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PIPESTONE BAY PROPERTY

As we dive deeper into the data on the Pipestone Bay project it appears to be at a more advanced stage then we had initially thought. Previous operators have spent millions on exploration over the years yet priority drill targets remain untested,” Michael Romanik president of GoldON.

Located within the Red Lake Greenstone Belt approximately 32 kilometres (km) west of the town of Red Lake, the Property lies in an area of numerous significant gold occurrences with four developed prospects and two past producers located within 1.5 km of the claim boundary. GoldON entered into an option agreement in 2019 to earn a 100% interest in the original claim blocks and subsequently acquired additional claims by staking and cash purchase to increase the land package to a contiguous 914 hectares.

The Property has many similar geological characteristics that make the Red Lake Greenstone Belt such a prolific gold camp. These include deformation zones, thrust faults, folded iron formation, Balmer Assemblage ultra-mafic lithologies, an unconformity, alteration (potassic, silicic, carbonate), high-grade gold veins and disseminated copper mineralization.

GoldON recently completed a heliborne high-resolution magnetometer (MAG) survey to cover the Property, and Orix Geoscience has now completed a data compilation and reinterpretation study incorporating the 2020 MAG survey data with all known lithological and mineralogical information and structural measurements.

The results of the Orix study are a greater understanding of the geological and structural framework of the Property as summarized below:

  1. A wide zone of low magnetic intensity occurs at the contact of mafic-ultramafic units with northern felsic intrusive rocks is the western continuation of the Pipestone Bay - St. Paul Bay Deformation Zone with possible dextral shearing.
  1. Two phases of deformation (D1 and D2) are identified in the surface reinterpretation causing F1 and F2 folds.
  1. Late faults and shear zones dominantly strike north-northwest and north-northeast, crosscut and locally displace the early structures.
  1. The 991 Showing is possibly controlled by an early E-W structure that is likely a second-order structure to the Pipestone Bay - St Paul Bay Deformation Zone.
  1. Other notable mineralization occurs in iron formation units or proximal to fault intersections.

The Property's primary target is the 991 Zone which consists of narrow pyrite, chalcopyrite bearing quartz veins within a brecciated felsic volcanic unit in contact with a folded ultra-mafic horizon. Work on the Property by a previous operator, Redstar Gold Corp., confirmed visible gold occurs in several veins with grab samples yielding 22.27 grams per tonne (g/t) Au. In 2004, Redstar drilled a single hole (RGC-004) that was collared into an ultramafic unit north of the 991 Zone and drilled to the south. The hole intersected a 200-metre-wide zone of strongly quartz and sericite altered felsic stratigraphy with pyrite and chalcopyrite stringer mineralization and anomalous (>100 ppb) gold values.

Sampling completed on the 991 Zone by GoldON in May 2020 confirmed high-grade gold mineralization with seven grab samples ranging in value from 0.006 g/t Au to 44.9 g/t Au. Grab samples are selected samples and are not necessarily representative of the mineralization hosted on the property. Two high-priority diamond drill holes have been recommended by Orix to target the 991 Zone mineralization and related structure.

GoldON has received the exploration and drilling permits for the Property.

The topography of the Property is relatively flat with local areas of relief with outcrop exposure approximately 10%. Access is excellent via MacIntosh Road.

In June 2019, GoldON signed an option agreement to acquire the Pipestone Bay property along with the McDonough property. Under the terms of the option agreement, GoldON can acquire a 100% interest in both properties from EMX Royalty Corp. (formerly Perry English) for cash payments totalling $45,100 over a three-year period ($10,100 was paid upon regulatory acceptance, $10,000 was paid on the first anniversary, $10,000 was paid on the second anniversary and a final payment of $15,000 is due on the third anniversary); and the issuance of 110,000 shares over a two-year period that has been paid. EMX Royalty will retain a 1.5% NSR royalty, of which the Company may repurchase 0.75% for $400,000.