We’ve only just scratched the surface
And we’ve only just begun.
Most notably, PureGold has yet to expand its exploration and drilling program to depth. Why? Because we’ve had so much success increasing the size and scale of the gold system outside of our Phase One mine footprint all along our 7-kilometre-long Gold Corridor.
And yet, a single high-grade pierce point anchors the deposit at a depth of approximately 2 kilometres, with similar geology to the main deposit, showcasing our belief that there is significant potential to expand the high-grade gold deposit to depth. And we know that gold deposits like this often continue down for kilometres underground.7 The Red Lake Mine Complex to the north of us is currently being mined at approximately twice the depth (2.5 kilometres) of our established gold reserves.8
Highly-focused exploration and expansion drilling will be ongoing along our 7-kilometre-long by half-a-kilometre-wide Gold Corridor with the objective of further increasing the overall scale and size of our gold resource.
The “8 Zone” – Our High Grade Zone
One area of our 7-kilometre-long high-grade Gold Corridor that the PureGold team is particularly excited about is the “8 Zone”, which is located approximately one kilometre underground.
In terms of its geometry, the 8 Zone is wide-open, up-and-down plunge, and is characterized by very high-grade gold intercepts such as 466.0g/t gold over 4.3 metres and 342.4g/t gold over 5.5 metres.9 Some historic assays ran into the kilograms of gold per tonne of ore. We have a drill hole up-plunge (i.e., above the 8 Zone) that supports continuity of the gold system between surface and the 8 Zone.12
We believe our 8 Zone is geologically similar to the famous High Grade Zone at the Red Lake Mine Complex, which transformed the fortunes of Goldcorp in the early 2000s.8
Notably, the very first outside investor to support PureGold’s entry into Red Lake was Goldcorp founder and CEO, Rob McEwen.
Eric Sprott, another of our cornerstone investors, says that PureGold reminds him of another gold company in which he was a key strategic investor, Kirkland Lake Gold. Similar to Goldcorp, Kirkland Lake Gold was transformed after it made two high-grade discoveries – one at its Macassa mine in Canada, and another at Fosterville in Australia.10
The ultra-high grade hits in the 8 Zone remind me a lot of the High Grade Zone that built Goldcorp, as well as SMC at Macassa and the Swan Zone at Fosterville. These are the types of discoveries that have the potential to be company makers, and tend to lead to a much higher production profile than originally given credit.11
– Mr. Eric Sprott
We’re in good company on our road to achieving transformative growth in scale, size, and shareholder value.
And we’ve only just scratched the surface.
6 PureGold has defined a 2.1-million-ounce Indicated Resource (7.2Mt @ 8.9 g/t gold) and a 0.5-million-ounce Inferred Resource (1.9Mt @ 7.7 g/t gold) at the PureGold Mine. Mineral resources are inclusive of Probable Mineral Reserves of 1 million ounces of gold grading 9 g/t (in 3.5 million tonnes).
7There can be no certainty that additional exploration drilling will result in a mineral resource being delineated.
8Geological similarities to Evolution’s Red Lake Operation are not necessarily indicative of the mineralization at the PureGold Mine.
9Historic drill results prior to the implementation of NI 43-101. A full discussion and cautionary language regarding historic sampling practices can be found in the Feasibility Study Technical Report noted above.
10Source: Kirkland Lake Gold: https://www.kl.gold/our-business/canada/macassa-mine/default.aspx, https://www.kl.gold/our-business/australia/fosterville-mine/default.aspx
11See PureGold News Release dated May 20, 2020: https://puregoldmining.ca/news/15m-investment-backed-eric-sprott-accelerate-resource-growth-puregold-red-lake-mine
12See PureGold News Release dated December 16, 2019: https://puregoldmining.ca/news/pure-gold-drilling-intersects-high-grade-gold-mineralization-8 Zone-gap-and-wedge
13Source: Evolution Mining: https://evolutionmining.com.au/wp-content/uploads/2020/04/Red-Lake-fact-sheet-FY20_LR-v2.pdf