. This process identified a previously unrecognized F2 fold in the mafic-ultramafic stratigraphy and an associated steeply dipping, north-south striking silicified structure hosting visible gold.

In the fall of 2014, Pure Gold drill tested this high-grade silicified structure and successfully delineated it for approximately 275 metres in strike length and to a vertical depth of 200 metres. The high grade structure ranges from 1 to 3 metres in average true width and is open along strike and to depth. Significant assays results for the drill holes that intersected the structure to 2015 are listed below.

Fork Zone - Significant Drill Hole Assay Composites (2014 - 2016)

Hole ID

From (m)

To (m)

Length (m)

Au (g/t)

PG14-006

85.0

86.8

1.8

14.6

Including:

85.0

86.0

1.0

22.5

PG14-009

118.0

120.0

2.0

6.8

Including:

119.0

120.0

1.0

11.1

PG14-011

152.5

156.0

3.5

17.2

Including:

154.4

156.0

1.6

33.8

PG15-037

133.9

146.0

12.1

3.9

 Including:

133.9

135.5

1.6

8.4

Including:

143.5

146.0

2.5

7.3

In 2015, 4 holes tested the southern extent of the high-grade structure and expanded the strike length to 350 metres where it remains open along strike and down dip.

Drill highlights in 2015 included drill hole PG15-0374:

·         8.4 g/t Gold over 1.6 metres and

·         7.3 g/t Gold over 2.5 metres in PG15-037

(both included within an interval of 3.9 g/t Gold over 12.1 metres)

For a drill map showing extent of the Fork Zone structure, see News Release May 27, 2015 or please click here: http://www.puregoldmining.ca/sites/default/files/NR1508drillmap.pdf

In 2016, no drilling was completed at the Fork Zone.

 

 

Click here to download the Technical Report for the Madsen Gold Project, Red Lake, Ontario, Canada