GoldON Prepares to Drill its West Madsen Gold Property, as Gold Price Hits All Time High
(TheNewswire)
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Vancouver, British Columbia, May 21, 2024 – TheNewswire – Global Stocks News – On May 16, 2024 GoldON Resources (TSXV: GLD) announced that it is planning the next phase of drilling on Block A, part of it 100%-owned West Madsen gold 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 less than 100 metres. The total footprint of both blocks is 15 X bigger than Stanley Park in Vancouver.
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“We optioned The West Madsen Gold Project in May 2019 from Great Bear Resources,” GoldON CEO Michael Romanik told Guy Bennett, the CEO of Global Stocks News (GSN).
“The property ticks all the boxes for a gold exploration project,” stated Romanik in the May 2019 press release. “It’s in the heart of the prolific Red Lake Camp, adjoins the highest-grade gold development project in Canada, and we have Great Bear Resources as a partner and technical advisor.”
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“We paid Great Bear $175,000 Cash, 1.3 million shares and granted them a 2.5% Net Smelter Royalty (NSR),” Romanik told GSN. “We then spent $1.5 million on exploration which earned us 100% interest in the West Madsen Property.”
Flash forward five years from the 2019 acquisition, the Red Lake District property map, and gold investment sentiment, look very different. Pure Gold’s asset has been purchased by West Red Lake Gold, while the price of gold has almost doubled to $2,400/ounce.
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Six weeks ago, GLD received a permit for exploration drilling at the West Madsen gold property.
The next phase of drilling will focus on Block A where previous drilling has confirmed gold mineralization in several different geological environments.
Block A adjoins the Madsen mine property acquired last year by West Red Lake Gold Mines (WRLG).
The announced planning phase will be conducted by Orix Geoscience a Toronto-based company that specialises in strategic exploration through data optimization and geomatic techniques.
Orix’s team of Project Geologists includes Mike Kilbourne, who is a Technical Consultant to GoldON.
Phase One includes a GIS compilation of all historical work, geological, geophysical, and drillhole data from work by GoldON, and the integration of relevant government datasets.
Phase Two is an independent review of the 2020 geophysical interpretation to gain a better understanding of the structural and lithological controls of gold mineralization.
The bulk of the mineral resources on the Madsen mine property are hosted in a ~7-kilometre-long gold trend that follows the major crustal break or contact between the rock packages of the Balmer and Confederation assemblages.
The same Balmer-Confederation contact has been observed in outcrop approximately 1.5 km west of the Block A eastern claim boundary and identified within an ~8-km corridor of disrupted regional magnetics that traverses Block A from the Madsen mine property.
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“GoldON's exploration efforts, combined with the work of Great Bear, have provided valuable clues to support the theory that a more robust gold mineralization system may potentially reside within the Confederation Assemblage of Block A,” stated GLD.
“GoldON is also not alone in its re-evaluation of the exploration potential of the Confederation Assemblage,” continued GLD. “West Red Lake Gold recently outlined its 2024 exploration strategy which highlighted particular interest in the exploration potential that could exist within the Confederation Assemblage that makes up approximately 50% of the Madsen land package and remains underexplored.”
The Red Lake Gold District has yielded over 30 million ounces of gold from high-grade zones and hosts some of the world's richest gold deposits. But the rocks are complex, requiring high-level geological expertise.
“We’re lucky to have Perry English, who in 2015 vended claims to Great Bear Resources which currently form part of their Dixie Lake gold discovery holdings,” Romanik told GSN. “English has a deep well of knowledge in these complicated gold systems. He received the Ontario Prospectors 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 a meter. And we discovered Balmer rocks that had never been found in drill core in that area before.”
"GoldON has just crossed a discovery threshold that many junior companies struggle to reach,” stated Chris Taylor then President and CEO of Great Bear.
“In the second phase of drilling, we focused on the Confederation Assemblage of rocks which West Red Lake Gold is now discussing,” added Romanik. “We plan to follow up on drill hole WM-21-22 which hit a widespread zone of anomalous gold over 195 meters.”
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In the last 3 months, the price of gold has risen from USD $2,022 to $2,400. After a predictable lag, the share price of junior gold companies is starting to accelerate.
“According to the World Gold Council, the global average total expenses for gold miners stood at $1,342 per ounce in the last quarter of 2023, highlighting the potential for substantial profits at current price levels,” reports Kitco News.
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Historically, most of the discovered gold in Red Lake area has been in the Balmer rocks. The exploration potential for gold mineralization within felsic rocks of the Confederation Assemblage was elevated by Great Bear Resources' discovery of the LP Fault at the Dixie property in 2019.
Instead of intermittent high-grade, vein-hosted gold mineralization that is typical of the Red Lake Camp, Great Bear found continuous sheet-like mineralization with high-grade gold occurring within a lower-grade mineralized halo. Kinross Gold Corp. crystalized the significance of the LP Fault discovery when they acquired Great Bear in February 2022 for $1.8 billion.
“In Block A we have the crustal break between the Balmer and Confederation assemblages,” concluded Romanik. “That's a key environment to look for gold.”
Contact: guy.bennett@globalstocksnews.com
Disclaimer: GoldON paid GSN $1,500 CND for the research, writing and dissemination of this content.
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