- GoldON Resources (TSXV:GLD) has received an exploration drilling permit for the West Madsen gold property in Ontario
- The proposed drill program will evaluate four main targets running east to west on the property’s Block A
- The program is fully funded, and the company is currently fielding bids from contractors
- Pursuant to an agreement signed in May 2019, GoldON has the option to acquire 100 per cent of the property from Great Bear Resources
- GoldON Resources (GLD) is currently up 3.23 per cent to C$0.64 per share, with a market cap of $10.79 million
GoldON Resources (TSXV:GLD) has received an exploration drilling permit for the West Madsen gold property in north-west Ontario.
The West Madsen property is estimated to sit on an extension of the Red Lake Greenstone Belt. It’s comprised of two contagious claim blocks, Block A and Block B, which cover approximately 3,860 hectares.
West Madsen lies directly next to Pure Gold’s Red Lake Mine, which has historical production of 2.6 million ounces of gold, as well as a current indicated resource estimate of 2,063,000 ounces of gold.
The proposed drill program will focus on four of the six main drill targets, which run east to west and parallel to magnetic lineaments on Block A. It’s thought that these lineaments represent the contact between the Balmer and Confederation assemblages, similar to structural patterns found at the Red Lake Mine.
GoldON is currently evaluating a range of drill bids, and plans to finalise drilling recommendations and budget requirements once all bids have been received. The company says that it has the necessary funds to complete the drill program.
Mike Romanik, President of GoldON Resources, said that he is thrilled to be preparing for an initial drilling campaign within a year of signing the option agreement with Great Bear Resources.
“The Ontario Government has deemed mining and exploration an essential business and we will be commencing the drill program as soon as logistically possible,” he added.
Pursuant to an agreement signed in May 2019, GoldON has the option to acquire 100 per cent of the West Madsen gold property from Great Bear Resources. The company currently owns 60 per cent of the property.
In order to acquire the remaining 40 per cent, GoldON must incur C$750,000 in exploration expenses at the site within four years of signing the agreement. The company must also issue either $500,000 in cash or 500,000 common shares to Great Bear within 15 days of the third anniversary of the agreement.
GoldON Resources (GLD) is currently up 3.23 per cent to $0.64 per share at 1:55pm EST.