West Madsen adjoins Canada’s newest gold mine

GoldON Resources (TSXV: GLD) decided to accelerate its option agreement with Bounty Gold and acquired a 100% interest in the two claim blocks that adjoin Block A of the West Madsen gold project in Ontario, Canada.

With this addition, West Madsen becomes contiguous to Pure Gold’s Red Lake property, Canada’s newest high-grade gold mine.

To complete the acquisition of the claims, which are known as Flat Lake and Madsen-Medicine Stone, GoldON had to pay Bounty $80,000 in cash and issue 250,000 common shares. Bounty will retain a 2% net smelter return royalty of which GoldON may purchase half for $1 million.

Besides adjoining Red Lake, the acquisition expands West Madsen to 5,862 hectares of gold exploration real estate. 

According to GoldON, some 2,100 metres of the proposed 7,000-metre Phase II drilling program were completed before the December break and assays are pending. 

“The focus of the Phase II drilling program is to aggressively test the strike-extension of both the known gold mineralization to the east and follow-up on the gold mineralization discovered during GoldON’s Phase I drilling,” the miner said in a media statement.