Pure Gold reports year-end financial results

VANCOUVER, B.C. – Pure Gold Mining Inc. (PGM – TSX-V) (“Pure Gold” or the “Company”) is pleased to announce its financial results and company highlights for the year ended March 31, 2015 and provide an update on company activities at the Madsen Project, located in the Red Lake district, Ontario.

Darin Labrenz, Pure Gold President & CEO stated, “It has been a transformative fiscal year for Pure Gold. Since acquiring the Madsen mine and its related infrastructure in March 2014, we have assembled a team with extensive knowledge of Red Lake, added to our land position through the acquisition of the Newman-Madsen property and embarked on a comprehensive exploration program which has culminated in the discovery of several new high-grade and near-surface gold bearing zones on the Property.”

Financial and operational highlights through and subsequent to year end:

  • New Team and New Name

    Dr. Mark O’Dea, Ph.D P.Geo, Mr. Graeme Currie, Mr. Troy Fierro, Mr. Rob Pease and Mr. Lenard Boggio CPA, FCA were appointed to the Company’s Board of Directors.

    Mr. Darren O’Brien P.Geo was appointed Vice President, Exploration, Mr. Sean Tetzlaff CPA, CA was appointed Chief Financial Officer and Mr. Mischa Zajtmann was appointed Corporate Secretary of the Company. The addition of these individuals brings a wealth of knowledge to Pure Gold’s Board and management team including expertise in geology, finance, accounting, engineering and business development.

    Effective June 24, 2014, the Company changed its name to Pure Gold Mining Inc. to reflect change in management and focus of the Company to exploring Madsen.

  • Acquisition of Newman-Madsen Property

    On June 24, 2014, the Company completed a transaction to acquire a 100% interest in the Newman-Madsen Property from Sabina Gold & Silver Corp. (“Sabina”). The Newman-Madsen Property consists of 38 patented mining claims and is adjacent to Pure Gold’s Madsen Gold Project in the prolific Red Lake gold camp. On closing, Pure Gold issued 6,500,000 common shares to Sabina.

    With this acquisition, Pure Gold controls over 5,000 hectares of mineral rights on predominantly patented mining claims with increased exposure to prospective horizons along the 12 kilometre Madsen Mine Trend. Pure Gold now controls the 3rd largest land package in the Red Lake District.

  • Commenced a comprehensive exploration program.

    During the fiscal year the Company embarked on a comprehensive exploration program at Madsen which included:

    • Compiling historic data from former operators into a digital platform;
    • Conducting a high resolution airborne magnetic survey;
    • Defining sampling and assaying protocols suitable for Red Lake coarse gold;
    • Developing a geological “footprint” of high-grade gold zones by constructing new 3D stratigraphic, structural, and alteration models, allowing more predictive drill targeting of ultramafic contact 8-Zone style mineralization;
    • Conducting structural and alteration mapping, as well as soil and rock geochemical sampling to advance priority target areas to drill-ready status; and
    • Completing a two phase 12,804 metre drill program designed to expand the current mineral resource and test new targets at Russet South identified during the year.

    Drill highlights for the fiscal year include:

    • 14.6 g/t gold over 1.8 metres including 22.5 g/t gold over 1.0 metres from hole PG14-006;
    • 17.2 g/t gold over 3.5 metres including 33.8 g/t gold over 1.6 metres from hole PG14-011;
    • 15.5 g/t gold over 1.0 metres from hole PG14-014;
    • 7.0 g/t gold over 9.0 metres including 26.6 g/t gold over 2.0 metres from hole PG14-024;
    • 9.5 g/t gold over 3.5 metres including 18.8 g/t gold over 1.5 metres from hole PG15-027;
    • 8.2 g/t gold over 11.0 metres including 15.0 g/t gold over 5.0 metres from hole PG15-028;
    • 39.1 g/t gold over 2.9 metres including 52.4 g/t gold over 0.7 metres from hole PG15-031;
    • 37.5 g/t gold over 1.7 metres including 83.8 g/t gold over 0.7 metres in PG15-032.

    (see press releases dated October 23, 2014, October 29, 2014, January 8, 2015, March 2, 2015 and March 16, 2015)

  • Completion of $5.7 million bought-deal private placement

    On February 20, 2015, Pure Gold closed a bought-deal private placement pursuant to which the Company issued 13,836,478 flow-through common shares at a price of $0.35 per share and 3,187,143 common shares at a price $0.28 per share, for aggregate gross proceeds to Pure Gold of $5,735,167.


The following selected financial data is derived from our consolidated financial statements for the years ended March 31, 2015, 2014 and 2013, as prepared in accordance with International Financial Reporting Standards. All dollar figures are expressed in Canadian $.

  Twelve months ended
March 31
  2015 2014 2013
Loss and comprehensive loss for the year ($7,154,500) ($1,098,112) ($1,657,747)
Basic and diluted loss per share ($0.07) ($0.07) ($0.24)


  As at
  March 31, 2015 March 31, 2014
Cash and short-term investments $6,529,937 $9,026,899
Restricted cash $ – $104,224
Working capital (current assets less current liabilities) $4,990,710 $6,139,719
Total assets $26,338,681 $25,239,751
Current liabilities $1,787,173 $3,191,633
Non-current liabilities $2,571,775 $2,320,238
Shareholders’ equity $21,979,733 $19,727,880

For the year ended March 31, 2015, the Company incurred a loss of $7.2 million compared to a loss of $1.1 million for fiscal 2014. The overall increase is a function of significantly increased activity within the Company upon the acquisition of Madsen since March of 2014.

Exploration and evaluation expenditures at March 31, 2015 increased to $4.5 million from $0.2 million in the prior year. The Company acquired Madsen in March 2014 and quickly embarked on its exploration program for the project leading to a significant increase in exploration and evaluation expenditures compared to fiscal 2014. Fiscal 2014 saw very little exploration activity as the Company continued its search for a new project which eventually culminated in the acquisition of Madsen and then the Newman-Madsen property.

Share-based compensation expense for the fiscal year ended March 31, 2015 totaled $0.9 million, compared to $285 for the same period in fiscal 2014. The increase in share-based compensation expenses is a result of the granting of 5.8 million stock options to new directors and new and existing employees during the first quarter and fourth quarter of fiscal 2015. There were no stock option grants during the fiscal year ended March 31, 2014.

Wages, consulting and director fees increased by $0.4 million to $0.8 million for the fiscal year ended March 31, 2015 compared to $0.4 million for the same period in the prior year. The change was solely due to an increase in payroll and consulting fees as the Company ramped up activities following the acquisition of Madsen in March 2014. New staff has been hired to build out the team to manage the increased activity levels within the Company. In the prior year, activity levels were minimized as the Company focused its efforts on acquiring a new transformative project.

Investor relations and communication expenses totaled $0.5 million for the fiscal year ended March 31, 2015 compared to $2,698 for the same period in the prior year. The increase in investor relations and communication expenses for the current period is due to the Company incurring costs to promote the Company’s activities and attract new investors to the Company, develop a new brand name, brand signature, approach and foundation to reposition and build the long-term brand equity of the Company and to advise the markets about the Company’s new Madsen acquisition and new project focus. In fiscal 2014, activity levels were minimized as the Company focused its efforts on acquiring a new transformative project.

Total assets increased by $1.1 million as at March 31, 2015 in comparison to March 31, 2014, primarily as a result of the Newman-Madsen acquisition of $2.7 million and net cash received from financing activities of $6.7 million, offset by approximately $6.3 million of operating expenses and the $2.5 million final payment to Claude Resources for the acquisition of the Madsen Project, accrued in fiscal 2014.

Current liabilities decreased by $1.4 million as at March 31, 2015 in comparison to March 31, 2014 as a result of the Company making the final $2.5 million payment to Claude Resources Inc. for the Madsen acquisition, offset by an increase in accounts payable, primarily relating to Madsen activities. In addition, the Company recognized a $0.9 million flow through premium liability arising from the February 20, 2015 financing. The premium is recorded as a liability and will be reversed as a deferred tax recovery when the Company has met its flow through share expenditure requirement and renounced such expenditures to shareholders.

Non-current liabilities increased by $0.3 million as at March 31, 2015 in comparison to March 31, 2014. This increase was due in large part to an increase in the provision for closure and reclamation costs at Madsen.

At March 31, 2015, the Company had approximately $6.5 million in cash and short-term investments compared to $9.0 million for the same period in the prior year.

Darren O’Brien, P.Geo., Vice President, Exploration, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and validated that the scientific and technical information contained in this release is accurate.

This press release should be read in conjunction with Pure Gold’s audited consolidated financial statements and Management’s Discussion and Analysis for the year ended March 31, 2015. These documents can be found on the Company’s website ( or under the Company’s profile on SEDAR at Shareholders may receive a printed copy of the audited consolidated financial statements, free of charge, upon request. All amounts are presented in Canadian dollars.


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 gold discovery at the Madsen Gold Project in Red Lake, Ontario. And become Canada’s next iconic gold company.

For more information, visit or contact:

Darin Labrenz, President & CEO
Phone: 604-646-8000 or Toll Free 1-877-632-4677

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 July 4, 2014 in the section entitled "Risk Factors", under Pure Gold’s SEDAR profile at

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.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The mineral resource estimates referenced in this press release use the terms “Indicated Mineral Resources” and “Inferred Mineral Resources”. While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities and Exchange Commission (“SEC”). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Pure Gold is not an SEC registered company.