Pure Gold Extends Russet South Zone to 330 Metres Depth

VANCOUVER, British Columbia, July 12, 2018 (GLOBE NEWSWIRE) -- Pure Gold Mining Inc. (TSX-V:PGM) (“Pure Gold” or the “Company”) is pleased to report that results from the Company’s spring drilling program have significantly expanded the size of the Russet South deposit both down dip and along strike, reinforcing the potential of Russet South to positively impact the production profile at Madsen. Drilling reported herein has expanded strongly mineralized zones to a vertical depth of 330 metres and continues to establish continuity of gold mineralization in several key areas. In particular, wide space drilling continues to build continuity at depth, stepping into the sparsely tested gap between Russet South and the high grade 8 Zone resource at depth.

Release highlights:

• Multiple drill holes have expanded the Russet South deposit 150 metres down dip from the current mineral resource extents.  Drill result highlights include:
  • 19.0 g/t gold over 2.0 metres from drill hole PG18-504;
  • 35.9 g/t gold over 1.0 metre from drill hole PG18-537;
• Step out drilling on the south end of the Russet South resource has extended near surface mineralization by 50 metres including
  • 13.8 g/t gold over 2.0 metres from drill hole PG18-519.

“Our latest drilling, designed to step well outside of the current mineral resource, has clearly established the scale of the gold mineralization present at Russet South,” said Darin Labrenz, President and CEO of Pure Gold.  “This deposit is an extension of the large gold system at Madsen, including the high grade 8 Zone with which it shares a similar geological setting and style, and the corridor between the two forms an important 1.6 kilometre gap that remains largely untested.  While this recent drilling has successfully expanded gold mineralization down dip from the surface resource present at Russet, the Russet South – 8 Zone corridor remains highly prospective for additional discovery.  This exploration opportunity is one of several expansive gaps along strike and down dip that have been unlocked by the team’s understanding of the structural relationship between mineral zones at Madsen, supporting our goal of building a scalable mining operation at Madsen.”

Russet South – 8 Zone Corridor Highly Prospective For Additional Discovery
The Russet South resource outcrops at surface, is road accessible, close to Madsen’s milling infrastructure and open for expansion. Drilling to date has defined a mineral resource that spans approximately 600 metres by 400 metres, and has been estimated to a depth of approximately 225 metres.  Recent drilling by Pure Gold was designed to test extensions to the mineral resource, and in particular down-dip in the east-west corridor that hosts both near surface mineralization at Russet South, as well deeper high grade gold mineralization in the 8 Zone with which it shares geologic characteristics.  Drilling has successfully expanded known gold mineralization into this corridor, with drill hole PG18-504 returning 19.0 g/t gold over 2.0 metres approximately 70 metres down dip of the current resource and PG18-537 returning 35.9 g/t gold over 1.0 metre approximately 150 metres down dip of the current resource.

Pure Gold drilling also successfully targeted lateral extensions to the mineral resource, including step out drilling on the southeast end of the resource which intersected gold mineralization in multiple drill holes including 13.8 g/t gold over 2.0 metres from drill hole PG18-519.   Drill holes PG18-517, PG18-520, and PG18-524 also intersected near surface gold mineralization in this area.

Drill Results Summary
New assay results from select drill holes are outlined below:

*Assay composites were calculated using uncut assays and true widths are interpreted to vary from 70-90% (80%, on average) of reported core lengths above.

For a figure showing the location of drill results, click link below:
http://puregoldmining.ca/sites/default/files/Drill-Result-Figures-12072018.pdf

For a complete list of 2018 drill results to date, click link below:
http://puregoldmining.ca/sites/default/files/2018-DH-Intercepts-Table-July-12.pdf

2018 Exploration Drilling
The Company recently announced an additional 21,000 metres of exploration drilling with the goal of demonstrating expansion and project scalability opportunities at Madsen.  Surface drilling is ongoing with two drill rigs currently targeting extensions of Wedge’s mineralized zones.  Further results are pending and will be released when available.

ABOUT MADSEN
The Madsen Gold Project has historic production of 2.5 million ounces of gold and a current indicated resource of 1,744,000 ounces gold at 8.7 g/t gold (in 6.2 million tonnes) and an inferred resource of 296,000 ounces gold at 7.9 g/t gold (in 1.2 million tonnes), the Project benefits from existing infrastructure including a mill and tailings facility, paved highway access, and access to power, water and experienced labour.¹ A feasibility study is underway with results expected in the fourth quarter of 2018 and the Madsen Gold Project is firmly on the path to becoming Ontario’s next gold mine.      

1. See the National Instrument 43-101 technical report entitled “Technical Report for the Madsen Gold Project - Restated Preliminary Economic Assessment and Initial Satellite Deposit Mineral Resource Estimates” with an effective date of December 14, 2017 for complete details, available on the Company’s website at www.puregoldmining.ca or Sedar profile at www.sedar.com.

QA/QC and Core Sampling Protocols
Drill core samples are submitted to ALS Minerals in Thunder Bay, Ontario for sample preparation by crushing to 70% less than 2 mm, a rotary split of 1kg, and pulverization of the split to better than 85% passing 75 microns. Sample pulps are shipped to the ALS assay laboratory in North Vancouver, BC for gold analysis with a 30g fire assay and AAS finish (code Au-AA23). Samples returning >5 g/t Au are re-assayed with a gravimetric finish (code GRA21). Mineralized zones with visible gold and shoulder samples are also analyzed by a 1 kg screen fire assay with screening to 100 microns. A duplicate 30 g fire assay is conducted on the screen undersize with assaying of the entire oversize fraction (code Au-SCR21). Control samples (certified standards and uncertified blanks), along with field, prep and pulp duplicates, are inserted on a regular basis. Results are assessed for accuracy, precision, and contamination on an ongoing basis.

Qualified Persons and 43-101 Disclosure

Phil Smerchanski, P. Geo., Vice President, Exploration for the Company, is the designated Qualified Person for this news release within the meaning of National Instrument 43-101 (“NI 43-101”) and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

ABOUT PURE GOLD
Our mandate is pure and simple. To dream big. To colour outside the lines. To use smart science and creativity to unlock the next major discovery at the Madsen Gold Project in Red Lake, Ontario. And become Canada’s next iconic gold company.

Additional information about the Company and its activities may be found on the Company’s website at www.puregoldmining.ca and under the Company’s profile at www.sedar.com.

ON BEHALF OF THE BOARD
"Darin Labrenz"                                  
Darin Labrenz, President & CEO

Investor inquiries:
Adam Buchanan, Manager, Investor Relations
Tel: 604-646-8000
info@puregoldmining.ca

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pure Gold within the meaning of applicable securities laws, including, but not limited to statements with respect to those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pure Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Madsen Gold Project; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated June 16, 2017 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at www.sedar.com.

Although Pure Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pure Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.