GoldON Resources Ltd. is a company offering speculative investors interested in gold and mineral exploration an opportunity for capital appreciation as it meets key criteria that should be part of any due diligence checklist:
(1) good capital structure with 22,318,292 shares issued and ~15% insider ownership;
(2) discovery-stage properties that exhibit the potential to host large-scale mineralizing systems;
(3) strategic investors including precious metals investor Eric Sprott and Goldcorp founder Rob McEwen;
(4) fiscal responsibility with capital used for exploration, not wasted on excessive salaries and expenses; and
(5) experienced management with a broad network of contacts in the resource sector and investment community.
GoldON's business objectives are to:
– create shareholder value through the exploration and discovery of gold and associated mineral deposits;
– focus exploration on overlooked and underexplored opportunities in pro-mining jurisdictions of Ontario;
– maintain ownership or control of a project during the high-value creation phase of discovery; and
– source a well-financed partner capable of accelerating discovery, resource definition and development.
Our business model is to increase the odds of exploration success by having equity stakes in multiple projects. Our existing portfolio ranges from grassroots to advanced-stage exploration properties, and we are constantly evaluating new exploration opportunities that could further enhance the Company’s growth profile and add shareholder value.
As the name reflects, GoldON is a company focused on gold exploration in Ontario, Canada.
A province with a rich history of gold exploration and mining that dates back to the 1860s, Ontario is Canada’s leading gold-mining jurisdiction and has produced over 200 million ounces of the yellow metal over the last 150+ years.
Mining is a key contributor to the Ontario economy with some 40 mines currently operating in the province, of which 20 are gold mines. Last year, over 250,000 people were employed in Ontario’s mineral industry cluster which includes: operating mines, exploration and development services & supplies, finance & accounting, engineering, environmental consulting, corporate offices, etc. Notably, the average weekly wage in Ontario mining is 67% higher than the average industrial wage in the province.
Ontario is also one of the safest mining jurisdictions in the world and mining is one of the safest industries in Ontario, achieving a 96% improvement in lost time injury frequency over the past 30 years.
The province's mineral production value exceeded $10.7 billion in 2019, and Ontario was Canada’s largest producer of gold (42.1%*), nickel (40.8%*), silver (29.8%* ), and platinum group metals (74.7%*).
Gold and precious metals remained the most sought-after minerals in 2019 and Ontario led all jurisdictions in Canada with an estimated $321 million in expenditures. Combined senior and junior company investment in mineral exploration and deposit appraisal spending in Ontario is forecast to be $470 million in 2020.
West Madsen Project:
GoldON has a unique opportunity to drill test for gold mineralization along the prospective Balmer-Confederation contact of the Red Lake Greenstone Belt," said Michael Romanik president of GoldON. "Exploration drilling is all about discovery and we control an eight kilometre interpreted extension of known gold-bearing stratigraphy in the heart of the Red Lake Camp right beside Canada's newest gold mine.”
The West Madsen Project covers 5,862 hectares and is comprised of the West Madsen (Block A and B) claims, where GoldON has the right to earn a 100% interest through an option agreement with Great Bear Resources (see news release of May 28, 2019); the Flat Lake and Madsen-Medicine Stone claim groups that GoldON acquired 100% interest in from Bounty Gold Corp. (see news release of January 7, 2021); and claims GoldON acquired via staking in December 2020.
GoldON's fully-funded Phase II 2020 drilling program is in progress with a focus on the expanded West Madsen Block A (see Figure 1 above) and the area of the black ellipse that is contiguous with the Pure Gold Red Lake Mine property where they poured first gold on December 29 and expect to be in commercial production by the end of Q1 2021 (Pure Gold's news release of December 30, 2020). Pure Gold's reserves and resources include the Madsen deposit (FS status) and the Fork, Russet South, and Wedge deposits (PEA status) that are hosted in a seven-kilometre-long gold system that follows the major crustal break or contact between the Balmer and Confederation assemblages. This same Balmer-Confederation contact has been exposed in outcrop 1.6 kilometres (km) west of the Pure Gold property boundary and is interpreted to continue for ~8 km across GoldON's property.
The Phase II program is budgeted for up to 7,000 metres of diamond drilling to aggressively test the strike-extension of both the known gold mineralization to the east and to follow-up on the gold mineralization discovered during GoldON's Phase I drilling that returned 14.4 g/t gold over 0.5 metres (see news release of July 22, 2020).
The Pure Gold property had historical production of 2.6 million ounces of gold; and current resources from the Madsen, Russet South, Fork and Wedge deposits include an indicated resource of 2,063,000 ounces of gold (7.2 million tonnes at 8.9 g/t Au) and an inferred resource of 467,000 ounces of gold (1.9 million tonnes at 7.7 g/t Au) (see NI 43-101 Technical Report). Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of the mineralization hosted on the West Madsen properties.
Notably, Pure Gold's Russet South deposit and Wedge zone lie approximately 400 metres northeast and 300 metres southeast, respectively, from the West Madsen Project's eastern claim boundary.
In 2019, Pure Gold announced bonanza grade gold drill results from the Wedge zone and that ongoing drilling along the Red Lake Mine Trend continues to rapidly expand the footprint of the Wedge zone. The 2019 results highlight the down-plunge continuity of the Wedge zone and reinforce the area's potential to both upgrade and expand mineral resources. Importantly, drilling at Wedge has established a 500-metre extension to the mineralized structure at surface and clearly demonstrated the strength of the seven-km-long gold system delineated on the Pure Gold property.
On October 27, 2020, Pure Gold announced that "...new surface drilling results at Wedge highlight the strong continuity of the high-grade gold mineralization, both down plunge and along strike, reinforcing the Wedge as a high priority for resource growth" and that two surface rigs are expected to continue exploration and expansion drilling into 2021 with well over 30,000 meters planned, and underground drilling is expected to continue over the life of the mine.
“We have high expectations for the West Madsen project given it has the same geological characteristics as recent gold discoveries in the Red Lake Greenstone Belt,” said Michael Romanik president of GoldON. “The Pure Gold property has confirmed the potential for high-grade gold mineralization observed near this particular crustal-break structure and the recent work completed by our partner, Great Bear, highlights the potential for gold mineralization along these major crustal breaks within not only mafic volcanic rocks but also within the contact intermediate to felsic volcanic rocks.”
Red Lake specialists, Rimini Exploration & Consulting, are managing the West Madsen Project for GoldON. Rimini's principals have over 40 years of combined management and exploration experience specific to the Red Lake Greenstone Belt that spans grassroots exploration to reserve replacement. Rimini was recently acknowledged for its contribution to Great Bear's Dixie Project and the new high-grade gold discovery, the "Bear-Rimini Zone".
Terms of the Great Bear Option Agreement
To earn an initial 60% interest in the West Madsen - Block A and Block B, GoldON must:
a) incur minimum Exploration Expenditures on the Property, as follows:
(i) $100,000 on or before the first anniversary of the Agreement (exceeded);
(ii) a cumulative total of not less than $350,000 on or before the second anniversary (exceeded); and
(iii) a cumulative total of not less than $750,000 on or before the third anniversary; and
b) pay cash to Great Bear as follows:
(i) $50,000 within 10 days of signing the Agreement (paid);
(ii) $50,000 on or before 10 days after the first anniversary (paid); and
(iii) $75,000 on or before 10 days after the second anniversary; and
c) issue common shares of GoldON to Great Bear as follows:
(i) 250,000 Shares within 10 days of signing the Agreement (paid);
(ii) 250,000 Shares on or before 10 days after the first anniversary (paid); and
(iii) 375,000 Shares on or before 10 days after the second anniversary.
In order to earn the remaining 40% interest, for a total of 100% interest, GoldON must:
a) incur additional Exploration Expenditures on the Property of at least $750,000 on or before the fourth anniversary of the Agreement, and
b) pay $500,000 cash or issue 500,000 Shares to Great Bear at GoldON’s election on or before 15 days after the third anniversary of the Agreement.
Great Bear will retain a 2.5% Net Smelter Return royalty after GoldON completes the initial 60% earn-in. GoldON shall have the right to buy back 1% of the Royalty for $500,000 at any time prior to a production decision being made on all or part of the Property.
Terms of the Bounty Gold Corp. Option Agreement
To complete the acquisition of the Flat Lake and Madsen-Medicine Stone claim groups, GoldON paid Bounty Gold a total of $80,000 in cash and 250,000 common shares. GoldON now owns a 100% interest in the claim groups and Bounty retains a 2% net smelter returns royalty of which GoldON may purchase half for $1,000,000.
Slate Falls Property:
The Slate Falls project is underexplored and has yet to reveal the source of the numerous high-grade gold and silver showings identified across the ten-plus-kilometre property. While our current focus remains on our Red Lake projects, we are looking forward to returning to Slate Falls and investigating the five new exploration areas identified in 2020 where deformation, folding, shearing and faulting have been mapped,” Michael Romanik president of GoldON.
GoldON owns a 100% interest in the 5,656-hectare Slate Falls Property subject to an underlying 2% net smelter returns royalty. A discovery-stage project, Slate Falls represents an excellent risk/reward exploration scenario with fieldwork to date having identified at least 18 gold (Au) and silver (Ag) zones that have produced rock, chip, channel and drill core sample assays of up to 861.3 g/t Au and 3,025 g/t Ag.
The Slate Falls Property (the "Property") lies between the Red Lake and Pickle Lake gold camps in the southwestern extension of the Meen-Dempster Greenstone Belt that is hosted within the Uchi Subprovince, one of the most metal-endowed Archean greenstone assemblages in the world (see regional map above).
Mineralized showings identified on the Property including the Carpenter, Fly, FTM, J. Loon, L1, L15, Path, Sanderson and Trail Zones. These zones are part of the Slate Falls Deformation Zone and extend for over 10 kilometres (km) in strike and 1.5 km in width within the Property's boundaries. All zones host high-grade Au-Ag mineralization and are related to regional fold axes and structures that provide traps for mineralizing fluids (see maps below).
The Property has seen sporadic exploration starting in the 1920s after the gold discoveries at Red Lake and Pickle Lake. To date, GoldON has focused its exploration efforts on a few of the Property's historical high-grade gold and silver showings. Highlights of the latest work include mapping and sampling that returned up to 331.76 grams per tonne (g/t) Au and 3,025 g/t Ag from grab sampling of the shear-hosted polymetallic quartz veins at the Trail and Sanderson Zones (see news release of June 25, 2019). This was followed by an eight-hole diamond drilling program to further investigate the Au-Ag mineralization at the Trail and Sanderson Zones where the best result was a narrow interval of 78.5 g/t Au and 73.7 g/t Ag over 0.24 metres at Sanderson East (see news release of February 25, 2020).
Results of the Orix data compilation and reinterpretation study are as follows:
A vastly improved geological map that has turned a ‘sea of green' into a concise stratigraphic and folded layering of various volcanic, ultra-mafic and felsic intrusive lithologies.
Extension of the greenstone belt into previously interpreted bounding felsic intrusive plutons.
Three deformational events (D1, D2 and D3).
Late syn- to post D3 structures.
Increased knowledge in the relationship between structure and known mineralization.
Many important mineralized zones are in/or proximal to either major early D2 generally dextral east-west shear zones or splays. Similarly, the intersection of late D3 north northeast striking structures with early D2 east-west structures appears to control the mineralized zones structurally by creating or enhancing dilatational sites. Areas along the strike of the major shear zones as well as fault intersections are key potential target areas for future exploration.
The results of the Orix study was incorporated into an independent Technical Report prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") - click here to download Report.
1) The FTM Zone (traced for 500m) now appears to be associated with a fold axis proximal or along a felsic intrusive. This brittle environment crosscut by north northeast structures can provide important traps and pathways for mineralization and thus presents a horizon as a target with high merit.
2) Probable ultra-mafic bodies were better defined by the airborne magnetic survey and associated cross-cutting structural features make these lithologies conducive for possible re-mobilized Cu-Ni mineralization. Structurally damaged ultra-mafic bodies in the Uchi Subprovince are also important hosts for gold mineralization.
3) The extent of volcanic assemblages and possible F2 fold axes in the Scanes Pluton not previously mapped or recognized is also a target of high merit for gold, Ni-Cu- PGE or even VMS-type mineralization.
4) Gold mineralization associated at the Fly Zone in a sericite-amphibole schist in contact with an iron formation and associated structure is another target of high merit. Cross-cutting structural features should be investigated for sulphidation of magnetite, grunerite (amphibole) alteration and shear related quartz veining as a banded iron formation hosted gold deposit model.
5) Structures hosting polymetallic mineralization whether in volcanic packages or within syn-deformational felsic rocks such as the North Bamaji Pluton on the western side of the property should be investigated for a possible Archean-related Au-(Cu) porphyry model deposit.
The Slate Falls Property is located in the Patricia Mining District between the Red Lake and Pickle Lake Gold Camps. The Fry Lake-Bamaji Lake Deformation Zone passes through the Property representing first and second-order crustal-scale structures that cut stratigraphy and are similar to and contemporaneous with the stratigraphy that hosts the past-producing Golden Patricia Gold Mine, which produced 620,000 ounces of gold at 15 g/t Au between 1988-1997 and lies 30 kilometres to the northeast.
The Property is located approximately 5 km northeast of the community of Slate Falls, 90 km west of Pickle Lake, 120 km north of the community of Sioux Lookout and 160 km east of Red Lake, Ontario. The community of Slate Falls is accessible by an all-weather road and regionally the area is well traversed by logging roads and trails. Slate Falls is also accessible by float- or ski-equipped plane charters from Pickle Lake, Sioux Lookout or Red Lake. A major hydroelectric transmission corridor, extending from Ear Falls to Pickle Lake, crosses the Property.
GoldON owns a 100% interest in the Property subject to a 2% net smelter returns royalty, of which the Company may purchase 1% for $1,000,000.
Pipestone Bay Property:
As we dive deeper into the data on the Pipestone Bay project it appears to be at a more advanced stage then we had initially thought. Previous operators have spent millions on exploration over the years yet priority drill targets remain untested,” Michael Romanik president of GoldON.
Located within the Red Lake Greenstone Belt approximately 32 kilometres (km) west of the town of Red Lake, the Property lies in an area of numerous significant gold occurrences with four developed prospects and two past producers located within 1.5 km of the claim boundary. GoldON entered into an option agreement in 2019 to earn a 100% interest in the original claim blocks and subsequently acquired additional claims by staking and cash purchase to increase the land package to a contiguous 914 hectares.
The Property has many similar geological characteristics that make the Red Lake Greenstone Belt such a prolific gold camp. These include deformation zones, thrust faults, folded iron formation, Balmer Assemblage ultra-mafic lithologies, an unconformity, alteration (potassic, silicic, carbonate), high-grade gold veins and disseminated copper mineralization.
GoldON recently completed a heliborne high-resolution magnetometer (MAG) survey to cover the Property, and Orix Geoscience has now completed a data compilation and reinterpretation study incorporating the 2020 MAG survey data with all known lithological and mineralogical information and structural measurements.
The results of the Orix study are a greater understanding of the geological and structural framework of the Property as summarized below:
1. A wide zone of low magnetic intensity occurs at the contact of mafic-ultramafic units with northern felsic intrusive rocks is the western continuation of the Pipestone Bay - St. Paul Bay Deformation Zone with possible dextral shearing.
2. Two phases of deformation (D1 and D2) are identified in the surface reinterpretation causing F1 and F2 folds.
3. Late faults and shear zones dominantly strike north-northwest and north-northeast, crosscut and locally displace the early structures.
4. The 991 Showing is possibly controlled by an early E-W structure that is likely a second-order structure to the Pipestone Bay - St Paul Bay Deformation Zone.
5. Other notable mineralization occurs in iron formation units or proximal to fault intersections.
The Property's primary target is the 991 Zone which consists of narrow pyrite, chalcopyrite bearing quartz veins within a brecciated felsic volcanic unit in contact with a folded ultra-mafic horizon. Work on the Property by a previous operator, Redstar Gold Corp., confirmed visible gold occurs in several veins with grab samples yielding 22.27 grams per tonne (g/t) Au. In 2004, Redstar drilled a single hole (RGC-004) that was collared into an ultramafic unit north of the 991 Zone and drilled to the south. The hole intersected a 200-metre-wide zone of strongly quartz and sericite altered felsic stratigraphy with pyrite and chalcopyrite stringer mineralization and anomalous (>100 ppb) gold values.
Sampling completed on the 991 Zone by GoldON in May 2020 confirmed high-grade gold mineralization with seven grab samples ranging in value from 0.006 g/t Au to 44.9 g/t Au. Grab samples are selected samples and are not necessarily representative of the mineralization hosted on the property. Two high-priority diamond drill holes have been recommended by Orix to target the 991 Zone mineralization and related structure.
GoldON has received the exploration and drilling permits for the Property.
The topography of the Property is relatively flat with local areas of relief with outcrop exposure approximately 10%. Access is excellent via MacIntosh Road.
In June 2019, GoldON signed an option agreement to acquire the Pipestone Bay property along with the McDonough property that is also located in the Red Lake Mining District. Under the terms of the option agreement, GoldON can acquire a 100% interest in both properties from EMX Royalty Corp. (formerly Perry English) for cash payments totalling $45,100 over a three-year period ($10,100 was paid upon regulatory acceptance, $10,000 was paid on the first anniversary, $10,000 is due on the second anniversary and a final payment of $15,000 is due on the third anniversary); and the issuance of 110,000 shares over a two-year period (10,000 shares were paid upon regulatory acceptance, 50,000 shares were paid on the first anniversary and 50,000 shares are due on the second anniversary). EMX Royalty will retain a 1.5% NSR royalty, of which the Company may repurchase 0.75% for $400,000.
The McDonough soils are lighting up along the contact between an iron formation clast dominated conglomerate and the mafic volcanics right at the intersection of NNE and NNW structures which are ideal conditions for gold mineralization. This brings another one of our Red Lake projects to the drill-ready stage,” Michael Romanik president of GoldON.
GoldON has an option to earn a 100% interest in the Property, subject to 1.5% net smelter returns (NSR) royalty. Located 15 kilometres (km) north of the town of Red Lake, the 1,062-hectare Property is contiguous with Battle North Gold's (formerly Rubicon Minerals) Slate Bay gold property and straddles a regional unconformity that is a key structural signature of many mines within the Red Lake Greenstone Belt.
GoldON had Prospectair Geosurveys complete a property-wide heliborne high-resolution magnetometer (MAG) earlier this year; and subsequent work by Orix has included a data compilation and reinterpretation study incorporating the 2020 MAG survey data with all known lithological and mineralogical information and structural measurements. The result of the Orix study is a far better understanding of the geological and structural framework of the Property.
Results of the data compilation and reinterpretation study are as follows:
-Good correlation of anomalous soil samples up to 253 ppb along the contact of an iron formation clast dominated conglomerate and intermediate to felsic volcanic suite at the intersection of north-northeast (NNE) and north-northwest (NNW) structures (see map below).
-Two phases of deformation (D1 and D2) are identified in the surface reinterpretation causing F1 and F2 folds.
-Late faults and shear zones dominantly strike NNW and NNE, crosscut and locally displace the early structures.
-The presence of iron formation which has been broadly locally folded and displaced by late structure.
-A wider range in lithological types and greater definition of contacts.
A primary target area has now been identified within the Property where elevated soil samples overly the contact between an iron-formation clast dominated conglomerate (Huston Assemblage) and intermediate to felsic volcanics at northeast and northwest intersecting structures (see map above). The Huston Assemblage has been compared to the Timiskaming conglomerates commonly associated with gold in the Timmins camp of the Abitibi greenstone belt (Dube et al, 2003). The structural environment is key to forming pathways for gold-bearing hydrothermal fluids and the iron contained in the clasts should provide chemistry to precipitate gold-bearing sulphides. The presence of iron formation that has been structurally disrupted also provides a target of merit as an Archean-hosted iron formation gold hosted deposit model similar to the Musselwhite, Pickle Crow and Beardmore-Geraldton gold camps that are also located in Ontario.
Reconnaissance soil sampling completed by GoldON in 2019 and 2020 on the Property ranged in values from 1-253 ppb Au.
The topography of the Property is relatively flat with outcrop exposure less than 10%. Much of the area has been logged over the last 15 years leaving a network of trails with excellent access via Pine Ridge Road. Recent logging has provided even greater access to some of the key portions of the Property identified in the MAG survey.
In June 2019, GoldON signed an option agreement to acquire the McDonough property along with the Pipestone Bay property that is also located in the Red Lake Mining District. Under the terms of the option agreement, GoldON can acquire a 100% interest in both properties from EMX Royalty Corp. (formerly Perry English) for cash payments totalling $45,100 over a three-year period ($10,100 was paid upon regulatory acceptance, $10,000 was paid on the first anniversary, $10,000 is due on the second anniversary and a final payment of $15,000 is due on the third anniversary); and the issuance of 110,000 shares over a two-year period (10,000 shares were paid upon regulatory acceptance, 50,000 shares were paid on the first anniversary and 50,000 shares are due on the second anniversary). EMX Royalty will retain a 1.5% NSR royalty, of which the Company may repurchase 0.75% for $400,000.
Bruce Lake Property:
Great Bear Resources has demonstrated that high-grade gold discoveries within the metal-endowed Uchi Belt can be found outside of the Red Lake Camp, and our Bruce Lake property has the key ingredients for gold deposition common to the Belt including structure, deformation zones and active geology. It also adjoins BTU Metals’ Dixie Halo property where they are drilling a potential Cu-Ag-Au VMS-style system called the TNT Target that borders our western claim boundary,” Michael Romanik president of GoldON.
GoldON optioned the original 1,640-hectare (80 claim cells) Bruce Lake property earlier this year (see news release of March 28, 2019) and increased the land package to 3,103 hectares this summer with the staking of an additional 72 claim cells. The Property is situated in an underexplored area of the Uchi Greenstone Belt.
The Property adjoins BTU Metals ("BTU") Dixie Halo property, where they have been drilling to confirm the potential of a new volcanogenic massive sulphide (VMS) discovery called the TNT Target (see BTU’s news release of December 16, 2019, and the map above for proximity of TNT Target to GoldON’s Property boundary). The Property is also approximately 11 km southeast of the multiple high-grade gold discoveries Great Bear Resources has made to date on its Dixie property and shares its southern boundary with Great Bear’s Pakwash property. Ontario provincial Highway 105 bisects the Property providing year-round access to and from the regional infrastructure with the town of Red Lake ~36 km northwest.
Geologically, the Property appears to host the same lithologies encountered in the drill program ongoing by BTU. Rock types intersected in their drilling to date include highly altered and bleached basalt, rhyodacite tuffs and flows as well as felsic and mafic intrusive bodies (see BTU's news release of December 16, 2019). According to the Ontario Geological Survey regional map in this area, similar rock types can be expected to be beneath the extensive overburden that covers the Property.
Limited historical exploration has been carried out on the Property. Reconnaissance lake sediment and Mobile Metal Ions (MMI) soil geochemistry sampling on 500-meter centers by Laurentian Goldfields in 2010 outlined gold-in-soil and gold-in-sediment anomalies. The gold-in-soil anomalies are considered in situ while the gold-in-sediments lake samples are down ice from the Property. This suggests that the Property itself could be the source of the gold anomaly. These targets and the Property remain undrilled.
Under the terms of the option agreement, GoldON can acquire a 100% interest in the original 80-claim-cell Bruce Lake Property from EMX Royalty Corp. (formerly Perry English) for cash payments totalling $51,500 over a three-year period ($4,500 was paid upon regulatory acceptance, $10,000 was paid on the first anniversary, $12,000 is due on the second anniversary and a final payment of $25,000 is due on the third anniversary) and the issuance of 110,000 shares over a two-year period (10,000 were paid upon regulatory acceptance, 50,000 were paid on the first anniversary and 50,000 shares are due on the second anniversary). EMX Royalty will retain a 1.5% net smelter returns royalty, of which the Company may repurchase 0.75% for $400,000.
GoldON Resources Ltd. is traded on the OTC under the ticker symbol NCMBF. This is not investment advice. Please view the disclaimer found on this website.