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The Madsen Gold resource of 928K oz gold

2016-06-11


Pure Gold Mining announces a significant expansion to its 2016 exploration program, including an additional 35,000 metres of diamond drilling at the Company's 100% owned Madsen Gold Project. The expansion will increase the total drilling planned for 2016 to approximately 51,000 metres.

The planned $9.1 million expansion of the 2016 Program will include an additional 30,000 meter diamond drill program focused on the potential expansion of the McVeigh horizon. Approximately 5,000 metres of drilling at Russet South and other satellite targets with a goal of expanding the near surface, high-grade mineralization discovered to date.

The Madsen Mine produced 2.5 million ounces of gold from surface to a depth of 1,200 metres at a historic production rate of approximately 2,000 ounces of gold per vertical meter. Of this, the Austin horizon was the principal source of mine feed, with historic mining at the parallel McVeigh horizon limited to a maximum mining depth of 230 metres.

The Madsen Gold Project has an Indicated Resource of 928,000 ounces gold at 8.93 g/t Au and an Inferred Resource of 297,000 ounces gold at 11.74 g/t Au. 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.