GoldON Resources Corporate Update Five discovery-stage gold projects in Northwestern Ontario and fully funded to complete current exploration plans
FOR IMMEDIATE RELEASE
GoldON Resources Corporate Update
Five discovery-stage gold projects in Northwestern Ontario and fully funded to
complete current exploration plans
VICTORIA, BC – February 16, 2021 – GoldON Resources Ltd. (TSX-V: GLD) (“GoldON” or
the “Company”) is a Canadian gold explorer focused on discovery through the e xploration of
overlooked and underexplored properties, and is pleased to provide an overview of the Company.
Capital Structure:
GoldON has no debt other than current trade payables and has ra ised approximately $2,856,000
over the last five months at an average price of $0.73 per shar e, with the latest financing closed
with Mr. Eric Sprott. Share capitalization includes 22,318,292 common shares issued, 4,882,633
common share purchase warrants exercisable at an average price of $0.77, 2,616,000 incentive
stock options exercisable at an average price of $0.41, and 29,816,925 common shares outstanding
on a fully diluted basis assuming all warrants and options are exercised. Insider ownership is
approximately fifteen percent of shares issued and GoldON’s Pre sident Michael Romanik is the
largest individual shareholder. The current market cap based on shares issued is ~$11,000,000.
A Geographic Focus:
The Company is focused on exploring discovery-stage properties in the pro-mining jurisdictions
of northwestern Ontario, a regi on that contains some of the mos t prolific gold producing belts in
the world. Our current projects include the West Madsen, Pipestone Bay, McDonough and Bruce
Lake properties all located in the Red Lake Mining District and the Slate Falls property in the
Patricia Mining District (see regional map with property locations).
All our properties are in good standing and a summary of each project follows:
West Madsen Property
A fully funded Phase II explora tion drilling program is in prog ress at the West Madsen property
that is contiguous with the Pure Gold Red Lake Mine property, w here they poured first gold on
December 29, 2020 and anticipate being in commercial production by the end of Q1 2021 (see Pure
Gold’s news release of December 30, 2020 ). Pure Gold’s reserves and resources are hosted in a
seven-kilometre-long gold system that follows the major crustal break or contact between the
Balmer and Confederation assemblages. GoldON’s drilling recently intersected this same Balmer-
Confederation contact on its property 1.6 kilometres (km) west of the Pure Gold property boundary
(see news release of February 9, 2020). This prospective contact is interpreted to continue for ~8
km across Block A of GoldON’s property (see area map with drilling plan).
To date, 4,150 metres of the proposed 7,000 metre Phase II prog ram have been drilled over nine
holes to test the strike extension of both the known gold miner alization to the east and follow-up
on the gold mineralization discovered during GoldON’s Phase I drilling in 2020. The prospective
Balmer Assemblage volcanic rocks have been identified in six of nine holes and drill core sample
assays are pending from four holes.
The West Madsen property covers 5 ,862 hectares in the heart of the Red Lake Gold Camp and is
comprised of the original Block A and B claim groups, where GoldON has the right to earn a 100%
interest through an option agre ement with Great Bear Resources (see news release of May 28,
2019); the Flat Lake and Madsen-Medicine Stone claim groups that Go ldON purchased from
Bounty Gold (see news release of January 7, 2021); and claims GoldON acquired via staking in
December (see Red Lake regional map).
Pipestone Bay Property
The Pipestone Bay property is a drill-ready project hosted alon g the Pipestone Bay Deformation
Zone and has many key geological signatures that make the Red L ake Greenstone Belt such a
prolific gold camp including si licification, sericite, biotite and chlorite alteration, visible gold in
quartz veins, D2 folding and crustal-scale structures. The property is located approximately 32 km
west of the town of Red Lake in an active area with multiple dr ill programs in progress by other
junior explorers (see area map).
In 2020, GoldON hired Prospectair Geosurveys to complete a heli borne high-resolution
magnetometer (MAG) survey to cover the property; and then had Orix Geoscience complete a data
compilation and reinterpretati on study incorporating the MAG su rvey data with all known
lithological and mineralogical information, and structural measurements. The Orix study provided
a greater understanding of the geo logical and structural framew ork of the property and
recommended diamond drilling to target the 991 Zone mineralization that may be controlled by an
early E-W structure that is likely a second-order structure to t h e P i p e s t o n e B a y - S t P a u l B a y
Deformation Zone (see news release of August 27, 2020). Drill permits are in place.
GoldON has an option agreement to acquire a 100% interest in the 914-hectares property.
McDonough Property
Located ~15 km north of the town of Red Lake, the McDonough pro perty straddles a regional
unconformity that is a key struc tural signature of many deposit s within the Red Lake Greenstone
Belt. The property is contiguous w ith Battle North Gold's Slate Bay and DMC gold properties in
an area that should see increased activity this year with Battl e North announcing a $10 million
regional exploration budget for th eir Red Lake properties last fall and applying for winter drill
permits (see Battle North news releases of September 29, 2020 and November 16, 2020).
In 2020, GoldON hired Orix Geoscience to complete a data compilation and reinterpretation study
incorporating data from a 2020 MAG survey with all known historical information on the property.
Results from the Orix study included the identification of a primary target area within the property
where elevated soil samples ove rly the contact between an iron- formation clast dominated
conglomerate (Huston Assemblage) and intermediate to felsic volcanics at northeast and northwest
intersecting structures (see geology map and news release of September 29, 2019). GoldON is now
in the process of planning an induced polarization (IP) survey to further define the target(s). Drill
permits are in place.
GoldON has an option agreement to acquire a 100% interest in the 1,062-hectare property.
Bruce Lake Property
Located ~36 km southeast of the town of Red Lake, the Bruce Lak e property is in a structurally
active area spatially associated with east-west trending deform ation zones and northeast-trending
faults. Historical gol d-in-soil and gold-i n-sediment anomalies suggest the property could be the
source of the gold and targets remain undrilled. Additionally, drilling by BTU Metals on the
adjoining Dixie Halo property has discovered a potential Cu-Au-Ag VMS-style system called the
TNT Target that borders the wes tern claim boundary. Further dri ll testing in the area by BTU is
anticipated this year and GoldON has drill permits in place (see plan view map)
GoldON has an option to acquire a 100% interest in the 3,103-hectare property.
Slate Falls Property
The 5,657-hectare Slate Falls property is located within the so uthwestern extension of the Meen-
Dempster Greenstone Belt between the Red Lake and Pickle Lake gold camps. Key regional-scale
structures correlate with numerous high-grade gold and silver s howings that have been identified
including the Carpenter, Fly, FTM, J. Loon, L1, L15, Path, Sand erson and Trail Zones These
showings are part of the Slate Falls Deformation Zone and extend for over 10 km in strike and 1.5
km in width within the land package.
In 2020, GoldON hired Orix Geoscience to take a broader look at the property and complete a
structural study incorporating data from a 2020 MAG survey with all known lithological and
mineralogical information and st ructural measurements. Results from the study inc lude a vastly
improved geological understanding of the property and recommend ations for exploration in five
new areas where deformation, folding, shearing and faulting have been mapped (see geology map
with target areas and National Instrument 43-101 Technical Report).
Despite the compelling exploration potential Slate Falls has demonstrated, GoldON’s current focus
is on its Red Lake area projects. The property is 100% owned, subject to a 2% net smelter returns
(NSR) royalty, and GoldON may consider bringing in a joint-venture partner or a spinout of Slate
Falls in the near future.
Mike Kilbourne, P. Geo, an indep endent qualified person as defi ned in NI 43-101, has reviewed
and approved the technical contents of this news release on behalf of the Company.
Strategic Advisor
Referred to as a one-man project generator, Perry English joine d GoldON as strategic advisor in
early 2019. Perry is an experienced prospector specializing in northwestern Ontario and has been
instrumental in helping the Company source quality projects in the Red Lake area. The camp
remains extremely active and we are always reviewing new opportunities to bring into the project
portfolio that offer intriguing risk/reward metrics.
“While our current focus is squarely on the drilling campaign i n progress at our West Madsen
Project, we are also continuing to advance our other projects t o the drill-ready stage,” said Mike
Romanik president of GoldON. “Th e goal is to create value for o ur shareholders through
discovery.”
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 (Slate Falls). GoldON is fully funded to
complete the Phase II drilling program in progress at West Madsen.
For additional information: please visit our website at goldonresources.com, you can download
our latest investor 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
GoldON Resources Ltd.
Direct line: (204) 724-0613
Email: [email protected]
Suite 108 - 800 Kelly Road, Suite 416
Victoria, BC, V9B 6J9
Forward-Looking Statements:
This news release may contain “f orward-looking statements” that involve known and unknown risks, uncertainties,
assumptions and other factors th at may cause the actual results , performance or achievements of the Company to be
materially different from any future results, performance or achievements expressed or implied by the forward-looking
statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be
required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or otherwise.
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.