The best trade/investment setups tend to occur when fundamental factors and technical factors align. From my estimation, the stars are aligning for GoldON Resources (TSX-V:GLD) and its phase 2 drill program at its West Madsen Project in the Red Lake Gold District of Ontario.
The chart technicals show GLD shares sitting right at important support/resistance near $.75 as Relative Strength and Money Flow exhibits bullish characteristics. A clean breakout above this resistance should target $1.00+. Meanwhile, there is strong support below near the $.60 level.
The fundamental factors that are aligning for GoldON are as follows:
- A fully funded 7,000+ meter (13 proposed holes ranging from 500-750 meters each) phase 2 drill program at GoldON’s West Madsen Project in the heart of Red Lake.
- Pure Gold’s Red Lake Mine (adjacent to West Madsen) is set to be Canada’s next gold mine with the first gold pour within roughly 30 days.
- Pure Gold’s reserves and resources are hosted in a 7-km-long gold system that follows the major crustal break or contact between the Balmer and Confederation assemblages.
- GoldON is drilling virgin territory at West Madsen that has never seen a drill before.
- Drill hole targeting is focused on the prospective, along strike extension of Pure Gold’s seven-kilometer-long gold system that follows the major crustal break or contact between the Balmer and Confederation assemblages and trends from East to West across the GoldON property. Extensive gold mineralization in the Red Lake Greenstone belt is observed in close proximity to this contact.
- The Balmer-Confederation contact has been exposed in outcrop 1.6 kilometers west of the Pure Gold property boundary and is interpreted to continue for ~8 km across GoldON’s property.
The significance of being located in the heart of Canada’s Fort Knox, the Red Lake Gold District, is hard to overestimate. Pure Gold is set to pour its first gold within the next month and the boundary of GoldON’s West Madsen property boundary is less than 1 kilometer from Pure Gold’s Wedge Zone – the Wedge Zone has produced stunning high-grade gold intercepts including 33.3 grams/tonne gold over 8.3 meters and 21.3 grams/tonne gold over 10.3 meters.
Pure Gold’s first production is sure to draw considerable attention to Red Lake, and to Pure Gold’s neighbors, including GoldON and Great Bear.
GoldON’s fully funded 7,000-meter phase 2 drill program at West Madsen is a tremendous potential catalyst for a company with a C$15 million market cap. However, GoldON is much more than just West Madsen; the company has an impressive portfolio of projects that includes three additional projects around Red Lake including (Pipestone Bay, McDonough, and Bruce Lake) and a fifth project (Slate Falls) located between the Red Lake and Pickle Lake gold camps.
Bruce Lake is a sleeper project in GoldON’s portfolio that happens to be surrounded by larger companies such as Great Bear Resources (TSX-V:GBR) and BTU Metals (TSX-V:BTU):
“Great Bear has demonstrated that high-grade gold discoveries within the metal-endowed Uchi Belt can be found outside of the Red Lake Camp, and our Bruce Lake property has the key ingredients for gold deposition common to the Belt including structure, deformation zones and active geology. It also adjoins BTU Metals’ Dixie Halo property where they are drilling a potential Cu-Ag-Au VMS-style system called the TNT Target that borders our western claim boundary,” ~ Michael Romanik President and CEO, GoldON Resources.
Limited historical exploration has been carried out on the Bruce Lake Property. Reconnaissance lake sediment and Mobile Metal Ions (MMI) soil geochemistry sampling on 500-meter centers by Laurentian Goldfields in 2010 outlined gold-in-soil and gold-in-sediment anomalies. The gold-in-soil anomalies are considered in situ while the gold-in-sediments lake samples are down ice from the Property. This suggests that the Property itself could be the source of the gold anomaly. These targets and the Property remain undrilled.
Investors could hear more about Bruce Lake in January. However, for now the main focus for GoldON is its fully funded 7,000-meter phase 2 drill program at West Madsen.
GoldON shares offer investors home run potential in the near term as drill results from West Madsen come back from the lab. Meanwhile, GoldON’s current C$15 million market capitalization is well supported by a carefully assembled and highly prospective asset portfolio in and around one of Canada’s most prolific gold producing regions, Red Lake.
I own GoldON shares and I have increased my position in the last week.
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. GoldON Resources Ltd. is a high-risk venture stock and not suitable for most investors. Consult GoldON Resources Ltd.’s SEDAR profile for important risk disclosures.
EnergyandGold has been compensated for marketing & promotional services by GoldON Resources Ltd. so some of EnergyandGold.com’s coverage could be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
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