(TheNewswire)
Vancouver, British Columbia, May 21, 2024 – TheNews w ire – Global Stocks News – On May 16, 2024 GoldON Resources (TSXV: GLD) announced that it is planning the next phase of drilling onBlock A , part of it 100%-owned West Madsengold property in Ontario, Canada.
Located in the heart of the Red Lake Gold District,GoldON’s 5,988-hectare property covers two distinct claim blocks,Block A (east) and Block B (west). The blocks are separated by lessthan 100 metres. The total footprint of both blocks is 15 X biggerthan Stanley Park in Vancouver.
“ We optioned The West Madsen Gold Project in May 2019 fromGreat Bear Resources ,” GoldON CEO Michael Romaniktold Guy Bennett, the CEO of Global Stocks News (GSN).
“The property ticks all the boxes for a goldexploration project,” stated Romanik in the May 2019 press release.“It’s in the heart of theprolific Red Lake Camp , adjoins the highest-grade golddevelopment project in Canada, and we have Great Bear Resources as a partner and technical advisor.”
“We paid Great Bear $175,000 Cash, 1.3 million shares and grantedthem a 2.5% Net Smelter Royalty (NSR),” Romanik told GSN. “We thenspent $1.5 million on exploration which earned us 100% interest in theWest Madsen Property.”
Flash forward five years from the 2019 acquisition, the Red LakeDistrict property map, and gold investment sentiment, look verydifferent. Pure Gold’s asset has been purchased by West Red LakeGold, while the price of gold has almost doubled to $2,400/ounce.
Six weeks ago, GLD received a permit for explorationdrilling at the West Madsen goldproperty.
The next phase of drilling will focus on Block A whereprevious drilling has confirmed gold mineralization in severaldifferent geological environments.
Block A adjoins the Madsen mine property acquired lastyear by West Red Lake Gold Mines (WRLG).
The announced planning phase will be conducted by Orix Geoscience a Toronto-based company that specialises in strategicexploration through data optimization and geomatic techniques.
Orix’s team of ProjectGeologists includes Mike Kilbourne, who is aTechnical Consultant to GoldON.
Phase One includes a GIS compilation ofall historical work , geological, geophysical,and drillhole data from work by GoldON, and the integration ofrelevant government datasets.
Phase Two is an independent review of the2020 geophysical interpretation to gain a betterunderstanding of the structural and lithological controls of goldmineralization.
The bulk of the mineral resources on the Madsen mineproperty are hosted in a ~7-kilometre-long gold trend that follows the major crustal break orcontact between the rock packages of the Balmer and Confederationassemblages .
The same Balmer-Confederation contact has been observedin outcrop approximately 1.5km west of the Block A eastern claim boundary and identified within an ~8-km corridor of disrupted regionalmagnetics that traverses Block A from the Madsen mine property.
“GoldON's exploration efforts, combined with the workof Great Bear, have provided valuable clues to support the theory thata more robust gold mineralization system may potentially reside withinthe Confederation Assemblage of Block A,” stated GLD.
“GoldON is also not alone in its re-evaluation of the exploration potentialof the Confederation Assemblage ,” continuedGLD. “West Red Lake Gold recently outlined its 2024 explorationstrategy which highlighted particular interest in the exploration potential that could existwithin the Confederation Assemblage that makesup approximately 50% of the Madsen land package and remainsunderexplored.”
The Red Lake Gold District has yielded over 30 millionounces of gold from high-grade zones and hosts some of the world'srichest gold deposits. But the rocks are complex, requiringhigh-level geological expertise.
“We’re lucky to have PerryEnglish , who in 2015 vended claims to Great Bear Resourceswhich currently form part of their Dixie Lake gold discoveryholdings ,” Romanik told GSN. “English has a deep well ofknowledge in these complicated gold systems. He received the OntarioProspectors Association’s Prospector of the Year Award in 2007.”
“We did two phases of drilling in 2020-21. In the first phase , we hit 14 grams/tonne gold over half ameter . And we discovered Balmer rocks that had never been foundin drill core in that area before.”
"GoldON has just crossed a discovery threshold that many juniorcompanies struggle to reach,” stated Chris Taylor then President and CEO of GreatBear .
“In the second phase ofdrilling, we focused on the Confederation Assemblage of rockswhich West Red Lake Gold is now discussing,” added Romanik. “Weplan to follow up on drill hole WM-21-22 which hit a widespread zone of anomalous gold over 195meters .”
In the last 3 months, the price of gold has risen fromUSD $2,022 to $2,400. After a predictable lag, the share price ofjunior gold companies is starting to accelerate.
“According to the World Gold Council, the globalaverage total expenses forgold miners stood at $1,342 per ounce in thelast quarter of 2023, highlighting the potential for substantial profits atcurrent price levels ,” reports Kitco News .
Historically, most of the discovered gold in Red Lake area has been inthe Balmer rocks. The explorationpotential for gold mineralization within felsic rocks of the Confederation Assemblage waselevated by Great Bear Resources' discovery of the LP Fault at the Dixie property in 2019.
Instead of intermittent high-grade, vein-hosted gold mineralizationthat is typical of the Red Lake Camp, Great Bear found continuous sheet-like mineralization withhigh-grade gold occurring within a lower-grade mineralizedhalo . Kinross Gold Corp. crystalized the significance of the LPFault discovery when they acquired Great Bear in February 2022 for $1.8billion .
“In Block A we have the crustal break between the Balmer andConfederation assemblages,” concluded Romanik. “That's a keyenvironment to look for gold.”
Contact: guy.bennett@globalstocksnews.com
Disclaimer: GoldON paid GSN $1,500 CND for theresearch, writing and dissemination of this content.
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