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Resource World - Aug-Sept 2019 - Vol 17 Issue 5

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58 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 9 MINING PURE GOLD MINING INC. [PGM-TSXV; PUR-LSE] has launched the 2019 explora- tion program at its 100%-owned Madsen Red Lake gold mine in Red Lake, Ontario. Funding for the exploration and devel- opment program included a recent $32.5 million financing with an underwriting syndicate led by Sprott Capital Partners LP which agreed to purchase, on a bought deal basis, 59.1 million Pure Gold units at 55 cents per unit. This was followed by issuing up to a further 23.7 million units at 55 cents per unit for additional gross pro - ceeds of up to $13,035,000. The units being sold consist of one share and one-half a warrant good to buy one share for three years after closing at 85 cents per share. The underwriters have been granted a greenshoe option to buy additional units equal to 15% of the units sold in the private placement. In total, the recent financings add up to $47.5 million. The phased exploration program is designed to focus on the Wedge, Fork, and Russet South discoveries with the goal of converting and growing the min - eral resources. The program includes up to 12,000 metres of diamond drilling and is expected to be largely directed at the Wedge discovery and along strike extensions, with a limited amount of focused work at the Fork and Russet South deposits. Previous drill results from the Wedge Zone included 33.3 g/t gold over 8.3 metres from drill hole PG17-467 and 21.3 g/t gold over 10.3 metres from drill hole PG17-486. Russet South assays have returned 76.0 g/t gold over 2.1 metres from drill hole PG16-233 and 27.1 g/t gold over 5.8 metres from drill hole PG17-364. Fork / Starratt intercepts returned 17.2 g/t gold over 3.5 metres from drill hole PG17-467 and 104.1 g/t gold over 3.0 metres from drill hole PG16-198. "Just over a year ago our team began to test the southern extents of our geologi - cal model of Madsen in the Wedge area. Drilling resulted in the discovery of the Wedge deposit and since that time we have rapidly progressed our understanding of the scale and tenor of gold mineralization, resulting in the first time disclosure of mineral resources," stated Darin Labrenz, President and CEO. "With this new program our explo - ration team is focused on growth of the current resource and providing the frame- work for a second phase of development with the goal of not only extending, but potentially expanding the base case pro- duction scenario at Madsen." The Madsen Red Lake gold mine has historical production of 2.6 million ounces of gold and a current indicated resource of 2.1 million ounces gold at 8.9 g/t gold (in 7.2 million tonnes), an inferred resource of 467,000 ounces gold at 7.7 g/t gold (in 1.88 million tonnes). There is existing infrastructure including a mill and tail - ings facility, paved highway and access to power, water and experienced labour. A recent feasibility study outlined an 800 tpd underground mine with a 12 year life- of-mine. Probable reserves of 1 million ounces at 9 g/t gold in 3.5 million tonnes, and a low initial capital cost of CDN $95 million, bode well for making a production decision. n * Resource World does not sell your information to third parties #604-700 W Pender St., Vancouver BC V6C 1G8 Canada online at www.resourceworld.com or phone 1.877.484.3800 SAVE 50% up to Resource World (Print and Digital Edition) 1 Year/6 issues (CAD $24.95) Resource World (Digital Edition) 1 Year/6 issues (CAD $12.95) Resource World International (outside Canada and USA (Print and Digital Edition) 1 Year/6 issues (CAD $99.95) NAME ADDRESS TEL EMAIL Pure Gold Mining funds Madsen Mine exploration and development

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