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Pure Gold reports solid results from drilling at Madsen Red Lake
16th Dec 2019 15:09
(Sharecast News) - Pure Gold Mining announced on Monday that exploration drilling near the Madsen Red Lake Mine, currently under construction, has intersected high-grade gold mineralisation from a second drill hole targeting the widespread gap between its 'eight zone' at depth, and the Russet South zone, which outcrops at surface.
The London and Toronto-listed firm said the latest drill hole confirmed the discovery potential of the new target area, and supported the continuity of the gold system between Russet South and the eight zone.
In addition, it said ongoing drilling along the Madsen Red Lake Mine Trend continued to "rapidly expand" the footprint of the Wedge zone, with multiple drill holes returning drill intercepts anticipated to upgrade the current mineral resource, and also likely to expand the resource footprint including the deepest Wedge intercept to date.
The board explained that the results highlighted the down plunge continuity of the zone, reinforcing the Wedge as a high priority for resource growth.
Importantly, it said that in addition to the 500 metre strike extension identified in the 1 October news release, two additional new gold mineralised shoots appear to be taking shape adjacent to current resources.
Looking at the highlights, it noted 167 grams of gold per tonne over 1.1 metres from drill hole PG19-693, 51.5 grams of gold per tonne over 1.5 metres from drill hole PG19-713, and nine grams of gold per tonne over one metre from drill hole PG19-691.
It also highlighted 8.7 grams of gold per tonne over 1.7 metres from drill hole PG19-700, and 6.9 grams of gold per tonne over two metres from drill hole PG19-696.
Additionally, the company said a new drill hole targeting the expansive gap between the Eight Zone and Russet South mineral resources had intersected 51 metres of gold mineralisation, including 9.9 grams of gold per tonne over 0.9 metres.
"Over the last several months we have seen an exciting major resurgence in investment and interest in the Red Lake District and Pure Gold continues to lead this charge," said president and chief executive officer Darin Labrenz.
"Today's exploration results include a new gold-bearing pierce-point in the gap between Russet South at surface and the deeper 8 zone, confirming the new mineralised corridor described in the 9 October news release, and establishing geologic continuity between these two high grade zones.
"With this new discovery, and the continued exploration success at Wedge we are pushing well beyond the boundaries of our previous feasibility study."
Labrenz said "deep pierce points" along the entire seven kilometre trend, intersecting the same style of mineralisation, geology, alteration and high-grade gold, supported the opportunity for growth and scalability of the project for the long term.
"Today's results continue to crystallise this opportunity, with drilling successfully pushing the envelope downward at Wedge and a second test of the Eight Zone gap returning high grade gold.
"Importantly, all of this sits within reach of a mine and milling complex expected to be in production in the fourth quarter of 2020, providing clear support for the opportunity for a phased approach to growth of the Madsen Red Lake Mine into a major regional producer."
At 1450 GMT, shares in Pure Gold Mining were up 3.37% at 42.9p.
The London and Toronto-listed firm said the latest drill hole confirmed the discovery potential of the new target area, and supported the continuity of the gold system between Russet South and the eight zone.
In addition, it said ongoing drilling along the Madsen Red Lake Mine Trend continued to "rapidly expand" the footprint of the Wedge zone, with multiple drill holes returning drill intercepts anticipated to upgrade the current mineral resource, and also likely to expand the resource footprint including the deepest Wedge intercept to date.
The board explained that the results highlighted the down plunge continuity of the zone, reinforcing the Wedge as a high priority for resource growth.
Importantly, it said that in addition to the 500 metre strike extension identified in the 1 October news release, two additional new gold mineralised shoots appear to be taking shape adjacent to current resources.
Looking at the highlights, it noted 167 grams of gold per tonne over 1.1 metres from drill hole PG19-693, 51.5 grams of gold per tonne over 1.5 metres from drill hole PG19-713, and nine grams of gold per tonne over one metre from drill hole PG19-691.
It also highlighted 8.7 grams of gold per tonne over 1.7 metres from drill hole PG19-700, and 6.9 grams of gold per tonne over two metres from drill hole PG19-696.
Additionally, the company said a new drill hole targeting the expansive gap between the Eight Zone and Russet South mineral resources had intersected 51 metres of gold mineralisation, including 9.9 grams of gold per tonne over 0.9 metres.
"Over the last several months we have seen an exciting major resurgence in investment and interest in the Red Lake District and Pure Gold continues to lead this charge," said president and chief executive officer Darin Labrenz.
"Today's exploration results include a new gold-bearing pierce-point in the gap between Russet South at surface and the deeper 8 zone, confirming the new mineralised corridor described in the 9 October news release, and establishing geologic continuity between these two high grade zones.
"With this new discovery, and the continued exploration success at Wedge we are pushing well beyond the boundaries of our previous feasibility study."
Labrenz said "deep pierce points" along the entire seven kilometre trend, intersecting the same style of mineralisation, geology, alteration and high-grade gold, supported the opportunity for growth and scalability of the project for the long term.
"Today's results continue to crystallise this opportunity, with drilling successfully pushing the envelope downward at Wedge and a second test of the Eight Zone gap returning high grade gold.
"Importantly, all of this sits within reach of a mine and milling complex expected to be in production in the fourth quarter of 2020, providing clear support for the opportunity for a phased approach to growth of the Madsen Red Lake Mine into a major regional producer."
At 1450 GMT, shares in Pure Gold Mining were up 3.37% at 42.9p.