“The obscured favorable geology and proximity to major structural corridors that correlate to both New Gold’s Rainy River Gold-Silver Mine as well as First Mining Finance’s Cameron Gold Project suggest that our Rainy River claim blocks have the potential to host undiscovered gold and base metal mineralization,” said Mike Romanik, President of GoldON. “Access and infrastructure are excellent; and the claims recently added to the Burditt Lake Block bring a high-grade exploration component to the Project.”
GoldON recently optioned 33 unpatented mining claims in the Rainy River Greenstone Belt of northwestern Ontario. The original option agreement announced in October 2016 included 26 claims over three distinct, non-contiguous claim blocks (Tait, Off Lake & Burditt Lake) and the option agreement was amended in June 2017 to include seven additional claims ajoining the Burditt Lake Block. The 33 claims, which make up the Rainy Gold Project, now include the Tait Block consisting of 1 claim covering 128 hectares; the Off Lake Block consisting of 8 claims covering 1,248 hectares; and the Burditt Lake Block consisting of 24 claims covering ~4,512 hectares.
Intermediate gold producer New Gold Inc. is leading activity in the Rainy River Greenstone Belt with the development of its Rainy River Au-Ag Project, which is scheduled to transition from construction to operation in the third quarter of 2017
. According to New Gold’s website
, their new mine contains proven and probable reserves of 3.8 million ounces of gold and 9.4 million ounces of silver as well as measured and indicated resources of 2.6 million ounces of gold and 10.0 million ounces of silver. New Gold also continues to focus on the discovery of additional gold resources with the potential to enhance and extend the commercial life of the project.
Overview of the GoldON’s new Rainy Gold Project claim blocks:
The Burditt Lake claim block adjoins New Gold’s claims and lies 12 kilometers (km) to the northeast and along strike of the New Gold Rainy River Au-Ag mine area. The claims also cover a 7.5 km section of the Helena-Pipestone Fault which is host to Manitou Gold’s Kenwest Property and First Mining Finance’s Cameron Gold Project.
These claims lay within the contact zone between a thick mafic volcanic sequence and the Sabaskong Batholith. Mineralization consists of fine to occasionally coarse native gold, one to two percent fine pyrite and lesser chalcopyrite within deformed quartz veins filling fracture-related dilation zones. Gold is most abundant near and along vein walls, in and around vuggy portions of the veins, and in areas exhibiting some degree of structural complexity or strong ankerite staining. Country rock is essentially unaltered adjacent to most veins, and contacts are generally sharp.
The claims cover ground previously held by Rainy River Resources through an option with Western Warrior Resources in 2008. Prospecting by Rainy River Resources focused on sulphide zones, quartz/quartz-carbonate veins, structures (shears & faults) and lithological boundaries. Significant results from this work program included:
- 10.2 g/t Au, 60.8 g/t Ag with elevated Cu-Pb from a quartz vein;
- four other samples with Au values of 1 to 3 g/t, Ag values of 1.9 to 34.5 g/t and anomalous Cu-Pb-Zn;
- 1.0 g/t Ag, 0.15% Cu, 1.42% Zn with elevated Ni within a shear zone known as the Beven Showing and;
- samples from gabbro outcrops along the logging roads north of Manomin Dam bridge and the Burditt Lake Shaft hosted elevated Ni values.
Rainy River Resources recommended trenching and mapping work programs for the five gold results mentioned above with the Beven Showing identified as a “drill ready” target.
In addition to the above listed occurrences, the new claims cover the Galbraith “B” & “C” gold occurrences. Historical work, first by Western Troy Capital Resources in 1991 and then by Kings Bay Gold in 2012, produced assays up to 97.5 g/t from the Galbraith B gold occurrence. Small veinlets and pods occurring within a few hundred metres of the Galbraith B showing returned gold values ranging from 0.10 g/t to 3.52 g/t. In 2012, Rainy River Resources spent several days prospecting the Galbraith showings as part of its regional exploration efforts to identify potential sources of near surface high grade gold. Rainy River recommended a high density drill program to test the near surface bulk tonnage potential as the next step in the evaluation of the occurrence.
None of the proposed work programs referenced above, including drill testing of the Beven Showing and the Galbraith B occurrence (see map below), were undertaken by the previous operators and the targets remain untested.
The Off Lake claim block lies below the Burditt Lake claims on the southern and eastern shores of Off Lake. The claims are approximately 7.5 km along strike of the New Gold mine area and are underlain by the same intermediate metavolcanic unit that is host to the New Gold mine. The area is structurally complex and an initial review of the geological data in the area suggests that the Off Lake claims are on the edge of the same clay belt that obscured the New Gold mine deposit which would suggest potential for buried mineralization on GoldON’s property. A single copper occurrence is mapped on the property from diamond drilling in 1956 however no assay values are provided by the MNDM.
The Tait claim block is completely surrounded by New Gold claims and lies approximately 3 km to the southwest of the New Gold mine area and resides within the mafic volcanic hanging wall to the New Gold mine/deposit probably emplaced by thrust faulting. Historical exploration work intersected sulfide rich exhalite horizons in the northeastern portion of the claims. A recent compilation revealed a 20 meter-wide interval of elevated zinc values in a historic diamond drill hole as well as a number of untested conductors.
Note: the mineralization hosted on GoldON’s claims is not necessarily similar to the mineralization hosted on the properties of New Gold, First Mining Finance or Manitou Gold referenced above.
Under the terms of the option agreement, GoldON can acquire a 100-per-cent interest in the three claim blocks from a private vendor for cash payments totaling $89,716.50 ($21,216.50 on signing which has been paid) over a four year period, the issuance of 100,000 shares (50,000 upon signing) over a two year period and a 2-per-cent net smelter returns royalty, of which the Company may repurchase half for $1 million.
GoldON’s Rainy Gold project is located within the Rainy River Greenstone Belt and all three of the non-contiguous claim blocks that either adjoin or are surrounded by New Gold’s Rainy River Au-Ag Mine project property.
All three of the Rainy Gold claim blocks are fully permitted for exploration and drilling through January 2020.