Labrador Gold Doubles Number of Drill Rigs to Four and Increases Drilling Program to 50,000 Metres at Kingsway
June 17 2021 - 07:00AM
Labrador Gold Corp. (TSX.V: LAB | OTCQX: NKOSF | FNR: 2N6)
(“LabGold” or the “Company”) is pleased to announce that it is
expanding the current drill program from 20,000 metres to 50,000
metres and plans to increase the number of drill rigs to four.
Highlights
- The decision to
increase the current drill program to 50,000 metres was made
following a review of the multiple targets along the 7.5 km quartz
vein corridor adjacent to the 12 km strike length of the Appleton
Fault Zone.
- Approximately 4,000
metres of drilling has been completed at Big Vein.
- The Company
currently has $36 million in working capital and is well funded for
the expanded program.
- The core facility
has been upgraded to meet the demands of the increased
program.
- Assay results from
two holes containing visible gold are expected in the coming
weeks.
“We are very encouraged by the initial results of our drilling
at Kingsway and feel like we are on the cusp of a discovery”, said
Roger Moss, President and CEO of LabGold. “The additional drills
will enable more rapid testing of the high-grade target at Big Vein
as well as along the enclosing quartz vein corridor that shows
multiple areas requiring follow up drilling. We expect an exciting
summer at Kingsway with good news flow on results from drilling and
systematic exploration along the Appleton Fault Zone.”
Qualified Person
Roger Moss, PhD., P.Geo., President and CEO of LabGold, a
Qualified Person in accordance with Canadian regulatory
requirements as set out in NI 43-101, has read and approved the
scientific and technical information that forms the basis for the
disclosure contained in this release.
The Company gratefully acknowledges the
Newfoundland and Labrador Ministry of Natural Resources’ Junior
Exploration Assistance (JEA) Program for its financial support for
exploration of the Kingsway property.
About Labrador GoldLabrador Gold is a Canadian
based mineral exploration company focused on the acquisition and
exploration of prospective gold projects in Eastern Canada and is
well capitalized to fund its exploration with working capital of
approximately $36 million.
In early March 2020, Labrador Gold acquired the
option to earn a 100% interest in the Kingsway project in the
Gander area of Newfoundland. The three licenses comprising the
Kingsway project cover approximately 16km of the Appleton fault
zone which is associated with gold occurrences in the region,
including the New Found Gold discovery. Infrastructure in the area
is excellent located just 18km from the town of Gander with road
access to the project, nearby electricity and abundant local water.
LabGold recently began a diamond drill program targeting high grade
gold mineralization associated with the visible gold showing at Big
Vein.
The Hopedale property covers much of the Hunt
River and Florence Lake greenstone belts that stretch over 80 km.
The belts are typical of greenstone belts around the world but have
been underexplored by comparison. Initial work by Labrador Gold
during 2017 show gold anomalies in soils and lake sediments over a
3 kilometre section of the northern portion of the Florence Lake
greenstone belt in the vicinity of the known Thurber Dog gold
showing where grab samples assayed up to 7.8g/t gold. In addition,
anomalous gold in soil and lake sediment samples occur over
approximately 40 kilometres along the southern section of the
greenstone belt (see news release dated January 25th 2018 for more
details). Labrador Gold now controls approximately 57km strike
length of the Florence Lake Greenstone Belt.
The Ashuanipi gold project is located just 35 km
from the historical iron ore mining community of Schefferville,
which is linked by rail to the port of Sept Iles, Quebec in the
south. The claim blocks cover large lake sediment gold anomalies
that, with the exception of local prospecting, have not seen a
systematic modern day exploration program. Results of the 2017
reconnaissance exploration program following up the lake sediment
anomalies show gold anomalies in soils and lake sediments over a 15
kilometre long by 2 to 6 kilometre wide north-south trend and over
a 14 kilometre long by 2 to 4 kilometre wide east-west trend. The
anomalies appear to be broadly associated with magnetic highs and
do not show any correlation with specific rock types on a regional
scale (see news release dated January 18th 2018). This suggests a
possible structural control on the localization of the gold
anomalies. Historical work 30 km north on the Quebec side led to
gold intersections of up to 2.23 grams per tonne (g/t) Au over
19.55 metres (not true width) (Source: IOS Services
Geoscientifiques, 2012, Exploration and geological reconnaissance
work in the Goodwood River Area, Sheffor Project, Summer Field
Season 2011). Gold in both areas appears to be associated with
similar rock types.
The Company has 150,477,206 common shares issued
and outstanding and trades on the TSX Venture Exchange under the
symbol LAB.
For more information please contact:
Roger Moss, President and
CEO Tel: 416-704-8291
Or visit our website
at: www.labradorgold.com
Twitter: @LabGoldCorp
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-Looking
Statements: This news release contains
forward-looking statements that involve risks and uncertainties,
which may cause actual results to differ materially from the
statements made. When used in this document, the words “may”,
“would”, “could”, “will”, “intend”, “plan”, “anticipate”,
“believe”, “estimate”, “expect” and similar expressions are
intended to identify forward-looking statements. Such statements
reflect our current views with respect to future events and are
subject to risks and uncertainties. Many factors could cause our
actual results to differ materially from the statements made,
including those factors discussed in filings made by us with the
Canadian securities regulatory authorities. Should one or more of
these risks and uncertainties, such as actual results of current
exploration programs, the general risks associated with the mining
industry, the price of gold and other metals, currency and interest
rate fluctuations, increased competition and general economic and
market factors, occur or should assumptions underlying the forward
looking statements prove incorrect, actual results may vary
materially from those described herein as intended, planned,
anticipated, or expected. We do not intend and do not assume any
obligation to update these forward-looking statements, except as
required by law. Shareholders are cautioned not to put undue
reliance on such forward-looking statements.
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