GoldON Expands West Madsen Project Acquiring Two Adjoining Claim Blocks that are Contiguous with Pure Gold’s Red Lake Mine Property The prospective Balmer-Confederation contact is interpreted to transect the expanded Property for 8.0 kilometres
GoldON Resources Ltd. | 108 - 800 Kelly Road, Suite 416, Victoria, BC V9B 6J9 | Tel.: (250) 474-7999
FOR IMMEDIATE RELEASE
GoldON Expands West Madsen Project Acquiring
Two Adjoining Claim Blocks that are Contiguous with
Pure Gold’s Red Lake Mine Property
The prospective Balmer-Confederation contact is interpreted to transect the
expanded Property for 8.0 kilometres
VICTORIA, BC July 29th, 2020 – GoldON Resources Ltd. (TSX-V: GLD) (“GoldON” or the
“Company”) is pleased to announce it has ente red 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
GoldON Resources Ltd. | 108 - 800 Kelly Road, Suite 416, Victoria, BC V9B 6J9 | Tel.: (250) 474-7999
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 40 0 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-hectar e Madsen-Medicine Stone Claim
Group adjoin West Madsen - Block A, while the eastern claim bou ndary adjoins Pure Gold’s
property within 1 km of their Wedge zone (see Figure 1 & 2 abov e). 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 as semblages. The Balmer-Confederat ion 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 e xposure. This area is a high-p riority 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 struct ural interpretation of a 2017 r egional airborne magnetic survey
completed by Great Bear Resource s in conjunction with surface t renching and the recent drilling
results, the prospective Balmer-Confederation contact is interp reted to transect the Madsen-
Medicine Stone claims and continue on to the West Madsen - Bloc k 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 ove r two years and issuing
GoldON Resources Ltd. | 108 - 800 Kelly Road, Suite 416, Victoria, BC V9B 6J9 | Tel.: (250) 474-7999
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 o f 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 thro ugh 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 (Bl ock "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 prop erty, which is the highest-grad e 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 b ased 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 g eological 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 compan y focused on discovery-stage pro perties 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 (Sla te 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 d evoted 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”
GoldON Resources Ltd. | 108 - 800 Kelly Road, Suite 416, Victoria, BC V9B 6J9 | Tel.: (250) 474-7999
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.