Pure Gold Mining (PGM.V) explores Canada’s richest gold camp

POSTED ON June 02, 2015 BY Andrew Nelson
CATEGORY Pure Gold Mining,

Pure Gold Mining, CEO, Darin Labrenz (Photo: CEO.ca, Mining Analyst, James Fraser)

This past weekend I attended the Metals Investor Forum hosted by junior mining newsletter writers Gwen Preston (Resource Maven), Eric Coffin (Hard Rock Analyst), John Kaiser (Kaiser Research Online), and Brien Lundin (Gold Newsletter). I had the chance there to speak with Darin Labrenz, CEO of Pure Gold Mining and we discussed their Madsen Project in the historic gold camp of Red Lake, Ontario.

Pure Gold Mining was founded 2 years ago in a depressed mining market with a mission to acquire a gold project which they believed could be developed into a multi-million ounce gold deposit. The company had a mandate with key requirements for this project: grade, jurisdiction, and infrastructure.

Today, they are operating in Red Lake, the highest grade gold belt in Canada with a NI 43-101 compliant resource of 928K Oz Au @ 8.93 g/t Au (indicated) and 297K Oz Au @11.74 g/t Au (Inferred). Red Lake is as mining friendly as you can get regarding jurisdiction, with an active mining history of over 90 years of operating mines resulting in 28M Oz of past gold production. The infrastructure in place (as a result of the $1 billion dollar capital injection into the district over the past 3 years) allows Pure Gold to explore year round. Paved highways and power support the transport of equipment, drill rigs, and supplies.

Mr. Labrenz is well versed in the geological settings of the Red Lake district, having acted as Chief Geologist for Placer Dome’s Campbell Mine which has historic gold production of 12.1M Oz. Mr. Labrenz stated, “Understanding the geological history of your property is paramount to knowing where you will find high grade zones. One of the things we’ve learned over the last 20 years is that high grade mineralization preferentially sits along the contacts between two different rock units, mafic and ultramafic volcanics. Where these rock units have been deformed either through faults or folds, there is a “trap” for gold mineralization thus forming high grade plunging shoots”. He believes the regional geology is consistent in the district, including around the historic Madsen mine which Pure Gold is currently exploring.

The Madsen mine had historic gold production of 2.5M Oz Au @ ~10.0 g/t Au from 1934 -1976, but in 1969 the current operators were looking to extend the life of the mine which resulted in the 8 zone discovery (Ind. 335kt @ 12.2 g/t Au, Inf. 317kt @ 18.1 g/t Au) in ultramafic rock body. This posed the question: if this type of resource existed at depth in this environment why could it not exist closer to surface, thus becoming the conceptual targeting model for Pure Gold.

There are currently 4 high grade mineralized zones on the Madsen property: Austin, South Austin, McVeigh, & 8 Zone. The 2015 winter exploration program focused on two new zones to be tested which involved the Russet South & Fork zone, both lying along mafic and ultramafic contact. 6,000 metres were drilled with 27 diamond drill holes completed with the results from 9 holes still to be released. The assay results from the 18 drill holes released identified near surface high grade mineralization, consistent with the other Red Lake producing mines.

The summer program will involve further generative work on the never explored ultramafic Dev Target, and other high priority targets on the 50 km2 property. The Dev Target area was identified last year from Pure Gold’s airborne magnetic survey. Initial mapping and geochemical work supports the promising nature of this target area. The Russet South zone will be further explored through trenching and rock stripping to generate understanding and potential new targets to help build confidence in the gold mineralization currently being defined. In the late summer, Phase 2 of drilling will take place in the Russet South zone with details of the program still being finalized.

Investors should be aware that junior mining, specifically exploration, is the highest risk asset class one can invest in. There are never any guarantees that a project will develop into an economic deposit or a producing mine. Real risks that face all junior miners today are raising capital, geological, social, political, and more. Pure Gold’s management team have done well to mitigate these risks by closing a bought deal for $5.7M earlier this year ensuring exploration programs will be funded, continuing to drill near surface high grade gold, choosing a project in a pro-mining district, and operating in arguably the safest country to be in this business, Canada.

A closing thought from Mr. Labrenz: “A home-run for Pure Gold is going to come from a mafic and ultramafic contact style target (Russet South, Fork, Dev), that has been the foundation of other Red Lake gold discoveries. Our technical team is experienced in this geological environment with tremendous knowledge of the Red Lake district”.

Andrew Nelson

Andrew Nelson is pursuing the CPA designation as an auditor at Davidson & Co., the leading service provider for junior mining clients globally. Mr. Nelson has experience working with TSX venture listed explorers in Kazakhstan, Paraguay, Peru, Namibia, Madagascar, West Africa, United States, and Canada reporting under IFRS framework. He is an Executive Officer with Young Mining Professionals a not-for-profit which holds networking events for young professionals in Vancouver's resource sector. His interests are reporting on Canadian precious metal explorers and holding informative interviews with accomplished mining professionals. If involved in junior mining he would love to hear from you at Andrew.GM.Nelson@Gmail.com. More →

Twitter: @https://twitter.com/ANelsonMining

andrew.gm.nelson@gmail.com

Andrew Nelson

Twitter: @https://twitter.com/ANelsonMining

andrew.gm.nelson@gmail.com

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