The prospective Balmer-Confederation contact is interpreted to transect the expanded Property for 8.0 kilometres
VICTORIA, BC / ACCESSWIRE / July 29, 2020 / GoldON Resources Ltd. (TSXV:GLD) ("GoldON" or the "Company") is pleased to announce it has entered into an option agreement with Bounty Gold Corp. (Bounty) to acquire a 100% interest in the Flat Lake and the Madsen-Medicine Stone claim groups that adjoin Block A of the West Madsen Property (click on Figure 1 below to enlarge).
Figure 1: West Madsen - Block A and Bounty Claim Groups with inferred Balmer-Confederation Contact
The southern boundary of the 692-hectare Flat Lake Claim Group adjoins the West Madsen - Block A, while the eastern claim boundary adjoins the Pure Gold Red Lake Mine property. Notably, Pure Gold's Russet South deposit and Wedge zone lie approximately 400 metres northeast and 300 metres southeast, respectively, of the Flat lake eastern claim boundary (see Figure 2 below).
Figure 2: Looking east from West Madsen - Block A and new Bounty Claims toward Pure Gold Red Lake Mine
The north, west and southern claim boundaries of the 170-hectare Madsen-Medicine Stone Claim Group adjoin West Madsen - Block A, while the eastern claim boundary adjoins Pure Gold's property within 1 km of their Wedge zone (see Figure 1 & 2 above). On July 7, 2020, Pure Gold announced that their Wedge zone is one of the key growth areas outside of their phase 1 mine plan and that two surface drills had recommenced exploration drilling.
Pure Gold has identified a seven-kilometre-long gold system along the major crustal break between the Balmer and Confederation assemblages. The Balmer-Confederation contact trends west and has been identified on the Madsen-Medicine Stone Claim Group 1.6 km west of the Pure Gold property boundary at an outcrop exposure. This area is a high-priority exploration target as the metavolcanics show evidence of deformation, alteration and mineralization demonstrating that the Balmer-Confederation contact was active here as it was further east on the Pure Gold property.
Based on a geological and structural interpretation of a 2017 regional airborne magnetic survey completed by Great Bear Resources in conjunction with surface trenching and the recent drilling results, the prospective Balmer-Confederation contact is interpreted to transect the Madsen-Medicine Stone claims and continue on to the West Madsen - Block A for 8 km (see Figure 1 above). To date, only two drill holes have tested this prospective contact.
Under the terms of the option agreement, GoldON can acquire a 100% interest in the Flat Lake and Madsen-Medicine Stone claim groups by paying Bounty $80,000 over two years and issuing 250,000 shares over one year. Bounty will retain a 2% net smelter returns royalty of which GoldON may purchase half for $1,000,000.
"We feel the West Madsen property is one of the most exciting, underexplored projects in Red Lake and the addition of the Bounty claims now gives us 8 kilometres of highly prospective hunting ground for gold exploration right next door to the Pure Gold Red Lake mine that is expected to be in production before year's end," said Mike Romanik president of GoldON. "Bounty Gold has done an excellent job in developing the exploration potential of these claim blocks, we look forward to working with them and welcome them as GoldON shareholders."
Ian Russell, P.Geo., an independent qualified person as defined in National Instrument 43-101, has reviewed and approved the technical contents of this news release on behalf of the Company.
About the West Madsen Property:
GoldON has the right to earn a 100% interest in the West Madsen property through an option agreement with Great Bear Resources (see news release of May 28, 2019 and regional claim map Figure 1). The Property is comprised of two contiguous claim blocks (Block "A" and "B"), each roughly six km by three km in size for a total area of 3,860 hectares (see Figure 2). Block A adjoins the Pure Gold Red Lake Mine property, which is the highest-grade underground development project in Canada with first gold production expected in Q4 2020.
About Bounty Gold
Bounty Gold Corp is a privately held gold exploration company based in Red Lake, Ontario. Bounty Gold is focused on advancing its flagship 4,000 hectare Laird Lake Gold Project in Red Lake, where nine high-grade surface gold showings exceeding 5 g/t gold (up to 140.59 g/t gold in selective grab samples) have been exposed along 5.4 km of the geological contact between the Balmer-Confederation assemblages to the west of GoldON's West Madsen - Block A and the Pure Gold Red Lake Mine property.
About GoldON Resources Ltd.
GoldON is an exploration company focused on discovery-stage properties located in the prolific gold mining belts of northwestern Ontario, Canada. Our current project portfolio includes four properties in the Red Lake Mining Division (West Madsen, Pipestone Bay, McDonough and Bruce Lake) and a fifth property in the Patricia Mining Division (Slate Falls). If you are an investor looking for exposure to the rising gold price, then GoldON is an explorer worthy of a closer look: tight share structure with a $10 million market cap, discovery-stage projects all in good standing, experienced management and advisors, and no debt with capital devoted to exploration not excessive salaries.
For additional information: please visit our website at https://goldonresources.com, you can download our latest presentation by clicking here and you can follow us on Twitter at https://twitter.com/GoldONResources.
ON BEHALF OF THE BOARD
Signed "Michael Romanik"
Michael Romanik, President
Direct line: (204) 724-0613
Email: [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: GoldON Resources Ltd.