Pure Gold Mining Inc (CVE:PGM) (LON:PUR) (OTCMKTS:LRTNF) posted more good exploration results from its flagship Madsen mine project in Red Lake, Ontario, saying its latest drill hole had confirmed a gold system between the Russet South and 8 zone.
As reported in October this year, this “altered structure” that links the so-called high grade 8 Zone, which lies below 1,000 metres (m) depth and the up-dip continuation at Russet South, had received very little previous exploration.
The latest hole testing this ‘expansive gap” has hit 51 m of gold, including 9.9 grams per ton (g/t) of the yellow metal over 0.9 m, the Vancouver-headquartered company said.
Also on Monday, Pure Gold said drilling at the Madsen Red Lake mine trend continued to rapidly expand the footprint of the Wedge zone, which is expected to upgrade the current resource and also expand the resource footprint.
“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,” Darin Labrenz, the CEO of Pure Gold told investors.
“With this new discovery, and the continued exploration success at Wedge, we are pushing well beyond the boundaries of our previous feasibility study.
“Deep pierce points along the entire seven kilometer trend intersecting the same style of mineralization, geology, alteration and high-grade gold support the opportunity for growth and scalability of the project for the long term.”
Labrenz also highlighted that the project sits within reach of a mine and milling complex, which is expected to be in production in Q4 2020, adding to the prospect of the mine becoming a major regional producer.
Madsen is a high-grade gold property, which spans over 4,600 hectares and houses two former mines. First gold production is earmarked for late next year and construction has begun but exploration continues.
The 8 Zone itself already boasts some of the highest grades ever drilled at Madsen including 466.0 g/t over 4.3 m, including a whopping 3,262.5 g/t of the yellow metal over 0.6 m. And it has an indicated resource of 20.5 g/t gold for 301,000 ounces, and an inferred resource grading 12.4 g/t gold for 80,000 ounces.
Both holes so far sunk between the 8 Zone and its up-dip continuation at Russet South have returned wide gold-bearing zones.
Meanwhile, highlight drill assays from New Wedge included 167 g/t gold over 1.1 m from one hole and 51.5 g/t of the precious metal over 1.5 m in another.
Shares in London perked up 3.4% to 42.90p each. In Toronto, the stock slipped 1.35% to C$0.73.
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