REDLAKE NORTH PROPERTY

Our Red Lake North property appears to host all the structural ingredients that have been integral to the formation of the Red Lake Mine Complex. The Project is now fully permitted and we are looking forward to receiving the recommendations from Orix Geoscience," Michael Romanik president of GoldON.

In February 2021, GoldON entered into an option agreement to acquire a 100% interest in the Red Lake North property (the “Property”). Comprised of nine contiguous mining claims covering 3,347 hectares, the Property is located in the Red Lake Mining District of Northwestern Ontario approximately 65 kilometres (km) north of the town of Red Lake. (see Figure 1). Access is excellent via Nungesser Road, an all-weather road that runs within 1.5 km of the northwestern corner of the Property and connects to Red Lake.

Figure 1: Property location with total field magnetic signatures

The Property is hosted within the newly termed "Red Lake Extension" which is a volcanic-sediment band of rocks that stretches over 100 km and connects with the McInnes Lake Greenstone Belt. Age determinations (by Sanborn et al., 2004 at 2.94 Ga) suggest the belt is related to the Balmer Assemblage which is host to the majority of gold mines in the Red Lake Camp. A recent study by the Ministry of Energy, Northern Development and Mines - Ontario Geological Survey (OGS) (see Recommendations for Exploration 2020-2021) suggests that a seismic pronounced structure along this belt termed the "E1" is similar in nature and significance to the Red Lake gold mines and the LP Fault of Great Bear Resources' Dixie Gold Project (see Figure 2).

Figure 2: Red Lake Lithoprobe cross-section showing third deep-tapping seismic structure

Preliminary mapping of the upper Red Lake Extension completed by Buse (2007) identified felsic and volcanic rocks, felsic to mafic intrusive rocks, and metasedimentary rocks. Buse (2007) also identified a shear zone that corresponds to the hypothetical location of the deep-tapping E1 seismic structure. An overburden sampling program by Agnico Eagle Canada Ltd. (see Figure 3), provides the only assessment report filed within this region (Villeneuve and Girard 2010). This overburden sampling program identified several anomalous overburden gold values stretching from Berens Lake southward for 35 km. Numerous overburden samples from the 95th percentile to over the 99th percentile in gold are dotted throughout this belt (AFRI 20008369).

Figure 3: Historical gold-in-till anomalies located on the Property

GoldON hired Prospectair Geosurveys to complete a heliborne high-resolution magnetometer (MAG) survey that consisted of 740 line-km with 50 metre (m) line spacings to cover the Property. In conjunction with the MAG survey, Dynamic Discovery Geosciences was engaged to interpret the new geophysical data.

Preliminary interpretation of the first vertical derivative reveals a wide shear/deformation zone varying from 100 m to 750 m in width within a magnetic low transecting the property (Figure 4).

Figure 4:Magnetic signature of the Red Lake North property and preliminary structural interpretation

This wide corridor is interpreted to be the E1 crustal-scale extensional shear zone postulated by Zeng and Calvert (2006) from seismic reflection studies north of Red Lake. The E1 shear hosts second-order structures postulated to providing fluid pathways for the gold mineralization of the Red Lake Mine Complex (Zeng and Calvert, 2006). A similar structure, the E3, has second-order fault systems associated with the gold mineralization at Great Bear's LP Fault discovery (see Figure 2 above and Great Bear’s news release of June 3, 2021).

GoldON's Red Lake North property appears to have a similar structural environment as the Red Lake Mine Complex and Great Bear’s Dixie Project where a deep-seated first-order shear appears to have a network of second-order structures. These are important structural shear zones that are common hosts to orogenic gold deposits (Feng and Kerrich, 1992).

As a next step, GoldON has commissioned Orix Geoscience to compile all historical exploration and reinterpret the surface geology and associated structure from the recently completed MAG survey. The objective of the Orix study is to gain a better understanding of the geological and structural framework of the Property which will aid in targeting future exploration efforts.

The Red Lake North Extension is underexplored and host to seismic structural characteristics similar to the Red Lake Gold Camp and the LP Fault of Great Bear’s Dixie Gold Project,” said Mike Romanik president of GoldON. “This type of structural and geological intuitiveness could lead to exciting new discoveries in an underexplored volcanic-sedimentary belt.”

Under the terms of the option agreement, GoldON can acquire a 100% interest in the Property for cash payments totaling $109,000 over two years ($27,000 upon regulatory acceptance, $36,000 on the first anniversary, and a final payment of $46,000 on the second anniversary); and the issuance of 90,000 common shares over two years (30,000 upon regulatory acceptance, 30,000 shares on the first anniversary and 30,000 shares on the second anniversary). The vendor will retain a 1.5% net smelter returns royalty, of which the Company may repurchase 0.5% for $600,000