Test Mining Reveals ‘Higher Grade, More Ounces and a New Proximal High-Grade Zone’

Source: Streetwise Reports   12/06/2018

An Echelon Wealth Partners report reviewed the highlights of this gold company’s recent campaign at its Red Lake project.

In a Nov. 28 research note, analyst Ryan Walker relayed that Pure Gold Mining Inc.’s (PGM:TSX.V) test mining in the McVeigh zone at Madsen, now fully reported, “encountered excellent ground conditions and visually strong gold mineralization, both boding well for any eventual commercial mining. . .specifically efficient mining of higher-grade mineralization with limited dilution.”

Walker pointed out mining of the two test slopes generated a 15% and 20% combined higher grade than what was expected based on the resource model and the initial diluted stope designs, respectively, in those areas.

Upon drilling drift walls underground, Pure Gold delineated a third stoping area, Walker noted, from which it then produced another 1,575 tons grading 8.7 grams per ton (8.7 g/t). Highlight assays from underground drilling included 20.1 g/t Au over 6 meters (6m), including 38.6 g/t over 2m from hole PGB-0131 and 47.6 g/t over 6m from hole PGB-0134.

Next, Pure Gold will update the Madsen resource estimate, encompassing Wedge, Russet South, Fork and Madsen, planned in January 2019. Also next month, the company intends to announce results from the definitive feasibility study (DFS) and preliminary economic assessment that covers Wedge, Russet South and Fork, the analyst noted.

Walker concluded, “Our positive view on Pure Gold’s shares reflects Madsen’s high-grade nature (as again demonstrated by the test mining and underground drilling results), potential for solid near-term, high-margin production and substantial exploration potential, all situated in a prolific Canadian mining camp.”

Echelon Wealth Partners maintains its Speculative Buy rating and CA$1.20 per share price target on Pure Gold, whose stock is trading at a slight premium to peers, CA$0.55 as of the date of the report, Walker wrote.

“We expect this premium to grow with delivery of the updated resource and DFS in early 2019,” he added.

Pure Gold shares are currently trading at CA$0.59.

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Disclosures from Echelon Wealth Partners, Pure Gold Mining Inc., November 28, 2018

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

I, Ryan Walker, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.

Important Disclosures:
Is this an issuer related or industry related publication? Issuer.

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? No

Does the Analyst or household member serve as a Director or Officer or Advisory Board Member of the issuer? No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? Yes

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes

Has the Analyst had an onsite visit with the Issuer within the last 12 months? Yes. July 31, 2018 – Madsen Mine Site – Underground and Surface Infrastructure and ancillary buildings.

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

( Companies Mentioned: PGM:TSX.V,
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