GoldON Provides Prospecting and SGH Soil Survey Update on West Madsen Project in Ontario's Red Lake Gold Camp

West Madsen Property adjoins Pure Gold’s Madsen Project where first gold production is anticipated in late 2020

VICTORIA, September 4, 2019 - GoldON Resources Ltd. (TSXV:GLD) (“GoldON” or the “Company”) is pleased to provide an exploration update on the West Madsen gold property (See Claim Map) recently optioned from Great Bear Resources (see news release of May 28, 2019).

Highlights of exploration results to date include:

• Discovery of potential ultramafic rocks on the Property has significant implications given that most of the historical gold production and current reserves at Pure Gold’s Madsen Project are hosted within the Balmer Assemblage in close proximity to the ultramafic rocks.
• SGH soil survey results identified a potential redox cell with three associated areas for potential gold mineralization (Figure 4).

GoldON’s summer fieldwork on the West Madsen property included a property-scale, grassroots prospecting survey and a 3-D Spatiotemporal Gas Hydrocarbon (“SGH”) soil survey.

The West Madsen property is directly adjacent to Pure Gold’s Madsen Property and is interpreted to host the extension of the Balmer Assemblage rocks of the Red Lake Greenstone Belt. This assemblage is host to Pure Gold’s Madsen Red Lake Gold Mine with a historical production of 2.6 million ounces of gold and a current indicated resource of 2,063,000 ounces gold at 8.9 g/t gold (in 7.2 million tonnes), an inferred resource of 467,000 ounces gold at 7.7 g/t gold (in 1.9 million tonnes) (see NI 43-101 Technical Report filed July 5, 2019 www.puregoldmining.ca).

Prospecting and geological mapping on West Madsen Block A has identified two ultramafic boulders on the shoreline of an island in Tack Lake that are interpreted to be part of the Balmer Assemblage volcanic rocks. This ultramafic stratigraphy was not previously recognized on the 2004 regional Geological Survey of Canada Sanborn-Barrie et.al. geology map (GSC Open File 4594). The ultramafic boulders, measuring 1.0 by 1.5 metres are sub-angular in nature and indicate that they are locally sourced. At the adjacent Madsen Project (6 km to the east) Pure Gold states: “Primary lithological control on gold distribution includes proximity to the contacts of an ultramafic unit within the upper several hundred metres of the Balmer Assemblage. Most gold mineralization is located within approximately 100 m of one of these ultramafic contacts, in rock characterized by strong to intense alteration” (see National Instrument 43-101 Technical Report filed July 5, 2019 www.puregoldmining.ca).

“The discovery of these potentially local-sourced ultramafic rocks on the Property has significant implications given that most of the historical gold production and current reserves at Pure Gold’s Madsen Project are hosted within the Balmer Assemblage in close proximity to the ultramafic rocks,” said Mike Romanik president of GoldON. “These initial exploration results at West Madsen are particularly exciting in light of the acceleration of exploration and mine development in the surrounding area.”

Given the indication of potential key stratigraphy on the Property, select samples of mafic rocks sampled from outcrop, along with the ultramafic rocks, will be analyzed for Rare Earth Elements (REE) so that their geochemical normalized profiles can be compared to those of typical Balmer and Confederation assemblage rocks. The results for these REE follow-up samples are pending.

Prospecting Program

The prospecting survey collected a combined 218 rock grab samples from West Madsen Block A and Block B, with the majority of samples collected from outcrop (Figure 1).

Figure 1: Prospecting and soil survey locations for the West Madsen Property

On Block A the results returned broad, low-grade gold anomalies near the projected contact of the Balmer and Confederation Assemblages, including 1.25 g/t gold from a banded iron formation (Figure 2). These results are located approximately 4 kilometres (km) west of Pure Gold’s Wedge Zone. During the summer of 2019 Pure Gold commenced a 12,000 metre surface diamond drilling program at the Madsen Property which included surface diamond drilling at the Wedge Zone. Results from that program have expanded the Wedge deposit extent with several new bonanza grade gold intercepts including 108.5 g/t gold over 1.0 metres, 94.6 g/t gold over 1.0 metres and 13.8 g/t gold over 1.0 metres (Pure Gold news release of July 30, 2019).

Figure 2: Anomalous gold along projected contact of Balmer and Confederation Assemblages with location of ultramafic boulders on Tack Lake.

Block B samples taken were primarily felsic-intermediate volcanic rocks with varying degrees of sulphide mineralization, quartz veining and alteration. Twenty-one samples were collected southwest of Lower Medicine Stone Lake with all but four returning anomalous results up to 153 ppb gold (Figure 3).

Figure 3: Prospecting samples from Block B. Circle highlights an area with relatively little exploration but majority of samples taken were anomalous for gold.

3-D Spatiotemporal Geochemical Hydrocarbon Soil Survey

A total of 451 soil samples were collected from Block A for a 3-D Spatiotemporal Geochemical Hydrocarbon (SGH) soil survey. The survey results identified a potential redox cell with three associated areas for potential gold mineralization (Figure 4).

Figure 4: SGH survey on Block A with Actlabs interpreted redox zone and potential gold targets.

SGH is a versatile geochemical exploration technique offered by Activation Laboratories Ltd. that is optimal for areas which may not have a well-developed soil horizon. This analytical technique does not directly test for gold mineralization but analyzes for the hydrocarbons that are released by bacteria which feed on the inorganic compounds that are strongly associated with mineralization. The hydrocarbons, which are specific to the targeted commodity, are released at depth and then present themselves in a variety of surficial materials.

GoldON’s option partner, Great Bear Resources, completed a 145 sample SGH survey at their Dixie Project. This survey was successful in identifying the known high-grade mineralization of the Hinge and Limb Zones. After the success of that survey, Great Bear added an additional 2,100 sample SGH soil survey over the Bear-Rimini discovery area (Great Bear news release of August 1, 2019).

Independent analysis of the SGH survey results on Block A provided by Activation Laboratories Ltd. (Report dated Aug 7, 2019) contained the following highlights:

• Figure 4 shows the anomalies from the most reliable SGH Pathfinder Class in predicting the presence of gold mineralization. This map shows the anomalies in the central portion of the survey at the center and outer rim of a possible redox zone. Mineralization might exist at these locations as a vertical projection beneath these anomalies.
• Interpretation of the SGH data (Figure 4) relative to the presence of gold mineralization at the GoldON survey area may be based on what may appear to be the presence of a Redox Zone. Based also on the makeup of the SGH signatures, these Redox Zones may be associated with the possible presence of gold mineralization.

Figure 5 displays the SGH survey targets overlain on a geophysical magnetic survey of the area. The interpreted magnetic breaks and disruptions of the stratigraphic and structural trends correlate well with the identified SGH gold targets and redox zone. These target areas appear to be on trend from the mineralized areas on the adjacent Pure Gold property.

Figure 5: SGH survey on Block A with Actlabs interpreted redox zone and potential gold targets.

The 2019 West Madsen Property summer field program was successful in identifying potential ultramafic rocks of Balmer stratigraphy, extending anomalous gold mineralization along the projected contact between the Balmer and Confederation Assemblages and recognizing a relatively new area of anomalous gold for Block B.

Recommendations include:

• A prospecting and geological mapping program near Block A anomalous samples and the “Gold Zones” identified by the SGH survey with emphasis on collecting structural data that could identify mineralization controls and define drill targets.
• A SGH survey west of Tack Lake. Tack Lake has newly identified ultramafic float along its shoreline and is located along the projected contact of the Confederation and Balmer stratigraphy. This geological/structural environment is similar to the adjacent Madsen Mine increasing the priority of exploration in this area.
• A prospecting program to investigate the anomalous sample from Block B.
• These programs could be followed up with a 1,500 metre diamond drilling program focusing on the possible ultramafic at Tack Lake and the gold zones identified from the SGH surveys.

R. Bob Singh, 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 GoldON Resources Ltd.

GoldON is an exploration company focused on discovery-stage properties located in the prolific gold mining belts of northwestern Ontario, Canada. Active projects include the West Madsen property in the Red Lake Gold Camp and our flagship Slate Falls property in the Patricia Mining Division where 18 Au-Ag mineralized zones have been identified over the 11-kilometre breadth of the property. GoldON has 14,124,782 shares issued and is fully funded to complete its summer work programs.

For additional information please visit our website and you can view our latest presentation by clicking here.

ON BEHALF OF THE BOARD

Signed “Michael Romanik”

Michael Romanik, President
Direct line: (204) 724-0613
Email: romanikm@mymts.net

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.

SOURCE: GoldON Resources Ltd.