Vancouver junior off to the races on Red Lake drilling
Pure Gold Mining Inc. (CVE:PGM) stock jumped 14.6% on Monday after releasing results from drilling at its Madsen Gold Project in northwest Ontario.
By the close the small-cap changed hands at $0.275, on the Toronto Stock Exchange in higher than usual volumes, affording the company a market worth just over $33 million on the venture board.
Pure Gold has more than doubled in value over the past two months following impressive drilling at its 100%-owned property in the Red Lake District .
The Vancouver-based firm announced Monday the latest results from its 16,000m drill program targeting the McVeigh horizon and designed to test and build continuity of high grade gold mineralization in close proximity to the historic Madsen mine which operated for 36 years and produced 2.5 million ounces of gold.
Some of the significant drill results include 3.2 metres @ 10.3 g/t gold including 0.6 metres @ 50.8 g/t gold. Another hole intersected 5.9 metres grading 11 g/t gold and 1 metre grading 30 g/t.
“Our drilling confirms that the McVeigh horizon is open for expansion down plunge. The McVeigh is a folded continuation of the Austin horizon which historically produced over two million ounces of gold in 36 years of continuous mining at Madsen,” said Darin Labrenz, President and CEO of Pure Gold.
Pure Gold is currently preparing a Preliminary Economic Assessment of the Madsen Gold Project. Madsen contains an Indicated resource of 928,000 ounces gold (2.24 million tonnes at 8.93 g/t Au), and an Inferred resource of 297,000 ounces gold (0.79 million tonnes at 11.74 g/t Au).
Existing mining infrastructure in place, include a 500 tonne per day mill, a 1,275 metre deep shaft, 24 levels of underground workings, a headframe, and a permitted tailings management facility connected to roads and power.
A new interpretation of the role of folded ultramafic contacts and structural controls have resulted in multiple recent discoveries in the district, including Goldcorp’s High Grade Zone and HG Young at the Red Lake Mine Complex, the Bruce Channel system at the Cochenour Mine, and the F2 Gold System at Rubicon’s Phoenix Mine according to Pure Gold.